Plains All American Q4 EPS Misses by 15%, Revenues Drop 12%
Plains All American posted Q4 adjusted earnings of $0.40 per unit, missing consensus by 14.9%, while net sales fell 12.2% year-over-year to $10.57 billion, undershooting estimates by 8.5%. For 2026, the partnership forecasts adjusted EBITDA of $2.75 billion, free cash flow of $1.8 billion, and plans $350 million of growth and $165 million of maintenance capital expenditures.
1. Q4 Earnings Shortfall
Plains All American reported Q4 2025 adjusted earnings of $0.40 per unit versus the $0.47 consensus, a 14.9% miss. Net sales declined 12.2% to $10.57 billion, falling 8.5% short of the $11.55 billion estimate, driven by lower commodity volumes and pricing pressures.
2. Full-Year 2025 Financials
For full-year 2025, adjusted earnings totaled $1.54 per unit, up 2% from $1.51 in 2024, while revenues decreased 9.5% to $44.26 billion. Costs and expenses fell 15.3% to $10.21 billion in Q4, but net interest expense rose 42% to $159 million, reflecting higher debt levels.
3. 2026 Guidance and Capital Plan
Management expects 2026 adjusted EBITDA of $2.75 billion and free cash flow of $1.8 billion, excluding working capital changes. The company plans $350 million in growth capital and $165 million in maintenance capital, maintaining focus on disciplined investment.
4. Balance Sheet Trends
As of December 31, 2025, Plains All American held $328 million in cash versus $348 million a year earlier, with long-term debt of $10.7 billion, up from $7.21 billion. The debt-to-capital ratio rose to 52% from 42%, indicating increased leverage to fund expansion.