TotalEnergies SE (NYSE:TTE) on Thursday reported second-quarter 2025 adjusted earnings that fell short of Wall Street expectations. Lower commodity prices and seasonal maintenance weighed on performance.
Despite a challenging environment, the company maintained its shareholder return strategy through dividends and stock buybacks.
The French energy giant posted adjusted earnings of $1.57 per share, missing the $1.66 consensus estimate. Revenue for the quarter came in at $49.63 billion, also below expectations of $51.20 billion.
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Adjusted net income was $3.58 billion, down 15% from the prior quarter. Adjusted EBITDA totaled $9.96 billion, down 8% quarter-over-quarter (Q/Q).
Cash flow from operations excluding working capital changes stood at $6.6 billion, driven by energy production growth. This was a 5% sequential decline despite a 10% drop in oil prices.
Segment Performance
- Exploration & Production generated $1.97 billion in adjusted operating income, a 19% sequential decline.
- Integrated LNG earnings fell 20% Q/Q to $1.04 billion, due to lower average selling prices.
- Integrated Power posted a 13% Q/Q increase in income to $574 million.
- Refining & Chemicals saw income climb 29% Q/Q to $389 million, while Marketing & Services surged 72% Q/Q to $412 million.
TotalEnergies reported hydrocarbon production of 2.53 million barrels of oil equivalent per day, up 3% year-over-year, driven by project ramp-ups in the United States and Brazil.
Net Power Production rose 28% from a year ago to 11.6 terawatt hours, with renewable capacity reaching 30.2 gigawatts, a 26% increase.
The company reaffirmed its commitment to shareholder returns, declaring a second interim dividend of 0.85 euro per share, up 7.6% from the prior year. It also repurchased $1.7 billion in shares during the quarter, bringing the year-to-date buyback total to $3.7 billion.
Outlook
The company noted the ongoing volatility in oil markets, with prices fluctuating between $60 and $70 per barrel. This instability is attributed to an abundant supply stemming from OPEC+’s decision to ease production cuts, coupled with weak global demand driven by a slowdown in economic growth within an unstable geopolitical and macroeconomic environment, including ongoing tariff wars.
For the second half of the year, the company expects hydrocarbon production to grow around 3% year-over-year, with planned maintenance expected to impact third-quarter output.
TTE maintained full-year guidance for average LNG selling prices between $9 and $9.50 per million British thermal units.
TotalEnergies reiterated full-year net investment guidance of $17 billion to $17.5 billion. The company also said it expects proceeds from asset sales in the second half to support this range.
Price Action: At last check Thursday, TTE shares were trading lower by 2.66% to $60.75.
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