Phillips 66 Reports Strong 2025 Financial Results

By Chris Stiles • Wednesday, February 04 11:32 • Permanent Link

Phillips 66 (NYSE: PSX) recently announced its fourth-quarter and full-year 2025 financial results, showcasing significant progress and achievements. The company reported a transformational year with reported fourth-quarter earnings of $2.9 billion or $7.17 per share and adjusted earnings of $1.0 billion or $2.47 per share. This represents a substantial increase from the third-quarter earnings of $133 million.

For the full year 2025, Phillips 66 reported earnings of $4.4 billion or $10.79 per share and adjusted earnings of $2.6 billion or $6.44 per share, signifying an impressive performance.

The company achieved record NGL transportation and fractionation volumes, with an increase of 22% and 23% respectively over the prior year. Additionally, Phillips 66 delivered a record clean product yield of 88% and operated at 99% crude capacity utilization in refining.

In terms of cash flow, Phillips 66 generated $2.8 billion of net operating cash flow in the fourth quarter, with $2.0 billion excluding working capital. For the full year, the company generated $5.0 billion of net operating cash flow, or $6.1 billion excluding working capital.

Phillips 66 also made significant strides in debt reduction, reducing debt by $2.0 billion during the fourth quarter, ending the year at $19.7 billion. Furthermore, the company returned $3.1 billion to shareholders, representing more than 50% of net operating cash flow.

The strategic priorities progress and business highlights include the acquisition of the remaining 50% interest in WRB Refining LP, the sale of a 65% interest in the Germany and Austria retail marketing business, and the cessation of fuel production at the Los Angeles refinery.

The financial results summary demonstrates the company's strong performance, with significant positive changes in earnings, cash flow from operations, capital expenditures, and debt reduction. The segment financial and operating highlights also showcase improvements in various segments, including midstream, chemicals, refining, marketing and specialties, and renewable fuels.

Following these announcements, the company's shares moved -1.24%, and are now trading at a price of $138.28. Check out the company's full 8-K submission here.

The above analysis is intended for educational purposes only and was performed on the basis of publicly available data. It is not to be construed as a recommendation to buy or sell any security. Any buy, sell, or other recommendations mentioned in the article are direct quotations of consensus recommendations from the analysts covering the stock, and do not represent the opinions of Market Inference or its writers. Past performance, accounting data, and inferences about market position and corporate valuation are not reliable indicators of future price movements. Market Inference does not provide financial advice. Investors should conduct their own review and analysis of any company of interest before making an investment decision.