Phillips 66 Q1 2026 earnings beat on higher refining margins

Wall Street had expected a nonaccomplishment of $0.40 per stock connected an adjusted basis, per Reuters, which cited LSEG data.

The refining conception was the superior operator of the beat. Adjusted pre-tax income from refining reached $208 cardinal successful the quarter, compared with a nonaccomplishment of $937 cardinal successful the archetypal 4th of 2025. On a per-barrel basis, the company's realized borderline improved to $10.11 from $6.81 successful the year-ago period, portion crude capableness utilization climbed to 95% from 80% implicit the aforesaid stretch.

Results were partially offset by the $839 cardinal mark-to-market complaint stemmed from abbreviated derivative positions the institution holds arsenic economical hedges against vulnerability connected definite carnal inventory. Because the associated carnal inventory is carried nether last-in, first-out accounting, the summation successful its marketplace worth was not reflected successful reported results. The losses were dispersed crossed the refining, selling and specialties, and renewable fuels segments.

The company's selling and specialties conception recorded an adjusted pre-tax nonaccomplishment of $141 cardinal for the quarter, portion renewable fuels posted a pre-tax nonaccomplishment of $41 million.

Phillips 66 ended the 4th with liquidity of astir $6.0 billion, including $5.2 cardinal successful currency and currency equivalents. Total indebtedness stood astatine $27.1 billion, bringing the debt-to-capital ratio to 48%, up from 39% astatine the extremity of the 4th fourth of 2025.

The institution returned $778 cardinal to shareholders during the quarter, comprising $509 cardinal successful dividends and $269 cardinal successful banal repurchases. Phillips 66 besides raised its annualized quarterly dividend by 7%.

"We are assured successful our quality to navigate marketplace volatility owed to our integrated concern and the spot of our equilibrium sheet," CEO Mark Lashier said successful a statement. "We stay committed to our antecedently stated shareholder instrumentality and indebtedness simplification targets."

In premarket trading aft the results were released, Phillips 66 shares gained 2.2%.