TLDR
- Q2 2025 earnings were $7.1 billion, or $1.64 per share, beating the $1.47 consensus.
- Record upstream production helped drive a 13% YoY increase in total output.
- $11.5 billion in operating cash flow, $5.4 billion in free cash flow for Q2.
- $9.2 billion returned to shareholders, including $5 billion in buybacks.
- XOM stock closed at $109.75 on earnings day, down 1.69%.
Exxon Mobil Corporation (NYSE: XOM) reported second-quarter 2025 earnings on August 1, 2025. The company posted net income of $7.1 billion, or $1.64 per diluted share, exceeding Wall Street expectations of $1.47. Total revenues for the quarter came in at $81.51 billion, surpassing the consensus estimate of $79.34 billion. As of writing, XOM stock is trading at $109.75, down 1.69%, as the broader market absorbed mixed energy sector results.
Operational and Segment Performance
ExxonMobil’s operational strength was most evident in its upstream segment, which posted the highest second-quarter production since the Exxon-Mobil merger more than 25 years ago. Total production rose 13% year-over-year to 4.6 million oil-equivalent barrels per day, driven by the integration of Pioneer Natural Resources and robust performance in the Permian Basin. Despite softer oil prices, upstream earnings came in at $5.4 billion.
Energy Products earned $1.4 billion in Q2, up sharply from the prior quarter, thanks to better refining margins and increased volumes. Chemical Products reported $293 million in earnings, largely flat, with higher China Complex sales offsetting weaker margins. Specialty Products saw a $125 million earnings boost, supported by strong basestock margins and record volumes.
$XOM | Exxon Mobil is -0.8% this morning.
🔹 EPS: $1.64 vs. $1.57 est. ✅
🔹 Revenue: $81.51B vs. $80.70B est. ✅Key takeaways:
🔸 Upstream earnings: -20% YoY
🔸 Energy earnings: -22% YoY
🔸 Production: +14% YoY
🔸 FY capex outlook: $27.0-$29.0B pic.twitter.com/eHJAsTpWe7— CMG Venture Group (@CmgVenture) August 1, 2025
Shareholder Returns and Financial Position
ExxonMobil maintained aggressive shareholder return initiatives, distributing $9.2 billion in Q2—$4.3 billion in dividends and $5 billion in share repurchases. The company has already repurchased about 40% of the shares issued for the Pioneer acquisition and is on pace to reach its $20 billion buyback target for 2025. Cash flow from operations reached $11.5 billion, with free cash flow at $5.4 billion. The company ended the quarter with $15.7 billion in cash.
Strategic Investments and Cost Discipline
Key project startups included the Singapore Resid Upgrade, the Fawley Hydrofiner in the UK, and the Strathcona Renewable Diesel facility in Canada. These initiatives are part of a ten-project rollout that is expected to enhance earnings by $3 billion annually by 2026. Structural cost savings reached $1.4 billion year-to-date, pushing total cumulative savings since 2019 to $13.5 billion.
Stock Performance vs. Market
As of August 1, 2025, XOM’s year-to-date return stands at 3.91%, trailing the S&P 500’s 6.28%. The stock has underperformed the market over the past year, down 2.87% compared to a 14.77% gain for the index. Over five years, however, XOM has delivered a total return of 227.38%, far outpacing the S&P 500’s 91.10%.
Growth Strategy Moving Forward
ExxonMobil CEO Darren Woods emphasized that the company is actively seeking value-driven acquisitions, continuing its disciplined strategy following the $60 billion Pioneer deal. With robust cash flow, cost efficiencies, and large-scale project launches, ExxonMobil is positioning itself for sustainable long-term growth.
