PSX Q2 Earnings & Revenues Beat Estimates on Strong Refining Margins

Phillips 66 PSX reported second-quarter 2026 adjusted earnings of $9.41 per share, up 295.4% from $2.38 per share a year ago. The bottom line beat the Zacks Consensus Estimate of $7.68 by 22.5%.

Total revenues and other income increased 56.2% to $52.04 billion from $35.52 billion a year earlier. The top line surpassed the consensus estimate of $36.17 billion by 43.9%.

The strong quarterly results were driven by higher refining margins.

The refining system achieved 96% crude capacity utilization and a clean product yield of 86%.

Phillips 66 Price, Consensus and EPS Surprise

Phillips 66 price-consensus-eps-surprise-chart | Phillips 66 Quote

PSX's Refining Profit Surges on Wider Margins

Refining adjusted pre-tax income jumped to $3.09 billion from $392 million in the year-ago quarter. The segment benefited from stronger market crack spreads, favorable mark-to-market impacts and solid operating performance across the refining system.

Worldwide realized refining margins increased to $24.08 per barrel from $11.25 per barrel a year earlier. Total processed inputs averaged 2.05 million barrels per day (MMBbl/d), while turnaround expenses increased to $123 million from $53 million in the prior-year quarter. Refining adjusted EBITDA totaled $3.31 billion.

Phillips 66 Midstream Sets Volume Records

Midstream adjusted pre-tax income increased 7.4% to $785 million. The segment’s adjusted EBITDA reached $1.05 billion, driven by higher margins and volumes following the absence of disruptions caused by Winter Storm Fern in the prior quarter.

Natural gas liquids (NGL) pipeline throughput to market averaged 943,000 barrels per day (Bbl/d), while fractionation volumes reached a record 1.02 MMBbl/d. Phillips 66 achieved record liquefied petroleum gas export volumes and brought the 220-million-cubic-feet-per-day (MMcf/d) Dos Picos II gas plant to full production.

PSX's Chemicals Results Improve on Pricing

Chemicals adjusted pre-tax income rose sharply to $404 million from $20 million in the prior-year quarter. The improvement primarily reflected stronger margins across Chevron Phillips Chemical Company’s olefins and polyolefins operations.

Global olefins and polyolefins capacity utilization was 91% compared with 92% a year ago. The ethylene-to-high-density-polyethylene chain cash margin increased to 43.6 cents per pound from 7.4 cents per pound, providing a significant earnings tailwind despite slightly lower utilization. Chemicals adjusted EBITDA was $528 million.

Phillips 66 Marketing and Renewables Rebound

Marketing and Specialties generated adjusted pre-tax income of $514 million compared with $660 million a year earlier.

Renewable Fuels posted pre-tax income of $544 million, reversing a loss of $133 million in the year-ago period. Higher regulatory-credit pricing, increased production and favorable mark-to-market impacts supported the turnaround. Renewable fuel production increased to 53,000 Bbl/d from 40,000 Bbl/d a year ago.

PSX's Cash Flow Strengthens the Balance Sheet

Phillips 66 generated $7.26 billion of operating cash flow. Excluding working-capital movements, operating cash flow totaled $4.32 billion. Adjusted EBITDA increased to $5.89 billion from $2.50 billion a year earlier.

As of June 30, 2026, Phillips 66 had total debt of $6.56 billion and net debt of $16.47 billion. Quarter-end liquidity included $4.10 billion of cash and $6.40 billion of committed credit capacity.

Phillips 66 Advances Growth & Shareholder Returns

PSX returned $887 million to shareholders during the quarter. This included $508 million in dividends and $379 million in share repurchases. Capital expenditures and investments totaled $726 million, comprising $469 million of growth spending and $257 million of sustaining capital.

The company announced plans to construct the 300 MMcf/d Zeus Gas Plant in the Permian Basin and a 100,000 Bbl/d Coastal Bend NGL fractionator in Corpus Christi. CPChem also continued advancing the Golden Triangle Polymers and Ras Laffan Polymers projects, with full operations expected in 2027.

PSX’s Zacks Rank & Key Picks

Phillips 66 currently carries a Zacks Rank #3 (Hold).

Some better-ranked stocks from the energy sector are PBF Energy Inc. PBF, HF Sinclair Corporation DINO and Cactus, Inc. WHD. PBF sports a Zacks Rank #1 (Strong Buy), while DINO and WHD carry a Zacks Rank #2 (Buy) each at present. You can see the complete list of today’s Zacks Rank #1 stocks here.

PBF reported second-quarter 2026 adjusted earnings of $6.22 per share, surpassing the Zacks Consensus Estimate of $4.05 per share.

As of June 30, 2026, PBF had total debt of $1.75 billion, and cash and cash equivalents of $894.1 million.

HF Sinclair reported second-quarter 2026 adjusted earnings of $5.31 per share, topping the Zacks Consensus Estimate of $4.39 per share.

As of June 30, 2026, DINO had total debt of $2.77 billion, and cash and cash equivalents of $2.26 billion.

Cactus reported second-quarter 2026 adjusted earnings of 93 cents per share, surpassing the Zacks Consensus Estimate of 71 cents per share.

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