Phillips 66 Q4 EPS Beats by $0.32 on 7% Revenue Gain and $12.48/barrel Margin
Phillips 66 delivered Q4 2025 adjusted EPS of $2.47, beating estimates by $0.32, on revenue of $36.33 billion, up 7% year-over-year, as refining margins rebounded to $12.48 per barrel. The company generated a $2.9 billion profit, cut net debt by $2 billion to $19.7 billion, and saw its stock jump 10.7%.
1. Q4 Financial Performance
Phillips 66 posted Q4 2025 adjusted EPS of $2.47, beating consensus by $0.32, on revenue of $36.33 billion, a 7% year-over-year increase.
2. Refining Margin Recovery
Realized refining margin more than doubled to $12.48 per barrel, propelling refining earnings to $542 million and operating crude capacity at 99%.
3. Balance Sheet and Asset Sale
The company reduced net debt by $2 billion to $19.7 billion, aided by the sale of a 65% stake in its German and Austrian fuel retail business.
4. Analyst Price Target Upgrades
Citi raised its price target to $159, while TD Cowen, UBS, BMO Capital, Morgan Stanley and Piper Sandler also lifted targets following the strong Q4 results.