Phillips 66 reported third‑quarter 2025 results on October 29, 2025, delivering net income of $133 million and adjusted earnings of $1.025 billion. Adjusted earnings per share rose to $2.52, while diluted EPS was $0.32, both exceeding consensus estimates. Revenue reached $35.0 billion, beating analyst expectations of $34.5 billion and marking a year‑over‑year increase of roughly 2.5%.
Segment performance was strong across the company’s portfolio. Midstream earnings were $697 million, chemicals added $176 million, refining contributed $430 million, and marketing & specialties delivered $477 million. Adjusted EBITDA reached $2.594 billion. Refining margins improved to $12.15 per barrel, clean‑product yield held at 86%, crude capacity utilization climbed to 99%, and NGL fractionation throughput increased to 930 million barrels per day.
Operating cash flow was $1.178 billion and capital expenditures totaled $541 million. The company returned $751 million to shareholders, comprising $267 million in share repurchases and a $484 million dividend. The quarterly dividend was $1.20 per share, payable on December 1, 2025. Debt stood at $21.755 billion, giving a debt‑to‑capital ratio of 44%, up from 42% in the prior quarter. Phillips 66 maintains a debt target of $17 billion and plans to reduce debt using operating cash flow and proceeds from asset sales.
Strategically, Phillips 66 completed the acquisition of the remaining 50 % interest in WRB Refining LP on October 1, 2025, paying $1.3 billion in cash to gain full ownership of the Wood River and Borger refineries. The company also idled its Los Angeles refinery on October 16, 2025, a move expected to cut average operating costs per barrel by $50 million annually and reduce environmental and depreciation charges. These actions support the company’s focus on margin capture and debt reduction.
Management emphasized that the company remains committed to shareholder value, a solid balance sheet, and disciplined capital allocation. While no new guidance was issued, the company reiterated its focus on improving refining margins, reducing high‑cost refinery exposure, and accelerating growth projects such as the Golden Triangle Polymers Project and the Ras Laffan Polymers Project.
The company’s Q3 performance reflects a rebound in profitability after a challenging first half of the year, driven by higher realized refining margins, stable midstream throughput, and strategic asset optimization. The results reinforce Phillips 66’s position as a leading integrated energy company with a clear path to sustainable growth.
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