Executive Summary
Kinder Morgan Inc delivered a solid Q3 2025 with revenue of $4.15 billion, up 12.1% year over year and 2.6% quarter over quarter, driven by throughput and fee-based cash flows across its large pipeline and storage assets. EBITDA of $1.90 billion supported a robust operating margin of 25.6%, while net income came in at $628 million (EPS $0.28). Despite the revenue strength, gross profit declined year over year by about 35% and quarterly profitability showed pressure from higher depreciation and interest expenses, underscoring the asset-intensive nature of the business.
The company maintains a strong asset base (approximately 83,000 miles of pipelines and 143 terminals) that underpins largely fee-based, predictable cash flows. However, leverage remains elevated: debt-to-capitalization sits around 51.5% and interest coverage is approximately 2.3x, with a payout ratio of about 1.04x and a dividend yield near 1.0%. Liquidity metrics show a tight liquidity position (current/quick ratio near 0.63x and cash ratio of 0.0185x) given the capital-intensive model. Investors should weigh the defensive, stable cash flow profile against the risks of high leverage, rate sensitivity, and regulatory considerations.
Management commentary on QQ3 2025 timing and longer-term guidance was not provided in the dataset. The forward view for Kinder Morgan will hinge on throughput volumes, project timing, capital discipline, and the ability to sustain distributions in a high-rate environment.
Key Performance Indicators
QoQ: -5.96% | YoY:-35.06%
Key Insights
Revenue: $4,146,000,000; YoY +12.08%, QoQ +2.57%
Gross Profit: $1,356,000,000; Gross Margin 32.7%; YoY -35.06%, QoQ -5.96%
Operating Income: $1,062,000,000; Operating Margin 25.6%; YoY +4.63%, QoQ -7.09%
Net Income: $628,000,000; Net Margin 15.1%; YoY +0.48%, QoQ -12.17%
EPS: $0.28; Diluted EPS $0.28; YoY +0.0%, QoQ -12.50%
EBITDA: $1,904,000,000; EBITDARatio 0.459
Interest Expense: $456,000,000; Depreciation & Amortization: $609,000,000
Tax Expense: $185,000,000; Net Income: $628,000,000
We...
Financial Highlights
Revenue: $4,146,000,000; YoY +12.08%, QoQ +2.57%
Gross Profit: $1,356,000,000; Gross Margin 32.7%; YoY -35.06%, QoQ -5.96%
Operating Income: $1,062,000,000; Operating Margin 25.6%; YoY +4.63%, QoQ -7.09%
Net Income: $628,000,000; Net Margin 15.1%; YoY +0.48%, QoQ -12.17%
EPS: $0.28; Diluted EPS $0.28; YoY +0.0%, QoQ -12.50%
EBITDA: $1,904,000,000; EBITDARatio 0.459
Interest Expense: $456,000,000; Depreciation & Amortization: $609,000,000
Tax Expense: $185,000,000; Net Income: $628,000,000
Weighted Avg Shares: 2,224,000,000
Key ratios and liquidity metrics (as of 2025-09-30):
Current Ratio: 0.631; Quick Ratio: 0.631; Cash Ratio: 0.0185
Debt Ratio: 0.451; Debt/Capitalization: 0.515; Long-Term Debt to Capitalization: 0.506
Interest Coverage: 2.33; Return on Equity: 2.04%; Return on Assets: 0.87%; Return on Capital Employed: 1.55%
Payout Ratio: 1.036; Dividend Yield: 1.03%
Price/Earnings: 25.06x; Price/Book: 2.05x; Price/Sales: 15.19x; EV/EBITDA: 50.14x
Cash Flow Metrics (per share): Operating Cash Flow per Share: 0; Free Cash Flow per Share: 0
Exposure to inflation and rates: moderate to high given debt load; capex cadence and maintenance spend drive near-term cash needs; Price/Valuation suggests premium for stable infrastructure assets.
Income Statement
| Metric |
Value |
YoY Change |
QoQ Change |
| Revenue |
4.15B |
12.08% |
2.57% |
| Gross Profit |
1.36B |
-35.06% |
-5.96% |
| Operating Income |
1.06B |
4.63% |
-7.09% |
| Net Income |
628.00M |
0.48% |
-12.17% |
| EPS |
0.28 |
0.00% |
-12.50% |
Key Financial Ratios
operatingProfitMargin
25.6%
dividendPayoutRatio
103.6%
Management Commentary
No earnings call transcript was provided in the dataset. As a result, there are no management quotes or theme-based extracts available to accompany the QQ3 2025 results in this report.
Not available in the provided data.
— N/A
Not available in the provided data.
— N/A
Forward Guidance
No explicit full-year guidance was provided in the supplied data for QQ3 2025. Given Kinder Morgan’s asset-light, fee-based business model within the midstream space, the near-term trajectory will depend on throughput volumes, regulatory environment, capex discipline, and ability to sustain distributions in a higher-for-longer interest rate context. Investors should monitor:
- Throughput trends across Natural Gas Pipelines, Products Pipelines, and CO2 segments, including storage and LNG-related activities.
- Capital expenditures cadence and the impact on leverage, debt maturity profile, and debt covenants.
- Dividend coverage stability as indicated by cash flow from operations relative to distributions.
- Regulatory developments affecting pipeline siting, tariffs, and permitting.
Overall, the achievability of any implied guidance hinges on stable volumes, favorable tariff structures, and disciplined capital allocation.