Summary
Phillips 66 reported a net income attributable to Phillips 66 of $207 million for the three months ended March 31, 2026, a decrease from $487 million in the same period of 2025. This decline was significantly influenced by the absence of a large gain on asset disposition that occurred in the prior year's quarter. Despite this, the company's total revenues increased by 7% year-over-year, driven by higher refined petroleum product sales volumes, though partially offset by commodity derivative losses. The company's financial position saw a substantial increase in cash and cash equivalents to $5.15 billion, up from $1.116 billion at the end of 2025. This was supported by net debt borrowings of $7.7 billion during the quarter, which also helped preserve liquidity amidst volatile commodity prices driven by geopolitical events. The company continues to prioritize operational excellence, disciplined growth, financial strength, and shareholder returns, with strategic investments focused on the Midstream and Chemicals segments.
Financial Highlights
45 data points| Revenue | $32.54B |
| Cost of Revenue | $29.22B |
| Gross Profit | $3.32B |
| SG&A Expenses | $537.00M |
| Operating Income | $207.00M |
| Net Income | $207.00M |
| EPS (Basic) | $0.51 |
| EPS (Diluted) | $0.51 |
| Shares Outstanding (Basic) | 402.04M |
| Shares Outstanding (Diluted) | 403.27M |
Key Highlights
- 1Net income attributable to Phillips 66 decreased to $207 million in Q1 2026 from $487 million in Q1 2025, primarily due to the absence of a significant gain on asset disposition in the prior year.
- 2Total revenues increased by 7% to $33.0 billion for the three months ended March 31, 2026, compared to $31.7 billion in the prior year period.
- 3The company's cash and cash equivalents significantly increased to $5.15 billion as of March 31, 2026, from $1.116 billion as of December 31, 2025.
- 4The company reported net cash used in operating activities of $2.3 billion for Q1 2026, a reversal from net cash provided by operating activities of $187 million in Q1 2025, mainly due to unfavorable working capital movements and cash collateral for derivative positions.
- 5Total debt increased to $27.1 billion at March 31, 2026, from $19.7 billion at December 31, 2025, resulting in a higher debt-to-capital ratio of 48% from 39%.
- 6The Refining segment saw a significant improvement, with income before income taxes increasing to $208 million from a loss of $937 million in the prior year, driven by improved crack spreads and feedstock advantages.
- 7A significant legal judgment of $833 million against Phillips 66 Company in the Propel Fuels litigation is being appealed, with $887 million accrued as of March 31, 2026.