TotalEnergies reported strong financial and operational results for the fourth quarter and full year 2025, exceeding production guidance and delivering robust cash flow.

Financial Performance

In Q4 2025, TotalEnergies generated $7.2 billion in cash flow, surpassing analyst consensus by $100 million despite a $5 per barrel drop in oil prices. Adjusted net income for the quarter was $3.8 billion, meeting market expectations, though it represented a 15% decline year-on-year. Quarterly revenues rose 5% to $45.925 billion. For the full year 2025, revenues were $182.344 billion, a 7% decrease from 2024. The company's stock price reacted positively, rising approximately 0.9% in early trading.

Operational Highlights and Production

Full-year 2025 oil and gas production averaged 2.529 million barrels of oil equivalent per day, surpassing guidance by almost 4%. This 3.9% annual growth was driven by new field start-ups and ramp-ups in Brazil, the US, Argentina, and Denmark, combined with acquisitions in Malaysia and Texas. These gains offset a natural production decline of 3%. Fourth-quarter production was particularly strong at 2.545 million boe/d, up nearly 5% year-on-year. The Exploration & Production (E&P) segment reported full-year adjusted net operating income of $8.4 billion and cash flow of $15.6 billion.

Strategic and Business Segment Performance

The company achieved a return on average capital employed of 12.6% for 2025, which it noted was the best among major oil companies for the fourth consecutive year. Its reserve replacement rate was 116%, maintaining proven reserves life above 12 years. The downstream business performed well in Q4, with adjusted net income of $1.3 billion (up 26% year-on-year) and cash flow of $2 billion (up 19%), bolstered by a more than 30% increase in European refining margins.

Outlook for 2026

TotalEnergies projects a 3% increase in oil and gas production for 2026, supported by new projects in Brazil, Iraq, Qatar, Algeria, and Uganda. The company anticipates that these new volumes will support a 7% increase in cash flow at an oil price of $60 per barrel. The market outlook notes expected global oil demand growth of around 900,000 barrels per day amid volatility, with European gas prices for Q1 projected between $11-$12 per MMBtu due to strong winter demand and lower storage levels.