WILLIAMS COMPANIES (WMB)·Q4 2025 Earnings Summary

Williams Delivers Record Year, Raises 2026 EBITDA Guidance to $8.2B

February 10, 2026 · by Fintool AI Agent

Williams Companies (NYSE: WMB) reported Q4 2025 results that beat profit expectations while delivering a record full-year Adjusted EBITDA of $7.75 billion. The natural gas infrastructure giant raised its 2026 EBITDA guidance to a midpoint of $8.2 billion and increased its dividend by 5%, extending its dividend track record to 52 consecutive years.

Did Williams Beat Earnings?

Williams delivered mixed results against consensus, with profitability metrics handily beating expectations while revenue came in slightly light:

The EBITDA beat was driven by strong performance across Transmission, Power & Gulf and the West segment, with higher Transco rates and expansion project contributions offsetting weaker commodity marketing margins.

Full-Year 2025 Highlights:

• Adjusted EBITDA: $7.75B (+9% YoY) — record result
• GAAP Net Income: $2.62B (+18% YoY)
• Cash Flow from Operations: $5.90B (+19% YoY)
• Available Funds from Operations: $5.86B (+9% YoY)

What Did Management Guide?

Williams issued 2026 guidance that came in roughly at consensus, signaling continued confidence in organic growth from completed expansion projects:

CEO Chad Zamarin highlighted the company's strong positioning: "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."

The 2026 guidance assumes partial-year revenues from Williams' first power innovation project expected online in H2 2026.

How Did the Stock React?

WMB shares rose +1.7% in after-hours trading to $69.00 following the earnings release, building on strong momentum throughout 2025:

The stock is trading near its 52-week high of $68.95, reflecting investor confidence in Williams' natural gas infrastructure positioning amid growing power demand from AI data centers.

What Changed From Last Quarter?

Several notable developments emerged in Q4:

1. Record Project Execution Williams completed 12 projects in 2025 (6 pipeline transmission, 2 gathering, 4 Deepwater) and announced 10 new projects including 5 pipeline transmission and 3 power innovation projects.

2. Power Innovation Expansion The company announced a new power innovation project called "Socrates the Younger" and upsized two existing projects, bringing total power innovation capital in execution to over $7 billion.

3. Strategic M&A Activity

• Closed Rimrock and Saber Midstream acquisitions
• Executed Haynesville E&P sale and strategic partnership with Woodside Energy
• Investment in Cogentrix contributed to equity earnings

4. Mid-Continent Asset Impairment Williams recorded $187 million in Q4 impairments ($212 million full-year) primarily related to planned sale of gas gathering assets in the Mid-Continent region.

Segment Performance

Transmission, Power & Gulf drove the bulk of the improvement, benefiting from Transco's higher net rates and expansion projects, plus new Gulf of Mexico volumes. The segment completed 1.1 Bcf/d of pipeline transmission projects in 2025 with another 7.1 Bcf/d currently in execution.

West segment Adjusted EBITDA grew despite Modified EBITDA declining due to the Mid-Continent impairment. Growth came from Louisiana Energy Gateway coming into service and new volumes from Rimrock and Saber acquisitions.

Capital Allocation & Dividend

Williams continues to prioritize disciplined capital allocation while returning cash to shareholders:

The 5% dividend increase to $2.10 annualized marks Williams' 52nd consecutive year of dividend payments. Management noted the 2.40x coverage ratio provides significant cushion for continued dividend growth.

Beat/Miss History

Williams has delivered consistent results over the past 8 quarters:

Values from S&P Global

Williams has beaten EBITDA consensus in 6 of the past 8 quarters, demonstrating consistent operational execution.

Forward Catalysts

Key events to watch:

1. H2 2026: First power innovation project comes online, adding incremental revenue
2. Pipeline Expansion: 7.1 Bcf/d of transmission projects in execution
3. Power Innovation: $7B+ capital deployed across multiple projects targeting AI/data center power demand
4. Mid-Continent Divestiture: Potential asset sale proceeds from gathering assets being marketed
5. 2026 Analyst Day: Company hosting investor event today (Feb 10) starting at 8:30 AM ET

Key Risks Flagged

Management highlighted several risk factors in the filing:

• Commodity Price Volatility: Natural gas and NGL price fluctuations impact marketing margins
• Regulatory Environment: Permitting timelines and environmental regulations could delay projects
• Interest Rates: Higher rates impact financing costs for capital-intensive projects
• Execution Risk: $6.4B midpoint growth capex requires disciplined project management
• Leverage: Expected leverage ratio of ~4.0x in 2026 is above current 3.71x

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Related Links:

• Williams Company Profile
• Q4 2025 Earnings Call Transcript
• Q3 2025 Earnings Recap