Phillips 66 Reports Strong Q2 Earnings

By Ahmed Jameison • Friday, July 25 15:26 • Permanent Link

Phillips 66 (NYSE: PSX) has reported strong financial and operating results for the second quarter of 2025. The company’s reported earnings for the quarter were $877 million, a significant increase from $487 million in the first quarter of 2025. Adjusted earnings for the second quarter were $973 million, a substantial improvement from an adjusted loss of $368 million in the first quarter.

In terms of segment financial and operating highlights, several changes are notable. In the Midstream segment, adjusted pre-tax income increased, mainly due to higher volumes driven by the acquisition of Coastal Bend. The Chemicals segment saw a decrease in adjusted pre-tax income, primarily due to lower margins driven by lower sales prices. The Refining segment experienced an increase in adjusted pre-tax results, mainly due to higher realized margins, improved market crack spreads, and lower costs. The Marketing and Specialties segment also saw an increase in adjusted pre-tax income, primarily due to higher margins and volumes. Additionally, the Renewable Fuels segment showed improvement in pre-tax results due to higher realized margins and increased credits.

Looking at the financial results, the company generated $845 million of net operating cash flow, with $1.9 billion generated excluding working capital. Phillips 66 returned $906 million to shareholders through dividends and share repurchases. The company had $1.1 billion of cash and cash equivalents and $3.7 billion of committed capacity available under credit facilities as of June 30, 2025.

In terms of operational highlights, Phillips 66 achieved a record year-to-date clean product yield of 87%, reflecting a 2% increase from the same period in 2024. The company also maintained disciplined operations in refining and achieved $5.46 per barrel in refining adjusted controllable costs, excluding adjusted turnaround expense in the second quarter.

Following these announcements, the company's shares moved 1.01%, and are now trading at a price of $125.58. For more information, read the company's full 8-K submission here.

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