TotalEnergies Q4 Net Income Drops 26% as Refining Margins Tumble
TotalEnergies' Q4 2025 net income declined 26% year-over-year, driven by a plunge in refining margins and weaker gas segment contributions. Downstream Ebitda contracted substantially, weighing on overall profitability.
1. Q4 Income Decline
TotalEnergies recorded a 26% year-over-year drop in Q4 2025 net income, marking its sharpest quarterly profit reduction since mid-2024. The decline underscores the challenges the company faces in its non-upstream businesses.
2. Refining Margin Contraction
The refining segment experienced its weakest margins in over two years as heavy and light distillate cracks narrowed sharply. Reduced spreads on key products curtailed segment revenues and pressured overall earnings.
3. Gas Segment Weakness
Earnings from liquefied natural gas and midstream operations fell significantly, with segment Ebitda declining in the low double digits. Volatile European gas prices further undermined profitability in the quarter.
4. Downstream Earnings Impact
Overall downstream Ebitda contracted sharply, offsetting steady upstream oil and gas production volumes. The drop in downstream profitability was the primary contributor to the net income decline.