Phillips 66 swung to first-quarter earnings of $207 million, or $0.51 a share, from $2.906 billion, or $7.17 a share, in the fourth quarter of 2025.
Adjusted earnings fell to $200 million, or $0.49 a share, from $1.002 billion, or $2.47 a share in the prior quarter. Adjusted EBITDA dropped to $1.268 billion from $2.532 billion.
Cash flow from operations reversed to an outflow of $2.264 billion from an inflow of $2.752 billion in the fourth quarter. Excluding working capital, cash flow from operations was $169 million, down from $2.044 billion. Capital expenditures and investments totaled $582 million, down from $682 million.
The company ended the quarter with $5.150 billion in cash and cash equivalents, up from $1.116 billion at the end of 2025, while debt rose to $27.124 billion from $19.716 billion. The debt-to-capital ratio increased to 48% from 39%, and net debt-to-capital rose to 143% from 38%.
Phillips 66 returned $778 million to shareholders in the quarter, slightly above $756 million in the prior period. That included $269 million in share repurchases and $509 million in dividends, compared with $274 million and $482 million, respectively, in the fourth quarter.
By segment, adjusted earnings were mixed but mostly lower: Midstream: $591 million, down from $717 million Chemicals: $85 million, up from $19 million Refining: $208 million, down from $542 million Marketing and specialties: a loss of $141 million, versus income of $439 million Renewable fuels: a loss of $41 million, compared with a loss of $19 million Corporate and other: a loss of $451 million, versus a loss of $363 million
Adjusted EBITDA by segment also moved lower in several areas: Midstream: $860 million, down from $952 million Chemicals: $250 million, up from $145 million Refining: $423 million, down from $1.019 billion Marketing and specialties: a loss of $86 million, versus income of $488 million Renewable fuels: a loss of $18 million, versus income of $5 million Corporate and other: a loss of $161 million, compared with a loss of $77 million
Operationally, refining ran at 95% capacity utilization, down from 99%, while clean product yield slipped to 87% from 88%. Refining turnaround expense increased to $178 million from $135 million. Realized refining margin fell to $10.11 a barrel from $12.48.
In midstream, NGL pipeline throughput fell to 930 thousand barrels a day from 1.006 million, and NGL fractionation declined to 980 thousand barrels a day from 1.018 million.
Chemicals global operations and production capacity utilization eased to 94% from 97%.
The company also increased its annualized quarterly dividend by 7% and said it ended the quarter with about $6.0 billion in liquidity. Today the company's shares have moved 2.08% to a price of $162.85. For more information, read the company's full 8-K submission here.
