EQT (EQT) Financials

Positive Financial Highlights for EQT (NYSE: EQT) Over the Last Four Years:

• Net Income Growth: EQT's consolidated net income rose significantly in recent quarters, reaching $856.7 million in Q2 2025 compared to just $9.2 million in Q2 2024, indicating strong profitability improvement.
• Increasing Operating Revenue: Operating revenue showed consistent growth from $952.5 million in Q2 2024 to $2.56 billion in Q2 2025, reflecting expansion in core business activities.
• Strong Cash Flow from Operations: The company generated $1.24 billion in net cash from operating activities in Q2 2025, up from $322 million a year ago, supporting operational efficiency and internal funding.
• Consistent Dividend Payments: EQT maintained a steady quarterly dividend of approximately $0.1575 per share over the recent quarters, showing commitment to returning capital to shareholders.
• Stable Capital Expenditures: Property, plant, and equipment investments ranged around $500 million per quarter, demonstrating sustained reinvestment into the business to support growth.
• Reduced Debt Levels: Net repayment of long-term debt observed in recent quarters, such as $908 million paid down in Q2 2025, suggests efforts to deleverage the balance sheet.
• Healthy Gross Profit Margin: Consistent gross profit remained strong, e.g., $2.08 billion in Q2 2025, indicating effective cost management and pricing power.

Neutral Financial Observations:

• Significant Non-Cash Adjustments: Large non-cash adjustments to reconcile net income, such as a negative $795 million in Q2 2025, typically due to accounting treatments like impairments or deferred taxes; these do not affect cash directly but impact earnings.
• Stable Share Count: Weighted average diluted shares outstanding remained relatively steady near 600 million shares, indicating limited dilution in recent periods.
• Goodwill and Intangible Assets: EQT carries approximately $2 billion in goodwill and $208 million in intangible assets as of Q2 2025, reflecting acquisitions but may require future impairment assessments.

Negative Financial Factors to Consider:

• Volatile Quarterly Earnings: Notable swings occurred, including a net loss in Q3 2024 (-$297 million) versus significant profits in other quarters, pointing to business cyclicality or operational challenges.
• Impairment Charges: Recurring impairment expenses—e.g., $32.5 million in Q2 2025, $38.4 million in Q4 2024—indicate asset write-downs that dampen earnings performance.
• Debt Levels: Although reduction in some quarters, long-term debt remains elevated at approximately $7.9 billion in Q2 2025, which may impose interest and refinancing risks.
• Declining Current Assets in Some Periods: Cash and equivalents showed fluctuations, with decreases noted from over $2 billion in early 2023 down to $555 million in Q2 2025, potentially constraining liquidity.
• Negative Operating Income and Net Loss Segments: Certain quarters, such as Q3 2024, reported operating losses (-$282 million), highlighting earnings volatility that could reflect industry or company-specific headwinds.
• High Other Operating Expenses: Some quarters experienced unusually high other operating charges, for example, $176 million in Q2 2025, possibly non-recurring costs affecting profitability.

Summary: Over the last four years, EQT has demonstrated strong revenue growth, improving net income, and robust operating cash flows, which are key positives for investors. The company maintains steady capital investments and shareholder returns, while actively managing debt levels. However, earnings volatility, impairment charges, and high debt still pose risks. Investors should weigh the improving profitability and cash flow against the cyclicality and balance sheet leverage as they consider EQT’s financial outlook.