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

Financial Performance

In Q4 2025, cash flow reached $7.2 billion, beating analyst consensus by $100 million. Adjusted net income for the quarter was $3.8 billion, matching expectations but down 15% year-on-year. Quarterly revenues were $45.925 billion, up 5% from a year earlier. For the full year 2025, revenues were $182.344 billion, a 7% decrease from 2024.

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%. Fourth-quarter production was 2.545 million boe/d, up nearly 5% year-on-year. This 3.9% annual production growth was driven by field start-ups and ramp-ups in Brazil, the US, Argentina, and Denmark, combined with acquisitions in Malaysia and Texas, which offset a natural decline of 3%.

Business Segment Performance

The Exploration & Production business delivered an adjusted net operating income of $1.8 billion and cash flow of $3.6 billion in Q4. For the full year, these figures were $8.4 billion and $15.6 billion, respectively. The return on average capital employed for 2025 was 12.6%. The downstream business performed well in Q4, with adjusted net income of $1.3 billion (up 26%) and cash flow of $2 billion (up 19%), driven by a more than 30% increase in European refining margins.

Reserves and Market Reaction

The company's reserve replacement rate for 2025 was 116%, maintaining proven reserves life above 12 years. Following the results, TotalEnergies' stock price was up about 0.9% in early morning trading.

2026 Outlook

For 2026, TotalEnergies expects global oil demand to grow by around 900,000 barrels per day, with European gas prices projected between $11-$12 per MMBtu. The company anticipates a 3% increase in its own oil and gas production, supported by new projects in Brazil, Iraq, Qatar, Algeria, and Uganda. This production growth is expected to support a 7% increase in cash flow at an oil price of $60 per barrel.