Phillips 66 jumps as stronger than expected refining margins lift Q3 earnings

[Phillips 66 Sign Against Sky]
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Phillips 66 (PSX [https://seekingalpha.com/symbol/PSX]) finished +3.2% on Wednesday after easily topping Q3 adjusted earnings [https://seekingalpha.com/news/4510089-phillips-66-non-gaap-eps-of-252-beats-by-038] estimates, helped by stronger than expected refining margins [https://www.reuters.com/business/energy/phillips-66-beats-quarterly-profit-estimates-strong-refining-margins-2025-10-29/] as the company's refineries operated at 99% capacity, the highest since 2018.

Q3 net profit net income fell to $133 million, or $0.32/share, from $346 million, or $0.82/share, in the same period last year, but excluding items, adjusted EPS jumped to $1.025 billion, or $2.52/share, from $859 million, or $2.04/share, in the year-ago quarter.

Phillips 66 (PSX [https://seekingalpha.com/symbol/PSX]) said its refining segment reported Q3 adjusted earnings of $430 million, swinging from a loss of $67 million a year earlier, although results were partially offset by higher environmental costs associated with idling its 156,000 bbl/day Los Angeles refinery, where it stopped processing crude on October 16 as it winds down the facility for permanent closure by year's end.

Phillips' (PSX [https://seekingalpha.com/symbol/PSX]) recent acquisition of full ownership of WRB Refining - which operates major refineries in Wood River, Illinois, and Borger, Texas - from Cenovus Energy will allow the refiner to increase its crude processing options, refining executive VP Richard Harbison said on the earnings conference call [https://seekingalpha.com/article/4834878-phillips-66-psx-q3-2025-earnings-call-transcript].

After operating its refineries at 99% during Q3, the company said plans to operate its refineries in the low-to-mid 90% range in Q4.

Analysts said improvement in the renewable fuels segment also helped Phillips' (PSX [https://seekingalpha.com/symbol/PSX]) Q3 results, as renewable diesel benefited from stronger margins and monetization of European credits.

Q3 adjusted earnings in the midstream segment rose ~4% Y/Y to $697 million.

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