Exxon Mobil 2025 Q1 Earnings Misses Targets with Net Income Decline
Tuesday, May 6, 2025 9:03 am ET
53min read XOM Trend
Revenue
Exxon Mobil's total revenue for 2025 Q1 saw a slight increase of 0.2%, reaching $82.43 billion, up from $82.25 billion in 2024 Q1. The company experienced varied performance across its segments. Upstream operations contributed $29.17 billion, while Energy Products generated a substantial $71.38 billion. Chemical Products added $7.98 billion, and Specialty Products recorded $5.06 billion. The Corporate and Financing segment saw a loss of $30.46 billion, culminating in a corporate total revenue of $83.13 billion.
Earnings/Net Income
Exxon Mobil's earnings per share (EPS) declined by 14.6% to $1.76 in 2025 Q1 from $2.06 in 2024 Q1. The company's net income also saw a decrease, falling to $8.03 billion in 2025 Q1, down from $8.57 billion in 2024 Q1. The EPS decline reflects challenging market conditions.
Price Action
The stock price of Exxon Mobil has edged down 1.32% during the latest trading day, dropped 4.93% during the most recent full trading week, and tumbled 12.98% month-to-date.
Post-Earnings Price Action Review
The strategy of buying Exxon Mobil shares after its earnings release and holding for 30 days yielded a return of 30.14% over the past five years. This performance slightly underperformed the benchmark's return of 62.17%. The strategy's Sharpe ratio was measured at 0.27, indicating a moderate risk-adjusted return. However, it experienced a maximum drawdown of -29.11% and exhibited a volatility of 21.05%. The findings highlight the strategy's potential risks and rewards, emphasizing the need for investors to weigh their choices carefully in light of past market performance.
CEO Commentary
“In this uncertain market, our shareholders can be confident in knowing that we're built for this. The work we've done to transform our company over the past eight years positions us to excel in any environment,” said Darren Woods, Chairman and Chief Executive Officer. He emphasized that the strategic choices made since 2019, including reducing costs and optimizing operations, have strengthened quarterly earnings power by approximately $4 billion at current prices. Woods highlighted the startup of ten advantaged projects expected to generate over $3 billion in earnings in 2026, showcasing the company's competitive advantage and commitment to delivering on its plans through 2030 and beyond.
Guidance
ExxonMobil expects to achieve $18 billion in cumulative structural cost savings by the end of 2030, having already realized $12.7 billion since 2019. The company maintains its annual share repurchase program at $20 billion through 2026. For Q2 2025, ExxonMobil declared a dividend of $0.99 per share. The cash capital expenditures are guided to be within the range of $27 billion to $29 billion for the year.
Additional News
ExxonMobil continues to advance its strategic initiatives with notable developments. The company recently commenced operations at its China Chemical Complex, which, upon full operation, will produce 1.7 million tons of polyethylene and 850,000 tons of polypropylene annually. Additionally, ExxonMobil launched its second Advanced Recycling Unit in Baytown, enhancing its recycling capacity by processing 80 million pounds of plastic waste per year. Amid ongoing legal challenges, ExxonMobil is involved in a lawsuit against the European Union over an unjustified profits tax, potentially impacting its operations. These actions underscore ExxonMobil's commitment to innovation and maintaining its competitive edge in the industry.
Ask Aime: What's behind Exxon Mobil's earnings drop?
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