WMB Q3 2025: Strong Operations Boost Revenue Despite Net Income Dip

In the complex world of energy infrastructure, quarterly filings offer a crucial glimpse into a company's health and strategic direction. Let's dive into the latest 10-Q report from Williams Companies (WMB), a major player in the U.S. natural gas pipeline network, to see how it performed in the third quarter of 2025.

Strong Operations Power Revenue Growth

At first glance, Williams' performance reveals a business with solid operational momentum. The company reported total revenues of $2.9 billion for the third quarter, a notable increase from $2.7 billion in the same period last year. This growth wasn't just a fluke; it was driven by a robust 11% rise in Service revenues, which climbed to $2.1 billion.

This increase is a direct result of Williams' strategic investments paying off. The company benefited from recently completed expansion projects and higher transportation rates on its key pipeline systems, including the massive Transco pipeline that serves as a critical artery for natural gas along the East Coast. The company's core business segments all contributed to this strength:

• Transmission, Power & Gulf: Modified EBITDA, a measure of operational profitability, jumped to $973 million from $811 million a year ago, fueled by expansion projects and acquisitions.
• Northeast G&P and West: Both segments, focused on gathering and processing natural gas, also posted higher Modified EBITDA, demonstrating broad-based strength across the company's asset footprint.

This strong top-line performance translated into an impressive operating income of $1.1 billion for the quarter, up significantly from $838 million in Q3 2024.

The following flow diagram provides a clear picture of Williams' revenues and expenses for the third quarter, illustrating how the company's operations translate into its bottom line.

You might notice the "Unallocated" revenue figure in the diagram. Because Williams' various business segments often provide services to one another, these internal transactions must be removed from the consolidated total revenue to avoid double-counting the revenue. For the third quarter, these inter-segment eliminations amounted to $319 million in revenue and a corresponding $288 million in costs.

The Story Behind the Net Income Dip

While operational results were strong, the headline net income figure tells a slightly different story. Net income attributable to Williams for the quarter was $647 million, or $0.53 per share, down from $706 million, or $0.58 per share, in Q3 2024.

So, what caused this disconnect between strong operations and lower net income? The answer lies in a one-time event from the previous year. In the third quarter of 2024, Williams recorded a significant gain of $290 million in "Other investing income," primarily from a $149 million gain on the sale of its interest in Aux Sable. This year's quarter did not have a comparable one-off gain, making the year-over-year comparison appear less favorable. When we strip out such non-operational items, the underlying business performance this quarter was demonstrably stronger.

Building for the Future

Williams isn't just delivering today; it's actively building for tomorrow. The company is pursuing numerous expansion projects, including the Southeast Supply Enhancement and the Power Express project, designed to meet growing demand from LNG facilities, power plants, and industrial customers. Williams is also making innovative moves to support the energy needs of data centers, a rapidly growing sector.

This forward-looking strategy is backed by a clear signal of confidence: Williams increased its quarterly dividend to $0.50 per share in 2025, a boost from the $0.475 paid in 2024. For investors, this quarter’s report highlights a company successfully executing on its growth strategy, with strong fundamentals that position it well to capitalize on the continued demand for natural gas infrastructure.