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Mar 31

Phillips 66 Q1 2025 Earnings Report

Phillips 66 reported a net income of $487 million and continued progress on strategic initiatives despite adjusted losses.

Key Takeaways

Phillips 66 delivered a solid Q1 performance with $487 million in net income. Marketing & Specialties led the way while Refining incurred significant losses due to turnaround activity. The company advanced its wellhead-to-market strategy with a new Permian gas plant and closed the EPIC NGL acquisition.

Reported net income of $487 million, with GAAP EPS at $1.18.

Adjusted loss of $368 million driven by major planned maintenance and impairments.

Strong segment performance from Marketing & Specialties, contributing $1.282 billion in pre-tax earnings.

Launched construction of new Permian gas processing plant and closed EPIC NGL acquisition.

Total Revenue
$31.7B
Previous year: $36.4B
-12.9%
EPS
-$0.9
Previous year: $1.9
-147.4%
Capacity Utilization
80%
Previous year: 94%
-14.9%
Total Processed Inputs
124.45M
Refining Margin per Barrel
$6.81
Gross Profit
$345M
Previous year: $2.92B
-88.2%
Cash and Equivalents
$1.49B
Previous year: $1.6B
-6.9%
Free Cash Flow
-$236M

Phillips 66

Phillips 66

Phillips 66 Revenue by Segment

Forward Guidance

Phillips 66 expects improved margins and cash flow as turnarounds conclude and strategic infrastructure ramps up.

Positive Outlook

  • Most turnaround activity is behind, setting up stronger operations.
  • Marketing & Specialties continues to show strong international performance.
  • Construction started on Iron Mesa gas plant in Permian to support future capacity.
  • EPIC NGL acquisition to enhance integrated NGL strategy.
  • Cash flow stability expected from new gas processing infrastructure.

Challenges Ahead

  • Adjusted losses driven by non-cash depreciation and lower refining volumes.
  • Renewable Fuels impacted by policy changes and tax credit transitions.
  • Corporate costs increased due to higher interest expenses and charity timing.
  • Refining margins remain under pressure amid macroeconomic volatility.
  • Lower volumes across midstream due to temporary operating constraints.

Revenue & Expenses

Visualization of income flow from segment revenue to net income