Exxon Beats Q4 Earnings as Cash Flow Remains Strong
Exxon Mobil Corporation reported stronger-than-expected results for the fourth quarter of 2025, beating earnings expectations and underscoring its ability to generate cash even as profits eased from last year’s elevated energy-price environment.
Key Takeaways
- Exxon beat fourth-quarter earnings expectations with EPS of $1.53, or $1.71 adjusted.
- Full-year 2025 earnings reached $28.8 billion, supported by $52.0 billion in operating cash flow.
- The company returned $37.2 billion to shareholders, backed by record production and continued cost savings.
The oil major posted fourth-quarter earnings of $6.5 billion, or $1.53 per share, topping market forecasts. On an adjusted basis, earnings excluding identified items came in at $7.3 billion, or $1.71 per share, reflecting solid operational performance across the portfolio.
Earnings and cash flow hold up
While quarterly earnings declined compared with the previous quarter, Exxon’s cash generation remained a key highlight. Cash flow from operating activities reached $12.7 billion in the quarter, while free cash flow totaled $5.6 billion. The company continued to prioritize shareholder returns, distributing $9.5 billion during the quarter through dividends and share buybacks.
For the full year 2025, Exxon reported earnings of $28.8 billion and operating cash flow of $52.0 billion. Earnings per share for the year came in at $6.70, or $6.99 excluding identified items, maintaining what the company described as industry-leading performance over the past several years.
Shareholder returns remain aggressive
Exxon returned a total of $37.2 billion to shareholders in 2025, including $17.2 billion in dividends and $20.0 billion in share repurchases, in line with previously announced capital return plans. Management emphasized that strong cash generation allowed the company to sustain distributions despite a softer earnings backdrop compared with 2024.
Operational strength supports results
The company highlighted its highest annual upstream production in more than four decades, alongside record refinery throughput. Exxon also completed all 10 of its key projects scheduled for the year, adding an estimated $3 billion in earnings on a constant price and margin basis.
Cost discipline remained a central theme. Since 2019, Exxon has generated $15.1 billion in cumulative structural cost savings, a figure the company says exceeds that of its major peers combined. It also reiterated progress toward its 2030 plans for reducing corporate greenhouse gas emissions and flaring intensity.
Looking ahead
Although full-year earnings fell from 2024 levels, Exxon’s fourth-quarter beat and resilient cash flows reinforced its position as one of the strongest performers in the global energy sector. With high production levels, disciplined spending, and continued shareholder returns, the company enters 2026 with a solid operational and financial foundation.
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