PSX
Phillips 66
Energy · Oil & Gas Refining & Marketing · United States · Stock
Score Breakdown
Scored for Dividend Income profile
Sub-scores are 0–20 each; Model Score is weighted by your selected investment goal. How it works →
Why Ranked Here
- The composite score of 48.8 out of 100 reflects a mixed profile: strong year-over-year earnings growth and a consistent dividend track record are offset by top-line revenue contraction, thin margins, and erratic quarterly momentum.
- The absence of any macro theme assignment meant no theme-based contribution to the composite, which weighed on the overall score.
- Moderate financial health metrics—a debt-to-equity ratio of 0.67 and a large but not exceptional asset base—supported a mid-range financial health score without providing a meaningful uplift.
Why Not Higher
- Revenue declined 7.5% year-over-year and quarterly revenue has shown no sustained upward trend, limiting the growth score and signaling that top-line momentum is absent.
- A net margin of only 3.3% and return on assets of 6.0% reflect the low-margin, capital-intensive nature of the business, keeping the profitability score well below average.
Data Confidence
9 / 10
Very High — full data coverage
Why This Score
Grounded in figures from this company's SEC EDGAR filings — not a restatement of the score itself.
Revenue declined from FY2024's $143,153,000,000 to FY2025's $132,376,000,000, a drop of 7.5%, while net income surged from FY2024's $2,117,000,000 to FY2025's $4,403,000,000, a gain of 108.0%, and diluted EPS rose from FY2024's $4.99 to FY2025's $10.79, an increase of 116.2%.
The model rewarded the dramatic improvement in bottom-line profitability and per-share earnings, but the meaningful top-line revenue contraction tempered the overall growth score, resulting in a mid-range result.
In FY2025, Phillips 66 reported a net margin of 3.3% and a return on assets of 6.0%.
These figures indicate that while the company generates positive returns, its thin net margin and moderate asset returns reflect the capital-intensive, low-margin nature of refining and midstream operations, which the model penalized with a below-average profitability score.
In FY2025, Phillips 66 carried a debt-to-equity ratio of 0.67 and reported total assets of $73,680,000,000.
A debt-to-equity ratio of 0.67 in FY2025 suggests a moderate leverage position, and the large asset base provides scale; together these supported a mid-range financial health score, though data gaps in other health metrics limited a higher result.
Over the last four reported quarters, revenue moved from $33,323,000,000 in 2025Q2 to $34,515,000,000 in 2025Q3, then dipped to $34,108,000,000 in 2025Q4, and fell further to $32,540,000,000 in 2026Q1, showing no sustained directional trend. Net income was highly volatile across the same period: $877,000,000 in 2025Q2, $133,000,000 in 2025Q3, $2,906,000,000 in 2025Q4, and $207,000,000 in 2026Q1.
The combination of flat-to-declining revenue and sharply erratic quarterly net income signals inconsistent momentum, which the model reflected with a mid-range score rather than rewarding sustained acceleration.
Phillips 66 has grown its dividends per share each year from $3.83 in FY2022 to $4.20 in FY2023, $4.50 in FY2024, and $4.75 in FY2025, while maintaining a dividend payout ratio of 43.7% in FY2025.
The model rewarded the consistent multi-year dividend growth streak and a payout ratio that is substantial yet leaves meaningful earnings retained, reflecting a balance between shareholder returns and financial flexibility.
Phillips 66 is not currently assigned to any of the 24 tracked macro themes.
The absence of a macro theme assignment means the model awarded no theme-based score; this reflects the current classification status of the security and should not be read as a commentary on the company's business quality or outlook.
Research Summary
AI-generated analysis reflects data and conditions as of the report date shown above. Verify any specific figures through primary sources before acting on this analysis.
Phillips 66 posted a dramatic improvement in bottom-line results in FY2025, with net income rising from $2,117,000,000 to $4,403,000,000 and diluted EPS climbing from $4.99 to $10.79, even as revenue contracted 7.5% from $143,153,000,000 to $132,376,000,000. Profitability remains structurally thin, with a net margin of 3.3% and return on assets of 6.0%, reflecting the capital-intensive nature of refining and midstream operations. The company maintains a moderate leverage position with a debt-to-equity ratio of 0.67 and a large asset base of $73,680,000,000, while its dividend track record—growing from $3.83 per share in FY2022 to $4.75 in FY2025 at a 43.7% payout ratio—stands out as a consistent shareholder return story. Quarterly momentum is inconsistent, with revenue drifting lower and net income swinging sharply across recent periods, contributing to a composite score of 48.8 out of 100 and a Medium risk rating.
Plain English
Phillips 66 made a lot more profit per share in 2025 than in 2024, but its overall sales shrank and its quarterly earnings have been all over the place, making it a mixed picture that earns a 'Research Further' label rather than a clear thumbs-up or thumbs-down.
Bull Case vs. Bear Case
Bull Case
- Net income more than doubled year-over-year, rising from $2,117,000,000 in FY2024 to $4,403,000,000 in FY2025, and diluted EPS surged from $4.99 to $10.79, demonstrating a powerful improvement in bottom-line efficiency.
- Phillips 66 has grown its dividend every year from $3.83 per share in FY2022 to $4.75 in FY2025, while keeping the payout ratio at a manageable 43.7%, signaling both commitment to shareholders and retained financial flexibility.
- A debt-to-equity ratio of 0.67 and a total asset base of $73,680,000,000 suggest a moderately leveraged company with meaningful scale, providing a degree of financial stability.
Bear Case
- Revenue fell 7.5% from $143,153,000,000 in FY2024 to $132,376,000,000 in FY2025, and quarterly revenue has continued to drift lower, reaching $32,540,000,000 in 2026Q1, indicating persistent top-line pressure.
- Net margin of just 3.3% and return on assets of 6.0% in FY2025 highlight the structurally thin profitability typical of capital-intensive refining and midstream businesses.
- Quarterly net income has been highly erratic—ranging from $133,000,000 in 2025Q3 to $2,906,000,000 in 2025Q4 and back down to $207,000,000 in 2026Q1—making earnings reliability difficult to assess.
What Could Change the Picture
Bullish Triggers
- A sustained reversal in quarterly revenue trends, moving consistently above recent levels, combined with stabilization in quarterly net income, would signal that the top-line contraction and earnings volatility are abating.
- Continued multi-year dividend growth beyond $4.75 per share while maintaining a healthy payout ratio would reinforce confidence in the company's cash generation and capital discipline.
Bearish Triggers
- A breakdown in the dividend growth streak or a significant increase in the payout ratio beyond the current 43.7% could signal deteriorating free cash flow and financial stress.
- Further acceleration in revenue decline or a sustained compression of net margin below the already thin 3.3% level would deepen concerns about the structural profitability of the business.
Risk Profile
Medium RiskPhillips 66 carries a moderate leverage position with a debt-to-equity ratio of 0.67 and a substantial asset base of $73,680,000,000, which provides some financial cushion, but quarterly net income has swung dramatically—from $133,000,000 to $2,906,000,000 and back to $207,000,000 across recent quarters—highlighting meaningful earnings volatility that underpins the Medium risk rating.
This report is for educational and research purposes only. It does not constitute financial, investment, legal, or tax advice — always conduct your own due diligence before making investment decisions.