Fourth Quarter
•Reported fourth-quarter earnings of $2.9 billion or $7.17 per share; adjusted earnings of $1.0 billion or $2.47 per share; including $239 million of pre-tax accelerated depreciation on Los Angeles Refinery
•Achieved record NGL transportation and fractionation volumes of over 1 MMBD each
•Delivered record clean product yield of 88% and operated at 99% crude capacity utilization in Refining
•Generated $2.8 billion of net operating cash flow, $2.0 billion excluding working capital
•Reduced debt by $2.0 billion during the quarter, ending the year at $19.7 billion
Full-Year 2025
•Earnings of $4.4 billion or $10.79 per share and adjusted earnings of $2.6 billion or $6.44 per share; including $964 million of pre-tax accelerated depreciation on Los Angeles Refinery
•Enhanced the portfolio through asset dispositions and acquisitions, each totaling $3.5 billion
•Achieved record NGL transportation and fractionation volumes, an increase of 22% and 23%, respectively, over the prior year.
•Record clean product yield and third-consecutive year above industry-average crude utilization
•Generated $5.0 billion of net operating cash flow, $6.1 billion excluding working capital
•Returned $3.1 billion to shareholders, representing more than 50% of net operating cash flow
HOUSTON, Feb. 4, 2026 – Phillips 66 (NYSE: PSX) announced fourth-quarter earnings.
“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,” said Mark Lashier, chairman and CEO of Phillips 66.
“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.”
Strategic Priorities Progress and Business Highlights
•Acquired the remaining 50% interest in WRB Refining LP, gaining full ownership of the Wood River and Borger refineries.
•Sold a 65% interest in our Germany and Austria retail marketing business.
•Ceased fuel production at the Los Angeles Refinery.
•Recently commenced a subsequent open season for remaining Western Gateway Pipeline capacity and expanded origins and destinations including the Los Angeles market.
•In January 2026, announced agreement to acquire Lindsey Oil Refinery and logistics assets with the plan to utilize select assets, enhancing our U.K. integrated business.
•Announced 2026 capital budget of $2.4 billion, including $1.1 billion for sustaining capital and $1.3 billion for organic growth capital.
Financial Results Summary
(in millions of dollars, except as indicated)
| 4Q 2025 | 3Q 2025 | |||||||
| Earnings | $ | 2,906 | 133 | |||||
Adjusted Earnings1 | 1,002 | 1,025 | ||||||
Adjusted EBITDA1 | 2,532 | 2,594 | ||||||
| Earnings Per Share | ||||||||
| Earnings Per Share - Diluted | 7.17 | 0.32 | ||||||
Adjusted Earnings Per Share - Diluted1 | 2.47 | 2.52 | ||||||
| Cash Flow From Operations | 2,752 | 1,178 | ||||||
Cash Flow From Operations, Excluding Working Capital1 | 2,044 | 1,920 | ||||||
| Capital Expenditures & Investments | 682 | 541 | ||||||
| Acquisitions, net of cash acquired | 1,288 | (10) | ||||||
| Proceeds from Asset Dispositions | 1,489 | — | ||||||
| Return of Capital to Shareholders | 756 | 751 | ||||||
| Repurchases of common stock | 274 | 267 | ||||||
| Dividends paid on common stock | 482 | 484 | ||||||
| Cash and Cash Equivalents, including cash classified within Assets held for sale | 1,116 | 1,950 | ||||||
| Debt | 19,716 | 21,755 | ||||||
| Debt-to-capital ratio | 39% | 44% | ||||||
Net debt-to-capital ratio1 | 38% | 41% | ||||||
1 Represents a non-GAAP financial measure. Reconciliations of these non-GAAP financial measures to the most comparable GAAP financial measure are included within this release. | ||||||||
Segment Financial and Operating Highlights
(Millions of dollars, except as indicated)
| 4Q 2025 | 3Q 2025 | Change | |||||||||
Earnings (Loss)1 | $ | 2,906 | 133 | 2,773 | |||||||
| Midstream | 638 | 697 | (59) | ||||||||
| Chemicals | (12) | 176 | (188) | ||||||||
| Refining | 822 | (518) | 1,340 | ||||||||
| Marketing and Specialties | 2,396 | 251 | 2,145 | ||||||||
| Renewable Fuels | (19) | (43) | 24 | ||||||||
| Corporate and Other | (372) | (364) | (8) | ||||||||
| Income tax expense | (526) | (32) | (494) | ||||||||
| Noncontrolling interests | (21) | (34) | 13 | ||||||||
Adjusted Earnings (Loss)1,2 | $ | 1,002 | 1,025 | (23) | |||||||
| Midstream | 717 | 697 | 20 | ||||||||
| Chemicals | 19 | 176 | (157) | ||||||||
| Refining | 542 | 430 | 112 | ||||||||
| Marketing and Specialties | 439 | 477 | (38) | ||||||||
| Renewable Fuels | (19) | (43) | 24 | ||||||||
| Corporate and Other | (363) | (364) | 1 | ||||||||
| Income tax (expense) benefit | (302) | (314) | 12 | ||||||||
| Noncontrolling interests | (31) | (34) | 3 | ||||||||
Adjusted EBITDA2 | $ | 2,532 | 2,594 | (62) | |||||||
| Midstream | 952 | 964 | (12) | ||||||||
| Chemicals | 145 | 308 | (163) | ||||||||
| Refining | 1,019 | 904 | 115 | ||||||||
| Marketing and Specialties | 488 | 525 | (37) | ||||||||
| Renewable Fuels | 5 | (18) | 23 | ||||||||
| Corporate and Other | (77) | (89) | 12 | ||||||||
| Operating Highlights | |||||||||||
NGL Pipeline Throughput - Y-Grade to Market (MB/D)3 | 1,006 | 999 | 7 | ||||||||
| NGL Fractionated (MB/D) | 1,018 | 930 | 88 | ||||||||
| Chemicals Global O&P Capacity Utilization | 97% | 104% | (7%) | ||||||||
| Refining | |||||||||||
Turnaround Expense4 | 135 | 36 | 99 | ||||||||
Realized Margin ($/BBL)2 | 12.48 | 12.15 | 0.33 | ||||||||
Crude Capacity Utilization5 | 99% | 99% | —% | ||||||||
| Clean Product Yield | 88% | 86% | 2% | ||||||||
| Renewable Fuels Produced (MB/D) | 32 | 36 | (4) | ||||||||
1 Segment reporting is pre-tax. | |||||||||||
2 Represents a non-GAAP financial measure. Reconciliations of these non-GAAP financial measures to the most comparable GAAP financial measure are included within this release. | |||||||||||
3 Represents volumes delivered to fractionation hubs, including Mont Belvieu, Sweeny and Conway. Includes 100% of DCP Midstream Class A Segment and Phillips 66's direct interest in DCP Sand Hills Pipeline, LLC and DCP Southern Hills Pipeline, LLC. | |||||||||||
4 Excludes turnaround expense of all equity affiliates. | |||||||||||
5 Beginning October 1, 2025, excludes Los Angeles Refinery and includes 100% of Wood River and Borger refineries. | |||||||||||
Fourth-Quarter 2025 Financial Results
Reported earnings were $2.9 billion for the fourth quarter of 2025 versus $133 million in the third quarter of 2025. Fourth-quarter earnings included pre-tax special item adjustments of $2.0 billion in the Marketing and Specialties segment primarily related to the partial disposition of the Germany and Austria retail marketing business, $280 million in the Refining segment, $(79) million in the Midstream segment, $(31) million in the Chemicals segment and $(9) million in Corporate and Other. Adjusted earnings for the fourth quarter were $1.0 billion, in line with the third quarter.
•Midstream adjusted pre-tax income increased compared with the third quarter mainly due to higher volumes, partially offset by lower margins.
•Chemicals adjusted pre-tax income decreased mainly due to lower margins.
•Refining adjusted pre-tax income benefited from the acquisition and consolidation of the remaining ownership interest of WRB Refining LP.
•Marketing and Specialties adjusted pre-tax income decreased primarily due to the partial disposition of our Germany and Austria retail marketing business and lower domestic margins, partially offset by higher U.K. margins and lower costs.
•Renewable Fuels pre-tax results improved primarily due to higher realized margins including inventory impacts, partially offset by lower credits.
•Corporate and Other adjusted pre-tax loss is in line with the previous quarter.
As of Dec. 31, 2025, the company had $1.1 billion of cash and cash equivalents and $5.7 billion of committed capacity available under credit facilities.
Investor Webcast
Members of Phillips 66 executive management will host a webcast at noon ET to provide an update on the company’s strategic initiatives and discuss the company’s fourth-quarter performance. To access the webcast and view related presentation materials, go to phillips66.com/investors and click on “Events & Presentations.” For detailed supplemental information, go to phillips66.com/supplemental.
About Phillips 66
Phillips 66 (NYSE: PSX) is a leading integrated downstream energy provider that manufactures, transports and markets products that drive the global economy. The company’s portfolio includes Midstream, Chemicals, Refining, Marketing and Specialties, and Renewable Fuels businesses. Headquartered in Houston, TX, Phillips 66 has employees around the globe who are committed to safely and reliably providing energy and improving lives while pursuing a lower-carbon future. For more information, visit phillips66.com or follow @Phillips66Co on LinkedIn.
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| Investor Relations | ||||||||
| investorrelations@p66.com | ||||||||
| Media Relations | ||||||||
| phillips66media@p66.com | ||||||||
Use of Non-GAAP Financial Information—This news release includes the terms “adjusted earnings (loss),” “adjusted pre-tax income (loss),” “adjusted EBITDA,” “adjusted earnings per share,” “adjusted controllable cost,” “cash from operations, excluding working capital” and “net debt-to-capital ratio.” These are non-GAAP financial measures that are included to help facilitate comparisons of operating performance across periods, to help facilitate comparisons with other companies in our industry and to help facilitate determination of enterprise value. Where applicable, these measures exclude items that do not reflect the core operating results of our businesses in the current period or other adjustments to reflect how management analyzes results. Reconciliations of these non-GAAP financial measures to the most comparable GAAP financial measure are included within this release. References in the release to earnings refer to net income attributable to Phillips 66. References in the release to shareholder distributions refers to the sum of dividends paid to Phillips 66 stockholders and proceeds used by Phillips 66 to repurchase shares of its common stock.
Basis of Presentation— Phillips 66 and Refining results included herein through September 30, 2025, includes our proportional share of WRB Refining LP equity earnings and beginning October 1, 2025, includes 100% of Borger Refinery and Wood River Refinery consolidated due to the acquisition of the remaining 50% of WRB.
Cautionary Statement for the Purposes of the “Safe Harbor” Provisions of the Private Securities Litigation Reform Act of 1995—This news release contains forward-looking statements within the meaning of the federal securities laws relating to Phillips 66’s operations, strategy and performance. Words such as “anticipated,” “estimated,” “expected,” “planned,” “scheduled,” “targeted,” “believe,” “continue,” “intend,” “will,” “would,” “objective,” “goal,” “project,” “efforts,” “strategies” and similar expressions that convey the prospective nature of events or outcomes generally indicate forward-looking statements. However, the absence of these words does not mean that a statement is not forward-looking. Forward-looking statements included in this news release are based on management’s expectations, estimates and projections as of the date they are made. These statements are not guarantees of future events or performance, and you should not unduly rely on them as they involve certain risks, uncertainties and assumptions that are difficult to predict. Therefore, actual outcomes and results may differ materially from what is expressed or forecast in such forward-looking statements. Factors that could cause actual results or events to differ materially from those described in the forward-looking statements include: changes in governmental policies relating to NGL, crude oil, natural gas, refined petroleum or renewable fuels products pricing, regulation or taxation, including exports; our ability to timely obtain or maintain permits, including those necessary for capital projects; fluctuations in NGL, crude oil, refined petroleum products, renewable fuels, renewable feedstocks and natural gas prices, and refined product, marketing and petrochemical margins; the effects of any widespread public health crisis and its negative impact on commercial activity and demand for our products; changes to government policies relating to renewable fuels and greenhouse gas emissions that adversely affect programs including the renewable fuel standards program, low carbon fuel standards and tax credits for biofuels; liability resulting from pending or future litigation or other legal proceedings; liability for remedial actions, including removal and reclamation obligations under environmental regulations; unexpected changes in costs or technical requirements for constructing, modifying or operating our facilities or transporting our products; our ability to successfully complete, or any material delay in the completion of, any asset disposition, acquisition, shutdown or conversion that we may pursue, including receipt of any necessary regulatory approvals or permits related thereto; unexpected technological or commercial difficulties in manufacturing, refining or transporting our products, including chemical products; the level and success of producers’ drilling plans and the amount and quality of production volumes around our midstream assets; risks and uncertainties with respect to the actions of actual or potential competitive suppliers and transporters of refined petroleum products, renewable fuels or specialty products; changes in the cost or availability of adequate and reliable transportation for our NGL, crude oil, natural gas and refined petroleum and renewable fuels products; failure to complete definitive agreements and feasibility studies for, and to complete construction of, announced and future capital projects on time or within budget; our ability to comply with governmental regulations or make capital expenditures to maintain compliance; limited access to capital or significantly higher cost of capital related to our credit profile or illiquidity or uncertainty in the domestic or international financial markets; damage to our facilities due to accidents, weather and climate events, civil unrest, insurrections, political events, terrorism or cyberattacks; domestic and international economic and political developments including armed hostilities, such as the war in Eastern Europe, instability in the financial services and banking sector, excess inflation, expropriation of assets and changes in fiscal policy, including interest rates; international monetary conditions and exchange controls; changes in estimates or projections used to assess fair value of intangible assets, goodwill and properties, plants and equipment and/or strategic decisions or other developments with respect to our asset portfolio that cause impairment charges; substantial investments required, or reduced demand for products, as a result of existing or future environmental rules and regulations, including greenhouse gas emissions reductions and reduced consumer demand for refined petroleum products; changes in tax, environmental and other laws and regulations (including alternative energy mandates) applicable to our business; political and societal concerns about climate change that could result in changes to our business or increase expenditures, including litigation-related expenses; the operation, financing and distribution decisions of our joint ventures that we do not control; the potential impact of activist shareholder actions or tactics; and other economic, business, competitive and/or regulatory factors affecting Phillips 66’s businesses generally as set forth in our filings with the Securities and Exchange Commission. Phillips 66 is under no obligation (and expressly disclaims any such obligation) to update or alter its forward-looking statements, whether as a result of new information, future events or otherwise.
| Earnings (Loss) | ||||||||||||||||||||
| Millions of Dollars | ||||||||||||||||||||
| 2025 | 2024 | |||||||||||||||||||
| 4Q | 3Q | Year | 4Q | Year | ||||||||||||||||
| Midstream | $ | 638 | 697 | 2,817 | 673 | 2,638 | ||||||||||||||
| Chemicals | (12) | 176 | 297 | 107 | 876 | |||||||||||||||
| Refining | 822 | (518) | (274) | (775) | (365) | |||||||||||||||
| Marketing and Specialties | 2,396 | 251 | 4,500 | 252 | 1,011 | |||||||||||||||
| Renewable Fuels | (19) | (43) | (380) | 28 | (198) | |||||||||||||||
| Corporate and Other | (372) | (364) | (1,540) | (298) | (1,287) | |||||||||||||||
| Pre-Tax Income (Loss) | 3,453 | 199 | 5,420 | (13) | 2,675 | |||||||||||||||
| Less: Income tax expense (benefit) | 526 | 32 | 892 | (38) | 500 | |||||||||||||||
| Less: Noncontrolling interests | 21 | 34 | 125 | 17 | 58 | |||||||||||||||
| Phillips 66 | $ | 2,906 | 133 | 4,403 | 8 | 2,117 | ||||||||||||||
| Adjusted Earnings (Loss) | ||||||||||||||||||||
| Millions of Dollars | ||||||||||||||||||||
| 2025 | 2024 | |||||||||||||||||||
| 4Q | 3Q | Year | 4Q | Year | ||||||||||||||||
| Midstream | $ | 717 | 697 | 2,828 | 708 | 2,746 | ||||||||||||||
| Chemicals | 19 | 176 | 328 | 72 | 841 | |||||||||||||||
| Refining | 542 | 430 | 427 | (759) | (211) | |||||||||||||||
| Marketing and Specialties | 439 | 477 | 1,841 | 185 | 1,490 | |||||||||||||||
| Renewable Fuels | (19) | (43) | (380) | 28 | (198) | |||||||||||||||
| Corporate and Other | (363) | (364) | (1,465) | (294) | (1,283) | |||||||||||||||
| Pre-Tax Income (Loss) | 1,335 | 1,373 | 3,579 | (60) | 3,385 | |||||||||||||||
| Less: Income tax expense (benefit) | 302 | 314 | 821 | (16) | 693 | |||||||||||||||
| Less: Noncontrolling interests | 31 | 34 | 126 | 17 | 88 | |||||||||||||||
| Phillips 66 | $ | 1,002 | 1,025 | 2,632 | (61) | 2,604 | ||||||||||||||
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