ExxonMobil (XOM) Reports First-Quarter 2025 Earnings Results

Exxon Mobil Corporation (XOM) today announced its financial results for the recent quarter. The company reported earnings per share (EPS) that met analyst expectations, with an EPS estimate of $1.75. This performance highlights Exxon Mobil’s steady financial standing amidst fluctuating market conditions.

Key Highlights:

• ExxonMobil reported first-quarter 2025 earnings of $7.7 billion, with cash flow from operations at $13.0 billion.
• The company distributed $9.1 billion to shareholders, including $4.3 billion in dividends.
• ExxonMobil achieved $12.7 billion in cumulative structural cost savings since 2019.
• Operations commenced at the China Chemical Complex and a second advanced recycling unit in Baytown.
• ExxonMobil’s debt-to-capital ratio was 12%, with a net-debt-to-capital ratio of 7%.
• The company aims to reach Scope 1 and Scope 2 net zero emissions from operated assets by 2050.

Summary:

ExxonMobil announced its first-quarter 2025 earnings, reporting $7.7 billion in earnings and $13.0 billion in cash flow from operations. The company distributed $9.1 billion to shareholders, including $4.3 billion in dividends, as part of its annual $20 billion share-repurchase program through 2026. Darren Woods, chairman and CEO, emphasized the company’s strategic transformation over the past eight years, which has positioned it to excel in any market environment. He stated, “In this uncertain market, our shareholders can be confident in knowing that we’re built for this.” The company has achieved $12.7 billion in cumulative structural cost savings since 2019 and expects to deliver $18 billion in savings by 2030. ExxonMobil’s first-quarter results were driven by advantaged volume growth in the Permian and Guyana, structural cost savings, and favorable timing effects. The company commenced operations at the China Chemical Complex and a second advanced recycling unit in Baytown, enhancing its capacity to produce high-value products. Despite a decline in industry refining margins and weaker crude prices, ExxonMobil’s strategic initiatives and cost-saving measures have strengthened its earnings power. The company’s debt-to-capital ratio was 12%, with a net-debt-to-capital ratio of 7%, reflecting a strong financial position.

Looking ahead, ExxonMobil is actively pursuing growth in low-carbon technologies and initiatives. The company has set ambitious targets to achieve net zero emissions from its operated assets by 2050, with interim goals for the Permian Basin by 2030 and 2035. These efforts include advancements in carbon capture, lower-emission fuels, hydrogen, and other low-carbon business ventures. ExxonMobil’s future plans are contingent on continued technological progress, stable policy support, and timely rule-making and permitting. The company will discuss its financial and operating results, along with these strategic initiatives, during a webcast scheduled for May 2, 2025.

Exxon Mobil Corporation (XOM) has experienced a turbulent period in the stock market, with its price declining by 11.14% over the past month and 6.39% over the last six months. Despite these setbacks, the company’s price-to-earnings ratio stands at a moderate 13.62, suggesting that the stock is reasonably valued relative to its earnings. However, the fundamental metrics paint a challenging picture, with a two-year compound annual growth rate (CAGR) for earnings per share (EPS) plummeting by 25.57% and revenue declining by 7.75% over the same period. The free cash flow has also seen a significant drop, with a two-year CAGR of -27.47%. On a brighter note, Exxon Mobil’s return on invested capital is a respectable 10.74%, and its net profit margin is nearly 10%, indicating some operational efficiency. These mixed signals suggest that while the company is facing headwinds, particularly in terms of growth, it still maintains a level of profitability that could appeal to value-focused investors.

Exxon Mobil Corporation explores for and produces crude oil and natural gas in the United States and internationally. It operates through Upstream, Downstream, and Chemical segments. The company is also involved in the manufacture, trade, transport, and sale of crude oil, natural gas, petroleum products, petrochemicals, and other specialty products; manufactures and sells petrochemicals, including olefins, polyolefins, aromatics, and various other petrochemicals; and captures and stores carbon, hydrogen, and biofuels. As of December 31, 2021, it had approximately 20,528 net operated wells with proved reserves. The company was founded in 1870 and is headquartered in Irving, Texas.