Shell Misses Q4 Earnings Expectations; Shares Fall

Shell (LON: SHEL) released its fourth-quarter 2025 results, reporting adjusted earnings of $3.26 billion. This figure fell short of analyst expectations, which had projected $3.53 billion based on an LSEG-compiled consensus.

Consequently, Shell's shares experienced a decline, trading down approximately 2% on Thursday following the report's release.

The company's income attributable to shareholders also took a hit, landing at $4.134 billion for the quarter, a 22% decrease compared to the $5.322 billion reported in Q3 2025. Full-year income attributable to Shell shareholders, however, showed an 11% increase, reaching $17.838 billion compared to $16.094 billion in 2024.

Adjusted EBITDA for Q4 2025 stood at $12.799 billion, down 13% from $14.773 billion in the previous quarter. The full-year adjusted EBITDA decreased by 15%, totaling $56.135 billion compared to $65.803 billion in 2024. Cash flow from operating activities also saw a decrease, with Q4 2025 reporting $9.438 billion, a 23% drop from $12.207 billion in Q3 2025. Full-year cash flow from operating activities was $42.863 billion, a 22% decrease compared to $54.687 billion in the previous year.

Shell's shareholder distributions remained substantial, with $5.5 billion allocated in the quarter, comprising $3.4 billion in share repurchases and $2.1 billion in cash dividends.

The company announced a new share buyback program of $3.5 billion, expected to be completed by the first-quarter 2026 results announcement, building on the completion of a prior $3.5 billion buyback program announced in Q3 2025. Dividends to be paid to Shell shareholders for the fourth quarter 2025 amount to $0.372 per share.