- Williams Cos reported an adjusted EPS of 46 cents for Q2, missing the estimate of 48 cents, but surpassing last year’s 43 cents.
- Revenue increased by 19% year-over-year to $2.78 billion, slightly below the $2.79 billion estimate.
- Adjusted EBITDA came in at $1.81 billion, an 8.5% increase year-over-year, narrowly missing the $1.82 billion estimate.
- The Transmission & Gulf of Mexico segment achieved an adjusted EBITDA of $903 million, outperforming the estimate of $892.3 million with an 11% year-over-year growth.
- Northeast G&P reported an adjusted EBITDA of $501 million, a 4.6% rise year-over-year, though below the $504.4 million estimate.
- West segment’s adjusted EBITDA was $341 million, marking a 6.9% increase year-over-year, slightly below the estimate of $345.5 million.
- Available funds from operations (AFFO) amounted to $1.32 billion, beating the estimate of $1.31 billion with a 5.4% year-over-year increase.
- The company reported a significant rise in capital expenditure, amounting to $972 million, a 68% increase compared to the previous year.
- Williams Cos adjusted its 2025 Adjusted EBITDA guidance midpoint upwards by $50 million to $7.75 billion, within a range of $7.6 billion to $7.9 billion.
- Growth capex for 2025 is expected to range between $2.575 billion and $2.875 billion, with maintenance capex between $650 million and $750 million, excluding $150 million for emissions reduction and modernization.
- The company anticipates a leverage ratio midpoint of 3.65x for 2025 and increased its annualized dividend by 5.3% to $2.00, up from $1.90 in 2024.
- Williams expects sustained earnings growth driven by its strong base business and the recent acquisition of Saber Midstream in Haynesville.
- The company’s 2025 Adjusted EBITDA guidance midpoint has been increased by $350 million from the original guidance.
- Analyst recommendations include 13 buys, 9 holds, and 1 sell.
Williams Cos on Smartkarma
Analysts on Smartkarma, including Baptista Research, have been covering Williams Companies with a favorable outlook. In a recent report titled “Williams Companies Is Growing On Natural Gas Demand—Can Virginia and the Southeast Fuel a Boom?” Baptista Research highlighted the company’s robust first quarter of 2025, showcasing growth across various segments and a promising future outlook supported by strategic investments. The report noted solid growth in adjusted EBITDA, driven mainly by the Transmission and Gulf segment, presenting a mix of strengths and challenges for investors to consider.
Another analysis by Baptista Research delves into the impact of uncertainties in data center energy growth on Williams Companies. Titled “The Williams Companies: How Does The Uncertainty In Data Center Energy Growth Due to DeepSeek’s Efficiency Gains Impact Them?” the report discusses the company’s performance in the energy infrastructure sector, highlighting significant growth momentum expected to extend into the future. Baptista Research aims to assess various influencing factors on the company’s valuation, using methodologies like Discounted Cash Flow (DCF) to provide insights into Williams Companies’ potential price movements.
A look at Williams Cos Smart Scores
| Factor | Score | Magnitude |
|---|---|---|
| Value | 2 | |
| Dividend | 4 | |
| Growth | 4 | |
| Resilience | 3 | |
| Momentum | 4 | |
| OVERALL SMART SCORE | 3.4 |
Smart Score is a compound score for the Company indicating its overall outlook. It is derived by taking an equally weighted average of underlying Factor scores computed by Smartkarma
Based on the Smartkarma Smart Scores, Williams Cos seems to have a positive long-term outlook. With strong ratings in Dividend, Growth, and Momentum, the company appears to be in a good position for the future. A high Dividend score indicates a healthy dividend payout, which can be attractive to investors seeking income. Additionally, a solid Growth score suggests potential for the company to expand and increase its profitability over time. The Momentum score also implies that Williams Cos is gaining traction and heading in a positive direction.
While the company’s Value and Resilience scores are not as high as the other factors, Williams Cos still maintains an overall positive outlook for the long term. As an energy infrastructure company with a focus on connecting North America’s hydrocarbon resources to key markets, Williams Cos plays a crucial role in the industry. With its established midstream assets and interstate gas pipelines, the company is well-positioned to capitalize on the demand for natural gas, NGLs, and olefins in the region.
Disclaimer: This article by Smartkarma is general in nature and based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Note that our articles may not factor in the latest price-sensitive company announcements or qualitative material.
While all reasonable care has been taken in the preparation, Smartkarma makes no assurance about the accuracy of any generated data or content. All content is indicative only and should be independently checked for accuracy and confirmed before use. Smartkarma accepts no responsibility for any loss or damage caused as a result of any inaccuracy or error within the Lab online tools or generated data.
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