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Plains Group reported second-quarter revenue of $17.7 billion, above the consensus estimate of $15.5 billion and up from $10.6 billion a year earlier. Diluted earnings per share were $1.97, compared with $0.15 a year earlier.
The company attributed higher product sales revenue primarily to increased crude oil sales volumes and commodity prices. Its filing said services revenue grew mainly because of the Cactus III pipeline acquisition, partly offset by certain Permian long-haul contract rates resetting to market.
Gross margin fell to 4.57% from 5.62%, while operating margin was 2.24%, compared with 2.23% a year earlier. Plains reported free cash flow of $815.0 million, up from $540.0 million.
The filing said crude oil segment adjusted EBITDA increased as acquisitions, pipeline volume growth, market opportunities and optimization initiatives more than offset the effect of the contract rate resets.
| Q2 FY2026 | Q2 FY2025 | Change | |
|---|---|---|---|
| Revenue | $17.7 billion | $10.6 billion | 66.3% |
| Diluted EPS | $1.97 | $0.15 | 1,213.3% |
| Gross margin | 4.57% | 5.62% | −1.0 percentage point |
| Operating margin | 2.24% | 2.23% | 0.0 percentage points |
| Free cash flow | $815.0 million | $540.0 million | 50.9% |
| Against the consensus | Reported | Consensus | Result |
|---|---|---|---|
| Revenue | $17.7 billion | $15.5 billion | Beat by 14.2% |
Adjusted EPS is the figure the consensus estimates, not the GAAP EPS above.
What management said on the call
An earnings call is unavailable. In its filing, Plains attributed higher general and administrative expenses primarily to accelerated exit costs associated with its Canadian NGL business, which it excluded from adjusted results.
Guidance
Management guidance is unavailable. Separately, Plains said it believes it can continue to access its commercial paper program and credit facility for short-term cash needs, and that its liquid assets, operating cash flow and borrowing capacity are sufficient to meet its financial commitments and anticipated capital expenditures.