01—Abstract
Summary
Summary of the 10-K filed February 19, 2026. Cited figures are marked; the original filing is the authoritative source.
Targa Resources Corp. (TRGP) reported a strong 2025, with net income attributable to Targa of $1,923.0 milliona (up 47% from $1,312.0 million in 2024) and Adjusted EBITDA of $4,957.4 million (up 20% from $4,142.3 million).
Total revenues rose 4% to $17,028.3 millionb, and income from operations increased 24% to $3,331.2 million. Adjusted free cash flow after dividends and growth capital more than tripled to $539.0 million from $140.1 million, reflecting higher cash flow from operations of $4,108.9 million and disciplined growth spending of about $3.34 billion net. Gathering and Processing adjusted operating margin rose 7% and Logistics and Transportation adjusted operating margin rose 17%, driven by Permian plant additions, higher fractionation and pipeline volumes, and stronger marketing margin.
The company is investing heavily in growth. Several Permian processing plants, Mont Belvieu fractionation Trains 11 through 13, the Delaware Express and Speedway NGL pipelines, and LPG export expansion are under construction with start-ups spread across 2026 to 2028. Management also completed the $1.25 billionc Stakeholder Acquisition in January 2026 and the $1.8 billion Badlands buyout in March 2025.
Shareholder returns continued through a $1.00d quarterly dividend and $641.8 million of 2025 buybacks, with $1,373.6 million remaining under authorizations. Balance sheet leverage increased meaningfully. Long-term debt grew to $16.7 billion from $13.8 billion, and total debt obligations reached $17.4 billion, funded by roughly $5.2 billion of new senior notes and a $1.8 billion cash outlay to repurchase noncontrolling interests.
Senior unsecured ratings are BBB (Fitch), Baa2 (Moody's) and BBB (S&P), and the company reports compliance with its covenants. Investors should weigh the strong earnings and cash flow growth against higher debt, sizable project execution risk, pending regulatory matters such as the Badlands FERC tariff proceeding and the New Mexico Red Hills penalty order, and continued commodity price exposure.
02—Key points
Key Highlights
- Net income attributable to Targa rose 47% to $1.92 billion, and diluted EPS was $8.49 versus $5.74 in 2024.
- Adjusted EBITDA increased 20% to $4.96 billion, and adjusted free cash flow rose to $539 million from $140 million.
- Total revenues grew 4% to $17.03 billion, while Gathering and Processing adjusted operating margin rose 7% and Logistics and Transportation adjusted operating margin rose 17%.
- Growth capital spending reached about $3.34 billion net, funding multiple Permian plants, Mont Belvieu fractionation trains, NGL and gas pipelines, and LPG export expansion with start-ups through 2028.
- Acquisitions included the $1.8 billion Badlands buyout (March 2025) and the $1.25 billion Stakeholder Acquisition (January 2026), which adds about 480 miles of pipelines and 180 MMcf/d of processing.
- Total debt rose to $17.4 billion, with long-term debt up to $16.7 billion; the company is rated BBB / Baa2 / BBB and remains in covenant compliance.
- Shareholder returns included a $1.00 quarterly dividend and $641.8 million of 2025 share repurchases, with $1.37 billion left under authorized programs.
03—One dollar
Follow one dollar
Of each $1.00 of revenue in FY2025, Targa Resources Corp. kept $0.11.
- Revenue$17.03B100.0%
- Cost of revenue−$10.51B61.7%
- Gross profit$6.52B38.3%
- Operating costs−$3.19B18.7%
- Operating income$3.33B19.6%
- Interest, other & tax−$1.48B8.7%
- Net income$1.85B10.9%
Where FY2025 revenue went
$17.03B- Cost of revenue: $10.51B, 62% of revenue
- Operating costs: $3.19B, 19% of revenue
- Net income: $1.85B, 11% of revenue
- Interest, other & tax: $1.48B, 8.7% of revenue
Kept 11% as net income
Full revenue history →04—Financials
Financial Highlights
Figures from 10-KFY2025filed February 19, 2026Financial Statements
FY2025 against FY2024
| Line item | FY2025FY2024 | Change |
|---|---|---|
| Revenue | $17.03B$16.38B | +3.9% |
| Cost of Revenue | $10.51B$10.70B | −1.8% |
| Gross Profit | $6.52B$5.68B | +14.8% |
| Operating Income | $3.33B$2.70B | +23.6% |
| Net Income | $1.85B$1.28B | +44.8% |
| EPS (Basic) | $8.52$5.77 | +47.7% |
| EPS (Diluted) | $8.49$5.74 | +47.9% |
| Shares Outstanding (Basic) | 216.10M220.20M | −1.9% |
| Shares Outstanding (Diluted) | 216.90M221.30M | −2.0% |
05—Questions
Frequently Asked Questions
How strong was TRGP's 2025 profitability and cash generation?
Net income attributable to Targa was $1,923.0 million, up 47% year over year, and Adjusted EBITDA reached $4,957.4 million, up 20%. Adjusted cash flow from operations was $4,108.9 million, which left $539.0 million of adjusted free cash flow after maintenance and growth capital, compared with $140.1 million in 2024.
What is driving the growth in the business?
Growth is led by Permian Basin processing capacity additions (Bull Moose, Pembrook II and Bull Moose II came online in 2025), higher NGL pipeline and fractionation volumes, higher export volumes, and marketing optimization. Management expects further capacity additions from several Permian plants, Mont Belvieu Trains 11 to 13, Delaware Express, Speedway and the LPG export expansion through 2028.
How much debt does Targa carry and how is it funded?
Total debt obligations were $17.4 billion at year end 2025, up from $14.2 billion. The increase was funded mainly by about $5.2 billion of new senior notes issued in 2025 and by the $3.5 billion TRGP revolver and commercial paper program. The company reports it is in compliance with its debt covenants and maintains a leverage covenant of 5.50x.
What are the main risks investors should monitor?
Key risks include commodity price and NGL demand volatility, execution risk on a large construction program, dependence on producer drilling activity in the Permian, higher leverage and interest-rate exposure on variable-rate borrowings, a pending FERC proceeding on Badlands rates, a proposed $47.8 million New Mexico penalty tied to the Red Hills facility, and regulatory changes affecting methane and GHG rules.
06—Continue