Exxon Mobil's Q2 Earnings: A Drop in the Bucket?

Exxon Mobil's (NYSE:XOM) Q2 earnings are expected to show a 10% drop in EPS to $1.57 per share, largely due to weak WTI prices in the quarter. Despite this, the company is known for playing the long game and focusing on long-term growth strategies.

Exxon Mobil (NYSE:XOM) reported its fiscal 2025 Q2 earnings on August 1st, 2025, with earnings of $7.1 billion, or $1.64 per share, falling short of Wall Street expectations of $1.56 per share [1]. The company faced challenges due to weaker crude prices and reduced refining margins, leading to a 23.4% drop in EPS and a 23.2% decline in net income to $7.35 billion [1].

Exxon Mobil's total revenue decreased by 11.8% to $80.94 billion in Q2 2025, with upstream operations contributing $5.40 billion, energy products adding $1.37 billion, and chemical and specialty products generating $367 million and $780 million, respectively [1]. The corporate and financing segment saw a loss of $759 million, resulting in a corporate total of $7.08 billion [1].

Despite the earnings miss, Exxon Mobil maintained its guidance for 2025, expecting project start-ups to significantly contribute to earnings in the coming year [1]. The company anticipates achieving a production capacity of 1.7 million oil-equivalent barrels per day from eight developments in Guyana by 2030, with project start-ups in 2025 expected to drive over $3 billion in earnings in 2026 at constant prices and margins [1].

The stock price experienced a slight decline of 2.11% on the latest trading day, with a 0.69% decrease over the past week and a 0.37% increase month-to-date [1]. The post-earnings price action review indicated that the strategy of purchasing Exxon Mobil shares after quarterly revenue increases and holding them for 30 days produced moderate returns but lagged behind market performance [1].

CEO Darren W. Woods emphasized Exxon Mobil's strategic strengths and highlighted record production in the Upstream segment, particularly from Guyana, noting it as the industry's most significant oil discovery in the last 15 years. Woods also discussed the role of technology in improving recovery rates and expressed optimism about future growth and efficiency, especially in the Permian Basin [1].

Exxon Mobil is actively pursuing acquisition opportunities to leverage lower oil prices, with a focus on creating additional value rather than merely increasing volume [1]. The company returned $9.2 billion to shareholders in Q2 2025, comprising $4.3 billion in dividends and $5 billion in share repurchases, on track to achieve $20 billion in buybacks by year's end [1].

Major projects like the Singapore Resid Upgrade and Strathcona Renewable Diesel have commenced operations, enhancing ExxonMobil's capacity and product yield [1]. The corporation remains committed to its strategic growth initiatives, aiming to boost shareholder value amid fluctuating market conditions.

References:
[1] https://www.ainvest.com/news/exxon-mobil-2025-q2-earnings-misses-targets-net-income-drops-23-2-2508/
[2] https://seekingalpha.com/article/4808092-exxon-mobil-playing-long-game