Exchange: LSE | Sector: Energy | Industry: Oil Gas Energy
Q3 2025
Published: Oct 22, 2025
Earnings Highlights
Revenue of $1.82B up 1% year-over-year
EPS of $0.53 increased by 3.9% from previous year
Gross margin of 36.2%
Net income of 335.86M
"" -
EQT Corporation (0IDU.L) QQ3 2025 Results Analysis: EBITDA Resilience and Free Cash Flow Growth Amid Gas Price Volatility
Executive Summary
EQT Corporation delivered a robust EBITDA and net income profile for QQ3 2025, supported by a high-margin production base and strong cash generation. Revenue for the quarter totaled $1.8228 billion, with gross profit of $659.0 million and an EBITDA of $1.3348 billion, yielding an EBITDA margin of approximately 73.2% and an operating margin of about 33.1%. Net income reached $335.9 million and diluted EPS was $0.53-$0.54 for the period. QoQ comparisons show a material sequential deceleration (-28.7% revenue) from Q2 2025, while year-over-year figures display a striking lift in top-line and earnings performance, though some of the YoY strength appears to reflect base effects and potential one-time items in prior periods. Free cash flow per share stood at $0.627, and operating cash flow per share was $1.63, underscoring meaningful cash generation even as the balance sheet shows liquidity headwinds.
Net Income: $335.86M; Net Margin 18.43%; QoQ change -57.17%; YoY change +2,638.60%;
Financial Highlights
Quarterly highlights and trend analysis (USD, unless noted):
- Revenue: $1.8229B in Q3 2025; QoQ change -28.73%; YoY change +1,938.30%;
- Gross Profit: $658.97M; Gross Margin 36.15%; QoQ change -52.92%; YoY change +2,370.09%;
- EBITDA: $1.3348B; EBITDA Margin 73.23%; QoQ change not provided; YoY change not directly comparable due to base effects;
- Operating Income: $603.21M; Operating Margin 33.09%; QoQ change -46.81%; YoY change +2,173.69%;
- Net Income: $335.86M; Net Margin 18.43%; QoQ change -57.17%; YoY change +2,638.60%;
- EPS (GAAP): $0.54; Diluted EPS: $0.53; QoQ and YoY EPS changes: +3.85% YoY; -58.78% QoQ;
- Cash Flow: Operating Cash Flow per Share (CFO PS) $1.63; Free Cash Flow per Share (FCF PS) $0.627; Cash per Share $0.377; Payout Ratio 29.3% (0.293);
- Liquidity and leverage: Current Ratio 0.58; Quick Ratio 0.58; Cash Ratio 0.108; Debt to Capitalization 25.5%; Long-Term Debt to Capitalization 24.3%; Interest Coverage 5.49; Debt Ratio 19.3%;
- Valuation metrics: P/E ~25.3x; P/B ~1.47x; P/S ~18.65x; EV/EBITDA ~31.24x; Dividend Yield ~0.289%; FCFE/FCF metrics indicate room for capital allocation, though liquidity remains a focus.
Income Statement
Metric
Value
YoY Change
QoQ Change
Revenue
1.82B
1 938.30%
-28.73%
Gross Profit
658.97M
2 370.09%
-52.92%
Operating Income
603.21M
2 173.69%
-46.81%
Net Income
335.86M
2 638.60%
-57.17%
EPS
0.54
3.85%
-58.78%
Key Financial Ratios
currentRatio
0.58
grossProfitMargin
36.2%
operatingProfitMargin
33.1%
netProfitMargin
18.4%
returnOnAssets
0.82%
returnOnEquity
1.45%
debtEquityRatio
0.34
operatingCashFlowPerShare
$1.63
freeCashFlowPerShare
$0.63
dividendPayoutRatio
29.3%
priceToBookRatio
1.47
priceEarningsRatio
25.3
Net Income vs. Revenue
Expense Breakdown
Management Commentary
Note: The provided data set includes an empty earnings transcript. No management quotes or themes from an QQ3 2025 call are available in the provided material. Consequently, transcript-based highlights, themes, and direct quotes could not be extracted. If a transcript becomes available, a themes-based synthesis (strategy, operations, market conditions) with verbatim quotes will be added.
—
—
Forward Guidance
No explicit forward guidance was provided in the supplied dataset. Given EQT’s asset base in the Marcellus and the broader natural gas market, the key variables likely to influence the outlook include Henry Hub gas prices, natural gas production volumes, LNG export demand, and capital allocation philosophy (maintenance capex versus growth capex). In absence of formal guidance, investors should monitor: (1) commodity price trajectory and inventory levels; (2) production volumes and unit cost trends; (3) changes in leverage and liquidity metrics (current ratio and debt-to-capitalization); (4) any updated guidance on dividends, buybacks, or debt reduction. A baseline scenario would assume continued gas-price volatility with moderate volume growth and disciplined capital allocation, aiming to sustain EBITDA margins above mid-60s and a positive free cash flow trajectory, while maintaining a balanced capital structure.
Competitive Position
Company
Gross Margin
Operating Margin
Return on Equity
P/E Ratio
0IDU.L Focus
36.15%
33.10%
1.45%
25.30%
0HYI.L
53.60%
26.20%
5.91%
11.46%
0HJI.L
51.70%
29.40%
21.30%
24.87%
0HCR.L
1.00%
3.28%
0.06%
293.85%
0HRZ.L
25.90%
20.10%
1.93%
17.53%
Gross Profit Margin
Operating Profit Margin
Return on Equity
P/E Ratio Comparison
Investment Outlook
EQT QQ3 2025 results illustrate a company with strong EBITDA and cash-flow generation, underpinned by a low-cost gas asset base. However, liquidity metrics and exposure to gas price volatility create a more nuanced risk profile. If gas markets stabilize and EQT maintains disciplined capital allocation, the company could sustain positive free cash flow and modest growth, supported by LNG-demand tailwinds. Investors should monitor commodity-price trajectories, volume growth, and liquidity trends, particularly current ratio and debt-to-capitalization, to assess the sustainability of the current earnings trajectory.
Key Investment Factors
Growth Potential
Potential production growth supported by the Marcellus footprint and efficiency improvements; LNG demand growth and potential export opportunities could bolster volumes and price realizations over time, supporting EBITDA expansion and FCF generation.
Profitability Risk
Commodity price volatility (Henry Hub), operational execution risk, liquidity constraints given a current ratio below 1.0, potential regulatory shifts affecting drilling and environmental policies, and competition within the U.S. shale gas sector. Credit market conditions could influence ongoing capex plans and dividend/capital-allocation flexibility.
Financial Position
Moderate leverage with total debt to capitalization at 25.5% and interest coverage of 5.49x; cash ratio is modest at 0.108, signaling liquidity concerns despite positive cash generation. Strong EBITDA and positive FCFF underpin value creation, but near-term liquidity management will be crucial.
SWOT Analysis
Strengths
Leading U.S. natural gas producer with a sizable Marcellus Shale operating base, providing competitive unit costs and scale.
High EBITDA margin (approximately 73.2%) and strong operating leverage, supporting robust cash generation.
Positive free cash flow per share and solid operating cash flow per share indicate capacity for capital allocation flexibility.
Weaknesses
Liquidity indicators lag peers (current ratio around 0.58) suggesting near-term liquidity headwinds.
Heavy exposure to natural gas prices, which amplifies earnings volatility in gas price cycles.
Dividend yield is minimal (approximately 0.29%), potentially limiting appeal to income-focused investors.
Opportunities
Rising LNG demand and U.S. gas export growth could bolster gas pricing and volume realization over time.
Operational efficiencies and cost controls may further improve margins and free cash flow.
Strategic capital allocation (e.g., debt reduction, selective buybacks) could enhance per-share value if cash generation remains resilient.
Threats
Significant dependence on natural gas price dynamics and seasonal demand fluctuations.
Regulatory changes or environmental policy shifts could impact drilling economics and capex plans.
Competition from other shale players and potential service-cost inflation could pressure margins.