Kinder Morgan (KMI) Q1 2026 earnings summary

Executive summary

• Net income attributable to shareholders rose 36% year-over-year to $976 million in Q1 2026, with adjusted net income up 39% to $1,063 million and adjusted EPS up 41%.

• Adjusted EBITDA increased 18% to $2,539 million, marking the strongest first quarter on record.

• Every business segment delivered growth versus Q1 2025 and outperformed budget expectations, with natural gas as the primary driver, aided by Winter Storm Fern and extended cold weather.

• Monument Pipeline System acquisition for $505 million is expected to close in Q2 2026, integrating with existing assets and supported by long-term contracts.

• Expansion project backlog reached $10.1 billion, with major projects on time and on budget.

Financial highlights

• Revenues for Q1 2026 were $4.83 billion, up 14% year-over-year, driven by higher natural gas sales and increased service volumes.

• Operating income rose 26% to $1.44 billion; net income increased by $258 million to $1.00 billion.

• EPS was $0.44 (up 38%), and adjusted EPS was $0.48 (up 41%) compared to Q1 2025.

• Declared a quarterly dividend of $0.2975 per share, annualized at $1.19, a 2% increase over 2025.

• Cash flow from operations totaled $1.5 billion, with free cash flow after capital expenditures at $687 million, up 73% year-over-year.

Outlook and guidance

• 2026 adjusted EBITDA is forecasted at $8.6 billion, up 2% from 2025, and is trending over 3% favorable to budget due to Q1 outperformance.

• 2026 budgeted net income is $3.1 billion, flat year-over-year; adjusted net income and adjusted EPS both expected to rise 5%.

• Dividend guidance for 2026 is $1.19 per share, a 2% increase over 2025.

• Leverage ratio expected to end 2026 at 3.7x, below the midpoint of the target range.

• Over $3 billion annual growth capex planned for the next few years, with more than $10 billion of additional natural gas opportunities pursued beyond the current backlog.