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TTE's Q2 Earnings Lag, Sales Beat Estimates, Share Buyback Continues

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Key Takeaways

  • TotalEnergies' Q2 earnings fell 20.7% to $1.57 per share, missing estimates by 3.08%.
  • Quarterly revenues beat estimates by 37.2%, despite a 7.7% year-over-year decline.
  • Net power output rose 27.5% with 72.4% from renewables, lifting Integrated Power earnings by 114.3%.

TotalEnergies SE (TTE - Free Report) reported second-quarter 2025 operating earnings of $1.57 (€1.38) per share, which missed the Zacks Consensus Estimate of $1.62 by 3.08%. The bottom line also declined 20.7% from the year-ago figure of $1.98 (€1.85).

TTE’s Total Revenues

Total revenues for the second quarter were $49.62 billion, which declined from the year-ago reported figure of $53.74 billion by 7.7%. However, the figure beat the Zacks Consensus Estimate of $36.2 billion by 37.2%.

TTE’s Q2 Production Details

In the second quarter, hydrocarbon production averaged 2,503 thousand barrels of oil equivalent per day, up 2.5% year over year. This year-over-year increase was due to contributions from start-ups and the ramp-up of production from existing assets. Contributions from acquired assets also boosted production volumes. 

In the reported quarter, liquid production averaged 1,506 thousand barrels per day, up nearly 2% year over year.

Quarterly gas production was 5,655 thousand cubic feet per day, up 4.2% year over year. 

TTE’s Realized Price

The quarterly realized price for Brent was down 20.1% to $67.9 per barrel from $85 in the year-earlier period. The average realized liquid price was $65.6 per barrel, down 19% year over year.

Realized gas prices were up 11.5% year over year to $5.63 per thousand British thermal units ("Btu").

Realized LNG prices were down 2.4% year over year to $9.10 per thousand Btu.

Highlights of TTE’s Release

Net power production was 11.6 terawatt hours in the second quarter of 2025, up 27.5% year over year. Nearly 72.4% of the power generated came from renewable sources.

Net operating income was $4.39 billion, down 17.8% year over year due to lower realized oil prices and refining margins. Despite strong production volumes, the decline in realized oil prices adversely impacted the operating income.

Interest expenses were $816 million, up 12.6% from the prior-year period.

In the second quarter of 2025, TotalEnergies acquired assets worth $2.1 billion and sold assets worth $293 million.

TotalEnergies repurchased 62 million shares worth $3.7 billion in the first half of 2025 and in second-quarter 2025 it repurchased 28.5 million shares worth $1.7 billion.

TTE’s Segmental Details

Exploration & Production’s operating earnings were $1.97 billion, down 25.9% from $2.67 billion in the year-ago period.

Integrated LNG’s operating income was $1.04 billion, down 9.6% from $1.15 billion in the year-earlier quarter.

Integrated Power’s operating income was $574 million, up 114.3% from $502 million in the year-ago quarter.

Refining & Chemicals’ operating income of $389 million declined 39.1% from $639 million in the prior-year quarter.

Marketing & Services’ operating income of $412 million increased 8.7% from $379 million in the second quarter of 2024.

TTE’s Financial Update

Cash and cash equivalents as of June 30, 2025, were $20.42 billion compared with $25.84 billion as of Dec. 31, 2024. Gearing, including leases, was 22.6% at the end of the second quarter of 2025 compared with 15.3% at second-quarter 2024-end.

Cash flow from operating activities in second-quarter 2025 was $5.96 billion, down 33.8% year over year.

TTE’s Guidance

TotalEnergies expects third-quarter 2025 production volumes to improve in the range of 3% year over year. 

TTE anticipates investing in the range of $17-$17.5 billion in 2025, of which $4.5 billion will be dedicated to low-carbon energies. The company plans to buy back shares worth up to $2 billion in the third quarter.

TTE’s Zacks Rank

TotalEnergies currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Upcoming Releases

Devon Energy Corporation (DVN - Free Report) is slated to report second-quarter results on Aug. 5, after market close. The Zacks Consensus Estimate for earnings is pegged at 82 cents per share, which indicates a year-over-year decline of 7.76%. DVN’s long-term (three to five years) earnings growth rate is 41.84%. 

Occidental Petroleum Corporation (OXY - Free Report) is slated to report second-quarter results on Aug. 6, after market close. The Zacks Consensus Estimate for earnings is pegged at 32 cents per share, which indicates a year-over-year decline of 68.93%. 

Murphy Oil Corporation (MUR - Free Report) is slated to report second-quarter results on Aug. 6. The Zacks Consensus Estimate for earnings is pegged at 21 cents per share, which indicates a year-over-year decline of 74.1%.  

 

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