TotalEnergies (TTE) Stock: Q125 Misses Estimates, But Output Grows and Clean Energy Expands

TLDR

Q1 EPS of $1.83 missed estimates and fell 3.7% year over year. Revenue dropped 8% to $47.89B but beat forecasts. Hydrocarbon production rose 4% to 2.57M barrels/day. Net income slid 14% as oil prices and refining margins declined. Renewable power output jumped 18%, with 60% from clean energy.

TotalEnergies SE (NYSE: TTE) reported weaker-than-expected first-quarter 2025 results as lower crude oil prices and softer refining margins pressured profits. EPS came in at $1.83, missing the Zacks estimate of $1.88 and declining 3.7% from the prior year’s $1.90.

Revenue fell 8% year over year to $47.89 billion but came in stronger than consensus forecasts of $45.5 billion. Shares fell 2.36% to $57.07 in midday trading. Despite this slip, TTE is up 7.9% year-to-date but remains down 19% over the past year. As of writing, TotalEnergies is trading at $57.01, down 2.46%.

TotalEnergies (TTE) 

Production Surpasses Guidance as Gas Output Strengthens

TotalEnergies delivered solid production gains in Q1, averaging 2.568 million barrels of oil equivalent per day, up 4% year over year and above the company’s guidance range. Liquids production rose 2%, while gas output climbed 8% on strength across most global operations.

Though realized Brent crude prices dropped 9% to $75.70 per barrel, realized gas prices jumped 29% year over year, partly cushioning the revenue decline. LNG prices also edged up 4%.

Renewables Shine While Refining Slumps

TotalEnergies’ transition efforts showed progress: net power production rose 18% to 11.3 terawatt hours, with 60% coming from renewable sources. This marks a significant step forward in the company’s low-carbon push.

However, its traditional businesses saw profit erosion:

Refining & Chemicals’ operating income plunged 69% to $301 million. Integrated Power income fell 17% to $506 million. Exploration & Production profits dipped 4% to $2.45 billion.

Net operating income overall dropped 14% to $4.79 billion, weighed by weaker refining and exploration results.

Cash Flow Rises, Buybacks Continue

Despite the earnings dip, cash flow from operations improved 18% year over year to $2.56 billion. TTE ended Q1 with $22.83 billion in cash, though this marked a decline from year-end levels.

The company repurchased $2 billion worth of stock in the quarter, equivalent to 33.3 million shares. Gearing (leverage) ticked up to 19.2% from 13.8% in Q4, reflecting share buybacks and asset acquisitions totaling $836 million.

Guidance Points to Modest Growth and Green Investment

For Q2, TotalEnergies expects production volumes to grow 2-3% year over year, though maintenance outages will slightly dampen output. Capital expenditures for 2025 are set at $17-$17.5 billion, with $4.5 billion earmarked for low-carbon initiatives.

The company continues offering an attractive dividend, with a forward yield of 6.01% and an ex-dividend date set for June 18, 2025.

Conclusion

TotalEnergies’ Q1 2025 performance reflected industry headwinds from weaker oil prices and refining margins, leading to a profit miss despite beating on revenue. Production growth and gains in renewables provided bright spots, but softness in refining and power weighed on results. Investors will watch Q2 production trends, dividend stability, and TotalEnergies’ expanding green energy footprint as key drivers moving forward.

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