Williams Co (WMB)
NYSE:WMB
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Williams Co
(NYSE:WMB)
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Rating:67Neutral
Price Target:
$80.00
â–²(11.83% Upside)
Action:DowngradedDate:03/12/26
The score is driven by strong technical momentum and steady profitability, offset by elevated leverage and weaker 2025 free cash flow conversion. Valuation is on the expensive side for the current fundamentals, while the recent refinancing event modestly supports near-term balance-sheet flexibility.
Positive Factors
Fee-based, contract-backed revenues
Williams' core revenue streams are fee-based and supported by firm transportation and long-term contracts across pipelines, gathering, processing and storage. That contract structure provides durable, predictable cash flows and downside protection for 2–6 months and beyond versus commodity-only businesses.
Negative Factors
Elevated leverage
Net leverage at multi-year highs reduces financial flexibility and increases vulnerability to interest-rate moves or volume shocks. High debt burdens constrain capacity to absorb operational setbacks, limit strategic optionality, and heighten refinancing and covenant risk over the coming months.
Read all positive and negative factors
Positive Factors
Negative Factors
Fee-based, contract-backed revenues
Williams' core revenue streams are fee-based and supported by firm transportation and long-term contracts across pipelines, gathering, processing and storage. That contract structure provides durable, predictable cash flows and downside protection for 2–6 months and beyond versus commodity-only businesses.
Read all positive factors
Williams Co (WMB) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$88.95B
Dividend Yield3.35%
Average Volume (3M)6.21M
Price to Earnings (P/E)28.0
Beta (1Y)0.45
Revenue Growth11.48%
EPS Growth-17.82%
CountryUS
Employees5,829
SectorEnergy
Sector Strength52
IndustryOil & Gas Midstream
Share Statistics
EPS (TTM)0.55
Shares Outstanding1,222,856,900
10 Day Avg. Volume5,862,360
30 Day Avg. Volume6,210,610
Financial Highlights & Ratios
PEG Ratio1.59
Price to Book (P/B)5.73
Price to Sales (P/S)6.14
P/FCF Ratio73.03
Enterprise Value/Market Cap1.31
Enterprise Value/Revenue9.77
Enterprise Value/Gross Profit17.09
Enterprise Value/Ebitda15.73
Forecast
1Y Price Target
$80.53Price Target Upside12.57% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering17
EPS Forecast (FY)2.32
Revenue Forecast (FY)$12.77B
Williams Co Business Overview & Revenue Model
Company Description
The Williams Companies, Inc., together with its subsidiaries, operates as an energy infrastructure company primarily in the United States. It operates through Transmission & Gulf of Mexico, Northeast G&P, West, and Gas & NGL Marketing Services seg...
How the Company Makes Money
WMB primarily makes money by charging fees for midstream natural gas services under contracts with producers, utilities, power generators, LNG exporters, marketers, and other shippers. Its key revenue streams typically include: (1) Transmission & ...
Williams Co Earnings Call Summary
Earnings Call Date:Sep 30, 2025
(Q3-2025)
| % Change Since: |
Next Earnings Date:May 04, 2026
Earnings Call Sentiment Positive
The earnings call reflects a strong and strategic quarter for Williams, marked by significant growth in adjusted EBITDA, strategic partnerships, and expansion in the Power Innovation sector. Despite some challenges in the Northeast and cost inflation in Power Innovation, the company's forward-looking financial guidance and strategic asset divestitures position it well for future growth.Positive Updates
Record-Breaking Adjusted EBITDA Performance
Adjusted EBITDA for Q3 2025 was $1.92 billion, marking a 13% increase compared to the previous year. The Transmission, Power & Gulf business segment alone set an all-time record with a 14% increase.
Negative Updates
Challenges in the Northeast
The Northeast segment faced pricing challenges during shoulder and summer months, leading to mixed growth across different gathering and processing facilities.
Read all updates
Q3-2025 Updates
Positive
Negative
Record-Breaking Adjusted EBITDA Performance
Adjusted EBITDA for Q3 2025 was $1.92 billion, marking a 13% increase compared to the previous year. The Transmission, Power & Gulf business segment alone set an all-time record with a 14% increase.
Read all positive updates
Company Guidance
During The Williams Companies' Third Quarter 2025 Earnings Conference Call, substantial guidance was provided on the company's future projects and financial outlook. Williams highlighted the completion of key transmission projects, such as the Northwest Pipeline's Stanfield South and Transco's Alabama, Georgia Connector, which increased pipeline capacity by nearly 200,000 dekatherms per day. The company also announced new projects, like the Wharton West expansion and a strategic LNG partnership with Woodside Energy, involving a $1.9 billion investment in a 3.1 Bcf a day pipeline and LNG terminal. Financially, Williams reported a 13% increase in adjusted EBITDA to $1.92 billion for Q3 2025, compared to the previous year, and maintained its 2025 adjusted EBITDA guidance at $7.75 billion, projecting a 9% growth over 2024. The company also plans to invest $3.95 billion to $4.25 billion in growth capital expenditures for 2025 and expects to maintain a leverage ratio of approximately 3.7x. Williams aims for a 5-year compound annual growth rate (CAGR) of 9% for adjusted EBITDA and 14% for EPS, with significant capital investments anticipated through 2027.Williams Co Financial Statement Overview
Summary
Income Statement
76
Positive
Balance Sheet
58
Neutral
Cash Flow
55
Neutral
| Breakdown | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 11.95B | 10.50B | 10.91B | 10.96B | 10.63B |
| Gross Profit | 5.12B | 6.17B | 6.80B | 5.50B | 4.75B |
| EBITDA | 7.41B | 6.57B | 7.71B | 5.70B | 5.09B |
| Net Income | 2.62B | 2.23B | 3.18B | 2.05B | 1.52B |
Balance Sheet | |||||
| Total Assets | 58.57B | 54.53B | 52.63B | 48.43B | 47.61B |
| Cash, Cash Equivalents and Short-Term Investments | 63.00M | 60.00M | 2.15B | 152.00M | 1.68B |
| Total Debt | 29.36B | 27.08B | 26.46B | 22.90B | 23.68B |
| Total Liabilities | 43.58B | 39.69B | 37.74B | 34.39B | 33.51B |
| Stockholders Equity | 12.81B | 12.44B | 12.40B | 11.48B | 11.42B |
Cash Flow | |||||
| Free Cash Flow | 1.00B | 2.40B | 3.37B | 2.61B | 2.70B |
| Operating Cash Flow | 5.90B | 4.97B | 5.94B | 4.89B | 3.94B |
| Investing Cash Flow | -5.45B | -4.86B | -3.89B | -3.38B | -1.47B |
| Financing Cash Flow | -442.00M | -2.20B | -49.00M | -3.04B | -942.00M |
Williams Co Technical Analysis
Neutral
71.54
Price Trends
72.12
Negative
66.21
Positive
62.27
Positive
Market Momentum
0.09
Positive
44.15
Neutral
33.37
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For WMB, the sentiment is Neutral. The current price of 71.54 is below the 20-day moving average (MA) of 73.11, below the 50-day MA of 72.12, and above the 200-day MA of 62.27, indicating a neutral trend. The MACD of 0.09 indicates Positive momentum. The RSI at 44.15 is Neutral, neither overbought nor oversold. The STOCH value of 33.37 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for WMB.
Williams Co Peers Comparison
UnderperformOutperform
Sector (65)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
78 Outperform | $55.82B | 8.01 | 79.10% | 1.07% | 17.12% | 14.58% | |
77 Outperform | $57.00B | 11.07 | 34.93% | 7.31% | 5.19% | 11.09% | |
73 Outperform | $80.74B | 12.07 | 19.84% | 6.72% | -6.46% | -0.87% | |
70 Outperform | $72.71B | 20.01 | 9.92% | 4.27% | 8.54% | 7.22% | |
67 Neutral | $88.95B | 28.03 | 20.84% | 3.35% | 11.48% | -17.82% | |
67 Neutral | $66.02B | 12.28 | 14.09% | 8.04% | -4.67% | -8.06% | |
65 Neutral | $15.17B | 7.61 | 4.09% | 5.20% | 3.87% | -62.32% |
* Energy Sector Average
WMB
Williams Co
71.54
14.86
26.21%
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Williams Co Corporate Events
Business Operations and StrategyPrivate Placements and Financing
Williams Co Prices $2.75 Billion Senior Notes Offering
Positive
Jan 8, 2026
On January 5, 2026, Williams priced a $2.75 billion public offering of senior notes, comprising $500 million of additional 5.650% notes due 2033, $1.25 billion of 5.150% notes due 2036 and $1 billion of 5.950% notes due 2056, with settlement expec...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.