Phillips 66 results for the third quarter of 2026 showed earnings of $5.6bn, or $14.08 a share, on 28 October 2026. That compares with $3.8bn, or $9.55 a share, in the second quarter of 2026, and just $133mn a year earlier. Adjusted earnings were also $5.6bn, while adjusted EBITDA rose to $8.07bn from $5.89bn in the second quarter of 2026.
The Houston-based refiner ran its plants at 98% of crude capacity. Moreover, it processed a record 0.85 mmbbl/d in its Central Corridor refineries.
Refining drives the Phillips 66 results
Refining did almost all of the heavy lifting. Pre-tax income from the segment nearly doubled to $6.03bn, from $3.06bn in the second quarter of 2026. The company said higher realised margins and volumes drove the gain, as market crack spreads widened. As a result, its realised refining margin rose to $38.00 a barrel, from $24.08.
In addition, Phillips 66 reported a record third-quarter 2026 distillate yield of 41%, with a clean product yield of 86%. That matters because transportation fuels have been in tight supply this year, as HF Sinclair also noted.
However, other units weakened. Marketing and Specialties pre-tax income fell to $245mn from $583mn, as fuel margins shrank in a rising price environment. Similarly, Renewable Fuels dropped to $191mn from $544mn, on lower margins and higher costs. Chemicals and Midstream also earned slightly less than in the second quarter of 2026.
“Phillips 66 delivered strong operating performance in the third quarter and is executing on its financial and operating commitments,” said chairman and chief executive Mark Lashier.
Cash returns and debt reduction
Phillips 66 returned $2.8bn to shareholders in the quarter. That included $2.27bn of share buybacks and $504mn of dividends. At the same time, it cut total debt by $2.0bn to $18.5bn and net debt by $3.8bn to $12.7bn. It ended September 2026 with $5.8bn of cash.
Lashier said the company targets returning more than 50% of net operating cash flow to shareholders. He also pointed to the second dividend increase of 2026, which the company announced recently.
Projects in the pipeline
Phillips 66 also took a final investment decision on the Western Gateway Pipeline system, with service expected in 2029. Meanwhile, its Coastal Bend expansion should deliver first volumes in the fourth quarter of 2026 and reach 0.35 mmbbl/d in early 2027. Its Chevron Phillips Chemical joint venture expects full operations at the Golden Triangle Polymers project in Texas and the Ras Laffan Polymers project in Qatar in 2027.
How the Phillips 66 results compare with US peers
Other US refiners report the same windfall. For example, Valero earned $6.8bn, or $23.89 a share, in the third quarter of 2026, up from $1.1bn a year earlier. Similarly, HF Sinclair posted net income of $2.02bn, or $11.38 a share, against $403mn a year ago. Its adjusted refinery gross margin rose 183% to $54.22 a barrel, from $19.16. HF Sinclair said tight fuel supply and elevated crack spreads drove the jump.
Refining margins remain the key swing factor for the fourth quarter of 2026. So investors will watch crude prices, which held near $115 for Brent this week, and whether product cracks stay this wide into winter.
For a deeper analysis, read: US Refining Margins: Why Valero Made $39 a Barrel, and How Long It Can Last
