Occidental Petroleum reported QQ1 2025 revenue of $6.91 billion, up 11.22% year-over-year and essentially flat to a modest decrease QoQ (-0.20%). The company delivered a solid gross profit of $2.51 billion, translating to a gross margin of 36.28%, and an operating margin of 22.93% with operating income of $1.584 billion and EBITDA of $3.567 billion. Net income stood at $0.931 billion, yielding an EPS of $0.8085 for the quarter. The results reflect a resilient earnings structure supported by an improving margin profile despite a light sequential revenue headwind.
Cash flow and capital allocation remained constructive: cash flow from operations (CFO) was $2.149 billion and capital expenditures totaled $1.909 billion, producing free cash flow (FCF) of $0.240 billion for the quarter. The company ended the period with cash and cash equivalents of $2.612 billion and a net debt position of approximately $23.375 billion, with total debt of about $25.987 billion and a debt-to-capitalization ratio of 42.8%. Dividend payout was approximately 40.8% of earnings, corresponding to a dividend yield of about 0.82%. The balance sheet remains solid, with a current ratio near 1.01 and an interest coverage of ~5x, underscoring liquidity and near-term debt service capacity.
Management emphasis on disciplined capital allocation and continued cash generation suggests a constructive medium-term outlook, supported by stable operating performance and balance-sheet resilience. However, the absence of explicit QQ1 2025 earnings-call guidance in the provided data limits a forward-looking stance on specific targets for 2025 beyond the quarter’s fundamentals. Should commodity prices stabilize or improve and execution remain disciplined, Occidental could further strengthen its FCF profile and modestly augment shareholder returns while funding continued capex optimization.”,
Key Performance Indicators
Revenue
Increasing
6.91B
QoQ: -0.20% | YoY: 11.22%
Gross Profit
Increasing
2.51B
36.28% margin
QoQ: 3.90% | YoY: 18.70%
Operating Income
Increasing
1.58B
QoQ: 16.39% | YoY: 31.13%
Net Income
Increasing
931.00M
QoQ: 844.80% | YoY: 5.32%
EPS
Increasing
0.81
QoQ: 357.81% | YoY: 0.11%
Revenue Trend
Margin Analysis
Financial Highlights
- Revenue: $6.91B; YoY +11.22%, QoQ -0.20%. Gross profit: $2.507B; gross margin 36.28%; YoY +18.70%, QoQ +3.90%.
- Operating income: $1.584B; margin 22.93%; YoY +31.13%, QoQ +16.39%.
- EBITDA: $3.567B; EBITDA margin (EBITDA/Revenue) 51.62%.
- Net income: $0.931B; net margin 13.47%; YoY +5.32%, QoQ +844.80% (base effects from the prior quarter).
- Earnings per share (EPS): $0.8085; diluted EPS $0.7742. YoY EPS change +0.11%, QoQ +357.81%.
- Cash flow and liquidity: CFO $2.149B; Capex $1.909B; Free cash flow $0.240B. Cash at end of period $2.612B. Net debt $23.375B; total debt $25.987B.
- Balance sheet health: total assets $84.967B; total liabilities $49.862B; stockholders’ equity $34.712B. Current ratio 1.01, quick ratio 0.787, cash ratio 0.271.
- Capital allocation: Dividends paid $0.38B; debt repayments $0.518B; share issuance $0.025B. Payout ratio 40.8%; price-to-book 1.339; price-to-earnings 12.48; EV/EBITDA 19.58. Dividend yield 0.82%.
Income Statement
Metric
Value
YoY Change
QoQ Change
Revenue
6.91B
11.22%
-0.20%
Gross Profit
2.51B
18.70%
3.90%
Operating Income
1.58B
31.13%
16.39%
Net Income
931.00M
5.32%
844.80%
EPS
0.81
0.11%
357.81%
Key Financial Ratios
Gross Profit Margin
Fair
36.30%
Gross profit margin is moderate, room for improvement in cost management
Operating Profit Margin
Good
22.90%
Operating margin is healthy and competitive within industry standards
Net Profit Margin
Good
13.50%
Net profit margin is healthy and competitive within industry standards
Return on Assets
Weak
1.10%
Return on assets suggests inefficient capital allocation
Return on Equity
Weak
2.68%
Return on equity suggests inefficient capital allocation
Current Ratio
Adequate
1.01
Current ratio meets minimum requirements but limited cushion