WMB earnings analysis
What we found in WMB's 10-Q: the parts that mattered, the offsets in the same document, and what the company said about what comes next.
Our reading of the filing · Free to read, no account needed
Williams delivered a strong Q2, with revenue increasing 10% year over year to $3.053B, operating income rising 25% to $1.182B, and GAAP EPS of $0.68. Core segment Modified EBITDA expanded across Transmission, Northeast G&P, West and Marketing, supported by new pipeline and gathering projects, higher rates and favorable marketing spreads. The constructive operating outlook is balanced by unusually high 2026 capital needs of $7.3B-$7.9B, a $3.4B working-capital deficit, and the pending acquisition of Momentum for up to $5.5B.
The parts that mattered.
Pulled out of the filing itself, with the figures the company reported.
- Revenue and EPS rose sharply year over year
- Q2 revenue was $3.053B, up $272M, or 10%, from $2.781B a year ago and up about $23M from $3.030B in Q1 2026. GAAP net income attributable to Williams rose $281M, or 51%, year over year to $827M, producing diluted EPS of $0.68.
- Margins expanded versus both comparisons
- Operating income increased $237M, or 25%, to $1.182B. Calculated operating margin expanded to 38.7%, from 34.5% in Q2 2025 and 37.6% in Q1 2026; calculated gross margin was 83.1%, versus 82.8% and 81.6%, respectively.
- Core segment EBITDA growth was broad based
- All four core operating segments increased Modified EBITDA: Transmission, Power & Gulf rose $68M to $959M; Northeast G&P rose $39M to $540M; West rose $18M to $359M; and Gas & NGL Marketing Services improved $153M to $123M from a $30M loss.
- Operating cash flow grew, but capex absorbed it
- Operating cash flow for the first six months increased $96M to $2.979B. Capital expenditures increased $1.209B to $3.193B, implying a six-month cash-flow-after-capex deficit of $214M, versus positive $899M in the prior-year period.
- Liquidity was enhanced by credit capacity and JV capital
- Liquidity totaled $4.478B at June 30, comprising $203M of cash, $3.275B of available capacity under the Williams Credit Agreement, and $1.000B under the new 364-Day Credit Agreement. The company also received approximately $3.75B in July from the power-innovation JV transaction.
- Contracted expansion projects support outlook
- Management expects 2026 results to benefit from Transmission, Power & Gulf expansion activity, a full year of Louisiana Energy Gateway and higher Haynesville volumes. Socrates South entered service in late July with 556 MW of expected combined capacity, while Socrates North is expected in Q4 2026.
And the other side of it.
The offsets in the same document — the things a summary that only listed the good news would have left out.
- $5.5B Momentum acquisition remains pending
- Williams agreed in July to acquire Momentum for consideration of up to $5.5B, including approximately $2.0B of Williams common stock. Closing remains subject to customary conditions and regulatory approvals, and the transaction introduces execution, financing and integration risk.
- Large capex plan raises execution needs
- Capital and investment expenditures are expected to be $7.3B-$7.9B in 2026, while first-half capex already reached $3.193B. Management specifically identifies unexpected capex increases, inflation and supply-chain delays as obstacles to executing the plan.
- Debt maturities, interest cost and working-capital deficit
- Long-term debt due within one year was $2.2B and debt due after one year was $28.1B at June 30. Interest expense increased $21M year over year to $371M in Q2 following debt issuances, while the working-capital deficit was $3.4B.
- Eagle Ford MVC step-down pressures West
- West's Eagle Ford service revenue declined $9M in Q2 because of lower minimum-volume-commitment revenue and gathering volumes; management expects lower Eagle Ford results in 2026 because of contractual MVC step-downs.
- No new risk-factor disclosures; permitting remains key
- Item 1A states that risk factors have not materially changed, meaning 0 material risk-factor updates versus the 2025 Form 10-K. Nevertheless, management identifies permitting risk for projects such as the 1,597 Mdth/d Southeast Supply Enhancement expansion targeted as early as Q3 2027.
What they reported.
What the company itself reported, taken out of the document.
- Earnings per share
- $0.68
- Gross margin
- 83.1%
- Operating margin
- 38.7%
- Segment
- Transmission, Power & Gulf: Q2 segment revenue $1.385B; Modified EBITDA $959M (vs. $1.312B and $891M).
- Segment
- Northeast G&P: Q2 segment revenue $547M; Modified EBITDA $540M (vs. $541M and $501M).
- Segment
- West: Q2 segment revenue $724M; Modified EBITDA $359M (vs. $676M and $341M).
- Segment
- Gas & NGL Marketing Services: Q2 segment revenue $638M; Modified EBITDA $123M (vs. $389M and negative $30M).
- Segment
- Other: Q2 Modified EBITDA $98M (vs. $118M).
What they said about what is next.
The 10-Q does not provide a numeric revenue or EPS range. Management reiterated 2026 growth capital and investment expenditures of $7.3B-$7.9B, excluding acquisitions and certain reimbursable long-lead power-innovation equipment; the filing's outlook emphasizes continued earnings and cash-flow growth.
The filing reads better than the one before it.
What came before.
- 10-Q · May 4, 2026
- Williams Companies reported a mixed Q1 2026 performance marked by a revenue decline to $3.03 billion, missing estimates but achieving an EPS of $0.73 which exceeded expectations by 17.74%. The company's high debt load…
- 10-K · February 24, 2026
- Williams positions itself as a leader in natural gas infrastructure supporting the clean energy transition, operating over 32,000 miles of pipelines and large processing and storage platforms. For fiscal 2025 Williams…
- 10-Q · August 4, 2025
- Williams reported Q2 2025 revenue of $2,781 million (up $445 million or +19.1% vs Q2 2024) and operating income of $945 million (vs $696 million in Q2 2024). Cash generation remained strong with operating cash flow of…
- 10-Q · May 5, 2025
- Williams reported quarter-over-quarter improvement versus Q1 2024 with revenues of $3,048 million (up $277 million year-over-year) and diluted EPS of $0.56 (up $0.04). Operating income rose to $1,094 million and…
This is our reading of a public filing, not the filing. Read the original on SEC.gov · Educational only. Nothing here is investment advice.
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