Occidental Petroleum reported a solid QQ3 2025 performance with meaningful free cash flow generation and resilient operating cash flow in a period of commodity price volatility. Revenue for the quarter stood at $6.624 billion, down 6.5% year-over-year but up 4.9% quarter-over-quarter, reflecting the default cyclicality of upstream volumes and seasonal demand. Operating income reached $842 million, yielding an operating margin of 12.7%, while EBITDA was robust at $3.327 billion, underscoring Occidental’s ability to generate cash flow even as the top-line faced mix-related headwinds. Net income was $661 million, with a net margin of 9.98%, illustrating continued profitability despite industry headwinds.
Cash Flow and Returns: Operating cash flow per share $2.83; Free cash flow per share $1.037; Dividends payout ratio 61.7%.
Balance Sheet and Leverage: Debt/Capitalization ~5.3%; Debt ratio reported as 0 in the dataset; Interest Coverage ~3.12x.
Valuation and Multiples: Price to Book ~1.284x; Price to Sales ~7.03x; Price to Earnings ~17.60x; EV/EBITDA ~18.21x; Dividend Yield ~0.88%.
Liquidity and Efficiency: Operating cash flow to sales ratio ~0.421; Free cash flow to operating cash flow ratio ~0.366; Cash Flow Coverage ~1.374x.
Notes: EPS and diluted EPS are not provided in the QQ3 2025 data snapshot. The four-quarter data shows a pattern of improving QoQ performance into Q3 from prior periods, with YoY comparisons reflecting sector cyclicality.
Income Statement
Metric
Value
YoY Change
QoQ Change
Revenue
6.62B
-6.53%
4.86%
Operating Income
842.00M
-51.69%
-1.75%
Net Income
661.00M
-41.40%
53.36%
Key Financial Ratios
Operating Profit Margin
Fair
12.70%
Operating margin is moderate, room for improvement in cost management
Net Profit Margin
Fair
9.98%
Net profit margin is moderate, room for improvement in cost management
Return on Equity
Weak
1.82%
Return on equity suggests inefficient capital allocation
Debt to Equity
Conservative
0.06
Debt-to-equity shows conservative leverage and low financial risk
P/E Ratio
Fair Value
17.60x
P/E ratio in line with market averages
Price to Book
Fair Value
1.28x
Price-to-book ratio reasonable for profitable companies
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