TotalEnergies SE reported fourth‑quarter 2025 results that showed a 13% year‑over‑year decline in adjusted net income, falling to $3.8 billion from $4.4 billion in Q4 2024. The drop reflects the impact of a $5‑per‑barrel decline in oil prices, which weighed on upstream revenue, but the company’s upstream production grew 3.9% in 2025, helping to cushion the hit.
Cash flow from operations excluding working capital was $7.2 billion, essentially flat compared with the same period last year and a 2% sequential increase. The steady cash flow demonstrates that TotalEnergies’ cost discipline—keeping operating expenses at $5 per barrel—has allowed the company to maintain liquidity even as commodity prices fell.
Revenue for the quarter reached $50.62 billion, a 4% year‑over‑year decline but a substantial beat over the consensus estimate of $33.94 billion. The revenue gain was driven by strong performance in the integrated LNG segment, which generated $4.1 billion in adjusted operating income for the full year, and by a $564 million contribution from the integrated power segment in Q4. Refining & Chemicals also posted a 46% quarter‑over‑quarter rise in income to $1.0 billion, supported by higher European refining margins.
TotalEnergies’ earnings per share of $1.73 missed the consensus estimate of $1.78, a miss of $0.05 or 2.8%. The shortfall is largely attributable to the lower upstream margin caused by the oil price decline, offset only partially by the gains in LNG and power. Management reiterated its 2025 guidance for a 12.6% return on average capital employed, unchanged from prior guidance, signaling confidence in the company’s capital allocation and operational efficiency.
The company’s payout ratio to shareholders was 55% of cash flow from operations, higher than the 40% figure originally reported. This reflects TotalEnergies’ commitment to shareholder returns, reinforced by a 2025 dividend of €3.40 per share and a 2026 share‑buyback program of $3 billion to $6 billion, contingent on oil prices between $60 and $70 per barrel. CEO Patrick Pouyanné highlighted that “cash flow remains stable at $7.2 billion, underscoring our ability to offset lower hydrocarbon prices through production growth and disciplined spending.”
Market reaction to the results was positive, with the stock trading higher in pre‑market sessions. Investors were encouraged by the revenue beat, the steady cash flow, and the company’s robust shareholder return policy, which together mitigated concerns about the earnings miss and the broader commodity downturn.
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