Cash flow conversion is currently strained, as evidenced by a negative $2.8 billion in free cash flow for 2026Q1 and an OCF/NI ratio of -10.94.
| 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 | Dec'10 | Dec'09 |
|---|
| Cash from Operations | 2.51B | 4.96B | 4.19B | 7.03B | 10.81B | 6.02B | 2.11B | 4.81B | 7.57B | 3.65B | 2.96B | 5.71B | 3.53B | 6.03B | 4.3B | 5.01B | 2.09B | 946M |
| Operating CF Margin % | - | 3.75% | 2.93% | 4.77% | 6.36% | 5.38% | 3.31% | 4.47% | 6.81% | 4.07% | 4.15% | 6.72% | 2.42% | 3.82% | 2.59% | 2.54% | 1.42% | 0.84% |
| Operating CF Growth % | -1236.62% | 18.4% | -40.38% | -34.99% | 79.71% | 185.03% | -56.09% | -36.51% | 107.59% | 23.12% | -48.14% | 61.89% | -41.45% | 40.29% | -14.18% | 139.29% | 121.14% | - |
| Net Income | 4.12B | 4.53B | 2.11B | 7B | 11.01B | 1.31B | -3.98B | 3.07B | 5.59B | 5.1B | 1.55B | 4.22B | 4.05B | 3.66B | 4.12B | 4.78B | 735M | 476M |
| Depreciation & Amortization | 3.02B | 3.25B | 2.4B | 2.01B | 1.65B | 1.63B | 1.42B | 1.36B | 1.38B | 1.34B | 1.19B | 1.1B | 1.02B | 971M | 938M | 908M | 880M | 879M |
| Stock-Based Compensation | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Deferred Taxes | 378M | 178M | -251M | 840M | 1.32B | -272M | 126M | 183M | 252M | -1.89B | 612M | 529M | -488M | 594M | 221M | 931M | -33M | -84M |
| Other Non-Cash Items | -1.02B | -1.81B | 547M | -1.01B | -3.24B | 1.24B | 4.88B | 1.02B | 626M | -968M | -888M | 85M | -31M | -78M | 171M | -1.92B | 709M | -722M |
| Working Capital Changes | -4.07B | -1.18B | -615M | -1.81B | 68M | 2.12B | -326M | -830M | -273M | 62M | 501M | -221M | -1.02B | 880M | -1.16B | 316M | -199M | 397M |
| Change in Receivables | -3.88B | -508M | 574M | -696M | -2.07B | -922M | 2.02B | -2.31B | -2.8B | -5.2B | -4.51B | -2.5B | -3.21B | 85K | -5.71B | -1.92B | -5.06B | -4.48B |
| Change in Inventory | -284M | 160M | -278M | -245M | 74M | 511M | -71M | -204M | -202M | -176M | 216M | -144M | -85M | 38M | 55M | 616M | -344M | 237M |
| Change in Payables | 1.83B | -804M | -491M | -480M | 1.74B | 2.92B | -2.89B | 1.94B | -1.55B | 1.15B | 1.58B | -2.3B | -3.32B | 360M | -985M | 58M | 3B | 2.61B |
| Cash from Investing | -4.16B | -1.97B | -2.46B | -5.86B | -1.99B | -1.9B | -3.08B | -3.69B | -2.47B | -1.46B | -3.16B | -5.74B | -2.3B | -444M | -1.53B | 2.49B | -652M | -1.97B |
| Capital Expenditures | -1.81B | -2.23B | -1.86B | -2.42B | -2.19B | -1.86B | -2.92B | -3.87B | -2.64B | -1.83B | -2.84B | -5.76B | -3.77B | -1.78B | -1.72B | -1.02B | -1.15B | -2.46B |
| CapEx % of Revenue | 1.33% | 1.69% | 1.3% | 1.64% | 1.29% | 1.66% | 4.58% | 3.6% | 2.37% | 2.05% | 3.99% | 6.78% | 2.59% | 1.13% | 1.04% | 0.52% | 0.78% | 2.18% |
| Acquisitions | 63M | 154M | 457M | -3.67B | -496M | 3M | 51M | 157M | 57M | 86M | 156M | 70M | 1.24B | 1.21B | 286M | 2.63B | 662M | 757M |
| Investments | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - |
| Other Investing | -2.5B | 24M | -1.21B | 32M | -10M | 2M | -402M | 28M | 111M | 282M | -470M | -44M | 233M | 121M | -100M | 887M | -164M | -269M |
| Cash from Financing | 5.3B | -3.67B | -3.31B | -4.03B | -5.89B | -3.45B | 1.79B | -2.51B | -5.17B | -2.11B | -178M | -2.12B | -1.36B | -3.68B | 699M | -7.5B | -1.44B | 1.03B |
| Debt Issued (Net) | 8.57B | -379M | 2.13B | 2.01B | -2.43B | -1.51B | 4.13B | 476M | 1.04B | -170M | 1.26B | 243M | 2.44B | -1.02B | 6.58B | -26M | -26M | -25M |
| Equity Issued (Net) | -1.06B | -1.1B | -3.37B | -3.89B | -1.41B | 26M | -433M | -1.45B | -4.48B | -350M | -36M | -1.1B | -2.73B | -1.84B | -309M | 0 | 0 | 0 |
| Dividends Paid | -1.96B | -1.92B | -1.88B | -1.88B | -1.79B | -1.58B | -1.57B | -1.57B | -1.44B | -1.4B | -1.28B | -1.17B | -1.06B | -807M | -5.54B | -7.47B | -1.41B | 0 |
| Share Repurchases | -1.23B | -1.21B | -3.45B | -4.01B | -1.51B | 0 | -443M | -1.65B | -4.64B | -1.59B | -1.05B | -1.53B | -2.73B | -2.25B | -356M | 0 | 0 | 0 |
| Other Financing | -249M | -268M | -190M | -260M | -255M | -376M | -328M | 28M | -293M | -196M | -71M | -41M | -7M | -16M | -39M | -1M | -3M | 1.05B |
| Net Change in Cash | 3.66B | -622M | -1.58B | -2.81B | 2.99B | 633M | 900M | -1.41B | -100M | 408M | -363M | -2.13B | -193M | 1.93B | 3.47B | 0 | 0 | 0 |
| Free Cash Flow | 119M | 2.73B | 2.33B | 4.61B | 8.62B | 4.16B | -809M | 935M | 4.93B | 1.82B | 119M | -51M | -244M | 4.25B | 2.58B | 3.98B | 942M | -1.51B |
| FCF Margin % | 0.09% | 2.06% | 1.63% | 3.13% | 5.07% | 3.71% | -1.27% | 0.87% | 4.43% | 2.03% | 0.17% | -0.06% | -0.17% | 2.69% | 1.55% | 2.03% | 0.64% | -1.34% |
| FCF Growth % | -95.98% | 17.02% | -49.43% | -46.5% | 107.34% | 613.84% | -186.52% | -81.05% | 171.7% | 1426.05% | 333.33% | 79.1% | -105.74% | 64.97% | -35.37% | 322.93% | 162.18% | - |
| FCF per Share | 0.30 | 6.69 | 5.53 | 10.17 | 18.19 | 9.44 | -1.84 | 2.06 | 10.41 | 3.50 | 0.22 | -0.09 | -0.43 | 6.86 | 4.04 | 6.23 | 1.47 | -2.37 |
| FCF Conversion (FCF/Net Income) | 0.03x | 1.13x | 1.98x | 1.00x | 0.98x | 4.58x | -0.53x | 1.56x | 1.35x | 0.71x | 1.91x | 1.35x | 0.74x | 1.62x | 1.04x | 1.05x | 2.85x | 1.99x |
| Interest Paid | 0 | 0 | 901M | 816M | 572M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Taxes Paid | 0 | 0 | 1.19B | 1.19B | 2.07B | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
Refining margin volatility
According to the provided quarterly data, the relationship between net income and operating cash flow is highly erratic, with the OCF/NI ratio swinging from a massive 149.75 in 2024Q4 to a negative 10.94 in 2026Q1, indicating significant non-cash distortions in reported profitability.
The extreme variance in the OCF/NI ratio suggests that reported net income is a poor proxy for the company's actual cash-generating ability. Investors should monitor the impact of LIFO inventory accounting and equity earnings from the CPChem joint venture, which appear to decouple accounting profits from the underlying cash reality.
As reported in financial statements, Phillips 66's free cash flow trajectory has been highly unstable, plummeting to a negative $2.8 billion in 2026Q1 from a peak of $2.1 billion in 2025Q4, reflecting the inherent sensitivity of the business to cyclical refining margins and operational maintenance cycles.
The sharp swing into negative free cash flow territory highlights the company's vulnerability to sudden shifts in working capital and refining profitability. This instability suggests that the company's ability to fund dividends and buybacks from internal cash generation may be more precarious than headline earnings figures imply.
Based on the reported figures, working capital changes have been a primary driver of cash flow volatility, with a massive $3.0 billion outflow in 2026Q1 following a $708 million inflow in 2025Q4, underscoring the significant impact of inventory and receivables management on short-term liquidity.
The magnitude of these working capital swings suggests that the company's cash position is heavily influenced by the timing of feedstock purchases and product sales. Such fluctuations warrant further investigation into whether these are temporary timing differences or indicative of structural challenges in managing inventory levels during periods of market volatility.
As indicated by the provided data, Phillips 66 has maintained consistent dividend payments despite significant cash flow volatility, with $509 million paid out in 2026Q1 even as operating cash flow turned negative, suggesting a management priority on shareholder returns that may strain the balance sheet.
The persistence of share repurchases and dividends during periods of negative free cash flow suggests a reliance on existing cash reserves or external financing to fund capital returns. Investors should monitor whether this commitment to capital allocation remains sustainable if the current refining margin compression persists over the long term.
Quick answers to the most common questions about buying PSX stock.
Phillips 66 (PSX) generated $4.96B in net cash from operating activities in 2025. This reflects the cash generated directly from core business operations.
Phillips 66 (PSX) generated $2.73B in free cash flow in 2025. Free cash flow is the cash left over after capital expenditures, which can be used to pay dividends, repurchase shares, or pay down debt.
Phillips 66 (PSX) spent $2.23B on capital expenditures in 2025. CapEx represents the cash invested in physical assets like property, plant, and equipment to maintain or grow the business.
In 2025, Phillips 66 (PSX) returned $1.92B to shareholders via cash dividends and spent $1.21B on share repurchases. This shows the company's commitment to returning capital to its equity investors.