The Williams Companies, Inc. press release
Williams Delivers Another Year of Record Results; Company to Host Analyst Day Event Today Starting at 8:30 a.m. ET
NYSE - New York Stock Exchange · Natural Gas · Natural Gas Liquids · Oil · Hydrogen · United States
Williams (NYSE: WMB) today announced its unaudited financial results for the three and 12 months ended Dec. 31, 2025.
Natural gas focused strategy continues to drive key financial results
GAAP net income: $2.615 billion, or $2.14 per diluted share (EPS), up 18% vs. 2024 Adjusted net income: $2.571 billion, or $2.10 per diluted share (Adj. EPS), up 10% and 9%, respectively, vs. 2024 Adjusted EBITDA: $7.750 billion, up $670 million or 9% vs. 2024 Cash flow from operations (CFFO): $5.898 billion, up $924 million or 19% vs. 2024 Available funds from operations (AFFO): $5.858 billion, up $480 million or 9% vs. 2024 Raised dividend by 5% to $2.10 annualized for 2026; 52 consecutive years of dividend payments Ended year with 2.40x dividend coverage ratio (AFFO basis) 2026 Adjusted EBITDA guidance range of $8.05 billion to $8.35 billion, up 6% vs. 2025 at midpoint
Robust project execution in 2025 fuels momentum for 2026 growth
Completed 12 projects in 2025: 6 pipeline transmission, 2 gathering and 4 Deepwater Announced 10 projects in 2025: 5 pipeline transmission, 1 gathering, 1 storage and 3 power innovation projects Executed Haynesville E&P sale and strategic partnership with Woodside Energy Closed on acquisitions of Rimrock and Saber Midstream Announcing an additional power innovation project, Socrates the Younger, and the upsizing and extending of contract length for two projects currently in execution Recognized by S&P Global, CDP, ISS and MSCI for ongoing commitment to transparency, strong governance and environmental performance
CEO Perspective
Chad Zamarin, president and chief executive officer, made the following comments:
“In 2025, Williams delivered record Adjusted EBITDA of $7.75 billion, capping a five‑year Adjusted EBITDA CAGR of 9%, and a five-year EPS CAGR of 14%. Today we are announcing 2026 Adjusted EBITDA guidance of $8.2 billion at the midpoint, reflecting the ongoing strong growth of our business as we realize the benefit of pipeline transmission and offshore projects that came online in 2025, as well as expected revenues from a partial year of our first power innovation project that is expected to come online in the second half of 2026.
“Our teams completed 1.1 Bcf/d of pipeline transmission projects in 2025 and are advancing another 7.1 Bcf/d of pipeline projects currently in execution. In addition, we are announcing a new power innovation project, Socrates the Younger, which increases our power innovation investment to over $7 billion of capital in execution. This consistent execution in key growth areas across our expanding footprint continues to open new commercial opportunities and reinforces our critical role in the nation’s energy future.”
Zamarin added, “As we look to 2026 and beyond, we are focused on delivering for shareholders through our position as the nation's natural gas infrastructure leader and our focus on reliable, affordable and clean energy infrastructure solutions. After five years of exceeding our earnings growth objectives and strong performance by our teams, we look forward to the next five years of opportunity and are excited to be so well positioned for even stronger performance, with many of the projects that will deliver the next five years of growth already commercialized and well underway."
| Williams Summary Financial Information | 4Q | | Full Year | | | | | | | | Amounts in millions, except ratios and per-share amounts. Per share amounts are reported on a diluted basis. Net income amounts are from continuing operations attributable to The Williams Companies, Inc. available to common stockholders. | 2025 | 2024 | | 2025 | 2024 | | | | | | | | | | | | | | | | | GAAP Measures | | | | | | | | | | | Net Income | $ | 733 | $ | 485 | | $ | 2,615 | $ | 2,222 | | Net Income Per Share | $ | 0.60 | $ | 0.40 | | $ | 2.14 | $ | 1.82 | | Cash Flow From Operations | $ | 1,576 | $ | 1,218 | | $ | 5,898 | $ | 4,974 | | | | | | | | | | | | | Non-GAAP Measures (1) | | | | | | | | | | | Adjusted EBITDA | $ | 2,033 | $ | 1,776 | | $ | 7,750 | $ | 7,080 | | Adjusted Net Income | $ | 672 | $ | 579 | | $ | 2,571 | $ | 2,347 | | Adjusted Earnings Per Share | $ | 0.55 | $ | 0.47 | | $ | 2.10 | $ | 1.92 | | Available Funds from Operations | $ | 1,647 | $ | 1,335 | | $ | 5,858 | $ | 5,378 | | Dividend Coverage Ratio | 2.70x | 2.31x | | 2.40x | 2.32x | | | | | | | | | | | | | | | | | Other | | | | | | | | | | | Debt-to-Adjusted EBITDA at Quarter End (2) | 3.71x | 3.79x | | | | | | | | | Capital Investments (Excluding Acquisitions) (3) (4) | $ | 1,532 | $ | 760 | | $ | 4,294 | $ | 2,706 | | | | | | | | | | | | | (1) Schedules reconciling Adjusted Net Income, Adjusted EBITDA, Available Funds from Operations and Dividend Coverage Ratio (non-GAAP measures) to the most comparable GAAP measure are available at www.williams.com and as an attachment to this news release. | | | | | | | | | | | (2) Does not represent leverage ratios measured for WMB credit agreement compliance or leverage ratios as calculated by the major credit ratings agencies. Debt is net of cash on hand and $573 million of cash purchases of certain reimbursable long-lead Power Innovation equipment, and Adjusted EBITDA reflects the sum of the last four quarters. | | | | | | | | | | | (3) Capital investments includes increases to property, plant, and equipment (growth & maintenance), purchases of and contributions to equity-method investments and purchases of other long-term investments. | | | | | | | | | | | (4) Fourth quarter and full-year 2025 capital excludes $712 million for certain reimbursable long-lead equipment and $372 million for the Louisiana LNG and Driftwood Pipeline purchase. Full-year 2025 capital also excludes $319 million for the Rimrock acquisition, which closed January 2025; $153 million for the investment in Cogentrix, which closed March 2025; and $43 million for the acquisition of Saber Midstream, which closed June 2025. Fourth quarter and full-year 2024 capital excludes $249 million for the Crowheart acquisition. Full-year 2024 capital also excludes $1.844 billion for the acquisition of the Gulf Coast Storage assets, which closed January 2024, and $151 million for the Discovery consolidation, which closed August 2024. | | | | | | | | | |
GAAP Measures
Fourth-quarter and full-year 2025 net income increased by $248 million and $393 million, respectively, compared to the prior year. Both comparative periods benefited from:
Higher service revenues of $208 million and $720 million, respectively, driven by Transco’s higher net rates and expansion projects, new Gulf volumes, and higher gathering and processing volumes including acquisitions, Favorable changes of $252 million and $517 million, respectively, in net unrealized gains/losses on commodity derivatives, and Higher equity earnings of $182 million and $200 million, respectively, primarily reflecting an increased valuation of our Cogentrix investment and contributions from Appalachia Midstream and Blue Racer investments, Higher net realized sales from upstream operations of $29 million and $161 million, respectively, including contributions from the fourth-quarter 2024 Crowheart acquisition.
These favorable changes were impacted by:
Impairments of certain assets totaling $187 million and $212 million, respectively, primarily related to the planned sale of gas gathering assets in the Mid-Continent region, A higher provision for income taxes of $153 million and $217 million, respectively, driven by increased pre-tax income, Higher depreciation expense, higher operating and administrative costs driven by acquisitions and assets placed in service, and higher net interest expense. The full-year period also reflected $301 million of lower investing income, driven by the absence of third-quarter 2024 gains totaling $276 million related to the sale of our Aux Sable interests and the Discovery Acquisition, as well as lower commodity margins, lower equity allowance for funds used during construction (equity AFUDC) associated with capital projects at Transco, and increased income attributable to noncontrolling interests.
Fourth-quarter and full-year 2025 cash flow from operations increased compared to the prior year primarily due to higher operating results exclusive of non-cash items. Both periods also benefited from favorable net changes in derivative collateral requirements.
Non-GAAP Measures
Fourth-quarter and full-year 2025 Adjusted EBITDA increased by $257 million and $670 million, respectively, over the prior year, driven by the previously described increases in service revenues and net realized sales from upstream operations, partially offset by higher operating and administrative costs. The full-year comparison was also impacted by lower equity AFUDC.
Fourth-quarter and full-year 2025 Adjusted Net Income improved by $93 million and $224 million, respectively, over the prior year, driven by the previously described impacts to net income, adjusted primarily to remove the effects of net unrealized gains/losses on commodity derivatives, the third-quarter 2024 investing income gains, the 2025 impairments, the equity earnings from the increased valuation of our Cogentrix investment, and the related income tax effects of such adjustments.
Fourth-quarter and full-year 2025 Available Funds From Operations (AFFO) increased by $312 million and $480 million, respectively, compared to the prior year primarily due to higher adjusted operating results exclusive of noncash items.
Business Segment Results & Form 10-K
Williams' operations are comprised of the following reportable segments: Transmission, Power & Gulf; Northeast G&P; West and Gas & NGL Marketing Services, as well as Other. For more information, see the company's 2025 Form 10-K.
| | Fourth Quarter | | Full Year | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | Amounts in millions | Modified EBITDA | | Adjusted EBITDA | | Modified EBITDA | | Adjusted EBITDA | | | | | | | | | | | | | | | | | | | | | | | | | | | 4Q 2025 | 4Q 2024 | | Change | | 4Q 2025 | 4Q 2024 | Change | | 2025 | 2024 | | Change | | 2025 | 2024 | Change | | | | | | | | | | | | | | | | | | Transmission, Power & Gulf | $ | 998 | $ | 825 | | $ | 173 | | | $ | 998 | $ | 826 | $ | 172 | | $ | 3,720 | $ | 3,273 | | $ | 447 | | | $ | 3,710 | $ | 3,307 | $ | 403 | | | Northeast G&P | | 508 | | 497 | | | 11 | | | | 508 | | 499 | | 9 | | | 2,028 | | 1,958 | | | 70 | | | | 2,028 | | 1,966 | | 62 | | | West | | 201 | | 344 | | | (143 | ) | | | 388 | | 345 | | 43 | | | 1,238 | | 1,312 | | | (74 | ) | | | 1,450 | | 1,322 | | 128 | | | Gas & NGL Marketing Services | | 135 | | (110 | ) | | 245 | | | | 42 | | 36 | | 6 | | | 311 | | (124 | ) | | 435 | | | | 193 | | 215 | | (22 | ) | | Other | | 90 | | 56 | | | 34 | | | | 97 | | 70 | | 27 | | | 376 | | 237 | | | 139 | | | | 369 | | 270 | | 99 | | | Total | $ | 1,932 | $ | 1,612 | | $ | 320 | | | $ | 2,033 | $ | 1,776 | $ | 257 | | $ | 7,673 | $ | 6,656 | | $ | 1,017 | | | $ | 7,750 | $ | 7,080 | $ | 670 | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | Note: Williams uses Modified EBITDA for its segment reporting. Definitions of Modified EBITDA and Adjusted EBITDA and schedules reconciling to net income are included in this news release. | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Transmission, Power & Gulf
Fourth-quarter and full-year 2025 Modified and Adjusted EBITDA improved compared to the prior year driven by Transco’s higher net rates and expansion projects, as well as new Gulf volumes. The full-year also reflects higher operating and administrative costs and lower equity AFUDC. Modified EBITDA for full-year 2024 was impacted by one-time acquisition costs and the unfavorable impact of a change in payroll policy, which are excluded from Adjusted EBITDA.
Northeast G&P
Fourth-quarter and full-year 2025 Modified and Adjusted EBITDA increased compared to the prior year driven primarily by higher gathering volumes at Bradford within Appalachia Midstream. The full-year period also benefited from higher volumes at Ohio Valley Midstream and contributions from Blue Racer, partially offset by the absence of Aux Sable, which was sold in third-quarter 2024.
West
Fourth-quarter and full-year 2025 Modified EBITDA was impacted by the previously described impairment of gas gathering assets in the Mid-Continent region, which is excluded from Adjusted EBITDA. Both Modified and Adjusted EBITDA for the quarterly and full-year periods benefited from the Louisiana Energy Gateway project coming into service, new volumes from the 2025 Rimrock and Saber acquisitions, and higher volumes in the Haynesville region, partially offset by lower minimum volume commitment (MVC) revenues in the Eagle Ford region.
Gas & NGL Marketing Services
Fourth-quarter and full-year 2025 Modified EBITDA increased from the prior year primarily reflecting $251 million and $481 million, respectively, of net favorable changes in unrealized gains/losses on commodity derivatives, which are excluded from Adjusted EBITDA. Both periods reflected lower gas marketing margins partially offset by proportional EBITDA from the March 2025 investment in Cogentrix.
Other
The increases in fourth-quarter and full-year 2025 Modified and Adjusted EBITDA compared to the prior year reflects contributions from the fourth-quarter 2024 Crowheart acquisition. Full-year Modified EBITDA also includes a $36 million net favorable change in unrealized gains/losses on commodity derivatives, which is excluded from Adjusted EBITDA.
2026 Financial Guidance
The company expects 2026 Adjusted EBITDA between $8.05 billion and $8.35 billion. The company also expects 2026 growth capex between $6.1 billion and $6.7 billion and maintenance capex between $850 million and $950 million. Williams anticipates a leverage ratio midpoint for 2026 of ~4.0x and has increased the dividend by 5% on an annualized basis to $2.10 in 2026 from $2.00 in 2025. Guidance for 2026 growth capex and debt-to-adjusted EBITDA exclude certain reimbursable long-lead equipment.
Williams 2026 Analyst Day Scheduled for Today; Materials to be Posted Shortly
Williams is hosting its 2026 Analyst Day event this morning, beginning at 8:30 a.m. Eastern Time (7:30 a.m. Central Time). In addition to discussing 2025 results, Williams' management will give in-depth presentations covering the company's natural gas infrastructure strategy designed to meet growing clean energy demands. These presentations will highlight the company’s efficient operations, disciplined project execution, strong financial position and financial guidance. Presentation slides and earnings materials will be accessible on the Williams’ Investor Relations website shortly.
Participants who wish to view the live presentation can access the webcast here: https://edge.media-server.com/mmc/p/6nt6ss65/
A replay of the 2026 Analyst Day webcast will also be available on the website for at least 90 days following the event.
About Williams
Williams (NYSE: WMB) is a trusted energy industry leader committed to safely, reliably and responsibly meeting growing energy demand. We use our infrastructure to deliver one third of the nation’s natural gas to where it's needed most, supplying the energy used to heat our homes, cook our food and generate low-carbon electricity. For over a century, we’ve been driven by a passion for doing things the right way. Today, our team of problem solvers is leading the charge into the clean energy future. Learn more at www.williams.com .
| The Williams Companies, Inc.
Consolidated Statement of Income
(Unaudited) | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | Year Ended December 31, | | | | | | | | | | | | | | 2025 | | 2024 | | 2023 | | | | | | | | | (Millions, except per-share amounts) | | | | | | | | | | | | | Revenues: | | | | | | | | | | | | | | Service revenues | | $ | 8,348 | | | $ | 7,628 | | | $ | 7,026 | | | Service revenues – commodity consideration | | | 192 | | | | 134 | | | | 146 | | | Product sales | | | 3,290 | | | | 2,991 | | | | 2,779 | | | Net gain (loss) from commodity derivatives | | | 120 | | | | (250 | ) | | | 956 | | | Total revenues | | | 11,950 | | | | 10,503 | | | | 10,907 | | | Costs and expenses: | | | | | | | | | | | | | | Product costs | | | 2,133 | | | | 2,075 | | | | 1,884 | | | Net processing commodity expenses | | | 66 | | | | 43 | | | | 151 | | | Operating and maintenance expenses | | | 2,282 | | | | 2,179 | | | | 1,984 | | | Depreciation, depletion, and amortization expenses | | | 2,347 | | | | 2,219 | | | | 2,071 | | | General and administrative expenses | | | 721 | | | | 708 | | | | 665 | | | Impairment or write-off of certain assets | | | 212 | | | | — | | | | 10 | | | Gain on sale of business | | | — | | | | — | | | | (129 | ) | | Other (income) expense – net | | | (7 | ) | | | (60 | ) | | | (40 | ) | | Total costs and expenses | | | 7,754 | | | | 7,164 | | | | 6,596 | | | Operating income (loss) | | | 4,196 | | | | 3,339 | | | | 4,311 | | | Equity earnings (losses) | | | 760 | | | | 560 | | | | 589 | | | Other investing income (loss) – net | | | 42 | | | | 343 | | | | 108 | | | Interest expense | | | (1,442 | ) | | | (1,364 | ) | | | (1,236 | ) | | Net gain from Energy Transfer litigation judgment | | | — | | | | — | | | | 534 | | | Other income (expense) – net | | | 69 | | | | 108 | | | | 99 | | | Income (loss) before income taxes | | | 3,625 | | | | 2,986 | | | | 4,405 | | | Less: Provision (benefit) for income taxes | | | 857 | | | | 640 | | | | 1,005 | | | Income (loss) from continuing operations | | | 2,768 | | | | 2,346 | | | | 3,400 | | | Income (loss) from discontinued operations | | | — | | | | — | | | | (97 | ) | | Net income (loss) | | | 2,768 | | | | 2,346 | | | | 3,303 | | | Less: Net income (loss) attributable to noncontrolling interests | | | 150 | | | | 121 | | | | 124 | | | Net income (loss) attributable to The Williams Companies, Inc. | | | 2,618 | | | | 2,225 | | | | 3,179 | | | Less: Preferred stock dividends | | | 3 | | | | 3 | | | | 3 | | | Net income (loss) available to common stockholders | | $ | 2,615 | | | $ | 2,222 | | | $ | 3,176 | | | Amounts attributable to The Williams Companies, Inc. available to common stockholders: | | | | | | | | | | | | | | Income (loss) from continuing operations | | $ | 2,615 | | | $ | 2,222 | | | $ | 3,273 | | | Income (loss) from discontinued operations | | | — | | | | — | | | | (97 | ) | | Net income (loss) available to common stockholders | | $ | 2,615 | | | $ | 2,222 | | | $ | 3,176 | | | Basic earnings (loss) per common share: | | | | | | | | | | | | | | Income (loss) from continuing operations | | $ | 2.14 | | | $ | 1.82 | | | $ | 2.69 | | | Income (loss) from discontinued operations | | | — | | | | — | | | | (.08 | ) | | Net income (loss) available to common stockholders | | $ | 2.14 | | | $ | 1.82 | | | $ | 2.61 | | | Weighted-average shares (millions) | | | 1,221 | | | | 1,219 | | | | 1,218 | | | Diluted earnings (loss) per common share: | | | | | | | | | | | | | | Income (loss) from continuing operations | | $ | 2.14 | | | $ | 1.82 | | | $ | 2.68 | | | Income (loss) from discontinued operations | | | — | | | | — | | | | (.08 | ) | | Net income (loss) available to common stockholders | | $ | 2.14 | | | $ | 1.82 | | | $ | 2.60 | | | Weighted-average shares (millions) | | | 1,225 | | | | 1,223 | | | | 1,223 | |
| The Williams Companies, Inc.
Consolidated Balance Sheet
(Unaudited) | | | | | | | | | | | | | | | | | | | | | | December 31, | | | | | | | | | | 2025 | | 2024 | | | | | | | | (Millions, except per-share amounts) | | | | | | | | ASSETS | | | | | | | | | | Current assets: | | | | | | | | | | Cash and cash equivalents | | $ | 63 | | | $ | 60 | | | Trade accounts and other receivables (net of allowance of ($1) at December 31, 2025 and December 31, 2024) | | | 2,084 | | | | 1,863 | | | Inventories | | | 314 | | | | 279 | | | Assets held for sale | | | 318 | | | | 1 | | | Derivative assets | | | 209 | | | | 267 | | | Other current assets and deferred charges | | | 256 | | | | 191 | | | Total current assets | | | 3,244 | | | | 2,661 | | | Investments | | | 4,559 | | | | 4,140 | | | Property, plant, and equipment – net | | | 41,996 | | | | 38,692 | | | Intangible assets – net | | | 6,763 | | | | 7,209 | | | Regulatory assets, deferred charges, and other | | | 2,011 | | | | 1,830 | | | Total assets | | $ | 58,573 | | | $ | 54,532 | | | | | | | | | | | | | LIABILITIES AND EQUITY | | | | | | | | | | Current liabilities: | | | | | | | | | | Accounts payable | | $ | 2,224 | | | $ | 1,613 | | | Liabilities held for sale | | | 63 | | | | — | | | Derivative liabilities | | | 135 | | | | 164 | | | Other current liabilities | | | 1,639 | | | | 1,360 | | | Commercial paper | | | 700 | | | | 455 | | | Long-term debt due within one year | | | 1,345 | | | | 1,720 | | | Total current liabilities | | | 6,106 | | | | 5,312 | | | Long-term debt | | | 27,316 | | | | 24,736 | | | Deferred income tax liabilities | | | 5,170 | | | | 4,376 | | | Regulatory liabilities, deferred income, and other | | | 4,986 | | | | 5,268 | | | Contingent liabilities and commitments | | | | | | | | | | | | | | | | | | | | Equity: | | | | | | | | | | Stockholders’ equity: | | | | | | | | | | Preferred stock ($1 par value; 30 million shares authorized at December 31, 2025 and December 31, 2024; 35 thousand shares issued at December 31, 2025 and December 31, 2024) | | | 35 | | | | 35 | | | Common stock ($1 par value; 1,470 million shares authorized at December 31, 2025 and December 31, 2024; 1,261 million shares issued at December 31, 2025 and 1,258 million shares issued at December 31, 2024) | | | 1,261 | | | | 1,258 | | | Capital in excess of par value | | | 24,801 | | | | 24,643 | | | Retained deficit | | | (12,237 | ) | | | (12,396 | ) | | Accumulated other comprehensive income (loss) | | | 127 | | | | 76 | | | Treasury stock, at cost (39 million shares at December 31, 2025 and December 31, 2024 of common stock) | | | (1,180 | ) | | | (1,180 | ) | | Total stockholders’ equity | | | 12,807 | | | | 12,436 | | | Noncontrolling interests in consolidated subsidiaries | | | 2,188 | | | | 2,404 | | | Total equity | | | 14,995 | | | | 14,840 | | | Total liabilities and equity | | $ | 58,573 | | | $ | 54,532 | |