Q3 2026 (three and nine months ended September 30, 2026)
Filed Nov 2, 2026Williams reports Q3 2026 GAAP net income of $699 million ($0.56 per diluted share) and Adjusted EBITDA of $2.039 billion, up 6%; tracking to upper half of $8.3 to $8.5 billion 2026 guidance
Quarter and year-to-date GAAP net income, Adjusted EBITDA, CFFO and AFFO all rose versus 2025 as printed, and the company says it is tracking toward the upper half of its Adjusted EBITDA guidance. Offsetting items: Q3 capital investments of $2,727 million (vs $1,053 million), leverage of 3.80x (vs 3.73x), and a Q3 G&A increase to $275 million from $168 million. Part of the GAAP improvement comes from asset-sale gains that the company excludes from its adjusted measures.
Key metrics
shortened, hover for the filing’s print| Metric | Value | q/q | y/y |
|---|---|---|---|
| GAAP net income available to common stockholders, Q3 2026GAAP | $699M | – | up 8% (as printed in the release's headline bullet) |
| GAAP diluted EPS, Q3 2026GAAP | $0.56 per diluted share | – | up 6% (as printed in the release's headline bullet) |
| Adjusted net income, Q3 2026non-GAAP | $663M | – | up 10% |
| Adjusted EBITDA, Q3 2026non-GAAP | $2.04B | – | +$119 million or 6% |
| Cash flow from operations (CFFO), Q3 2026GAAP | $1.50B | – | +$66 million or 5% |
| Available funds from operations (AFFO), Q3 2026non-GAAP | $1.59B | – | +$140 million or 10% |
| Dividend coverage ratio (AFFO basis), Q3 2026non-GAAP | 2.42x | – | – |
| Total revenues, Q3 2026GAAP | $3.22B | – | – |
| Service revenues, Q3 2026GAAP | $2.32B | – | – |
| Service revenues commodity consideration, Q3 2026GAAP | $57M | – | – |
| Product sales, Q3 2026GAAP | $845M | – | – |
| Net gain (loss) from commodity derivatives, Q3 2026GAAP | $2M | – | – |
| Product costs, Q3 2026GAAP | $618M | – | – |
| Operating and maintenance expenses, Q3 2026GAAP | $639M | – | – |
| Depreciation, depletion and amortization expenses, Q3 2026GAAP | $620M | – | – |
| General and administrative expenses, Q3 2026GAAP | $275M | – | – |
| Gain on sale of certain assets, Q3 2026GAAP | −$83M | – | – |
| Operating income, Q3 2026GAAP | $1.14B | – | – |
| Equity earnings, Q3 2026GAAP | $157M | – | – |
| Interest expense, Q3 2026GAAP | −$385M | – | – |
| Provision for income taxes, Q3 2026GAAP | $221M | – | – |
| Net income attributable to The Williams Companies, Inc., Q3 2026GAAP | $700M | – | – |
| Total revenues, nine months 2026GAAP | $9.31B | – | – |
| Operating income, nine months 2026GAAP | $3.64B | – | – |
| General and administrative expenses, nine months 2026GAAP | $648M | – | – |
| Gain on sale of certain assets, nine months 2026GAAP | −$277M | – | – |
| Interest expense, nine months 2026GAAP | −$1.13B | – | – |
| Provision for income taxes, nine months 2026GAAP | $725M | – | – |
| GAAP net income available to common stockholders, nine months 2026GAAP | $2.39B | – | +$508 million (as printed in GAAP Measures section) |
| GAAP diluted EPS, nine months 2026GAAP | $1.94 per diluted share | – | – |
| Cash flow from operations (CFFO), nine months 2026GAAP | $4.48B | – | +$162 million (as printed) |
| Adjusted EBITDA, nine months 2026non-GAAP | $6.21B | – | +$497 million (as printed); release also states 9% year over year |
| Adjusted net income, nine months 2026non-GAAP | $2.17B | – | +$273 million (as printed) |
| Adjusted EPS, nine months 2026non-GAAP | $1.77 per diluted share | – | – |
| Available funds from operations (AFFO), nine months 2026non-GAAP | $4.81B | – | +$598 million (as printed) |
| Dividend coverage ratio (AFFO basis), nine months 2026non-GAAP | 2.48x | – | – |
| Capital investments excluding acquisitions, Q3 2026other | $2.73B | – | – |
| Capital investments excluding acquisitions, nine months 2026other | $6.01B | – | – |
| Other debt-to-adjusted EBITDA at quarter end (company-defined, not a credit agreement ratio)other | 3.80x | – | – |
Segments
| Segment | Revenue | q/q | y/y |
|---|---|---|---|
| Transmission, Power & GulfQ3 2026 Modified EBITDA $1,000 million vs $973 million (change $27 million); Adjusted EBITDA $1,030 million vs $947 million (change $83 million). Nine months Modified EBITDA $2,969 million vs $2,722 million; Adjusted EBITDA $2,999 million vs $2,712 million. Company attributes improvement to new power generation revenues, projects placed in service and higher storage revenues, partially offset by higher operating and administrative expenses; new Gulf volumes also benefited the year-to-date period. | Segment revenue not printed in this release; see driver for segment EBITDA | – | – |
| Northeast G&PQ3 2026 Modified and Adjusted EBITDA $542 million vs $505 million (change $37 million). Nine months $1,606 million vs $1,520 million (change $86 million). Company attributes increase primarily to higher volumes at Ohio Valley Midstream and higher proportional EBITDA from equity-method investments. | Segment revenue not printed in this release; see driver for segment EBITDA | – | – |
| WestQ3 2026 Modified EBITDA $451 million vs $342 million (change $109 million); Adjusted EBITDA $401 million vs $367 million (change $34 million). Nine months Modified EBITDA $1,217 million vs $1,037 million; Adjusted EBITDA $1,170 million vs $1,062 million. Company cites Momentum acquisition and Louisiana Energy Gateway (in service third-quarter 2025). Modified EBITDA also benefited from a $83 million gain on sale of a Permian gathering system, which is excluded from Adjusted EBITDA. | Segment revenue not printed in this release; see driver for segment EBITDA | – | – |
| Gas & NGL Marketing ServicesQ3 2026 Modified EBITDA $39 million vs $54 million (change $(15) million); Adjusted EBITDA $4 million vs $11 million (change $(7) million). Nine months Modified EBITDA $202 million vs $176 million; Adjusted EBITDA $230 million vs $151 million. Company cites net unfavorable unrealized derivative changes of $14 million (Q3) and $79 million (nine months); year-to-date higher gas marketing margins driven by winter storms. | Segment revenue not printed in this release; see driver for segment EBITDA | – | – |
| OtherQ3 2026 Modified EBITDA $52 million vs $93 million (change $(41) million); Adjusted EBITDA $62 million vs $90 million (change $(28) million). Nine months Modified EBITDA $382 million vs $286 million; Adjusted EBITDA $209 million vs $272 million. Company cites absence of South Mansfield upstream interests sold in January 2026 and net unfavorable unrealized derivative changes; nine-month Modified EBITDA includes a $194 million gain on the South Mansfield sale, excluded from Adjusted EBITDA. | Segment revenue not printed in this release; see driver for segment EBITDA | – | – |
FY2026 outlook
- NoteAdjusted EBITDA: $8.3 billion to $8.5 billion (company 'continues to expect')
- NoteGrowth capex: $7.3 billion to $7.9 billion (company 'continues to expect')
- NoteLeverage ratio midpoint for 2026: approximately 3.75x; guidance for growth capex and debt-to-adjusted EBITDA excludes certain reimbursable long-lead equipment
- NoteCompany states it is tracking toward the upper half of the Adjusted EBITDA guidance range
- NoteGuidance reconciliation midpoint table: Adjusted EBITDA $8,400 million; Adjusted income from continuing operations diluted EPS $2.35; AFFO $6,375 million; AFFO per common share $5.15; coverage ratio 2.47x
Capital returns
- Common dividends paid: $656 million in Q3 2026 vs $611 million in Q3 2025 (AFFO reconciliation table); $1,940 million nine months 2026 vs $1,832 million nine months 2025 (cash flow statement)
- Dividends and distributions paid to noncontrolling interests: $215 million nine months 2026 vs $197 million nine months 2025
- AFFO dividend coverage ratio: 2.42x in Q3 2026 vs 2.37x in Q3 2025; 2.48x nine months 2026 vs 2.30x nine months 2025
- Guidance midpoint table shows 2026 common dividends paid of $2,585 million
- Release does not report share repurchases for the period
What drove it
- Company states Q3 and year-to-date net income increased, benefiting from higher service revenues of $198 million (Q3) and $512 million (nine months), reflecting new power generation revenues, the Momentum acquisition, projects placed in service and higher storage revenues
- Company cites a gain of $83 million from sale of a Permian gathering system in Q3; nine-month results also include a net gain of $130 million from the June 2026 sale of the Brazos Permian II equity-method investment and a $194 million gain on the January 2026 sale of the South Mansfield upstream interests
- Company states offsets: reduced upstream results from the South Mansfield sale; higher operating and administrative expenses including $63 million of acquisition and JV formation costs; unfavorable net unrealized derivative changes of $29 million (Q3) and $116 million (nine months)
- Company states the nine-month period also reflects higher gas marketing margins and a higher provision for income taxes driven by increased pre-tax income
- Company attributes Adjusted EBITDA growth to service revenue increases, partially offset by reduced upstream results and higher operating and administrative expenses excluding acquisition and JV formation costs
- Company attributes AFFO growth to higher adjusted operating results exclusive of non-cash items and higher distributions from equity-method investments; nine-month AFFO also reflects a favorable change in the current component of the income tax provision
- Project activity per release: Momentum Midstream acquisition closed (Haynesville); 9.4 Bcf Clay Basin storage expansion announced; Transco Southeast Supply Enhancement II (150+ MMcf/d) announced; Transco Garden Connector upsized by 84 MMcf/d; 413 MMcf/d of pipeline capacity expanded across four projects; Socrates Plato North Power project on track for in-service by mid-November
Concerns
- Q3 capital investments excluding acquisitions were $2,727 million vs $1,053 million a year earlier; nine-month figure $6,011 million vs $2,762 million
- Other debt-to-adjusted EBITDA at quarter end rose to 3.80x from 3.73x (company-defined measure, debt net of cash and of $857 million of reimbursable long-lead Power equipment purchases)
- Q3 general and administrative expenses rose to $275 million from $168 million, and nine-month G&A rose to $648 million from $530 million; release attributes the broader operating and administrative increase partly to acquisition and JV formation costs
- GAAP net income includes asset-sale gains ($83 million Q3; $277 million gain on sale of certain assets nine months, plus $127 million gain on disposition of equity-method investments in the cash flow statement); these are excluded from adjusted measures
- Q3 net unrealized derivative results were a $2 million net gain from commodity derivatives vs $56 million a year earlier; nine-month net loss from commodity derivatives was $(263) million vs $30 million
- Q3 interest expense rose to $385 million from $372 million; nine-month interest expense rose to $1,132 million from $1,071 million
- Company cites payment of Transco's rate refunds in April 2026 and higher derivative collateral requirements as working-capital offsets to CFFO growth
What to watch
- Whether Adjusted EBITDA reaches the upper half of the $8.3 to $8.5 billion 2026 guidance range, as the company states it is tracking
- Growth capex against the $7.3 to $7.9 billion range, given $6,011 million spent on capital investments excluding acquisitions through nine months
- Leverage trajectory against the approximately 3.75x 2026 midpoint, versus the 3.80x quarter-end figure
- Socrates Plato North Power in-service by mid-November, as stated in the release
- Commercialization of additional power projects, which the CEO says the company expects to announce soon
- Q3 2026 G&A run-rate ($275 million) versus prior-year level ($168 million) and whether acquisition costs recur
- Clay Basin storage expansion and Transco Southeast Supply Enhancement II progress as announced in the release
- Earnings conference call scheduled for Tuesday, Nov. 3, 2026, at 9:30 a.m. Eastern Time
Balance sheet and cash flow
- Cash and cash equivalents: $1,756 million at September 30, 2026 vs $63 million at December 31, 2025
- Long-term debt: $31,732 million vs $27,316 million at December 31, 2025; long-term debt due within one year $2,202 million vs $1,345 million; commercial paper nil vs $700 million
- Total assets: $70,680 million vs $58,573 million at December 31, 2025
- Total stockholders' equity: $15,733 million vs $12,807 million; noncontrolling interests in consolidated subsidiaries $5,761 million vs $2,188 million; total equity $21,494 million vs $14,995 million
- Net cash provided by operating activities nine months 2026: $4,484 million vs $4,322 million
- Capital expenditures nine months 2026: $(5,682) million vs $(2,938) million (cash flow statement)
- Purchases of businesses, net of cash acquired nine months 2026: $(2,816) million vs $(1) million
- Proceeds from sale of partial interest in consolidated subsidiary nine months 2026: $3,737 million vs nil (shown as a dash in filing)
- Net cash provided by financing activities nine months 2026: $5,207 million vs $(1,110) million
- Proceeds from long-term debt nine months 2026: $5,538 million vs $2,994 million; payments of long-term debt $(1,137) million vs $(1,733) million
- Release states CFFO change was driven by higher operating results exclusive of non-cash items and higher distributions from equity-method investments, partially offset by unfavorable working capital (including payment of Transco's rate refunds in April 2026) and derivative collateral requirements
Analysis
Williams reported third-quarter 2026 GAAP net income available to common stockholders of $699 million, or $0.56 per diluted share, against $646 million and $0.53 a year earlier, and Adjusted EBITDA of $2.039 billion, up $119 million or 6%. Total revenues rose to $3,223 million from $2,923 million, with service revenues of $2,319 million against $2,121 million. The company states that the service revenue increase reflects new power generation revenues, the Momentum acquisition, projects placed in service and higher storage revenues. Product sales rose to $845 million from $701 million, while the net gain from commodity derivatives fell to $2 million from $56 million. Nine-month figures show a larger improvement: GAAP net income available to common rose to $2,390 million from $1,882 million, and Adjusted EBITDA reached $6,214 million against $5,717 million.
Quality of earnings requires care. The release identifies several non-recurring items inside GAAP results, including an $83 million gain on a Permian gathering system sale in the quarter and, year to date, a $194 million gain on the South Mansfield upstream sale and a net $130 million gain on the Brazos Permian II equity-method investment. These are excluded from Adjusted EBITDA and Adjusted EPS. Adjusted net income was $663 million, up 10%, and Adjusted EPS was $0.54 against $0.49. Q3 general and administrative expenses rose to $275 million from $168 million, and the release attributes part of the operating cost increase to $63 million of acquisition and JV formation costs, which the company excludes from adjusted results.
Segment performance was broad in Q3 on a Modified EBITDA basis: West rose to $451 million from $342 million, Transmission, Power & Gulf rose to $1,000 million from $973 million, and Northeast G&P rose to $542 million from $505 million. Gas & NGL Marketing Services ($39 million, from $54 million) and Other ($52 million, from $93 million) declined, with the company citing unfavorable unrealized derivative changes and the absence of the South Mansfield interests. The segment table does not print revenue by segment, so segment revenue growth cannot be read from this release.
Cash generation and capital allocation moved in the same direction. CFFO was $1.505 billion, up $66 million or 5%, and AFFO was $1.589 billion, up $140 million or 10%, with dividend coverage of 2.42x against 2.37x. Q3 capital investments excluding acquisitions were $2,727 million against $1,053 million, and the Momentum acquisition added $2,816 million of purchases of businesses in September. Nine-month proceeds of $3,737 million from a sale of a partial interest in a consolidated subsidiary and $5,538 million of long-term debt proceeds funded this activity. Total assets rose to $70,680 million from $58,573 million at December 31, 2025, long-term debt to $31,732 million from $27,316 million, and noncontrolling interests to $5,761 million from $2,188 million. Quarter-end leverage was 3.80x against 3.73x.
The guidance is unchanged in the release. The company continues to expect 2026 Adjusted EBITDA of $8.3 to $8.5 billion, growth capex of $7.3 to $7.9 billion, and a leverage ratio midpoint of approximately 3.75x, and says it is tracking toward the upper half of the EBITDA range. The guidance reconciliation midpoint shows Adjusted EBITDA of $8,400 million and AFFO of $6,375 million. No prior outlook was supplied with this filing, so no guidance comparison is made. The main items for the reader are whether capital spending stays within the growth capex range given nine-month spend of $6,011 million, whether leverage tracks toward 3.75x from 3.80x, and whether the Socrates Plato North project enters service by mid-November as stated.
Management, verbatim
Williams delivered another strong quarter as our teams continued to execute across a growing portfolio of critical energy infrastructure projects.
Chad Zamarin, President and Chief Executive Officer
Our performance to date, combined with a growing slate of projects set to come online, gives us strong confidence in our ability to achieve our long-term 11% plus Adjusted EBITDA compound annual growth rate through 2030.
Chad Zamarin, President and Chief Executive Officer
As the first of many power projects, Socrates demonstrates our ability to deliver fast, reliable and scalable solutions for customers facing rapidly growing power demand, and we are actively working to commercialize additional power projects, which we expect to announce soon.
Chad Zamarin, President and Chief Executive Officer
Not in the filing
stated, not guessed- Previous quarter's outlook section was not provided, so vs_prior_guidance is empty
- Segment revenue by reportable segment is not printed in this release (only EBITDA is printed by segment)
- Year-over-year percentage changes for total revenues, service revenues, product sales, operating income and most expense lines are not printed
- Year-over-year percentage change for Adjusted EPS, dividend coverage ratio and capital investments is not printed
- Guidance for revenue, gross margin, operating expenses and tax rate is not provided
- Share repurchase activity is not reported
- Quarter-over-quarter changes are not printed for most lines; prior-quarter values shown are taken from the 2Q 2026 columns of the reconciliation tables only
- Nine-month prior-year and current values for segment revenue lines are not printed in summary form
- Stock price reaction and analyst consensus are not in the filing
Written by an AI language model from the company’s SEC earnings filing (Form 8-K Item 2.02, or Form 6-K for a foreign private issuer). Every figure is checked against the filing text, and a metric the filing does not print, or whose value, prior period and change do not add up, is dropped from the metrics. The model can still misread a table, in the metrics or in the text, so check a number in the filing before you rely on it. Consensus estimates, price targets and share-price reactions are not shown because they are not in the filing. AI-generated research, not investment advice.