Phillips 66 has reported net earnings of $3.8bn for the second quarter of 2026 (Q2 2026), an increase of 339% from $877m in the same period of the previous year.
The US-based petroleum refineries company’s diluted earnings per share for the quarter ended 30 June 2026 rose by 344% year-over-year (YoY) to $9.55 from $2.15.
Discover B2B Marketing That Performs
Combine business intelligence and editorial excellence to reach engaged professionals across 36 leading media platforms.
Phillips 66 reported sales of $51bn in Q2 2026, an increase of 53% from $33.3bn in the corresponding quarter of the previous year.
The company’s revenue rose by 55% to $52bn from $33.5bn in the prior-year period.
Phillips 66 said higher margins and improved operations drove its Q2 results.
The company’s refining performance was supported by higher margins and improved crack spreads. Midstream business benefitted from stronger margins and volumes.
Chemicals results improved on higher polyethylene prices, while Marketing and Specialties saw increased global marketing margins, the company said.
Adjusted net earnings for the quarter were $3.8bn, up 289% from $973m in the prior-year period. Adjusted diluted earnings per share rose by 295% to $9.41 from $2.38.
Phillips 66’s adjusted earnings before interest, taxes, depreciation and amortisation reached $5.9bn, increasing 136% from $2.5bn a year earlier. Cash flow from operations increased to $7.3bn, compared with $845m in Q2 2025.
Cash flow from operations excluding working capital was $4.3bn, up from $1.9bn. Capital expenditures and investments amounted to $726m, up 24% from $587m in the prior-year period.
Phillips 66 returned $887m to shareholders in the quarter, versus $906m a year earlier, including $379m in share repurchases and $508m in dividends paid.
Total debt as of 30 June 2026 was $20.6bn, down from $20.9bn at the end of the same period last year. Net debt decreased to $16.5bn from the Q2 2025 figure of $20.9bn.
The company’s debt-to-capital ratio improved to 39% from 42%, while the net debt-to-capital ratio decreased to 33% from 41%. Cash and cash equivalents stood at $4.1bn, compared with $1.1bn a year previously.
Phillips 66 reported record natural gas liquids fractionation and liquefied petroleum gas export volumes.
Refining utilisation for the quarter was 96%, with a clean product yield of 86%, compared with 98% and 86%, respectively, in the prior-year period.
During the reported quarter, Phillips 66 achieved full production at its Dos Picos II gas plant in the Permian Basin. The company also announced new projects including the Zeus Gas Plant and Coastal Bend NGL Fractionator.
Phillips 66 said that it completed scheduled maintenance at both its Wood River and Humber refineries in Q2 2026. Major chemical joint ventures such as the Golden Triangle Polymers Project in Texas and the Ras Laffan Polymers Project in Qatar remain on schedule for full operations in 2027, the company said.
Phillips 66 chairman and CEO Mark Lashier said: “Second quarter results reflect the strength of our operations and value of our integrated portfolio. We remain committed to our strategic priorities and continuous improvement.
“Our focus on operating excellence, coupled with our commercial footprint, enables us to reliably supply energy products across the US and to global consumers. Our capital allocation framework is an integral component of the investment opportunity of Phillips 66.
“We remain committed to creating value for our stakeholders through disciplined capital investment, dividends, share repurchases and debt reduction.”
