Enterprise Products Partners (EPD) Q4 2025 earnings summary

Executive summary

• Achieved record Q4 2025 EBITDA of $2.7 billion and gross operating margin (GOM) of $2.74 billion, driven by new asset additions, strong segment performance, and volume growth despite weaker commodity-sensitive businesses and lower crude prices year-over-year.

• Net income attributable to common unit holders was $1.66 billion for Q4 2025 and $5.88 billion for the full year.

• Returned $5 billion to equity investors in 2025 through $4.7 billion in distributions and $300 million in buybacks, with a 2.8% increase in quarterly distribution year-over-year.

• Adjusted cash flow from operations for Q4 2025 grew 5% to $2.4 billion, with a full-year record of $8.7 billion.

• Distributions declared for 2025 increased 3.6% to $2.175 per unit, marking 27 consecutive years of growth.

Financial highlights

• Adjusted EBITDA for Q4 2025 was $2.7 billion, up 4% from Q4 2024; full-year adjusted EBITDA reached $9.96 billion.

• Gross operating margin for Q4 2025 was $2.74 billion, up year-over-year and sequentially.

• Total capital investments in 2025 were $5.6 billion, including $4.4 billion for growth projects and $632 million for acquisitions.

• Total debt principal outstanding was $34.7 billion, with a weighted average cost of 4.7% and 98% fixed rate; consolidated liquidity at year-end was $5.2 billion.

• Adjusted CFFO payout ratio was 58% for 2025.

Outlook and guidance

• Modest adjusted EBITDA and cash flow growth expected in 2026 as 2025 assets ramp up; double-digit (around 10%) growth projected for 2027 as new assets reach full utilization.

• Growth capital expenditures for 2026 expected at $2.5–$2.9 billion, netting to $1.9–$2.3 billion after asset sale proceeds; sustaining capital expenditures for 2026 forecast at $580 million.

• Bahia NGL Pipeline expansion to 1 million BPD and extension to Exxon's Cowboy complex scheduled for completion in Q4 2027.

• Free cash flow after capex and distributions in 2026 expected to support debt reduction and buybacks.

• Discretionary free cash flow projected to reach ~$1 billion in 2026, with 50–60% allocated to buybacks.