Kinder Morgan (KMI) Q1 2026 earnings summary

Executive summary

• Net income attributable to shareholders rose 36% year-over-year to $976 million, with adjusted net income up 39% to $1,063 million and EPS up 38% to $0.44 per share; adjusted EPS increased 41%.

• Adjusted EBITDA increased 18% year-over-year to $2,539 million, marking the strongest first quarter on record.

• Revenues increased 14% to $4.83 billion, driven by higher natural gas sales and increased service volumes.

• Every business segment delivered growth versus Q1 2025 and outperformed budget expectations.

• Monument Pipeline System acquisition for $505–$500 million was announced, expected to close in Q2 2026, expanding Houston-area natural gas infrastructure.

Financial highlights

• Operating income rose 26% to $1,444 million; net income increased by $258 million to $1.00 billion.

• Adjusted EPS was $0.48, up from $0.34 in Q1 2025.

• Declared a quarterly dividend of $0.2975 per share, annualized at $1.19, up 2% from 2025.

• Cash flow from operations totaled $1.5 billion, with free cash flow after capital expenditures at $687 million, up 73% year-over-year.

• Net debt-to-adjusted EBITDA ratio improved to 3.6x at quarter-end, the lowest since before the 2014 consolidation.

Outlook and guidance

• 2026 adjusted EBITDA is forecasted at $8.6 billion, up 2% from 2025, and is expected to exceed budget by more than 3% due to Q1 outperformance.

• Dividend guidance for 2026 is $1.19 per share, a 2% increase over 2025.

• Leverage ratio expected to end 2026 at 3.7x, below the midpoint of the target range.

• Planned 2026 capital investments total $3.9 billion, including expansion projects and acquisitions.

• Most outperformance attributed to Q1, with potential upside from continued gas segment strength and higher oil prices.