Williams Companies Q4 Earnings Miss Estimates, Revenues Beat

The Williams Companies, Inc. WMB reported fourth-quarter 2025 adjusted earnings per share of 55 cents, which missed the Zacks Consensus Estimate of 58 cents, mainly due to a 10.3% year-over-year increase in costs and expenses, along with weak performance in its Transmission, Power & Gulf, Northeast G&P and West segments, which came in 0.8%, 1.2% and 0.3% below the consensus mark, respectively.

However, the bottom line increased from the year-ago period’s level of 47 cents. This can be attributed to the better-than-expected performance of its Gas & NGL Marketing Services and Other segments, which came in 27.8% and 1% above the consensus estimate, respectively.

The Tulsa, OK-based oil and gas storage and transportation company’s revenues of $3.2 billion beat the Zacks Consensus Estimate by $57 million. The figure also increased from the year-ago quarter’s reported number of $2.7 billion, supported by higher service revenues, including those tied to commodity contracts, stronger product sales and gains from commodity derivative instruments.

Williams Companies, Inc. (The) Price, Consensus and EPS Surprise

Williams Companies, Inc. (The) price-consensus-eps-surprise-chart | Williams Companies, Inc. (The) Quote

Adjusted EBITDA totaled $2 billion in the quarter under review, which was up 14.5% year over year. Cash flow from operations amounted to $1.6 billion, up 29.4% from the corresponding quarter of 2024.

WMB’s Segmental Analysis

Transmission, Power & Gulf (formerly Transmission & Gulf of America): The segment reported an adjusted EBITDA of $998 million, up 20.8% from the year-ago quarter’s level. The increase was driven by stronger net rates and expansion projects at Transco, as well as incremental Gulf volumes. However, the figure slightly missed the Zacks Consensus Estimate of $1 billion.

Northeast G&P: Driven primarily by increased gathering volumes at Bradford within Appalachia Midstream, this segment registered an adjusted EBITDA of $508 million. This represents a 1.8% increase from $499 million in the year-earlier quarter. However, it missed the Zacks Consensus Estimate of $514 million.

West: This segment focuses on the gathering and processing of assets in the Western United States. Adjusted EBITDA for this segment totaled $388 million, up 12.5% from the prior-year quarter’s level of $345 million. Strong results were fueled by the Louisiana Energy Gateway project entering service, additional volumes from the 2025 Rimrock and Saber acquisitions and higher throughput in the Haynesville. However, the figure was slightly decreased from the Zacks Consensus Estimate of $389 million.

Gas & NGL Marketing Services: The segment posted $42 million in adjusted EBITDA, a year-over-year increase from $36 million, driven by favorable NGL spreads and contributions from the Cogentrix investment, and the figure was above the Zacks Consensus Estimate of $32.87 million.

Other: This segment posted an adjusted EBITDA of $97 million, representing a 38.6% increase from $70 million in the year-earlier quarter, driven by higher upstream volumes and stronger gas prices. Moreover, the figure was slightly above the Zacks Consensus Estimate of $96 million.

WMB’s Costs, Capex & Balance Sheet

In the reported quarter, total costs and expenses of $2 billion increased almost 10.3% from the year-ago quarter’s figure.

Total capital expenditure (capex) was $1 billion.As of Dec. 31, 2025, this Zacks Rank #3 (Hold) company had cash and cash equivalents of $63 million and a long-term debt of $27.3 billion, with a debt-to-capitalization of 68.1%. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

WMB’s 2026 Guidance

The company expects its 2026 adjusted EBITDA to be between $8.05 billion and $8.35 billion. In line with its growth plans, Williams projects 2026 growth capital spending of $6.1-$6.7 billion, along with maintenance capital expenditures of $850-$950 million, while targeting an average leverage ratio of around 4.0x. Reflecting confidence in the cash-flow outlook, the company also announced a 5% increase in its annual dividend to $2.10 per share in 2026 from $2.00 in 2025. Notably, its 2026 guidance for growth capital expenditures and debt-to-adjusted EBITDA excludes certain reimbursable long-lead equipment costs.

Meanwhile, the company expects its 2026 net production to total 180-220 million British thermal units per day (MMBtu/d) of natural gas, 7-9 million barrels per day (Mbbl/d) of oil and 11-13 Mbbl/d of natural gas liquids (NGLs), based on assumed prices of $4.04 per MMBtu (NYMEX), $61.42 per Mbbl and $0.82 per gallon for NGLs, excluding hedge impact. Consistent with this outlook, the company anticipates adjusted earnings per share (EPS) of $2.20-$2.38, available funds from operations (AFFO) of $6.085-$6.315 billion and AFFO per share of $4.95-$5.14 for 2026.

Important Earnings at a Glance

While we have discussed WMB’s fourth-quarter results in detail, let us take a look at three other key reports in this space.

Valero Energy Corporation VLO, a leading independent refiner and marketer of transportation fuels and petrochemical products,posted fourth-quarter 2025 adjusted earnings of $3.82 per share, which beat the Zacks Consensus Estimate of $3.22. The bottom line improved from the year-ago quarter’s level of 64 cents. The better-than-expected quarterly results can be mainly attributed to a surge in refining margins, higher ethanol production volumes and lower total cost of sales.

Valero Energy had cash and cash equivalents of $4.7 billion at the end of the fourth quarter. As of Dec. 31, 2025, it had a total debt of $8.3 billion and finance-lease obligations of $2.4 billion.

Houston, TX-based Baker Hughes Company BKR, an oil and gas equipment and services provider, posted fourth-quarter 2025 adjusted earnings of 78 cents per share, which beat the Zacks Consensus Estimate of 67 cents. The bottom line also increased from the year-ago level of 70 cents. The strong quarterly results were primarily driven by solid performance from BKR’s Industrial & Energy Technology business segment.

Baker Hughes Company’s net capital expenditure in the fourth quarter was $321 million. As of Dec. 31, 2025, it had cash and cash equivalents of $3.7 billion. BKR had a long-term debt of $5.4 billion at the end of the reported quarter, with a debt-to-capitalization of 24.3%.

Halliburton Company HAL, another Houston, TX-based oil and gas equipment and services provider, posted fourth-quarter 2025 adjusted net income per share of 69 cents, beating the Zacks Consensus Estimate of 54 cents. The outperformance primarily reflects successful cost reduction initiatives. However, the bottom line marginally fell from the year-ago adjusted profit of 70 cents due to softer activity in the North American region.

Halliburton reported fourth-quarter capital expenditure of $337 million, well below our projection of $390.4 million. As of Dec. 31, 2025, the company had approximately $2.2 billion in cash and cash equivalents, and $7.2 billion in long-term debt, representing a debt-to-capitalization ratio of 40.5.

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