Williams Companies 8-K
PositiveEarningsGuidance reaffirmedImpairment / charge
Momentum Midstream and new power-generation revenue drive growth; FY2026 adjusted EBITDA guidance reaffirmed at $8.3B–$8.5B
Filed 2026-11-02 16:06 ET
- 2.02 Results of Operations
- 9.01 Financial Statements and Exhibits
Summary
Q3 2026 results with FY2026 guidance reaffirmed. Higher service revenue from new power-generation activity, the Momentum Midstream acquisition, projects placed in service and storage drove growth; Williams closed the acquisition and advanced pipeline and storage expansions to serve LNG, industrial and power demand.
YTD adjusted EBITDA rose 9% Y/Y to $6.2B, keeping Williams on track for the upper half of its FY2026 adjusted EBITDA outlook. The company continues to expect FY2026 adjusted EBITDA of $8.3B–$8.5B and growth capex of $7.3B–$7.9B, with a leverage midpoint of ≈3.75x; management also cited a target of more than 11% adjusted EBITDA compound annual growth through 2030.
Key Figures
| Metric | Q3 2026 | 9M 2026 |
|---|---|---|
| Revenue | $3.22B, +10% Y/Y | $9.31B, +6% Y/Y |
| Operating income | $1.14B, +2% Y/Y | $3.64B, +16% Y/Y |
| Net income available to common stockholders | $699M, +8% Y/Y | $2.39B, +27% Y/Y |
| Adjusted EBITDA (non-GAAP) | $2.04B, +6% Y/Y | $6.21B, +9% Y/Y |
| Adjusted net income (non-GAAP) | $663M, +10% Y/Y | $2.17B, +14% Y/Y |
| Diluted EPS | $0.56, +6% Y/Y | $1.94, +26% Y/Y |
| Adjusted diluted EPS (non-GAAP) | $0.54, +10% Y/Y | $1.77, +14% Y/Y |
| Cash flow from operations | $1.51B, +5% Y/Y | $4.48B, +4% Y/Y |
| Available funds from operations (AFFO, non-GAAP) | $1.59B, +10% Y/Y | $4.81B, +14% Y/Y |
| Dividend coverage ratio (AFFO basis) | 2.42x, vs 2.37x | 2.48x, vs 2.30x |
- Higher service revenue—including new power-generation revenue, Momentum, projects placed in service and storage—was the main driver. Transmission, Power & Gulf adjusted EBITDA increased $83M to $1.03B, while West rose $34M to $401M, driven by Momentum and Louisiana Energy Gateway.
- GAAP results included an $83M asset-sale gain; adjusted results excluded asset-sale gains and commodity-derivative effects. Q3 operating and administrative expenses included $63M of acquisition and joint-venture formation costs.
- Capital investments excluding acquisitions were $2.73B in Q3 and $6.01B YTD. The Momentum acquisition accounted for $2.82B of YTD purchases of businesses, net of cash acquired. At quarter-end, cash was $1.76B vs $63M at 12/31/2025, and balance-sheet debt carrying amount was $33.9B vs $28.7B.
- Williams announced a 9.4 Bcf Clay Basin storage expansion, Transco’s 150+ MMcf/d Southeast Supply Enhancement II, an 84 MMcf/d Garden Connector capacity increase and 413 MMcf/d of capacity additions across four projects. The Plato North Power project was on track for in-service by mid-November.
Guidance
| Metric | Period | Guidance | Prior | Direction |
|---|---|---|---|---|
| Adjusted EBITDA (non-GAAP) | FY2026 | $8.3B–$8.5B | — | Reaffirmed |
| Growth capex | FY2026 | $7.3B–$7.9B | — | Reaffirmed |
| Debt-to-adjusted EBITDA midpoint | FY2026 | ≈3.75x | — | — |
| Net income from continuing operations (GAAP midpoint) | FY2026 | $3.36B | — | — |
| Net income from continuing operations attributable to Williams, available to common stockholders (GAAP midpoint) | FY2026 | $3.14B | — | — |
| Adjusted income available to common stockholders (non-GAAP midpoint) | FY2026 | $2.91B | — | — |
| Adjusted diluted EPS (non-GAAP midpoint) | FY2026 | $2.35 | — | — |
| Cash flow from operations, excluding working-capital, derivative and other balance changes (midpoint) | FY2026 | $6.73B | — | — |
| AFFO (non-GAAP midpoint) | FY2026 | $6.375B | — | — |
| AFFO per common share (midpoint) | FY2026 | $5.15 | — | — |
| Common dividends paid (midpoint) | FY2026 | $2.585B | — | — |
| Dividend coverage ratio (AFFO basis, midpoint) | FY2026 | 2.47x | — | — |
| Adjusted EBITDA compound annual growth rate (non-GAAP) | Through 2030 | More than 11% | — | — |
Growth-capex and leverage guidance exclude certain reimbursable long-lead equipment.
Guidance changes, derived from earlier filings
| Metric | Period | Earlier guidance | Guidance now | Change |
|---|---|---|---|---|
| Adjusted EBITDA (non-GAAP) | FY2026 | $8.3B-$8.5B | $8.3B–$8.5B | reaffirmed |
| Growth capex | FY2026 | $7.3B-$7.9B | $7.3B–$7.9B | reaffirmed |
| Net income from continuing operations (GAAP midpoint) | FY2026 | $3.355B | $3.36B | raised |
| Adjusted diluted EPS (non-GAAP midpoint) | FY2026 | $2.35 | $2.35 | reaffirmed |
| AFFO (non-GAAP midpoint) | FY2026 | $6.375B | $6.375B | reaffirmed |
| AFFO per common share (midpoint) | FY2026 | $5.15 | $5.15 | reaffirmed |
| Common dividends paid (midpoint) | FY2026 | $2.585B | $2.585B | reaffirmed |
| Dividend coverage ratio (AFFO basis, midpoint) | FY2026 | 2.47x | 2.47x | reaffirmed |
| Debt-to-adjusted EBITDA midpoint | FY2026 | ≈3.75x | ≈3.75x | reaffirmed |
Investor Takeaways
- Watch the Plato North Power in-service milestone and further power-project commercialization announcements; execution would support Williams’ stated opportunity to serve growing power demand.
- Track service-revenue growth and Transmission, Power & Gulf and West adjusted EBITDA as new projects and Momentum contribute; sustained growth would support the company’s infrastructure-demand thesis.
The summary is written by an AI model reading the filing.
Model 005 · prompt v173 · 2026-11-02 23:38:12Z