AI Takeaway
Targa Resources (TRGP) delivered a strong FY2025 with revenue rising 3.9% to $17.0B, net income surging 46.6% to $1.92B, and operating margin expanding over 310 basis points to 19.6%, though long-term debt climbed 23% to $17.4B amid heavy capital investment.
Revenue
$17.03B
++3.95% YoY
EPS (Basic)
$8.52
++47.66% YoY
Operating Income
$3.33B
++23.59% YoY
Filed · Analysis updated · Source: SEC EDGAR 10-K filing
Total revenue increased 3.9% year-over-year to $17.03B in FY2025 (from $16.38B in FY2024), reflecting higher throughput volumes across Targa's gathering, processing, and logistics segments as Permian Basin activity remained robust.
Source: Source: 10-K Income Statement
Operating income jumped 23.6% to $3.33B while cost of revenue actually declined 1.8% to $10.51B, driving operating margin from 16.5% to 19.6% — a meaningful improvement reflecting operating leverage and cost discipline.
Source: Source: 10-K Income Statement & Key Ratios
Net income rose 46.6% to $1.92B and basic EPS increased 47.7% to $8.52, indicating that bottom-line profitability grew significantly faster than revenue, benefiting from improved margins and potentially lower interest or tax impacts.
Source: Source: 10-K Income Statement
2 more insights available
Upgrade to unlockLong-term debt surged 23.0% to $17.43B in FY2025, representing a significant leverage burden relative to stockholders' equity of $3.07B. With a current ratio of only 0.67, short-term liquidity is tight, and rising interest rates could materially increase debt service costs.
Source: Source: 10-K Balance Sheet
Unlock 4 more detailed risk analysis
Upgrade to unlockReported EPS of $2.53 versus the $2.34 analyst consensus — a +8.0% beat for FY2025.
| Metric | Current | Previous | YoY Change |
|---|---|---|---|
Revenue | $17.03B | $16.38B | +3.95% |
Cost of Revenue | $10.51B | $10.7B | -1.82% |
Operating Income | $3.33B | $2.7B | +23.59% |
Net Income | $1.92B | $1.31B | +46.57% |
EPS (Basic) | $8.52 | $5.77 | +47.66% |
EPS (Diluted) | $8.49 | $5.74 | +47.91% |
| Metric | Current | Previous | YoY Change |
|---|---|---|---|
Total Assets | $25.22B | $22.73B | +10.93% |
Current Assets | $2.36B | $2.3B | +2.89% |
Current Liabilities | $3.55B | $3.17B | +11.79% |
Stockholders' Equity | $3.07B | $2.59B | +18.34% |
Cash & Equivalents | $166.1M | $157.3M | +5.59% |
Long-Term Debt | $17.43B | $14.17B | +22.98% |
| Metric | Current | Previous | YoY Change |
|---|---|---|---|
Operating Cash Flow | $3.92B | $3.65B | +7.33% |
Investing Cash Flow | $-3.64B | $-3.02B | -20.54% |
Financing Cash Flow | $-266.6M | $-612.8M | +56.49% |
D&A | $1.52B | $1.42B | +6.49% |
| Metric | Current | Previous | YoY Change |
|---|---|---|---|
Operating Margin | 19.6% | 16.5% | +3.11% |
Net Margin | 11.3% | — | — |
ROE | 62.7% | — | — |
ROA | 7.6% | — | — |
Current Ratio | $0.666 | — | — |
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Targa Resources had a strong FY2025, with revenue growing 3.9% to $17.03B and net income surging 46.6% to $1.92B. Operating margin expanded from 16.5% to 19.6%, and basic EPS rose 47.7% to $8.52, reflecting significant operating leverage.
The headline takeaways are record net income of $1.92B, operating cash flow of $3.92B, and meaningful margin expansion. However, long-term debt rose 23% to $17.43B as Targa invested heavily in infrastructure, with investing outflows of $3.64B.
Yes — TRGP generated $1.92B in net income and $3.92B in operating cash flow in FY2025. Free cash flow was approximately $275M after $3.64B in capital investments, indicating the company is in an active growth investment phase.
Key risks include a highly leveraged balance sheet with $17.43B in long-term debt, a current ratio below 1.0 (0.67), and heavy capital expenditure commitments that could strain liquidity if volumes or commodity prices disappoint. Concentration in Permian Basin activity also represents a geographic risk.
As of FY2025, Targa Resources carried $17.43B in long-term debt, up 23.0% from $14.17B in the prior year, reflecting debt-funded infrastructure expansion. Stockholders' equity stood at $3.07B, implying a debt-to-equity ratio of approximately 5.7x.