Phillips 66

PSX
Financial Analysis · Updated May 13, 2026 · Coverage 2026-Q2

Financial Snapshot

ticker: PSX step: 04 generated: 2026-05-12 source: quick-research

Phillips 66 (PSX) — Financial Snapshot

Income Statement Summary

Metric FY2022 FY2023 FY2024 YoY
Revenue $170.0B $147.4B $143.2B -3%
Gross Margin ~5.5% ~6.8% ~12.3% +5.5pp
Operating Margin ~4.5% ~5.1% ~2.7% -2.4pp
Net Income ~$8.1B $7.0B ~$2.1B -70%
EPS (diluted) ~$16.50 $15.48 ~$4.88 -68%

Note: FY2022 was an exceptional year for refining due to record crack spreads post-Ukraine invasion. FY2024 net income decline reflects significant refining margin compression and heavy turnaround activity. Gross margin increase reflects mix shift toward higher-margin Midstream/Chemicals.

Cash Flow & Balance Sheet (FY2024)

Metric Value
Operating Cash Flow ~$5.4B
Free Cash Flow ~$3.4B
Cash & Equivalents ~$2.0B
Total Debt ~$18B

Key Ratios (approximate)

  • P/E: ~20x (FY2024) | EV/EBITDA: ~8x | FCF Yield: ~8%
  • Revenue Growth (FY2024): -3% | FCF Margin: ~2.4%
  • Dividend Yield: ~2.9%

Growth Profile

Phillips 66's revenue is structurally declining as it sells downstream assets (including the Rodeo Renewed renewable fuels conversion) and shifts capital toward Midstream, which generates lower absolute revenue but superior margins and cash flow predictability. The Midstream segment's adjusted EBITDA is targeted to reach $4B, with $1.1B in 2026 Midstream growth capex supporting NGL well-head-to-market expansion. Chemicals earnings (CPChem JV) are recovering from a trough driven by overcapacity, with new Gulf Coast II cracker targeted for completion around 2026.

Forward Estimates

  • FY2025E Revenue: ~$132B (consensus) — continuing revenue decline due to asset rationalization
  • FY2025E Net Income: ~$4.4B (implied by 107.98% increase over FY2024)
  • FY2026E: $2.4B capex budget ($1.3B growth); earnings recovery expected from Midstream and CPChem normalization

Deeper Financial Analysis

The fundamental tier adds 9 additional research dimensions for $PSX.

Revenue Breakdown
Segment revenue, geographic mix, product-line contribution margins, and cohort dynamics.
Financial Trends
Quarter-over-quarter momentum, leading indicators, and inflection point analysis.
Balance Sheet
Debt structure, liquidity runway, dilution risk, and working capital dynamics.
Capital Allocation
Buyback cadence, M&A appetite, dividend policy, and reinvestment priorities.
Returns on Capital (ROIC)
Multi-year ROIC vs. WACC, marginal returns on reinvestment, sales-to-invested-capital efficiency, and moat spread.
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