TotalEnergies SE (TTE) shares climbed Wednesday despite a mixed earnings report that showed how the French energy giant is navigating choppy oil markets with some help from its refining business.

The Numbers

The company delivered adjusted earnings of $1.73 per share for the fourth quarter of 2025, coming up short of the $1.78 analyst consensus. But revenue told a different story, hitting $50.62 billion and comfortably clearing expectations of $33.94 billion.

Adjusted net income dropped 15% year-over-year to $3.8 billion, which makes sense when you consider oil prices took a beating during the period. Adjusted EBITDA followed suit, declining 6% year-over-year to $10.1 billion.

The bright spot? Cash flow from operations, excluding working capital changes, held steady at $7.2 billion even as oil prices slumped more than $5 per barrel during the quarter.

Winners and Losers Across the Business

TotalEnergies operates a diverse energy portfolio, and the quarterly results showed that diversity at work. Exploration & Production felt the oil price squeeze most acutely, with adjusted operating income falling 17% sequentially to $1.81 billion. Lower selling prices for both liquids and gas were the culprits.

The star performer was Refining & Chemicals, where income jumped 46% quarter-over-quarter to $1.0 billion. European refining margins improved substantially, providing meaningful relief to the overall results.

Integrated LNG posted solid growth, with earnings climbing 8% sequentially to $922 million on higher production and sales volumes. Integrated Power stayed basically flat with a 1% decline to $564 million, while Marketing & Services dipped 10% to $341 million due to normal seasonal patterns.

Production and Operations

On the production front, TotalEnergies reported hydrocarbon output of 2.55 million barrels of oil equivalent per day, up 1% from the previous quarter. Net power production held steady at 12.6 terawatt hours, and the company closed 2025 with 34.1 gigawatts of gross installed renewable capacity.

Returning Cash to Shareholders

Despite the earnings headwinds, TotalEnergies maintained its shareholder-friendly stance. The company declared a final interim dividend of 0.85 euros per share and completed $7.5 billion in share repurchases during 2025.

Looking Ahead

Management is targeting 5% growth in overall energy production (covering oil, gas, and electricity) for the year ahead. More specifically, oil and gas production should grow 3% in 2026, driven by projects that ramped up last year and new facilities coming online. At $60 per barrel oil, that production growth should translate to a 7% increase in cash flow.

The share buyback program remains flexible and oil-price dependent. For 2026, TotalEnergies outlined a buyback range of $3 billion to $6 billion, assuming oil prices between $60 and $70 per barrel and an exchange rate around $1.20 per euro. The company authorized $750 million in buybacks for the first quarter, consistent with its $60 per barrel budget assumption.

On the cost side, management is implementing a multi-year savings plan targeting $12.5 billion from 2026 through 2030, including $2.5 billion in cuts planned for this year alone.

TTE Price Action: TotalEnergies shares were trading up 1.62% at $75.81 at the time of publication on Wednesday.