TotalEnergies SE Earnings Summary — Q2 FY2026

• Revenue increased 14% sequentially to $61.8 billion, supported by higher liquid price realizations and strong refining margins.
• Adjusted Net Income reached $6.0 billion, up 12% QoQ, highlighting the underlying operational strength of the portfolio.
• Hydrocarbon production was 2,395 kboe/d, down 6% YoY primarily due to an 8% impact from conflict in the Middle East.
• Excluding the Middle East conflict, production rose 4% driven by ramp-ups in Brazil (Mero-3/4) and the US (Anchor).
• Refining & Chemicals segment adjusted income surged 13% QoQ to $1.8 billion as European Refining Margins (ERM) stood at $13.5/t.
• Net debt gearing improved significantly to 13.1% from 15.5% in the previous quarter and 17.9% a year ago.
• Cash flow from operations (CFFO) was $9.8 billion, representing a 14% sequential increase.
• The Integrated Power segment maintained stable year-on-year adjusted net income of $533 million.

Management emphasizes a multi-energy strategy focusing on LNG growth and low-cost oil production. The company continues to target a gearing ratio below 20% and remains committed to its net-zero 2050 goals while balancing capital-heavy energy transitions with shareholder returns through dividends and share buybacks.

Improving

Despite a slight sequential dip in net profit, the underlying cash flow generation (CFFO up 14%) and significant de-leveraging of the balance sheet indicate strengthening financial health.

The company maintains a high-quality asset selection in Upstream and Integrated LNG. Growth is expected to be driven by high-margin projects in Brazil, the US, and West Africa, which act as a hedge against commodity volatility. Risk remains tied to geopolitical shifts in the Middle East and rising carbon taxation in Europe.