Park Aerospace Corp (PKE) Q1 2026 Earnings Call Highlights: Strong Financial Management Amid ...
Gross Profit: $4.718 million.
Gross Margin: 30.6%.
Adjusted EBITDA: Slightly less than $3 million.
EBITDA Margin: 19.2%.
GE Aerospace Jet Engine Program Sales: $6.2 million in Q1.
Cash and Marketable Securities: $65.6 million at the end of Q1.
Share Buyback: $2.165 million worth of stock purchased in Q1.
Long-term Debt: Zero.
Warning! GuruFocus has detected 8 Warning Signs with PKE.
Release Date: July 15, 2025
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Park Aerospace Corp (NYSE:PKE) reported a gross margin of 30.6% for Q1, which is above their target threshold.
The company achieved sales of $15.4 million, aligning with their forecasted range of $15 million to $16 million.
Park Aerospace Corp (NYSE:PKE) is the sole-source qualified supplier for specialty ablative materials on the PAC-3 Patriot Missile System, indicating a strong market position.
The company has zero long-term debt and maintains a strong cash position with $65.6 million in cash and marketable securities.
Park Aerospace Corp (NYSE:PKE) has a history of disciplined financial management, including over $600 million in dividends paid and a strategic approach to share repurchases.
The new manufacturing facility is underutilized, leading to significant ongoing expenses that drag down margins.
The requalification process for a key customer in the C2B fabric segment is delayed, impacting potential revenue growth.
Tariff-related costs, although minimal, continue to pose a potential risk to future financial performance.
The company is facing challenges in meeting the urgent demand for missile defense systems due to depleted stockpiles.
Park Aerospace Corp (NYSE:PKE) has not yet finalized its long-term expansion plans, which could delay the realization of potential growth opportunities.
Q: On Slide 21, you referenced a new LTA with GE Aerospace for '25 through '30. Is there anything different in that LTA compared to previous ones?A: The LTA we've been discussing is with MRAS, not GE Aviation. The new LTA is more associated with GE Aerospace and involves different engine programs and materials. All GE Aerospace revenues are included in our sales history and Juggernaut projections.
Q: At what point would you feel comfortable providing more details on your long-term forecast, especially when you mention terms like "blowing out the water"?A: We have internal models and are conducting due diligence. We hope to have our plans finalized by the end of the calendar year, and by our Q4 call in January, we might be in a position to provide more information.
Q: With respect to your investment plans, how do you ensure you're making wise decisions?A: We've earned the trust of shareholders by being disciplined and not making impulsive decisions. We focus on what is right for the company rather than following trends.
Q: Can we expect any unexpected investments, like in bitcoin mining?A: No, we are not planning to invest in bitcoin mining. We focus on disciplined and strategic investments.
Q: How are tariffs impacting your business, and what is your outlook on this issue?A: Tariffs have had little impact on our business. We notified customers in advance that costs would be passed along, and we haven't seen significant tariffs from suppliers. We continue to monitor the situation but don't foresee any immediate issues.
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
This article first appeared on GuruFocus.
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The Stellar message is resonating with our customer base, and we are seeing great progress with our prospects. Our pipelines are building and Stellar Bank is well-positioned to gain market share in the vibrant Texas markets we serve," Mr. Franklin concluded. Financial Highlights Solid Profitability: Net income for the second quarter of 2025 was $26.4 million, or diluted earnings per share of $0.51, which translated into an annualized return on average assets of 1.01%, an annualized return on average equity of 6.62% and an annualized return on average tangible equity of 12.16%(1). Strong Net Interest Margin: Tax equivalent net interest margin for the second quarter of 2025 was 4.18% compared to 4.20% for the first quarter of 2025. The tax equivalent net interest margin, excluding purchase accounting accretion ("PAA"), was 3.95%(1) for the second quarter of 2025 compared to 3.97%(1) for the first quarter of 2025. Strong Capital Position and Book Value Build: Total risk-based capital ratio increased to 15.98% at June 30, 2025, while book value per share increased to $31.20 at June 30, 2025 from $30.89 at March 31, 2025 and tangible book value per share increased to $19.94(1) at June 30, 2025 from $19.69(1) at March 31, 2025. Low Net Charge-offs: Net charge-offs of $370 thousand, or 0.01% of average loans, for the six months ended June 30, 2025 along with manageable asset quality, compared to $713 thousand, or 0.02% of average loans, for the six months ended June 30, 2024. Repurchase of Shares: Repurchased 791 thousand shares at a weighted average price per share of $26.08 during the second quarter of 2025. Second Quarter 2025 Results Net interest income in the second quarter of 2025 decreased $923 thousand, or 0.9%, to $98.3 million from $99.3 million for the first quarter of 2025. The net interest margin on a tax equivalent basis decreased to 4.18% for the second quarter of 2025 from 4.20% for the first quarter of 2025. The decrease in the net interest margin from the prior quarter was primarily due to the impact of increased rates on interest-bearing liabilities along with the decrease in average interest-earning assets partially offset by higher rates on loans. Net interest income for the second quarter of 2025 benefited from $5.3 million of income from PAA compared to $5.4 million in the first quarter of 2025. Excluding PAA, net interest income (tax equivalent) for the second quarter of 2025 would have been $93.1 million(1) and the tax equivalent net interest margin would have been 3.95%(1). Noninterest income for the second quarter of 2025 was $5.8 million, an increase of $286 thousand, or 5.2%, compared to $5.5 million for the first quarter of 2025. Noninterest income increased in the second quarter of 2025 compared to the first quarter of 2025 primarily due to the increase in other noninterest income partially offset by the loss on sale of assets during the second quarter. A significant driver of the increase in other noninterest income was $490 thousand in Federal Reserve Bank dividends as a result of Stellar Bank becoming a member of the Federal Reserve System effective in April 2025. Noninterest expense for the second quarter of 2025 decreased $162 thousand, or 0.2%, to $70.0 million compared to $70.2 million for the first quarter of 2025. The decrease in noninterest expense in the second quarter of 2025 compared to the first quarter of 2025 was primarily due to a decrease in salaries and employee benefits of $865 thousand along with a decrease in professional fees of $499 thousand partially offset by a $473 thousand increase in net occupancy and equipment, a $385 thousand increase in advertising expense and a $567 thousand increase in other noninterest expense. The efficiency ratio was 61.87% for the second quarter of 2025 compared to 61.93%(1) for the first quarter of 2025. Annualized returns on average assets, average equity and average tangible equity were 1.01%, 6.62% and 12.16%(1) for the second quarter of 2025, respectively, compared to 0.94%, 6.21% and 11.48%(1) for the first quarter of 2025, respectively. Financial Condition Total assets at June 30, 2025 were $10.49 billion, an increase of $58.1 million compared to $10.43 billion at March 31, 2025. The increase in total assets was largely due to an increase in Federal Reserve Bank stock along with increases in cash and securities, all of which were funded largely by core deposit growth. Total loans at June 30, 2025 increased $4.2 million to $7.29 billion compared to $7.28 billion at March 31, 2025. At June 30, 2025, the remaining balance of the purchase accounting accretion ("PAA") on loans was $62.9 million. Total deposits at June 30, 2025 increased $110.9 million to $8.67 billion compared to $8.56 billion at March 31, 2025 primarily due to increases in demand and money market and savings deposits partially offset by decreases in certificates and other time and noninterest-bearing deposits. Certificates and other time deposits decreased primarily due to the reduction in brokered deposits. Asset Quality Nonperforming assets totaled $58.2 million, or 0.55% of total assets, at June 30, 2025, compared to $59.7 million, or 0.57% of total assets, at March 31, 2025. The allowance for credit losses on loans as a percentage of total loans was 1.14% at June 30, 2025 compared to 1.15% at March 31, 2025. The provision for credit losses was $1.1 million for the second quarter of 2025 compared to $3.6 million for the first quarter of 2025. Net charge-offs for the second quarter of 2025 were $206 thousand, or 0.01% (annualized) of average loans, compared to net charge-offs of $163 thousand, or 0.01% (annualized) of average loans, for the first quarter of 2025. GAAP Reconciliation of Non-GAAP Financial Measures Stellar's management uses certain non-GAAP financial measures to evaluate its performance. Please refer to the GAAP Reconciliation and Management's Explanation of Non-GAAP Financial Measures on page 10 of this earnings release for a reconciliation of these non-GAAP financial measures. Conference Call Stellar's management team will host a conference call and webcast on Friday, July 25, 2025 at 8:00 a.m. Central Time (9:00 a.m. Eastern Time) to discuss its results for the second quarter of 2025. Participants may register for the conference call at conference ID 63586 to receive the dial-in numbers and unique PIN to access the call. If you need assistance in obtaining a dial-in number, please contact ir@ A simultaneous webcast is available at and requires pre-registration. If you are unable to participate during the live webcast, the webcast will be accessible via the Investor Relations section of the Company's website at _____________________ (1) Refer to the calculation of this non-GAAP financial measure on page 10 of this earnings release. The calculation of returns on average tangible equity and the efficiency ratio have been adjusted from prior period disclosures. About Stellar Bancorp, Inc. Stellar Bancorp, Inc. is a bank holding company headquartered in Houston, Texas. Stellar's principal banking subsidiary, Stellar Bank, provides a diversified range of commercial banking services primarily to small- to medium-sized businesses and individual customers across Houston, Dallas, Beaumont and surrounding communities in Texas. Forward-Looking Statements Certain statements in this press release which are not historical in nature are intended to be, and are hereby identified as, "forward-looking statements" for purposes of the safe harbor provided by Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. These statements include, but are not limited to, future financial performance and operating results, the Company's plans, business and growth strategies, objectives, expectations and intentions, and other statements that are not historical facts, including projections of macroeconomic and industry trends, which are inherently unreliable due to the multiple factors that impact economic trends, and any such variations may be material. Forward-looking statements may be identified by terminology such as "may," "will," "should," "could," "scheduled," "plans," "intends," "projects," "anticipates," "expects," "believes," "estimates," "potential," "would," or "continue" or negatives of such terms or other comparable terminology. All forward-looking statements are not guarantees of future performance and are subject to risks, uncertainties and other factors that may cause the actual results, performance or achievements of Stellar to differ materially from any results expressed or implied by such forward-looking statements. Such factors include, among others: changes in the interest rate environment, the value of Stellar's assets and obligations and the availability of capital and liquidity; general competitive, economic, political and market conditions; and other factors that may affect future results of Stellar including changes in asset quality and credit risk; the inability to sustain revenue and earnings growth; changes in interest rates and capital markets; inflation; customer borrowing, repayment, investment and deposit practices; the impact, extent and timing of technological changes; capital management activities; disruptions to the economy and the U.S. banking system; risks associated with uninsured deposits and responsive measures by federal or state governments or banking regulators; legislative changes, executive orders, regulatory actions and reforms of the Board of Governors of the Federal Reserve System, Federal Deposit Insurance Corporation and Texas Department of Banking. Additional factors which could affect the Company's future results can be found in the Company's Annual Report on Form 10-K, Quarterly Reports on Form 10-Q and Current Reports on Form 8-K, in each case filed with the SEC and available on the SEC's website at We disclaim any obligation and do not intend to update or revise any forward-looking statements contained in this communication, which speak only as of the date hereof, whether as a result of new information, future events or otherwise, except as required by federal securities laws. As forward-looking statements involve significant risks and uncertainties, caution should be exercised against placing undue reliance on such statements. Stellar Bancorp, Inc. Financial Highlights (Unaudited) 2025 2024 June 30 March 31 December 31 September 30 June 30 (Dollars in thousands) ASSETS: Cash and due from banks $ 136,060 $ 130,932 $ 419,967 $ 103,735 $ 110,341 Interest-bearing deposits at other financial institutions 442,044 429,643 491,249 412,482 379,909 Total cash and cash equivalents 578,104 560,575 911,216 516,217 490,250 Available for sale securities, at fair value 1,729,684 1,719,371 1,673,016 1,691,752 1,630,971 Loans held for investment 7,287,347 7,283,133 7,439,854 7,551,124 7,713,897 Less: allowance for credit losses on loans (83,165 ) (83,746 ) (81,058 ) (84,501 ) (94,772 ) Loans, net 7,204,182 7,199,387 7,358,796 7,466,623 7,619,125 Accrued interest receivable 35,537 37,669 37,884 39,473 43,348 Premises and equipment, net 108,615 109,750 111,856 113,742 113,984 Federal Reserve Bank and Federal Home Loan Bank stock 47,099 20,902 8,209 20,123 15,089 Bank-owned life insurance 108,726 108,108 107,498 106,876 106,262 Goodwill 497,318 497,318 497,318 497,318 497,318 Core deposit intangibles, net 81,468 87,007 92,546 98,116 104,315 Other assets 102,277 94,800 107,451 79,537 103,001 Total assets $ 10,493,010 $ 10,434,887 $ 10,905,790 $ 10,629,777 $ 10,723,663 LIABILITIES AND SHAREHOLDERS' EQUITY LIABILITIES: Deposits: Noninterest-bearing $ 3,183,693 $ 3,205,619 $ 3,576,206 $ 3,303,048 $ 3,308,441 Interest-bearing Demand 1,941,156 1,863,752 1,845,749 1,571,504 1,564,405 Money market and savings 2,393,767 2,248,616 2,253,193 2,280,651 2,213,031 Certificates and other time 1,154,998 1,244,726 1,453,236 1,587,398 1,639,426 Total interest-bearing deposits 5,489,921 5,357,094 5,552,178 5,439,553 5,416,862 Total deposits 8,673,614 8,562,713 9,128,384 8,742,601 8,725,303 Accrued interest payable 7,607 9,856 17,052 16,915 12,327 Borrowed funds 69,925 119,923 — 60,000 240,000 Subordinated debt 70,165 70,135 70,105 110,064 109,964 Other liabilities 67,865 61,428 82,389 74,074 70,274 Total liabilities 8,889,176 8,824,055 9,297,930 9,003,654 9,157,868 SHAREHOLDERS' EQUITY: Common stock 514 521 534 535 536 Capital surplus 1,185,048 1,202,628 1,240,050 1,238,619 1,238,477 Retained earnings 529,216 510,072 492,640 474,905 447,948 Accumulated other comprehensive loss (110,944 ) (102,389 ) (125,364 ) (87,936 ) (121,166 ) Total shareholders' equity 1,603,834 1,610,832 1,607,860 1,626,123 1,565,795 TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY $ 10,493,010 $ 10,434,887 $ 10,905,790 $ 10,629,777 $ 10,723,663 Stellar Bancorp, Inc. Financial Highlights (Unaudited) Three Months Ended Six Months Ended 2025 2024 2025 2024 June 30 March 31 December 31 September 30 June 30 June 30 June 30 (Dollars in thousands, except per share data) INTEREST INCOME: Loans, including fees $ 121,814 $ 120,640 $ 128,738 $ 132,372 $ 135,885 $ 242,454 $ 270,570 Securities: Taxable 15,293 16,148 14,789 13,898 11,923 31,441 21,216 Tax-exempt 810 812 814 814 816 1,622 1,634 Deposits in other financial institutions 4,782 4,720 5,681 4,692 3,555 9,502 7,182 Total interest income 142,699 142,320 150,022 151,776 152,179 285,019 300,602 INTEREST EXPENSE: Demand, money market and savings deposits 31,097 27,574 27,877 29,440 28,399 58,671 55,929 Certificates and other time deposits 11,459 13,527 16,830 18,073 18,758 24,986 33,842 Borrowed funds 407 517 235 840 1,700 924 3,474 Subordinated debt 1,401 1,444 2,123 1,916 1,912 2,845 3,829 Total interest expense 44,364 43,062 47,065 50,269 50,769 87,426 97,074 NET INTEREST INCOME 98,335 99,258 102,957 101,507 101,410 197,593 203,528 Provision for (reversal of) credit losses 1,090 3,632 942 (5,985 ) (1,935 ) 4,722 2,163 Net interest income after provision for credit losses 97,245 95,626 102,015 107,492 103,345 192,871 201,365 NONINTEREST INCOME: Service charges on deposit accounts 1,561 1,584 1,590 1,594 1,648 3,145 3,246 (Loss) gain on sale of assets (57 ) 417 (112 ) 432 (64 ) 360 449 Bank-owned life insurance 618 610 622 614 591 1,228 1,178 Debit card and interchange income 566 520 570 551 543 1,086 1,070 Other 3,103 2,374 2,362 3,111 2,698 5,477 5,769 Total noninterest income 5,791 5,505 5,032 6,302 5,416 11,296 11,712 NONINTEREST EXPENSE: Salaries and employee benefits 40,927 41,792 43,797 41,123 39,061 82,719 80,437 Net occupancy and equipment 4,399 3,926 4,401 4,570 4,503 8,325 8,893 Depreciation 1,992 1,995 1,984 1,911 1,948 3,987 3,912 Data processing and software amortization 5,620 5,682 5,551 5,706 5,501 11,302 10,395 Professional fees 1,287 1,786 3,428 1,714 1,620 3,073 4,282 Regulatory assessments and FDIC insurance 1,561 1,733 1,636 1,779 2,299 3,294 4,153 Amortization of intangibles 5,548 5,548 5,581 6,212 6,215 11,096 12,427 Communications 861 847 807 827 847 1,708 1,784 Advertising 1,167 782 1,593 878 891 1,949 1,656 Other 6,642 6,075 6,488 6,346 8,331 12,717 14,687 Total noninterest expense 70,004 70,166 75,266 71,066 71,216 140,170 142,626 INCOME BEFORE INCOME TAXES 33,032 30,965 31,781 42,728 37,545 63,997 70,451 Provision for income taxes 6,680 6,263 6,569 8,837 7,792 12,943 14,551 NET INCOME $ 26,352 $ 24,702 $ 25,212 $ 33,891 $ 29,753 $ 51,054 $ 55,900 EARNINGS PER SHARE Basic $ 0.51 $ 0.46 $ 0.47 $ 0.63 $ 0.56 $ 0.98 $ 1.05 Diluted $ 0.51 $ 0.46 $ 0.47 $ 0.63 $ 0.56 $ 0.97 $ 1.04 Stellar Bancorp, Inc. Financial Highlights (Unaudited) Three Months Ended Six Months Ended 2025 2024 2025 2024 June 30 March 31 December 31 September 30 June 30 June 30 June 30 (Dollars and share amounts in thousands, except per share data) Net income $ 26,352 $ 24,702 $ 25,212 $ 33,891 $ 29,753 $ 51,054 $ 55,900 Earnings per share, basic $ 0.51 $ 0.46 $ 0.47 $ 0.63 $ 0.56 $ 0.98 $ 1.05 Earnings per share, diluted $ 0.51 $ 0.46 $ 0.47 $ 0.63 $ 0.56 $ 0.97 $ 1.04 Dividends per share $ 0.14 $ 0.14 $ 0.14 $ 0.13 $ 0.13 $ 0.28 $ 0.26 Return on average assets(A) 1.01 % 0.94 % 0.94 % 1.27 % 1.13 % 0.98 % 1.06 % Return on average equity(A) 6.62 % 6.21 % 6.21 % 8.49 % 7.78 % 6.42 % 7.33 % Return on average tangible equity(A)(B)(D) 12.16 % 11.48 % 11.53 % 15.61 % 14.94 % 11.82 % 14.28 % Net interest margin (tax equivalent)(A)(C) 4.18 % 4.20 % 4.25 % 4.19 % 4.24 % 4.19 % 4.25 % Net interest margin (tax equivalent) excluding PAA(A)(B)(C) 3.95 % 3.97 % 3.94 % 3.91 % 3.82 % 3.96 % 3.86 % Efficiency ratio(B)(E) 61.87 % 61.93 % 64.46 % 60.40 % 60.81 % 61.90 % 60.62 % Capital Ratios Stellar Bancorp, Inc. (Consolidated) Equity to assets 15.28 % 15.44 % 14.74 % 15.30 % 14.60 % 15.28 % 14.60 % Tangible equity to tangible assets(B)(E) 10.34 % 10.42 % 9.87 % 10.27 % 9.53 % 10.34 % 9.53 % Estimated Total capital ratio (to risk-weighted assets) 15.98 % 15.97 % 16.00 % 15.85 % 15.30 % 15.98 % 15.30 % Estimated Common equity Tier 1 capital (to risk weighted assets) 14.06 % 14.05 % 14.14 % 13.57 % 12.95 % 14.06 % 12.95 % Estimated Tier 1 capital (to risk-weighted assets) 14.18 % 14.17 % 14.26 % 13.69 % 13.06 % 14.18 % 13.06 % Estimated Tier 1 leverage (to average tangible assets) 11.44 % 11.20 % 11.31 % 11.10 % 10.77 % 11.44 % 10.77 % Stellar Bank Estimated Total capital ratio (to risk-weighted assets) 15.39 % 15.40 % 15.28 % 15.02 % 14.61 % 15.39 % 14.61 % Estimated Common equity Tier 1 capital (to risk-weighted assets) 14.18 % 14.20 % 14.13 % 13.58 % 13.08 % 14.18 % 13.08 % Estimated Tier 1 capital (to risk-weighted assets) 14.18 % 14.20 % 14.13 % 13.58 % 13.08 % 14.18 % 13.08 % Estimated Tier 1 leverage (to average tangible assets) 11.44 % 11.22 % 11.21 % 11.01 % 10.78 % 11.44 % 10.78 % Other Data Weighted average shares: Basic 51,529 53,146 53,422 53,541 53,572 52,333 53,457 Diluted 51,569 53,197 53,471 53,580 53,608 52,376 53,506 Period end shares outstanding 51,398 52,141 53,429 53,446 53,564 51,398 53,564 Book value per share $ 31.20 $ 30.89 $ 30.09 $ 30.43 $ 29.23 $ 31.20 $ 29.23 Tangible book value per share(B) $ 19.94 $ 19.69 $ 19.05 $ 19.28 $ 18.00 $ 19.94 $ 18.00 Employees - full-time equivalents 1,062 1,054 1,037 1,040 1,045 1,062 1,045 (A) Interim periods annualized. (B) Refer to the calculation of these non-GAAP financial measures on page 10 of this Earnings Release. (C) Net interest margin represents net interest income divided by average interest-earning assets. (D) The calculation of return on average tangible equity has been adjusted from prior period disclosures. All periods presented above have been recalculated and disclosed under the same calculation. (E) The calculation of the efficiency ratio has been adjusted from prior period disclosures. All periods presented above have been recalculated and disclosed under the same calculation. Stellar Bancorp, Inc. Financial Highlights (Unaudited) Three Months Ended June 30, 2025 March 31, 2025 June 30, 2024 AverageBalance InterestEarned/InterestPaid AverageYield/Rate AverageBalance InterestEarned/InterestPaid AverageYield/Rate AverageBalance InterestEarned/InterestPaid AverageYield/Rate (Dollars in thousands) Assets Interest-Earning Assets: Loans $ 7,282,609 $ 121,814 6.71 % $ 7,344,298 $ 120,640 6.66 % $ 7,808,320 $ 135,885 7.00 % Securities 1,729,384 16,103 3.73 % 1,817,286 16,960 3.78 % 1,549,638 12,739 3.31 % Deposits in other financial institutions 436,596 4,782 4.39 % 430,621 4,720 4.45 % 258,916 3,555 5.52 % Total interest-earning assets 9,448,589 $ 142,699 6.06 % 9,592,205 $ 142,320 6.02 % 9,616,874 $ 152,179 6.36 % Allowance for credit losses on loans (83,700 ) (81,166 ) (96,306 ) Noninterest-earning assets 1,099,268 1,100,652 1,103,297 Total assets $ 10,464,157 $ 10,611,691 $ 10,623,865 Liabilities and Shareholders' Equity Interest-Bearing Liabilities: Interest-bearing demand deposits $ 1,952,004 $ 14,399 2.96 % $ 1,911,625 $ 12,392 2.63 % $ 1,545,096 $ 12,213 3.18 % Money market and savings deposits 2,371,221 16,698 2.82 % 2,234,571 15,182 2.76 % 2,227,393 16,186 2.92 % Certificates and other time deposits 1,201,903 11,459 3.82 % 1,296,972 13,527 4.23 % 1,694,536 18,758 4.45 % Borrowed funds 34,427 407 4.74 % 45,795 517 4.58 % 112,187 1,700 6.09 % Subordinated debt 70,151 1,401 8.01 % 70,121 1,444 8.35 % 109,910 1,912 7.00 % Total interest-bearing liabilities 5,629,706 $ 44,364 3.16 % 5,559,084 $ 43,062 3.14 % 5,689,122 $ 50,769 3.59 % Noninterest-Bearing Liabilities: Noninterest-bearing demand deposits 3,160,791 3,346,066 3,308,633 Other liabilities 78,120 92,299 87,986 Total liabilities 8,868,617 8,997,449 9,085,741 Shareholders' equity 1,595,540 1,614,242 1,538,124 Total liabilities and shareholders' equity $ 10,464,157 $ 10,611,691 $ 10,623,865 Net interest rate spread 2.90 % 2.88 % 2.77 % Net interest income and margin $ 98,335 4.17 % $ 99,258 4.20 % $ 101,410 4.24 % Net interest income and margin (tax equivalent) $ 98,427 4.18 % $ 99,353 4.20 % $ 101,482 4.24 % Cost of funds 2.02 % 1.96 % 2.27 % Cost of deposits 1.97 % 1.90 % 2.16 % Stellar Bancorp, Inc. Financial Highlights (Unaudited) Six Months Ended June 30, 2025 2024 AverageBalance InterestEarned/Interest Paid AverageYield/Rate AverageBalance InterestEarned/ Interest Paid AverageYield/Rate (Dollars in thousands) Assets Interest-Earning Assets: Loans $ 7,313,283 $ 242,454 6.69 % $ 7,873,572 $ 270,570 6.91 % Securities 1,773,092 33,063 3.76 % 1,495,726 22,850 3.07 % Deposits in other financial institutions 433,625 9,502 4.42 % 261,911 7,182 5.51 % Total interest-earning assets 9,520,000 $ 285,019 6.04 % 9,631,209 $ 300,602 6.28 % Allowance for credit losses on loans (82,440 ) (93,959 ) Noninterest-earning assets 1,099,956 1,118,077 Total assets $ 10,537,516 $ 10,655,327 Liabilities and Shareholders' Equity Interest-Bearing Liabilities: Interest-bearing demand deposits $ 1,931,926 $ 26,791 2.80 % $ 1,621,154 $ 24,491 3.04 % Money market and savings deposits 2,303,273 31,880 2.79 % 2,189,099 31,438 2.89 % Certificates and other time deposits 1,249,175 24,986 4.03 % 1,569,292 33,842 4.34 % Borrowed funds 40,079 924 4.65 % 123,293 3,474 5.67 % Subordinated debt 70,136 2,845 8.18 % 109,859 3,829 7.01 % Total interest-bearing liabilities 5,594,589 $ 87,426 3.15 % 5,612,697 $ 97,074 3.48 % Noninterest-Bearing Liabilities: Noninterest-bearing demand deposits 3,252,917 3,417,196 Other liabilities 85,171 92,223 Total liabilities 8,932,677 9,122,116 Shareholders' equity 1,604,839 1,533,211 Total liabilities and shareholders' equity $ 10,537,516 $ 10,655,327 Net interest rate spread 2.89 % 2.80 % Net interest income and margin $ 197,593 4.19 % $ 203,528 4.25 % Net interest income and margin (tax equivalent) $ 197,780 4.19 % $ 203,688 4.25 % Cost of funds 1.99 % 2.16 % Cost of deposits 1.93 % 2.05 % Stellar Bancorp, Inc. Financial Highlights (Unaudited) Three Months Ended 2025 2024 June 30 March 31 December 31 September 30 June 30 (Dollars in thousands) Period-end Loan Portfolio: Commercial and industrial $ 1,346,744 $ 1,362,266 $ 1,362,260 $ 1,350,753 $ 1,396,064 Real estate: Commercial real estate (including multi-family residential) 3,840,981 3,854,607 3,868,218 3,976,296 4,029,671 Commercial real estate construction and land development 762,911 721,488 845,494 890,316 922,805 1-4 family residential (including home equity) 1,126,523 1,125,837 1,115,484 1,112,235 1,098,681 Residential construction 137,855 141,283 157,977 161,494 200,134 Consumer and other 72,333 77,652 90,421 60,030 66,542 Total loans held for investment $ 7,287,347 $ 7,283,133 $ 7,439,854 $ 7,551,124 $ 7,713,897 Deposits: Noninterest-bearing $ 3,183,693 $ 3,205,619 $ 3,576,206 $ 3,303,048 $ 3,308,441 Interest-bearing Demand 1,941,156 1,863,752 1,845,749 1,571,504 1,564,405 Money market and savings 2,393,767 2,248,616 2,253,193 2,280,651 2,213,031 Certificates and other time 1,154,998 1,244,726 1,453,236 1,587,398 1,639,426 Total interest-bearing deposits 5,489,921 5,357,094 5,552,178 5,439,553 5,416,862 Total deposits $ 8,673,614 $ 8,562,713 $ 9,128,384 $ 8,742,601 $ 8,725,303 Asset Quality: Nonaccrual loans $ 50,505 $ 54,518 $ 37,212 $ 32,140 $ 50,906 Accruing loans 90 or more days past due — — — — — Total nonperforming loans 50,505 54,518 37,212 32,140 50,906 Foreclosed assets 7,652 5,154 1,734 2,984 2,548 Total nonperforming assets $ 58,157 $ 59,672 $ 38,946 $ 35,124 $ 53,454 Net charge-offs (recoveries) $ 206 $ 163 $ 2,016 $ 3,933 $ (1 ) Nonaccrual loans: Commercial and industrial $ 13,395 $ 11,471 $ 8,500 $ 9,718 $ 18,451 Real estate: Commercial real estate (including multi-family residential) 23,359 26,383 16,459 10,695 18,094 Commercial real estate construction and land development 3,412 2,027 3,061 4,183 1,641 1-4 family residential (including home equity) 9,965 14,550 9,056 7,259 12,454 Residential construction 176 — — 121 155 Consumer and other 198 87 136 164 111 Total nonaccrual loans $ 50,505 $ 54,518 $ 37,212 $ 32,140 $ 50,906 Asset Quality Ratios: Nonperforming assets to total assets 0.55 % 0.57 % 0.36 % 0.33 % 0.50 % Nonperforming loans to total loans 0.69 % 0.75 % 0.50 % 0.43 % 0.66 % Allowance for credit losses on loans to nonperforming loans 164.67 % 153.61 % 217.83 % 262.92 % 186.17 % Allowance for credit losses on loans to total loans 1.14 % 1.15 % 1.09 % 1.12 % 1.23 % Net charge-offs to average loans (annualized) 0.01 % 0.01 % 0.11 % 0.21 % 0.00 % Stellar Bancorp, Inc. GAAP Reconciliation and Management's Explanation of Non-GAAP Financial Measures (Unaudited) Stellar's management uses certain non-GAAP (generally accepted accounting principles) financial measures to evaluate its performance. Stellar believes that these non-GAAP financial measures provide meaningful supplemental information regarding its performance and that management and investors benefit from referring to these non-GAAP financial measures in assessing Stellar's performance and when planning, forecasting, analyzing and comparing past, present and future periods. Specifically, Stellar reviews pre-tax, pre-provision income, pre-tax pre-provision ROAA, tangible book value per share, return on average tangible equity, tangible equity to tangible assets and net interest margin (tax equivalent) excluding PAA for internal planning and forecasting purposes. Stellar has included in this earnings release information relating to these non-GAAP financial measures for the applicable periods presented. These non-GAAP measures should not be considered in isolation or as a substitute for the most directly comparable or other financial measures calculated in accordance with GAAP. Moreover, the manner in which Stellar calculates the non-GAAP financial measures may differ from that of other companies reporting measures with similar names. Three Months Ended Six Months Ended 2025 2024 2025 2024 June 30 March 31 December 31 September 30 June 30 June 30 June 30 (Dollars and share amounts in thousands, except per share data) Net income $ 26,352 $ 24,702 $ 25,212 $ 33,891 $ 29,753 $ 51,054 $ 55,900 Add: Provision for (reversal of) credit losses 1,090 3,632 942 (5,985 ) (1,935 ) 4,722 2,163 Add: Provision for income taxes 6,680 6,263 6,569 8,837 7,792 12,943 14,551 Pre-tax, pre-provision income $ 34,122 $ 34,597 $ 32,723 $ 36,743 $ 35,610 $ 68,719 $ 72,614 Total average assets $ 10,464,157 $ 10,611,691 $ 10,649,175 $ 10,626,266 $ 10,623,865 $ 10,537,516 $ 10,655,327 Pre-tax, pre-provision return on average assets(A) 1.31 % 1.32 % 1.22 % 1.38 % 1.35 % 1.32 % 1.37 % Total shareholders' equity $ 1,603,834 $ 1,610,832 $ 1,607,860 $ 1,626,123 $ 1,565,795 $ 1,603,834 $ 1,565,795 Less: Goodwill and core deposit intangibles, net 578,786 584,325 589,864 595,434 601,633 578,786 601,633 Tangible shareholders' equity $ 1,025,048 $ 1,026,507 $ 1,017,996 $ 1,030,689 $ 964,162 $ 1,025,048 $ 964,162 Shares outstanding at end of period 51,398 52,141 53,429 53,446 53,564 51,398 53,564 Tangible book value per share $ 19.94 $ 19.69 $ 19.05 $ 19.28 $ 18.00 $ 19.94 $ 18.00 Average shareholders' equity $ 1,595,540 $ 1,614,242 $ 1,614,762 $ 1,587,918 $ 1,538,124 $ 1,604,839 $ 1,533,211 Less: Average goodwill and core deposit intangibles, net 581,438 586,895 592,471 598,866 604,722 584,152 607,935 Average tangible shareholders' equity $ 1,014,102 $ 1,027,347 $ 1,022,291 $ 989,052 $ 933,402 $ 1,020,687 $ 925,276 Net income $ 26,352 $ 24,702 $ 25,212 $ 33,891 $ 29,753 $ 51,054 $ 55,900 Add: Core deposit intangibles amortization, net of tax 4,383 4,383 4,409 4,907 4,910 8,766 9,817 Adjusted net income $ 30,735 $ 29,085 $ 29,621 $ 38,798 $ 34,663 $ 59,820 $ 65,717 Return on average tangible equity(A)(B) 12.16 % 11.48 % 11.53 % 15.61 % 14.94 % 11.82 % 14.28 % Total assets $ 10,493,010 $ 10,434,887 $ 10,905,790 $ 10,629,777 $ 10,723,663 $ 10,493,010 $ 10,723,663 Less: Goodwill and core deposit intangibles, net 578,786 584,325 589,864 595,434 601,633 578,786 601,633 Tangible assets $ 9,914,224 $ 9,850,562 $ 10,315,926 $ 10,034,343 $ 10,122,030 $ 9,914,224 $ 10,122,030 Tangible equity to tangible assets 10.34 % 10.42 % 9.87 % 10.27 % 9.53 % 10.34 % 9.53 % Net interest income (tax equivalent) $ 98,427 $ 99,353 $ 103,039 $ 101,578 $ 101,482 $ 197,780 $ 203,688 Less: Purchase accounting accretion 5,344 5,397 7,555 6,795 10,098 10,741 18,649 Adjusted net interest income (tax equivalent) $ 93,083 $ 93,956 $ 95,484 $ 94,783 $ 91,384 $ 187,039 $ 185,039 Average earning assets $ 9,448,589 $ 9,592,205 $ 9,653,162 $ 9,643,629 $ 9,616,874 $ 9,520,000 $ 9,631,209 Net interest margin (tax equivalent) excluding PAA(A) 3.95 % 3.97 % 3.94 % 3.91 % 3.82 % 3.96 % 3.86 % Noninterest expense $ 70,004 $ 70,166 $ 75,266 $ 71,066 $ 71,216 $ 140,170 $ 142,626 Less: Core deposit intangibles amortization 5,548 5,548 5,581 6,212 6,215 11,096 12,427 Adjusted noninterest expense $ 64,456 $ 64,618 $ 69,685 $ 64,854 $ 65,001 $ 129,074 $ 130,199 Net interest income $ 98,335 $ 99,258 $ 102,957 $ 101,507 $ 101,410 $ 197,593 $ 203,528 Noninterest income 5,791 5,505 5,032 6,302 5,416 11,296 11,712 Less: (Loss) gain on sale of assets (57 ) 417 (112 ) 432 (64 ) 360 449 Adjusted noninterest income 5,848 5,088 5,144 5,870 5,480 10,936 11,263 Net interest income plus adjusted noninterest income $ 104,183 $ 104,346 $ 108,101 $ 107,377 $ 106,890 $ 208,529 $ 214,791 Efficiency ratio(C) 61.87 % 61.93 % 64.46 % 60.40 % 60.81 % 61.90 % 60.62 % (A) Interim periods annualized. (B) The calculation of return on average tangible equity has been adjusted from prior period disclosures. All periods presented above have been recalculated and disclosed under the same calculation. (C) The calculation of the efficiency ratio has been adjusted from prior period disclosures. All periods presented above have been recalculated and disclosed under the same calculation. View source version on Contacts Investor Relations ir@
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Phillips 66 Reports Second-Quarter Results
Reported second-quarter earnings of $877 million or $2.15 per share; adjusted earnings of $973 million or $2.38 per share; including $239 million of pre-tax accelerated depreciation on Los Angeles Refinery Operated at 98% capacity utilization in Refining with 86% clean product yield Completed Midstream acquisition of EPIC NGL, now renamed Coastal Bend Announced sale of 65% interest in our Germany and Austria retail marketing business Generated $845 million of net operating cash flow, $1.9 billion excluding working capital Returned $906 million to shareholders through dividends and share repurchases HOUSTON, July 25, 2025--(BUSINESS WIRE)--Phillips 66 (NYSE: PSX) announced second-quarter earnings. "Phillips 66 delivered strong financial and operating results across our integrated value chain, reflecting the continued execution of our strategy. During the quarter, Refining ran at the highest utilization since 2018, achieved its lowest cost per barrel since 2021, strong market capture and record year-to-date clean product yield. Our results were made possible through disciplined execution and investment," said Mark Lashier, chairman and CEO of Phillips 66. "We also continued our strong growth trajectory in Midstream, which generated approximately $1 billion of adjusted EBITDA following the acquisition of Coastal Bend. The Dos Picos II gas processing plant in the Midland Basin recently came online ahead of schedule and on budget. These assets further our stable earnings growth, enhance returns and increase shareholder value as we progress our wellhead-to-market strategy. Looking ahead, we are focused on organic Midstream growth as we advance toward our 2027 targets." Financial Results Summary(in millions of dollars, except as indicated) 2Q 2025 1Q 2025 Earnings $ 877 487 Adjusted Earnings (Loss)1 973 (368) Adjusted EBITDA1 2,501 736 Earnings (Loss) Per Share Earnings Per Share - Diluted 2.15 1.18 Adjusted Earnings (Loss) Per Share - Diluted1 2.38 (0.90) Cash Flow From Operations 845 187 Cash Flow From Operations, Excluding Working Capital1 1,920 259 Capital Expenditures & Investments 587 423 Acquisitions, net of cash acquired 2,220 — Return of Capital to Shareholders 906 716 Repurchases of common stock 419 247 Dividends paid on common stock 487 469 Cash and Cash Equivalents, including cash classified within Assets held for sale2 1,144 1,489 Debt 20,935 18,803 Debt-to-capital ratio 42% 40% Net debt-to-capital ratio1 41% 38% 1 Represents a non-GAAP financial measure. Reconciliations of these non-GAAP financial measures to the most comparable GAAP financial measure are included within this release. 2 Includes cash and cash equivalents of $92 million classified within Assets held for sale at June 30, 2025. Segment Financial and Operating Highlights(Millions of dollars, except as indicated) 2Q 2025 1Q 2025 Change Earnings (Loss)1 $ 877 487 390 Midstream 731 751 (20) Chemicals 20 113 (93) Refining 359 (937) 1,296 Marketing and Specialties 571 1,282 (711) Renewable Fuels (133) (185) 52 Corporate and Other (428) (376) (52) Income tax (expense) benefit (212) (122) (90) Noncontrolling interests (31) (39) 8 Adjusted Earnings (Loss)1,2 $ 973 (368) 1,341 Midstream 731 683 48 Chemicals 20 113 (93) Refining 392 (937) 1,329 Marketing and Specialties 660 265 395 Renewable Fuels (133) (185) 52 Corporate and Other (383) (355) (28) Income tax (expense) benefit (283) 78 (361) Noncontrolling interests (31) (30) (1) Adjusted EBITDA2 $ 2,501 736 1,765 Midstream 972 885 87 Chemicals 148 244 (96) Refining 867 (452) 1,319 Marketing and Specialties 718 315 403 Renewable Fuels (110) (162) 52 Corporate and Other (94) (94) — Operating Highlights Pipeline Throughput - Y-Grade to Market (MB/D)3 956 704 252 Chemicals Global O&P Capacity Utilization 92% 100% (8%) Refining Turnaround Expense4 53 270 (217) Realized Margin ($/BBL)2 11.25 6.81 4.44 Crude Capacity Utilization 98% 80% 18% Clean Product Yield 86% 87% (1%) Renewable Fuels Produced (MB/D) 40 44 (4) 1 Segment reporting is pre-tax. 2 Represents a non-GAAP financial measure. Reconciliations of these non-GAAP financial measures to the most comparable GAAP financial measure are included within this release. 3 Represents volumes delivered to fractionation hubs, including Mont Belvieu, Sweeny and Conway. Includes 100% of DCP Midstream Class A Segment and Phillips 66's direct interest in DCP Sand Hills Pipeline, LLC and DCP Southern Hills Pipeline, LLC. 4 Excludes turnaround expense of all equity affiliates. Second-Quarter 2025 Financial Results Reported earnings were $877 million for the second quarter of 2025 versus $487 million in the first quarter of 2025. Second-quarter earnings included pre-tax special item adjustments of $(89) million in the Marketing and Specialties segment, $(45) million impacting Corporate and Other and $(33) million in the Refining segment. Adjusted earnings for the second quarter were $973 million versus an adjusted loss of $368 million in the first quarter. Midstream second-quarter 2025 adjusted pre-tax income increased compared with the first quarter mainly due to higher volumes, largely driven by the acquisition of Coastal Bend, partially offset by seasonal maintenance expense and property taxes. Chemicals adjusted pre-tax income decreased mainly due to lower margins driven by lower sales prices. Refining adjusted pre-tax results increased mainly due to higher realized margins resulting from improved market crack spreads, as well as higher volumes and lower costs. Marketing and Specialties adjusted pre-tax income increased primarily due to higher margins and volumes. Renewable Fuels pre-tax results improved primarily due to higher realized margins including inventory impacts, as well as increased credits. Corporate and Other adjusted pre-tax loss increased mainly due to higher net interest expense, partially offset by impacts from our investment in NOVONIX. As of June 30, 2025, the company had $1.1 billion of cash and cash equivalents and $3.7 billion of committed capacity available under credit facilities. Business Highlights and Strategic Priorities Progress Advanced NGL wellhead-to-market strategy by acquiring Coastal Bend and nearing completion of a related pipeline expansion project, expected to increase capacity from 175 MBD to 225 MBD Expanded natural gas gathering and processing capacity with the startup of Dos Picos II, a 220 MMCF/D plant in the Midland Basin Maintained disciplined operations in Refining and achieved $5.46 per barrel in Refining Adjusted Controllable Costs1, excluding adjusted turnaround expense in the second quarter and $6.17 per barrel year-to-date Achieved a record year-to-date clean product yield of 87%, reflecting a 2% increase from the same period in 2024 On track to cease operations at the Los Angeles Refinery, as well as complete the Germany and Austria transaction by year-end. 1 Represents a non-GAAP financial measure. Reconciliations of non-GAAP financial measures to the most comparable GAAP financial measure are included within this release. Investor Webcast Members of Phillips 66 executive management will host a webcast at noon ET to provide an update on the company's strategic initiatives and discuss the company's second-quarter performance. To access the webcast and view related presentation materials, go to and click on "Events & Presentations." For detailed supplemental information, go to About Phillips 66 Phillips 66 (NYSE: PSX) is a leading integrated downstream energy provider that manufactures, transports and markets products that drive the global economy. The company's portfolio includes Midstream, Chemicals, Refining, Marketing and Specialties, and Renewable Fuels businesses. Headquartered in Houston, Phillips 66 has employees around the globe who are committed to safely and reliably providing energy and improving lives while pursuing a lower-carbon future. For more information, visit or follow @Phillips66Co on LinkedIn. Use of Non-GAAP Financial Information—This news release includes the terms "adjusted earnings (loss)," "adjusted pre-tax income (loss)," "adjusted EBITDA," "adjusted earnings (loss) per share," "adjusted controllable cost," "cash from operations, excluding working capital," "net debt-to-capital ratio," and "realized refining margin per barrel." These are non-GAAP financial measures that are included to help facilitate comparisons of operating performance across periods, to help facilitate comparisons with other companies in our industry and to help facilitate determination of enterprise value. Where applicable, these measures exclude items that do not reflect the core operating results of our businesses in the current period or other adjustments to reflect how management analyzes results. Reconciliations of these non-GAAP financial measures to the most comparable GAAP financial measure are included within this release. References in the release to earnings refer to net income attributable to Phillips 66. Basis of Presentation— Effective April 1, 2024, we changed the internal financial information reviewed by our chief executive officer to evaluate performance and allocate resources to our operating segments. This included changes in the composition of our operating segments, as well as measurement changes for certain activities between our operating segments. The primary effects of this realignment included establishment of a Renewable Fuels operating segment, which includes renewable fuels activities and assets historically reported in our Refining, Marketing and Specialties (M&S), and Midstream segments; change in method of allocating results for certain Gulf Coast distillate export activities from our M&S segment to our Refining segment; reclassification of certain crude oil and international clean products trading activities between our M&S segment and our Refining segment; and change in reporting of our investment in NOVONIX from our Midstream segment to Corporate and Other. Accordingly, prior period results have been recast for comparability. In the third quarter of 2024, we began presenting the line item "Capital expenditures and investments" on our consolidated statement of cash flows exclusive of acquisitions, net of cash acquired. Accordingly, prior period information has been reclassified for comparability. Cautionary Statement for the Purposes of the "Safe Harbor" Provisions of the Private Securities Litigation Reform Act of 1995—This news release contains forward-looking statements within the meaning of the federal securities laws relating to Phillips 66's operations, strategy and performance. Words such as "anticipated," "estimated," "expected," "planned," "scheduled," "targeted," "believe," "continue," "intend," "will," "would," "objective," "goal," "project," "efforts," "strategies" and similar expressions that convey the prospective nature of events or outcomes generally indicate forward-looking statements. However, the absence of these words does not mean that a statement is not forward-looking. Forward-looking statements included in this news release are based on management's expectations, estimates and projections as of the date they are made. These statements are not guarantees of future events or performance, and you should not unduly rely on them as they involve certain risks, uncertainties and assumptions that are difficult to predict. Therefore, actual outcomes and results may differ materially from what is expressed or forecast in such forward-looking statements. Factors that could cause actual results or events to differ materially from those described in the forward-looking statements include: changes in governmental policies relating to NGL, crude oil, natural gas, refined petroleum or renewable fuels products pricing, regulation or taxation, including exports; our ability to timely obtain or maintain permits, including those necessary for capital projects; fluctuations in NGL, crude oil, refined petroleum products, renewable fuels, renewable feedstocks and natural gas prices, and refined product, marketing and petrochemical margins; the effects of any widespread public health crisis and its negative impact on commercial activity and demand for our products; changes to government policies relating to renewable fuels and greenhouse gas emissions that adversely affect programs including the renewable fuel standards program, low carbon fuel standards and tax credits for biofuels; liability resulting from pending or future litigation or other legal proceedings; liability for remedial actions, including removal and reclamation obligations under environmental regulations; unexpected changes in costs or technical requirements for constructing, modifying or operating our facilities or transporting our products; our ability to successfully complete, or any material delay in the completion of, any asset disposition, acquisition, shutdown or conversion that we may pursue, including receipt of any necessary regulatory approvals or permits related thereto; unexpected technological or commercial difficulties in manufacturing, refining or transporting our products, including chemical products; the level and success of producers' drilling plans and the amount and quality of production volumes around our midstream assets; risks and uncertainties with respect to the actions of actual or potential competitive suppliers and transporters of refined petroleum products, renewable fuels or specialty products; changes in the cost or availability of adequate and reliable transportation for our NGL, crude oil, natural gas and refined petroleum and renewable fuels products; failure to complete definitive agreements and feasibility studies for, and to complete construction of, announced and future capital projects on time or within budget; our ability to comply with governmental regulations or make capital expenditures to maintain compliance; limited access to capital or significantly higher cost of capital related to our credit profile or illiquidity or uncertainty in the domestic or international financial markets; damage to our facilities due to accidents, weather and climate events, civil unrest, insurrections, political events, terrorism or cyberattacks; domestic and international economic and political developments including armed hostilities, such as the war in Eastern Europe, instability in the financial services and banking sector, excess inflation, expropriation of assets and changes in fiscal policy, including interest rates; international monetary conditions and exchange controls; changes in estimates or projections used to assess fair value of intangible assets, goodwill and properties, plants and equipment and/or strategic decisions or other developments with respect to our asset portfolio that cause impairment charges; substantial investments required, or reduced demand for products, as a result of existing or future environmental rules and regulations, including greenhouse gas emissions reductions and reduced consumer demand for refined petroleum products; changes in tax, environmental and other laws and regulations (including alternative energy mandates) applicable to our business; political and societal concerns about climate change that could result in changes to our business or increase expenditures, including litigation-related expenses; the operation, financing and distribution decisions of our joint ventures that we do not control; the potential impact of activist shareholder actions or tactics; and other economic, business, competitive and/or regulatory factors affecting Phillips 66's businesses generally as set forth in our filings with the Securities and Exchange Commission. Phillips 66 is under no obligation (and expressly disclaims any such obligation) to update or alter its forward-looking statements, whether as a result of new information, future events or otherwise. Earnings (Loss) Millions of Dollars 2025 2024 2Q 1Q Jun YTD 2Q Jun YTD Midstream $ 731 751 1,482 767 1,321 Chemicals 20 113 133 222 427 Refining 359 (937 ) (578 ) 302 518 Marketing and Specialties 571 1,282 1,853 415 781 Renewable Fuels (133 ) (185 ) (318 ) (55 ) (110 ) Corporate and Other (428 ) (376 ) (804 ) (340 ) (662 ) Pre-Tax Income (Loss) 1,120 648 1,768 1,311 2,275 Less: Income tax expense (benefit) 212 122 334 291 494 Less: Noncontrolling interests 31 39 70 5 18 Phillips 66 $ 877 487 1,364 1,015 1,763 Adjusted Earnings (Loss) Millions of Dollars 2025 2024 2Q 1Q Jun YTD 2Q Jun YTD Midstream $ 731 683 1,414 753 1,366 Chemicals 20 113 133 222 427 Refining 392 (937 ) (545 ) 302 615 Marketing and Specialties 660 265 925 415 722 Renewable Fuels (133 ) (185 ) (318 ) (55 ) (110 ) Corporate and Other (383 ) (355 ) (738 ) (340 ) (662 ) Pre-Tax Income (Loss) 1,287 (416 ) 871 1,297 2,358 Less: Income tax expense (benefit) 283 (78 ) 205 278 504 Less: Noncontrolling interests 31 30 61 35 48 Phillips 66 $ 973 (368 ) 605 984 1,806 Millions of Dollars Except as Indicated 2025 2024 2Q 1Q Jun YTD 2Q Jun YTD Reconciliation of Consolidated Earnings to Adjusted Earnings (Loss) Consolidated Earnings $ 877 487 1,364 1,015 1,763 Pre-tax adjustments: Impairments — 21 21 224 387 Net (gain) loss on asset dispositions1 89 (1,085 ) (996 ) (238 ) (238 ) Legal accrual 33 — 33 — — Legal settlement — — — — (66 ) Professional advisory fees 45 — 45 — — Tax impact of adjustments2 (40 ) 200 160 13 (10 ) Other tax impacts (31 ) — (31 ) — — Noncontrolling interests — 9 9 (30 ) (30 ) Adjusted earnings (loss) $ 973 (368 ) 605 984 1,806 Earnings per share of common stock (dollars) $ 2.15 1.18 3.32 2.38 4.10 Adjusted earnings (loss) per share of common stock (dollars) $ 2.38 (0.90 ) 1.47 2.31 4.21 Adjusted Weighted-Average Diluted Common Shares Outstanding (thousands) 407,934 409,182 409,012 425,734 429,003 Reconciliation of Segment Pre-Tax Income (Loss) to Adjusted Pre-Tax Income (Loss) Midstream Pre-Tax Income $ 731 751 1,482 767 1,321 Pre-tax adjustments: Impairments — — — 224 283 Net gain on asset dispositions1 — (68 ) (68 ) (238 ) (238 ) Adjusted pre-tax income $ 731 683 1,414 753 1,366 Chemicals Pre-Tax Income $ 20 113 133 222 427 Pre-tax adjustments: None — — — — — Adjusted pre-tax income $ 20 113 133 222 427 Refining Pre-Tax Income (Loss) $ 359 (937 ) (578 ) 302 518 Pre-tax adjustments: Impairments — — — — 104 Legal settlement — — — — (7 ) Legal accrual 33 — 33 — — Adjusted pre-tax income (loss) $ 392 (937 ) (545 ) (302 ) (615 ) Marketing and Specialties Pre-Tax Income $ 571 1,282 1,853 415 781 Pre-tax adjustments: Net (gain) loss on asset dispositions1 89 (1,017 ) (928 ) — — Legal settlement — — — — (59 ) Adjusted pre-tax income $ 660 265 925 415 722 Renewable Fuels Pre-Tax Loss $ (133 ) (185 ) (318 ) (55 ) (110 ) Pre-tax adjustments: None — — — — — Adjusted pre-tax loss ... $ (133 ) (185 ) (318 ) (55 ) (110 ) Corporate and Other Pre-Tax Loss $ (428 ) (376 ) (804 ) (340 ) (662 ) Pre-tax adjustments: Impairments — 21 21 — — Professional advisory fees 45 — 45 — — Adjusted pre-tax loss $ (383 ) (355 ) (738 ) (340 ) (662 ) 1. Gain on disposition of our 49% non-operated equity interest in Coop Mineraloel AG in 1Q 2025. In connection with our pending disposition of our Germany and Austria retail marketing business, in the second quarter of 2025 we recognized a before-tax unrealized loss from foreign currency derivatives. 2. We generally tax effect taxable U.S.-based special items using a combined federal and state annual statutory income tax rate of approximately 24%. Taxable special items attributable to foreign locations likewise generally use a local statutory income tax rate. Nontaxable events reflect zero income tax. These events include, but are not limited to, most goodwill impairments, transactions legislatively exempt from income tax, transactions related to entities for which we have made an assertion that the undistributed earnings are permanently reinvested, or transactions occurring in jurisdictions with a valuation allowance. Millions of Dollars Except as Indicated 2025 2Q 1Q Reconciliation of Consolidated Net Income to Adjusted EBITDA Attributable to Phillips 66 Net Income $ 908 526 Plus: Income tax expense 212 122 Net interest expense 230 187 Depreciation and amortization 816 791 Phillips 66 EBITDA $ 2,166 1,626 Special Item Adjustments (pre-tax): Impairments — 21 Net (gain) loss on asset dispositions 89 (1,085 ) Legal accrual 33 — Professional advisory fees 45 — Total Special Item Adjustments (pre-tax) 167 (1,064 ) Change in Fair Value of NOVONIX Investment 2 15 Phillips 66 EBITDA, Adjusted for Special Items and Change in Fair Value of NOVONIX Investment $ 2,335 577 Other Adjustments (pre-tax): Proportional share of selected equity affiliates income taxes 17 18 Proportional share of selected equity affiliates net interest 15 14 Proportional share of selected equity affiliates depreciation and amortization 184 187 Adjusted EBITDA attributable to noncontrolling interests (50 ) (60 ) Phillips 66 Adjusted EBITDA $ 2,501 736 Reconciliation of Segment Income before Income Taxes to Adjusted EBITDA Midstream Income before income taxes $ 731 751 Plus: Depreciation and amortization 260 233 Midstream EBITDA $ 991 984 Special Item Adjustments (pre-tax): Net gain on asset dispositions — (68 ) Midstream EBITDA, Adjusted for Special Items $ 991 916 Other Adjustments (pre-tax): Proportional share of selected equity affiliates income taxes 4 3 Proportional share of selected equity affiliates net interest 3 3 Proportional share of selected equity affiliates depreciation and amortization 24 23 Adjusted EBITDA attributable to noncontrolling interests (50 ) (60 ) Midstream Adjusted EBITDA $ 972 885 Chemicals Income before income taxes $ 20 113 Plus: None — — Chemicals EBITDA $ 20 113 Special Item Adjustments (pre-tax): None — — Chemicals EBITDA, Adjusted for Special Items $ 20 113 Other Adjustments (pre-tax): Proportional share of selected equity affiliates income taxes 13 13 Proportional share of selected equity affiliates net interest (1 ) (1 ) Proportional share of selected equity affiliates depreciation and amortization 116 119 Chemicals Adjusted EBITDA $ 148 244 Refining Income (loss) before income taxes $ 359 (937 ) Plus: Depreciation and amortization 443 456 Refining EBITDA $ 802 (481 ) Special Item Adjustments (pre-tax): Legal accrual 33 — Refining EBITDA, Adjusted for Special Items $ 835 (481 ) Other Adjustments (pre-tax): Proportional share of selected equity affiliates income taxes — — Proportional share of selected equity affiliates net interest 3 2 Proportional share of selected equity affiliates depreciation and amortization 29 27 Refining Adjusted EBITDA $ 867 (452 ) Marketing and Specialties Income before income taxes $ 571 1,282 Plus: Depreciation and amortization 33 20 Marketing and Specialties EBITDA $ 604 1,302 Special Item Adjustments (pre-tax): Net gain on asset disposition 89 (1,017 ) Marketing and Specialties EBITDA, Adjusted for Special Items $ 693 285 Other Adjustments (pre-tax): Proportional share of selected equity affiliates income taxes — 2 Proportional share of selected equity affiliates net interest 10 10 Proportional share of selected equity affiliates depreciation and amortization 15 18 Marketing and Specialties Adjusted EBITDA $ 718 315 Renewable Fuels Loss before income taxes $ (133 ) (185 ) Plus: Depreciation and amortization 23 23 Renewable Fuels EBITDA $ (110 ) (162 ) Special Item Adjustments (pre-tax): None — — Renewable Fuels EBITDA, Adjusted for Special Items $ (110 ) (162 ) Corporate and Other Loss before income taxes $ (428 ) (376 ) Plus: Net interest expense 230 187 Depreciation and amortization 57 59 Corporate and Other EBITDA $ (141 ) (130 ) Special Item Adjustments (pre-tax): Impairments — 21 Professional advisory fees 45 — Total Special Item Adjustments (pre-tax) 45 21 Change in Fair Value of NOVONIX Investment 2 15 Corporate EBITDA, Adjusted for Special Items and Change in Fair Value of NOVONIX Investment $ (94 ) (94 ) Millions of Dollars Except as Indicated June 30, 2025 March 31, 2025 Debt-to-Capital Ratio Total Debt $ 20,935 18,803 Total Equity 28,626 28,353 Debt-to-Capital Ratio 42 % 40 % Cash and Cash Equivalents, including cash classified within Assets held for sale1 1,144 1,489 Net Debt-to-Capital Ratio 41 % 38 % 1. Includes cash and cash equivalents of $92 million classified within Assets held for sale at June 30, 2025. Millions of Dollars Except as Indicated 2025 2Q 1Q Reconciliation of Refining Income (Loss) Before Income Taxes to Realized Refining Margins Income (loss) before income taxes $ 359 (937 ) Plus: Taxes other than income taxes 94 110 Depreciation, amortization and impairments 446 457 Selling, general and administrative expenses 32 46 Operating expenses 848 1,074 Equity in earnings of affiliates 2 105 Other segment expense, net (47 ) (5 ) Proportional share of refining gross margins contributed by equity affiliates 234 141 Special items: None — — Realized refining margins $ 1,968 991 Total processed inputs (thousands of barrels) 152,005 124,453 Adjusted total processed inputs (thousands of barrels)* 174,772 145,559 Income (loss) before income taxes (dollars per barrel)** $ 2.36 (7.53 ) Realized refining margins (dollars per barrel)*** $ 11.25 6.81 *Adjusted total processed inputs include our proportional share of processed inputs of an equity affiliate. **Income (loss) before income taxes divided by total processed inputs. ***Realized refining margins per barrel, as presented, are calculated using the underlying realized refining margin amounts, in dollars, divided by adjusted total processed inputs, in barrels. As such, recalculated per barrel amounts using the rounded margins and barrels presented may differ from the presented per barrel amounts. Millions of Dollars Except as Indicated 2025 2Q 1Q June YTD Reconciliation of Refining Operating and SG&A Expenses to Refining Adjusted Controllable Costs Turnaround expenses $ 53 270 323 Other operating expenses 795 804 1,599 Total operating expenses 848 1,074 1,922 Selling, general and administrative expenses 32 46 78 Refining Controllable Costs 880 1,120 2,000 Plus: Proportional share of equity affiliate turnaround expenses1 24 27 51 Proportional share of equity affiliate other operating and SG&A expenses1 161 173 334 Total proportional share of equity affiliate operating and SG&A expenses1 185 200 385 Special item adjustments (pre-tax): Legal accrual (33 ) — (33 ) Refining Adjusted Controllable Costs 1,032 1,320 2,352 Total processed inputs (MB) 152,005 124,453 276,458 Adjusted total processed inputs (MB)2 174,772 145,559 320,331 Refining turnaround expense ($/BBL)3 0.35 2.17 1.17 Refining controllable costs, excluding turnaround expense ($/BBL)3 5.44 6.83 6.07 Refining Controllable Costs per Barrel ($/BBL)3 5.79 9.00 7.24 Refining adjusted turnaround expense ($/BBL)4 0.44 2.04 1.17 Refining adjusted controllable costs, excluding adjusted turnaround expense ($/BBL)4 5.46 7.03 6.17 Refining Adjusted Controllable Costs ($/BBL)4 5.90 9.07 7.34 1. Represents proportional share of operating and SG&A of equity affiliates for our Refining segment that are reflected as a component of equity in earnings of affiliates on our consolidated statement of income. 2. Adjusted total processed inputs include our proportional share of processed inputs of an equity affiliate. 3. Denominator is total processed inputs. 4. Denominator is adjusted total processed inputs. Millions of Dollars Except as Indicated 2024 2023 2022 2021 Reconciliation of Refining Operating and SG&A Expenses to Refining Adjusted Controllable Costs Turnaround expenses $ 484 538 772 497 Other operating expenses 3,243 3,707 3,958 3,663 Total operating expenses 3,727 4,245 4,730 4,160 Selling, general and administrative expenses 209 169 152 131 Refining Controllable Costs 3,936 4,414 4,882 4,291 Plus: Proportional share of equity affiliate turnaround expenses1 68 93 118 118 Proportional share of equity affiliate other operating and SG&A expenses1 626 641 721 619 Total proportional share of equity affiliate operating and SG&A expenses1 694 734 839 737 Special item adjustments (pre-tax): Hurricane-related (costs) recovery — — 21 (40 ) Winter-storm-related costs — — — (17 ) Alliance shutdown-related costs — — (20 ) (32 ) Legal accrual (22 ) (30 ) — — Los Angeles Refinery cessation costs (44 ) — — — Refining Adjusted Controllable Costs 4,564 5,118 5,722 4,939 Total processed inputs (MB) 588,316 607,958 612,741 638,145 Adjusted total processed inputs (MB)2 680,043 685,435 691,855 715,780 Refining turnaround expense ($/BBL)3 0.82 0.88 1.26 0.78 Refining controllable costs, excluding turnaround expense ($/BBL)3 5.87 6.38 6.71 5.95 Refining Controllable Costs per Barrel ($/BBL)3 6.69 7.26 7.97 6.72 Refining adjusted turnaround expense ($/BBL)4 0.81 0.92 1.29 0.86 Refining adjusted controllable costs, excluding adjusted turnaround expense ($/BBL)4 5.90 6.55 6.98 6.04 Refining Adjusted Controllable Costs ($/BBL)4 6.71 7.47 8.27 6.90 1. Represents proportional share of operating and SG&A of equity affiliates for our Refining segment that are reflected as a component of equity in earnings of affiliates on our consolidated statement of income. 2. Adjusted total processed inputs include our proportional share of processed inputs of an equity affiliate. 3. Denominator is total processed inputs. 4. Denominator is adjusted total processed inputs. View source version on Contacts Jeff Dietert (investors) Owen Simpson (investors) Al Ortiz (media) Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
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Kenvue to Announce Second Quarter 2025 Results on August 7, 2025
SUMMIT, N.J., July 25, 2025--(BUSINESS WIRE)--Kenvue Inc. (NYSE: KVUE) will announce its second quarter 2025 financial results before the market opens on August 7, 2025. The company will host a conference call and webcast at 8:30 a.m. Eastern Time to discuss its financial results. The conference call can be accessed by dialing 877-407-8835 from the U.S. or +1 201-689-8779 from international locations. A live webcast of the conference call can also be accessed at with a replay made available after the live event. About Kenvue Kenvue Inc. is the world's largest pure-play consumer health company by revenue. Built on more than a century of heritage, our iconic brands, including Aveeno®, BAND-AID® Brand, Johnson's®, Listerine®, Neutrogena® and Tylenol®, are science-backed and recommended by healthcare professionals around the world. At Kenvue, we realize the extraordinary power of everyday care. Our teams work every day to put that power in consumers' hands and earn a place in their hearts and homes. Learn more at View source version on Contacts Investor Relations: Sofya TsinisKenvue_IR@ Media Relations: Melissa WittMedia@
