Phillips 66
Q2 2025 Earnings
Market Reaction
S&P 500 over the same 30 days: +1.27%.
Did PSX Beat Earnings? Q2 2025 Results
Phillips 66 delivered a standout second quarter, posting adjusted earnings of $2.38 per diluted share against a Wall Street consensus of $1.71, a beat of 38.91%, while revenue of $33.52 billion topped estimates by 3.72% — even as the top line declined 12.0% year over year amid softer energy markets. The headline story was a dramatic swing in the Refining segment, which reversed a $937 million pre-tax loss from Q1 into $359 million in income as crack spreads improved, crude utilization climbed to 98% — the highest since 2018 — and adjusted controllable costs fell to $5.46 per barrel. Midstream also contributed roughly $1 billion in adjusted EBITDA following the EPIC NGL acquisition, reinforcing Phillips 66's pivot toward more stable fee-based earnings streams. The company returned $906 million to shareholders in the quarter and declared a $1.20 per share dividend payable in September. Looking ahead, management remains on track to wind down the Los Angeles Refinery and close the Germany and Austria retail transaction by year-end, milestones that will shape how <a href="https://247wallst.com/investing/2026/02/18/marathon-petroleum-vs-phillips-66-which-refining-giant-wins-as-energy-sector-dominates-2026/">the company stacks up</a> against refining peers heading into 2026.
- 98% crude capacity utilization in Refining, highest since 2018
- Lowest refining adjusted controllable cost per barrel since 2021 at $5.46 excluding turnaround expense
- Record year-to-date clean product yield of 87%, a 2% increase from same period in 2024
- Higher realized refining margins from improved market crack spreads
- Midstream volume growth driven by Coastal Bend acquisition
- NGL fractionation volumes increased to 883 MB/D from 748 MB/D sequentially
- Y-Grade pipeline throughput increased to 956 MB/D from 704 MB/D sequentially
- Higher marketing margins and volumes
- Worldwide realized refining margins of $11.25/BBL in Q2 vs $6.81/BBL in Q1
- U.S. realized marketing fuel margins rose to $2.83/BBL from $1.36/BBL sequentially
- Adjusted EBITDA of $2,501 million in Q2 vs $736 million in Q1
“Phillips 66 delivered strong financial and operating results across our integrated value chain, reflecting the continued execution of our strategy. During the quarter, Refining ran at the highest utilization since 2018, achieved its lowest cost per barrel since 2021, strong market capture and record year-to-date clean product yield. Our results were made possible through disciplined execution and investment.”
Phillips 66 CEO, on the earnings call
Forward Guidance & Outlook
Phillips 66 is focused on organic Midstream growth as it advances toward its 2027 targets. The company is on track to cease operations at the Los Angeles Refinery and complete the Germany and Austria retail marketing business transaction by year-end. A related pipeline expansion project for Coastal Bend is nearing completion, expected to increase capacity from 175 MBD to 225 MBD.
PSX YoY Financials
Figures from SEC filings and company reports. Not investment advice.