TotalEnergies SE Ordinary Shares
TTE · NYSE
Sep 2026
Next quarter
Reports Oct 29, 2026.
Consensus is $3.14 EPS for Sep 2026 across 4 estimates, ranging $2.83 to $3.53.
TTE Jun 2026
- 12.70%
- +0.66%
- $3.07
- $2.68
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Highlights
- Earnings miss: Reported EPS was $2.68 versus the $3.07 consensus, a 12.7% shortfall, although adjusted net income rose 12% sequentially to $6.027 billion.
- Strong operating profit: Adjusted EBITDA increased 5% quarter-on-quarter to $13.179 billion and 36% year-on-year, while sales rose 14% sequentially to $61.771 billion and 24% year-on-year.
- Refining-led upside: Refining & Chemicals adjusted net operating income rose 13% sequentially to $1.800 billion and was 4.6 times the year-ago level, as the European Refining Margin reached $13.5 per barrel versus $4.7.
- Upstream resilience: Exploration & Production adjusted net operating income increased 25% sequentially to $3.231 billion and 64% year-on-year, despite production falling 4% year-on-year to 2.395 million barrels of oil equivalent per day.
- LNG volatility: Integrated LNG adjusted net operating income fell 39% sequentially to $807 million, hurt by weaker gas trading and a 9% sequential decline in LNG-related production linked to Qatar shutdowns.
- Cash generation: Cash flow from operations excluding working capital rose 14% sequentially to $9.804 billion and 48% year-on-year, producing $6.357 billion of net cash flow after net investments.
- Balance-sheet improvement: Net debt declined to $19.710 billion from $23.049 billion at March 31, cutting gearing to 13.1% from 15.5% sequentially and 17.9% a year earlier.
- Capital returns and spending: TotalEnergies repurchased 16.9 million shares for $1.5 billion in the quarter and confirmed 2026 net investments of $15 billion.
Analysis
TotalEnergies delivered a mixed but cash-generative second quarter. Reported EPS of $2.68 missed the $3.07 consensus by 12.7%, while net income attributable to shareholders declined 6% from the prior quarter to $5.438 billion but more than doubled from $2.687 billion a year earlier. The headline earnings comparison was distorted by $589 million of negative adjustments, principally inventory and fair-value effects; adjusted net income instead rose 12% sequentially to $6.027 billion and 68% from $3.578 billion in 2Q25.
The operating print was defined by a sharp improvement in downstream and upstream performance offset by a weak LNG contribution. Refining & Chemicals benefited from a 19% sequential increase in the European Refining Margin to $13.5 per barrel, lifting adjusted operating income to $1.800 billion. Exploration & Production reached $3.231 billion as higher liquids realizations outweighed lower volumes and Middle East disruption. Integrated LNG fell to $807 million because of underperforming gas trading and Qatar-related production interruptions. Cash flow was the strongest feature: CFFO reached $9.804 billion, net cash flow was $6.357 billion and gearing fell to 13.1%. Management expects elevated oil, gas and refining markets to support third-quarter results, but forecasts Middle East disruption to reduce total production by 5%-10% and kept 2026 net investment guidance at $15 billion.
Earnings and adjustments
- Reported result: Net income attributable to TotalEnergies shareholders was $5.438 billion, down 6% from $5.810 billion in 1Q26 but up 102% from $2.687 billion in 2Q25. Reported EPS of $2.68 was $0.39 below the $3.07 consensus.
- Underlying earnings: Adjusted net income increased 12% sequentially to $6.027 billion from $5.394 billion and rose 68% year-on-year from $3.578 billion.
- Adjustment drag: Total adjustments reduced reported net income by $589 million, including a $290 million after-tax inventory effect, a $268 million impact from special items and a $31 million fair-value loss.
- Operating scale: Adjusted EBITDA was $13.179 billion, up 5% sequentially and 36% year-on-year, on sales of $61.771 billion, up 14% and 24%, respectively.
Refining and upstream
- Refining: Adjusted net operating income increased 13% sequentially to $1.800 billion and was 4.6 times 2Q25. The European Refining Margin rose to $13.5 per barrel from $11.4 in 1Q26 and $4.7 a year earlier.
- Throughput trade-off: Refinery throughput fell 12% sequentially to 1.426 million barrels per day, as TotalEnergies prioritized distillates and dealt with the Donges shutdown, SATORP disruption and a Port Arthur outage. Utilization was 80% versus 92% in the prior quarter.
- Exploration and Production: Adjusted operating income rose 25% sequentially to $3.231 billion and 64% year-on-year. Higher liquids realizations were the main sequential driver, despite production declining 6% from 1Q26 and 4% from 2Q25 to 1.845 million barrels of oil equivalent per day.
- Production outlook: Excluding the Middle East conflict, production was up more than 4% year-on-year. Management expects third-quarter production to grow in line with its 3% annual growth target, though Middle East disruption is expected to reduce total company production by 5%-10%.
LNG and power
- Integrated LNG: Adjusted net operating income fell 39% sequentially to $807 million and 22% year-on-year. Management attributed the decline mainly to underperforming gas trading in a flat-to-bearish European market.
- LNG volumes: LNG-related hydrocarbon production declined 9% sequentially because of Qatar shutdowns linked to the Middle East conflict. Overall LNG sales were 10.7 million tonnes, down 13% sequentially but up 1% year-on-year.
- Integrated Power: Adjusted operating income was broadly stable at $533 million versus $545 million in 1Q26, while CFFO rose 26% sequentially to $721 million, supported by the EPH assets acquired on April 29.
- Power expansion: Net power production increased 26% sequentially to 14.8 TWh, and net installed generation capacity reached 33.4 GW, up from 26.8 GW a year earlier. Gross installed renewable capacity reached 37.4 GW.
Cash flow and leverage
- Cash generation: Cash flow from operations was $10.858 billion, compared with $3.361 billion in 1Q26 and $5.960 billion in 2Q25. CFFO rose 14% sequentially to $9.804 billion and 48% year-on-year.
- Free cash flow: Organic investment was $4.694 billion, leaving $5.110 billion of free cash flow after organic investment. Net cash flow after total net investment was $6.357 billion, up from $4.098 billion in the prior quarter.
- Working capital: The quarter benefited from a $1.2 billion working-capital release, largely reflecting lower hydrocarbon prices reducing inventory balances. This helped lift operating cash flow above underlying CFFO.
- Balance sheet: Net debt fell to $19.710 billion from $23.049 billion at March 31 and $25.927 billion a year earlier. Gearing declined to 13.1%, or 17.9% including leases.
Capital allocation and outlook
- Share buybacks: The company repurchased 16.9 million shares for $1.5 billion in 2Q26, bringing first-half repurchases to 26.3 million shares for $2.25 billion.
- Portfolio activity: Second-quarter acquisitions were $141 million, while asset sales reached $1.388 billion, primarily from the Malaysian Marjoram gas interest, German battery-storage farm-downs and other non-core disposals.
- Market backdrop: TotalEnergies expects third-quarter LNG selling prices above $11.5 per million British thermal units, with European gas forwards around $16-$20, while high refining margins are supported by disrupted Russian and Middle Eastern supply.
- Investment guidance: The company confirmed 2026 net investment guidance of $15 billion. Third-quarter refinery utilization is expected at 80%-85%, with SATORP operating at 70% of nominal capacity until its expected return to full capacity near the end of the quarter.
