Revenue growth has decelerated into negative territory, with gross margins compressing to 3.5% in 2026Q1 as the company struggles with narrowing regional price differentials.
| Metric | TTM | Dec'25 | Dec'24 | Dec'23 | Dec'22 | Dec'21 | Dec'20 | Dec'19 | Dec'18 | Dec'17 | Dec'16 | Dec'15 | Dec'14 | Dec'13 | Dec'12 | Dec'11 |
|---|
| Sales/Revenue | 45.26B | 44.26B | 50.07B | 48.71B | 57.34B | 42.08B | 23.29B | 33.67B | 34.05B | 26.22B | 20.18B | 23.15B | 43.46B | 42.25B | 37.8B | 34.27B |
| Revenue Growth % | -9.33% | -11.61% | 2.79% | -15.05% | 36.28% | 80.67% | -30.83% | -1.13% | 29.87% | 29.93% | -12.83% | -46.73% | 2.88% | 11.78% | 10.28% | - |
| Cost of Goods Sold | 42.76B | 41.59B | 46.59B | 45.58B | 54.14B | 39.28B | 21.09B | 30.06B | 30.31B | 23.61B | 17.73B | 20.16B | 39.89B | 38.84B | 34.85B | 31.81B |
| COGS % of Revenue | - | 93.96% | 93.04% | 93.57% | 94.42% | 93.35% | 90.54% | 89.27% | 89.01% | 90.05% | 87.84% | 87.07% | 91.79% | 91.94% | 92.21% | 92.82% |
| Gross Profit | 2.5B | 2.67B | 3.49B | 3.13B | 3.2B | 2.8B | 2.2B | 3.61B | 3.74B | 2.61B | 2.45B | 2.99B | 3.57B | 3.41B | 2.95B | 2.46B |
| Gross Margin % | 5.52% | 6.04% | 6.96% | 6.43% | 5.58% | 6.65% | 9.46% | 10.73% | 10.99% | 9.95% | 12.16% | 12.93% | 8.21% | 8.06% | 7.79% | 7.18% |
| Gross Profit Growth % | - | -23.29% | 11.41% | -2.13% | 14.34% | 26.96% | -39.03% | -3.42% | 43.33% | 6.36% | -18.01% | -16.16% | 4.81% | 15.61% | 19.71% | - |
| Operating Expenses | 1.08B | 1.25B | 2.31B | 1.63B | 1.91B | 1.96B | 4.59B | 1.63B | 1.58B | 1.46B | 1.46B | 1.74B | 1.79B | 1.68B | 1.52B | 1.16B |
| OpEx % of Revenue | - | 2.82% | 4.62% | 3.34% | 3.34% | 4.65% | 19.69% | 4.85% | 4.65% | 5.58% | 7.25% | 7.49% | 4.11% | 3.98% | 4.03% | 3.4% |
| Selling, General & Admin | 342M | 342M | 387M | 356M | 330M | 298M | 276M | 302M | 320M | 280M | 282M | 281M | 331M | 360M | 342M | 294M |
| SG&A % of Revenue | - | 0.77% | 0.77% | 0.73% | 0.58% | 0.71% | 1.19% | 0.9% | 0.94% | 1.07% | 1.4% | 1.21% | 0.76% | 0.85% | 0.9% | 0.86% |
| Research & Development | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| R&D % of Revenue | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - |
| Other Operating Expenses | 4M | 899M | 1.93B | 1.27B | 1.58B | 1.66B | 4.31B | 1.33B | -7M | -31M | 33M | -7M | -2M | 1M | 6M | -19M |
| Operating Income | 1.42B | 1.43B | 1.17B | 1.5B | 1.28B | 842M | -2.38B | 1.98B | 2.27B | 1.15B | 990M | 1.26B | 1.78B | 1.72B | 1.42B | 1.3B |
| Operating Margin % | 3.15% | 3.23% | 2.34% | 3.08% | 2.24% | 2% | -10.23% | 5.88% | 6.67% | 4.37% | 4.91% | 5.43% | 4.1% | 4.08% | 3.77% | 3.78% |
| Operating Income Growth % | - | 21.84% | -21.92% | 16.9% | 52.49% | 135.33% | -220.35% | -12.85% | 98.08% | 15.86% | -21.3% | -29.44% | 3.42% | 21.07% | 9.79% | - |
| EBITDA | 2.33B | 2.38B | 2.2B | 2.55B | 2.25B | 1.62B | -1.73B | 2.58B | 2.79B | 1.66B | 1.45B | 1.69B | 2.18B | 2.1B | 1.91B | 1.55B |
| EBITDA Margin % | 5.15% | 5.38% | 4.39% | 5.24% | 3.93% | 3.85% | -7.42% | 7.67% | 8.2% | 6.34% | 7.2% | 7.3% | 5.01% | 4.98% | 5.05% | 4.51% |
| EBITDA Growth % | 2.87% | 8.33% | -13.87% | 13.32% | 39.1% | 193.75% | -166.83% | -7.48% | 67.95% | 14.37% | -14.02% | -22.32% | 3.57% | 10.23% | 23.27% | - |
| D&A (Non-Cash Add-back) | 908M | 953M | 1.03B | 1.05B | 968M | 777M | 656M | 604M | 521M | 516M | 464M | 433M | 394M | 378M | 483M | 250M |
| EBIT | 1.72B | 1.86B | 1.66B | 2B | 1.81B | 1.14B | -2.17B | 2.66B | 2.84B | 1.39B | 1.2B | 1.43B | 1.9B | 1.8B | 1.47B | 1.29B |
| Net Interest Income | -192M | -467M | -360M | -386M | -405M | -425M | -436M | -425M | -431M | -510M | -480M | -443M | -357M | -319M | -295M | -259M |
| Interest Income | 0 | 0 | 22M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Interest Expense | 192M | 467M | 382M | 386M | 405M | 425M | 436M | 425M | 431M | 510M | 480M | 443M | 357M | 319M | 295M | 259M |
| Other Income/Expense | -82M | -33M | 102M | 113M | 125M | -130M | -224M | 258M | 137M | -251M | -252M | -267M | -251M | -274M | -251M | -265M |
| Pretax Income | 1.34B | 1.4B | 1.27B | 1.61B | 1.41B | 712M | -2.61B | 2.24B | 2.41B | 896M | 738M | 991M | 1.54B | 1.48B | 1.17B | 1.03B |
| Pretax Margin % | 2.97% | 3.15% | 2.54% | 3.31% | 2.46% | 1.69% | -11.19% | 6.65% | 7.07% | 3.42% | 3.66% | 4.28% | 3.54% | 3.5% | 3.1% | 3.01% |
| Income Tax | 70M | 92M | 204M | 189M | 246M | 112M | -167M | 176M | 302M | 937M | 78M | 182M | 212M | 106M | 55M | 45M |
| Effective Tax Rate % | 5.22% | 6.59% | 16.01% | 11.71% | 17.46% | 15.73% | 6.41% | 7.86% | 12.54% | 104.58% | 10.57% | 18.37% | 13.77% | 7.16% | 4.69% | 4.36% |
| Net Income | 195M | 260M | 103M | 198M | 168M | 60M | -568M | 331M | 334M | -731M | 94M | 118M | 70M | 15M | 40M | 2M |
| Net Margin % | 0.43% | 0.59% | 0.21% | 0.41% | 0.29% | 0.14% | -2.44% | 0.98% | 0.98% | -2.79% | 0.47% | 0.51% | 0.16% | 0.04% | 0.11% | 0.01% |
| Net Income Growth % | 34.48% | 152.43% | -47.98% | 17.86% | 180% | 110.56% | -271.6% | -0.9% | 145.69% | -877.66% | -20.34% | 68.57% | 366.67% | -62.5% | 1900% | - |
| Net Income (Continuing) | 1.27B | 1.3B | 1.07B | 1.43B | 1.16B | 600M | -2.44B | 2.06B | 2.11B | -41M | 660M | 809M | 1.33B | 1.37B | 1.12B | 987M |
| Discontinued Operations | 2M | 383M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Minority Interest | 12.68B | 12.87B | 12.96B | 13.42B | 13.11B | 12.64B | 9.73B | 12.33B | 11.47B | 10.66B | 8.97B | 7.47B | 7.72B | 7.24B | 6.97B | 5.79B |
| EPS (Diluted) | 0.98 | 1.31 | 0.52 | 1.02 | 0.87 | 0.31 | -2.31 | 1.95 | 2.11 | -5.04 | 0.94 | 1.41 | 5.65 | 0.27 | 0.06 | 0.04 |
| EPS Growth % | 33.48% | 151.92% | -49.02% | 17.24% | 180.65% | 113.42% | -218.46% | -7.58% | 141.87% | -636.17% | -33.33% | -75.04% | 1992.59% | 332.69% | 50% | - |
| EPS (Basic) | - | 1.31 | 0.52 | 1.02 | 0.87 | 0.31 | -3.05 | 1.97 | 2.12 | -5.04 | 0.94 | 1.41 | 5.65 | 0.27 | 0.06 | 0.04 |
| Diluted Shares Outstanding | 198M | 198M | 197M | 195M | 194M | 194M | 246M | 170M | 159M | 145M | 99M | 83M | 54M | 49.57M | 48.07M | 48.07M |
| Basic Shares Outstanding | 198M | 198M | 197M | 195M | 194M | 194M | 186M | 168M | 158M | 145M | 99M | 83M | 54M | 49.57M | 48.07M | 48.07M |
| Dividend Payout Ratio | - | 115.77% | 243.69% | 105.56% | 96.43% | 233.33% | - | 69.79% | 56.59% | - | 248.94% | 165.25% | 130% | 18873.33% | 7.5% | 100% |
Permian volume growth plateau
As reported in recent financial statements, PAGP's revenue growth has trended into negative territory, with the most recent quarter showing a 3.8% increase that masks underlying volatility, as the company struggles to maintain momentum amidst a maturing Permian Basin production environment and shifting upstream capital discipline.
The inconsistent revenue trajectory suggests that the company is highly sensitive to regional production cycles rather than secular growth. Investors should monitor whether the recent uptick in revenue is a sustainable recovery or merely a temporary fluctuation driven by commodity price volatility in the supply and logistics segment.
Based on reported figures, PAGP's gross margin has compressed to 3.5% in 2026Q1, reflecting the inherent challenges of a high-volume, low-margin marketing business that remains vulnerable to narrowing regional price differentials and increased competition for uncommitted pipeline capacity across its core Permian gathering systems.
The thin margin profile indicates that the company lacks significant pricing power, as the majority of its revenue is tied to the pass-through value of physical commodities. This structural limitation suggests that profitability is largely at the mercy of market-wide arbitrage opportunities rather than internal operational efficiency.
According to recent SEC filings, PAGP's operating income has failed to scale proportionally with gross profit, as evidenced by an operating margin of just 2.8% in 2026Q1, indicating that fixed costs and SG&A expenses continue to exert significant pressure on the company's bottom-line profitability.
The inability to expand operating margins during periods of revenue growth suggests that the company's cost structure is relatively rigid. This lack of operating leverage may imply that future earnings growth will be difficult to achieve without a substantial increase in throughput volumes or a fundamental shift in contract mix.
As highlighted in the income statement data, PAGP's net income remains highly erratic, with a 76.2% decline in EPS during 2026Q1, which warrants investigation into the sustainability of earnings given the heavy reliance on non-operating items and the potential for significant mark-to-market adjustments.
Short-sellers may focus on the disconnect between headline revenue and the thin net income margins, which suggests that the company's core business may be less profitable than it appears on the surface. The volatility in EPS indicates that investors should be cautious about relying on quarterly net income as a proxy for long-term cash-generating capability.
Quick answers to the most common questions about buying PAGP stock.
For fiscal year 2025, Plains GP Holdings, L.P. (PAGP) reported total revenue of $44.26B. This represents a 29.1% increase compared to $34.27B in 2011.
Plains GP Holdings, L.P. (PAGP) is profitable, generating $260.0M in net income for the fiscal year ending 2025 with a net profit margin of 0.6%.
Plains GP Holdings, L.P. (PAGP) reported an operating income of $1.43B, resulting in an operating profit margin of 3.2%. This margin reflects the operational efficiency of the business before interest and taxes.
Plains GP Holdings, L.P. (PAGP) generated $2.67B in gross profit for the year, representing a gross profit margin of 6.0%. This demonstrates the company's core pricing power and production efficiency.