Global Finance News
03 Nov 2026, 09:21
Williams Edges Down 0.1% Premarket Despite Higher Q3 Earnings and Strong EBITDA Growth
Williams (NYSE: WMB) shares slipped about 0.1% in premarket trading despite reporting higher third-quarter 2026 earnings, solid cash flow growth and continued progress across its natural gas infrastructure portfolio.
GAAP net income increased 8% year over year to $699 million, or $0.56 per diluted share. Adjusted net income rose 10% to $663 million, or $0.54 per share, while adjusted EBITDA increased 6% to $2.04 billion.
Cash generation remained strong. Cash flow from operations rose 5% to $1.51 billion, while available funds from operations increased 10% to $1.59 billion. The company reported an AFFO-based dividend coverage ratio of 2.42x.
Williams also continued expanding its growth pipeline. It closed the Momentum Midstream acquisition, announced a 9.4 Bcf storage expansion at Clay Basin, increased Transco capacity through multiple projects and advanced its Socrates power project toward service.
Management said year-to-date adjusted EBITDA increased 9% to $6.2 billion and reiterated confidence in achieving long-term adjusted EBITDA growth of more than 11% annually through 2030.
For 2026, Williams maintained adjusted EBITDA guidance of $8.3 billion-$8.5 billion and said results are tracking toward the upper half of that range. Growth capital spending remains expected at $7.3 billion-$7.9 billion, with a leverage ratio midpoint of about 3.75x.
The slight 0.1% premarket decline suggests investors largely viewed the quarter as in line with expectations. Strong earnings, cash flow and project execution were balanced by unchanged guidance and a still-heavy capital spending program, leaving little incremental catalyst for the shares.
Williams (NYSE: WMB) shares slipped about 0.1% in premarket trading despite reporting higher third-quarter 2026 earnings, solid cash flow growth and continued progress across its natural gas infrastructure portfolio.
GAAP net income increased 8% year over year to $699 million, or $0.56 per diluted share. Adjusted net income rose 10% to $663 million, or $0.54 per share, while adjusted EBITDA increased 6% to $2.04 billion.
Cash generation remained strong. Cash flow from operations rose 5% to $1.51 billion, while available funds from operations increased 10% to $1.59 billion. The company reported an AFFO-based dividend coverage ratio of 2.42x.
Williams also continued expanding its growth pipeline. It closed the Momentum Midstream acquisition, announced a 9.4 Bcf storage expansion at Clay Basin, increased Transco capacity through multiple projects and advanced its Socrates power project toward service.
Management said year-to-date adjusted EBITDA increased 9% to $6.2 billion and reiterated confidence in achieving long-term adjusted EBITDA growth of more than 11% annually through 2030.
For 2026, Williams maintained adjusted EBITDA guidance of $8.3 billion-$8.5 billion and said results are tracking toward the upper half of that range. Growth capital spending remains expected at $7.3 billion-$7.9 billion, with a leverage ratio midpoint of about 3.75x.
The slight 0.1% premarket decline suggests investors largely viewed the quarter as in line with expectations. Strong earnings, cash flow and project execution were balanced by unchanged guidance and a still-heavy capital spending program, leaving little incremental catalyst for the shares.
