01—Abstract
Summary
Summary of the 10-K filed February 20, 2026. Cited figures are marked; the original filing is the authoritative source.
Phillips 66 (PSX) reported a strong financial year for 2025, with net income attributable to Phillips 66 reaching $4.4 billiona.
This performance was significantly boosted by substantial gains from asset dispositions, including the partial sale of its Germany and Austria retail marketing business and the sale of its investment in Coop Mineraloel AG, contributing a combined before-tax gain of $2.9 billionb. The company also saw improved realized refining margins, driven by stronger market crack spreads and robust demand for diesel, along with lower crude oil prices. Strategic priorities for the company focus on maintaining world-class operations, disciplined growth and returns, financial strength, and shareholder returns.
Phillips 66 actively managed its portfolio through acquisitions and dispositions, notably completing the acquisition of the remaining 50%c interest in WRB Refining LP and the Coastal Bend NGL assets. The company demonstrated commitment to shareholder returns by increasing its quarterly cash dividend and continuing its share repurchase program, signaling confidence in its ongoing financial health and operational execution.
02—Key points
Key Highlights
- Phillips 66 achieved a net income of $4.4 billion in 2025, a substantial increase driven by significant asset disposition gains and improved refining margins.
- The company completed key strategic acquisitions, including the full acquisition of WRB Refining LP and the Coastal Bend NGL assets, strengthening its Midstream and Refining segments.
- Significant gains from asset dispositions, totaling $2.9 billion before tax, were recognized from the sale of the Germany and Austria retail marketing business and the Coop Mineraloel AG investment.
- Refining segment performance improved due to higher market crack spreads and stronger diesel demand, despite lower crude oil prices.
- The company returned capital to shareholders through a $0.07 increase in its quarterly cash dividend and continued share repurchases, totaling $1.2 billion in 2025.
- Phillips 66 maintained strong operational performance with a worldwide refining crude oil capacity utilization rate of 94% and a clean product yield of 87%.
03—One dollar
Follow one dollar
Of each $1.00 of revenue in FY2025, Phillips 66 kept $0.03.
- Revenue$132.38B100.0%
- Cost of revenue−$116.09B87.7%
- Gross profit$16.28B12.3%
- Operating costs−$11.88B9.0%
- Operating income$4.40B3.3%
- Interest, other & tax$-00.0%
- Net income$4.40B3.3%
Where FY2025 revenue went
$132.38B- Cost of revenue: $116.09B, 88% of revenue
- Net income: $4.40B, 3.3% of revenue
- R&D: $6.0M, 0.0% of revenue
- SG&A: $2.44B, 1.8% of revenue
- Other operating costs: $9.44B, 7.1% of revenue
Kept 3.3% as net incomeNet income $4.40B · 3.3%R&D $6.0M · 0.0%
Full revenue history →04—Financials
Financial Highlights
Figures from 10-KFY2025filed February 20, 2026Financial Statements
FY2025 against FY2024
| Line item | FY2025FY2024 | Change |
|---|---|---|
| Revenue | $132.38B$143.15B | −7.5% |
| Cost of Revenue | $116.09B$129.96B | −10.7% |
| Gross Profit | $16.28B$13.19B | +23.4% |
| R&D Expenses | $6.00M$15.00M | −60.0% |
| SG&A Expenses | $2.44B$2.81B | −13.4% |
| Operating Income | $4.40B$2.12B | +108.0% |
| Interest Expense | $997.00M$919.00M | +8.5% |
| Net Income | $4.40B$2.12B | +108.0% |
| EPS (Basic) | $10.82$5.01 | +116.0% |
| EPS (Diluted) | $10.79$4.99 | +116.2% |
| Shares Outstanding (Basic) | 406.01M420.17M | −3.4% |
| Shares Outstanding (Diluted) | 408.05M421.89M | −3.3% |
05—Questions
Frequently Asked Questions
What were the main drivers of Phillips 66's financial performance in 2025?
The primary drivers for Phillips 66's financial performance in 2025 were substantial gains from asset dispositions, particularly the partial sale of its Germany and Austria retail marketing business and the sale of its investment in Coop Mineraloel AG. Additionally, improved refining margins driven by higher market crack spreads and stronger diesel demand, coupled with lower crude oil prices, significantly contributed to the positive results.
What were the key strategic actions taken by Phillips 66 in 2025?
In 2025, Phillips 66 focused on disciplined growth and portfolio optimization. Key strategic actions included completing the acquisition of the remaining 50% equity interest in WRB Refining LP and acquiring the Coastal Bend NGL assets. The company also continued its commitment to shareholder returns by increasing its quarterly cash dividend and repurchasing shares of its common stock.
How did Phillips 66's Refining segment perform in 2025?
The Refining segment showed improved performance in 2025, with income before income taxes increasing by $91 million compared to 2024. This improvement was primarily due to higher realized margins resulting from better market crack spreads and stronger petroleum diesel demand, partly offset by weaker product differentials and increased RIN costs. The segment also experienced an impairment charge related to the WRB investment and accelerated depreciation for the Los Angeles Refinery.
What is the company's outlook on shareholder returns?
Phillips 66 remains committed to returning value to shareholders. In February 2026, the Board of Directors declared a quarterly cash dividend of $1.27 per common share, reflecting a $0.07 increase. The company also continues to execute its share repurchase program, aiming to return over 50% of net cash provided by operating activities (excluding working capital) to shareholders through dividends and buybacks.
06—Continue