# Phillips 66 Q3 2026 Earnings Call

> Phillips 66 hits debt target two years early with $5.6B profit and 10.8% dividend raise.
- Title: Phillips 66 Q3 2026 Earnings Call · BigGo Finance | Shortify
- Summary: Phillips 66 hits debt target two years early with $5.6B profit and 10.8% dividend raise. Phillips 66 achieved 2027 debt target two years early with $5.6…
- Keywords: philips 66, q3 2026, debt target, profit, dividend, ceo lashier, midstream, ebitda, finance, markets, Phillips, 2026
- Source: BigGo Finance — https://finance.biggo.com/news/US_PSX_2026-10-28
- Author: BigGo Finance
- Published: 2026-10-28T18:14:17+00:00
- Read time: 1 min
- Topics: philips 66, q3 2026, debt target, profit, dividend, ceo lashier, midstream, ebitda, finance, markets
## Phillips 66 Q3 2026 Results
Phillips 66 reported third-quarter 2026 adjusted earnings of $5.6 billion, or $14.08 per share, and operating cash flow of $7.3 billion.
## Debt Reduction Achieved
The company reduced debt by $2 billion and cut its net debt-to-capital ratio to 26%, achieving its 2027 target ahead of schedule.
## Dividend Raise Announced
CEO Mark Lashier raised the dividend 10.8% versus Q4 2025 and said midstream could grow to roughly half of total EBITDA within a decade.
## Refining Performance
Refining ran at 98% utilization with a record 41% distillate yield, while midstream fractionation topped 1 million barrels per day.
## Midstream Growth Outlook
CEO Lashier stated midstream could reach 50% of EBITDA within a decade, calling it 'not crazy' with incremental projects driving growth.

> I don't think that's crazy
## Capital Allocation Strategy
CFO Kevin Mitchell guided Q4 worldwide crude utilization to the mid-90s and said buybacks will exceed 50% in the fourth quarter to catch up to the full-year cash-return commitment.
## Buyback Pace Discussion
Mitchell acknowledged trailing 50% commitment for much of the year, 33% through Q2 and 40% cumulatively through Q3, with Q4 target to exceed 50%.
## Q4 Guidance
Q4 2026 guidance includes mid-80s chemicals global O&P utilization, mid-90s refining worldwide crude utilization, and $140M, $170M turnaround expense.
## Demand Softening
U.S. gasoline demand down about 2.5% with West Coast weaker, diesel down about 1.5% as overall demand holds up.
## Leadership Transition
Rich Harbison, executive vice president of refining, will retire at year-end with Chris Chandler taking over in 2027.
## Key takeaway

Phillips 66 achieved 2027 debt target two years early with $5.6 billion profit and raised dividend 10.8%.