AI Takeaway
PSX delivered a strong FY2025 with net income more than doubling to $4.4B (+108% YoY) and EPS of $10.82, even as revenue declined 7.5% to $132.4B amid lower commodity prices and reduced cost of revenue.
Revenue
$132.38B
-7.53% YoY
EPS (Basic)
$10.82
++115.97% YoY
Filed · Analysis updated · Source: SEC EDGAR 10-K filing
Total revenue fell 7.5% YoY from $143.2B to $132.4B in FY2025, consistent with the energy sector's sensitivity to commodity price cycles. However, cost of revenue declined even faster at -10.7% (from $130.0B to $116.1B), resulting in significantly improved profitability.
Source: Source: 10-K Income Statement
Net income surged 108% YoY to $4.4B from $2.1B, with diluted EPS rising 116.2% to $10.79 from $4.99. This outsized improvement relative to revenue suggests meaningful margin expansion and/or reduced one-time charges compared to the prior year.
Source: Source: 10-K Income Statement
Operating cash flow increased 18.4% to $5.0B in FY2025 from $4.2B in FY2024, demonstrating robust cash generation capacity even in a lower-revenue environment. Free cash flow (operating cash flow minus investing cash flow) was approximately $2.9B.
Source: Source: 10-K Cash Flow Statement
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Upgrade to unlockPSX's revenue is highly sensitive to crude oil and refined product prices, as evidenced by the 7.5% revenue decline in FY2025. Sustained low commodity prices can compress refining margins and reduce top-line performance, even when cost management partially offsets the impact.
Source: Source: 10-K Income Statement
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Upgrade to unlockReported EPS of $2.47 versus the $2.19 analyst consensus — a +13.0% beat for FY2025.
| Metric | Current | Previous | YoY Change |
|---|---|---|---|
Revenue | $132.38B | $143.15B | -7.53% |
Cost of Revenue | $116.09B | $129.96B | -10.67% |
Net Income | $4.4B | $2.12B | +107.98% |
EPS (Basic) | $10.82 | $5.01 | +115.97% |
EPS (Diluted) | $10.79 | $4.99 | +116.23% |
R&D Expense | $6M | $15M | -60.00% |
SG&A Expense | $2.44B | $2.81B | -13.40% |
| Metric | Current | Previous | YoY Change |
|---|---|---|---|
Total Assets | $73.68B | $72.58B | +1.51% |
Current Assets | $17.27B | $17.91B | -3.57% |
Total Liabilities | $43.44B | $44.12B | -1.54% |
Current Liabilities | $13.33B | $15.09B | -11.67% |
Stockholders' Equity | $29.09B | $27.41B | +6.15% |
Cash & Equivalents | $1.12B | $1.74B | -35.79% |
| Metric | Current | Previous | YoY Change |
|---|---|---|---|
Operating Cash Flow | $4.96B | $4.19B | +18.40% |
Investing Cash Flow | $-2.1B | $-2.46B | +14.86% |
Financing Cash Flow | $-3.54B | $-3.31B | -7.02% |
Share Buybacks | $1.21B | $3.45B | -65.02% |
D&A | $3.25B | $2.36B | +37.58% |
| Metric | Current | Previous | YoY Change |
|---|---|---|---|
Net Margin | 3.3% | — | — |
ROE | 15.1% | — | — |
ROA | 6.0% | — | — |
Current Ratio | $1.296 | — | — |
Debt to Equity | $1.493 | — | — |
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PSX had a strong FY2025 despite a 7.5% revenue decline to $132.4B, as net income more than doubled to $4.4B (+108% YoY) and diluted EPS surged 116.2% to $10.79. Operating cash flow also grew 18.4% to $5.0B, reflecting solid underlying business performance.
PSX's revenue declined from $143.2B to $132.4B in FY2025, primarily reflecting lower commodity prices typical of the energy sector's cyclical nature. Importantly, cost of revenue fell even faster (-10.7%), which allowed profitability to improve significantly despite the top-line decline.
PSX reported basic EPS of $10.82 and diluted EPS of $10.79 for FY2025, representing a 116% increase from the prior year's $4.99 diluted EPS. This strong per-share growth reflects both higher net income and the cumulative effect of share buyback programs.
Key risks for PSX include commodity price volatility (which drove the 7.5% revenue decline), financial leverage with a debt-to-equity ratio of 1.49x, and a declining cash position (down 35.8% to $1.1B). Rising depreciation costs (+37.6% to $3.25B) also signal increasing capital intensity that could pressure future free cash flow.
PSX appears financially healthy in FY2025, with net income of $4.4B, operating cash flow of $5.0B, and stockholders' equity growing 6.1% to $29.1B. The current ratio of 1.30x and debt-to-equity of 1.49x are manageable, though the 35.8% decline in cash to $1.1B is worth monitoring.