Kinder Morgan Inc - Class P
Q4 2025 Earnings
Market Reaction
S&P 500 over the same 30 days: −0.24%.
Did KMI Beat Earnings? Q4 2025 Results
Kinder Morgan closed out fiscal 2025 with a record-setting quarter, posting adjusted earnings of $0.39 per share against a consensus estimate of $0.37 — a 5.41% beat — while revenue of $4.51 billion topped expectations by 2.02% and climbed 13.6% year over year. The standout driver was the company's Natural Gas Pipelines segment, where transport volumes rose 9% on LNG deliveries and gathering volumes surged 19%, reflecting intensifying downstream demand that has pushed Kinder Morgan's project backlog to $10 billion, roughly 90% tied to natural gas infrastructure. Adjusted EBITDA for the quarter reached $2.27 billion, up 10%, as the balance sheet improved to a Net Debt-to-Adjusted EBITDA ratio of 3.8x — a development that coincided with S&P upgrading the company's senior unsecured rating to BBB+ in January 2026. Looking ahead, management guided for 2026 adjusted EPS of $1.36, up 5%, and adjusted EBITDA of $8.60 billion, underpinned by expectations that natural gas demand will grow 17% through 2030, with Kinder Morgan positioned to serve approximately 70% of future data center power demand markets.
- Record Natural Gas Pipelines segment performance driven by higher contributions from Texas Intrastate system, KinderHawk and Outrigger Energy assets
- Natural gas transport volumes up 9% YoY primarily due to LNG deliveries on Tennessee Gas Pipeline
- Natural gas gathering volumes up 19% YoY across all assets with KinderHawk making the largest contribution
- Products Pipelines up on higher transport rates in 2025
- Terminals up led by higher rates and ancillary fees at Houston Ship Channel hub facilities
- Jones Act tanker fleet fully contracted under term charter agreements
- CO2 segment down due to lower commodity and D3 RIN prices, partially offset by higher D3 RIN volumes from increased renewable natural gas sales
“Led by record-setting performance in our Natural Gas Pipelines business segment, the company delivered its highest ever fourth quarter and full-year net income attributable to KMI and Adjusted EBITDA. For the full year, net income attributable to KMI was 17% higher than 2024 while Adjusted EPS and Adjusted EBITDA were 13% and 6% higher than 2024, respectively.”
Kinder Morgan CEO, on the earnings call
Forward Guidance & Outlook
For 2026, KMI budgets net income attributable to KMI of $3.1 billion (flat to 2025, which included a gain on asset sale treated as a certain item), adjusted net income up 5% from 2025, Adjusted EPS of $1.36 (up 5%), dividends of $1.19 per share (up 2%), Adjusted EBITDA of $8.6 billion (up 2.5%), and a year-end Net Debt-to-Adjusted EBITDA ratio of 3.8x. The 2026 budget reflects the December 31, 2025 sale of KMI's equity investment in EagleHawk. Natural gas demand is expected to grow 17% through 2030, led by LNG exports. KMI has long-term contracts to move 8 Bcf/d of natural gas to LNG facilities, projected to grow to 12 Bcf/d by end of 2028, and is exploring more than 10 Bcf/d of opportunities to serve gas-fired power generation. The project backlog stands at $10 billion with an aggregate first-full-year EBITDA multiple of approximately 5.6x.
KMI YoY Financials
KMI Revenue by Segment
Figures from SEC filings and company reports. Not investment advice.