Williams Companies, Inc. (The) (WMB) Earnings & Analysis

Latest quarter

Williams reported Q2 FY2026 revenue of $3.1 billion, compared with $2.8 billion in Q2 FY2025, a 9.78% increase. As the consensus counts it, the company reported adjusted EPS of $0.50 against consensus adjusted EPS of $0.52, or −3.85% against the consensus. Revenue as the consensus counts it was $3.1 billion against consensus revenue of $3.1 billion, or −1.00% against the consensus.

The filing attributed year-over-year growth in Transmission, Power & Gulf to higher Transco transportation and Gulf Coast storage rates, expansion projects and higher park-and-loan services. It attributed Northeast G&P growth to higher gathering, processing, transportation and fractionation volumes, while West benefited from Louisiana Energy Gateway and higher Haynesville gathering volumes; lower Eagle Ford minimum-volume-commitment revenue partly offset West’s increase. Williams reported gross margin of 83.3%, versus 83.0% a year earlier, and operating margin of 38.7%, versus 34.0%. The company reported free cash flow of −$458.0 million, compared with $478.0 million in Q2 FY2025.

Adjusted EPS is the figure the consensus estimates, not the GAAP EPS above.

What management said on the call

Chad Zamarin, president and chief executive officer, said Williams placed the first phase of Socrates in service, delivering a utility-scale 200 megawatts of power to a customer in under 18 months from commercialization. Zamarin said the company remained on track to deliver Socrates’ next phase before year-end and was using lessons from the project to commercialize and scale further power innovation projects.

Zamarin said Williams signed customer agreements for the Lighty Access and Garden Connector pipeline expansions and increased the planned Transco Power Express expansion to 800 million cubic feet per day. He also said the company commercialized an extension of Line 200 to serve power demand near Lake Charles, Louisiana. Larry Larsen, chief operating officer, said Williams continued discussions with customers across the Transco footprint and was assessing additional demand in the Mid-Atlantic and Southeast, with many larger projects expected in the 2030-plus timeframe.

Zamarin said the Momentum Midstream acquisition added roughly six BCF per day of gathering capacity and over four BCF per day of take-or-pay pipeline capacity in the Haynesville. He said Williams was also announcing Shelby Connector and Delta Access, which he described as projects intended to connect the combined systems with LNG and power customers along the Transco corridor.

Analysts asked about operating synergies from Momentum, and Zamarin said Williams would not yet quantify them. He said the company expected both operational synergies and growth from existing dedicated customers and new projects. Analysts also asked about future power innovation projects; Zamarin said Williams expected additional project commercialization before year-end but did not specify projects or amounts.

John Porter, chief financial officer, said the Power Innovation joint venture provided $5.34 billion of committed capital while retaining Williams’ operatorship and key decision-making authority. Porter said the company expected year-end leverage of around 3.9×, incorporating an assumed three months of Momentum contributions, and cited hurricane activity, natural gas prices and rig activity as factors that could affect 2026 results.

Guidance

Williams raised its full-year 2026 adjusted EBITDA outlook to $8.3 billion–$8.5 billion, which John Porter said reflected incremental EBITDA from the Momentum acquisition. The company revised 2026 growth capex guidance to $7.3 billion–$7.9 billion from $7.3 billion, primarily reflecting initial spending on newly announced projects. Porter said Williams increased its 2025–2030 EBITDA growth target to 11% plus from 10% plus.