Phillips 66 has reported net income of $2.9bn, or $7.17 per share, for the fourth quarter of 2025 (Q4 2025), compared to $8m, or $0.01 per share, in the same period the previous year.
Adjusted earnings turned to a profit of $1bn, a notable improvement from an adjusted loss of $61m in Q4 2024.
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Additionally, the company’s adjusted earnings before interest, taxes, depreciation and amortisation (EBITDA) grew by 124% to $2.5bn, compared to $1.1bn in the prior year.
Adjusted diluted earnings per share also improved, reaching $2.47 from a loss of $0.15 previously.
Cash flow from operations increased by 129%, amounting to $2.8bn versus $1.2bn a year earlier.
Excluding working capital, cash flow from operations rose by 127%, totalling $2.04bn, compared to $901m in the previous year.
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By GlobalDataCapital expenditures and investments witnessed an increase of 35%, totalling $682m in Q4 2025, up from $506m in the same period of 2024.
In Q4, Phillips 66 reached record levels in NGL transportation and fractionation, with each surpassing one million barrels per day.
The refining sector delivered a clean product yield of 88% and operated at 99% crude capacity utilisation in Q4 2025.
For the full year 2025, the company reported earnings of $4.4bn, or $10.79 per share, along with adjusted earnings of $2.6bn, or $6.44 per share, which included $964m in pre-tax accelerated depreciation for the Los Angeles Refinery.
The year also saw portfolio enhancement through asset sales and purchases totalling $3.5bn each.
In strategic developments, Phillips 66 acquired full ownership of WRB Refining, gaining complete control over the Wood River and Borger refineries, while offloading a 65% stake in its Germany and Austria retail marketing business.
The company also ceased fuel production at its Los Angeles Refinery and initiated an open season for remaining Western Gateway Pipeline capacity, with expanded origins and destinations including Los Angeles.
Further plans include acquiring the Lindsey Oil Refinery and associated logistics assets in early 2026 to bolster its UK integrated business.
In Q4 2025, Phillips 66’s earnings rose to $2.9bn from $133m in Q3, boosted by pre-tax adjustments related to asset sales and segment impacts.
The midstream segment’s adjusted pre-tax income grew due to higher volumes despite reduced margins, while the chemicals segment saw a decrease from margin reductions.
The acquisition of WRB Refining improved refining income, but the marketing and specialities segment faced declines due to asset sales and lower domestic margins, countered by higher UK margins and cost reductions.
Renewable fuels benefitted from higher realised margins, while corporate losses remained stable.
Phillips 66 chairman and CEO Mark Lashier said: “2025 was a transformative year for Phillips 66. We sold the majority of our European retail business, acquired the remaining 50% interest in WRB, and improved our Midstream competitive position with the acquisition of Coastal Bend and expansion of Dos Picos II.
“While enhancing our portfolio to focus on our core assets and geographies, we have also taken a disciplined approach to improving operations, particularly in refining, and upheld our unwavering commitment to safety.
“As we look to 2026, focused execution of our strategy, disciplined capital allocation and world-class operations will enable further debt reduction and our continuing commitment to return cash flow to shareholders.”
