Williams EBITDA climbs 9% year to date, upper half of guidance in view (NYSE: WMB)

What happened

The Williams Companies, Inc. (NYSE: WMB) is tracking toward the upper half of its 2026 Adjusted EBITDA guidance, after nine-month results rose 9%. The company kept its Adjusted EBITDA range of $8.3 billion to $8.5 billion and growth capex of $7.3 billion to $7.9 billion.

Third-quarter Adjusted EBITDA was $2.04 billion, up $119 million or 6% from the third quarter of 2025. Available funds from operations (AFFO) rose 10% to $1.59 billion, and cash flow from operations rose 5% to $1.5 billion. AFFO covered the dividend 2.42 times, up from 2.37 times a year earlier.

GAAP net income was $699 million, or $0.56 per diluted share, up 8% and 6% from the third quarter of 2025. Adjusted net income was $663 million, or $0.54 per share, up 10%.

Key numbers

Metric	Latest	Change	Source
Q3 2026 Adjusted EBITDA	$2.04 billion	from $1.92 billion, +6%	SEC 8-K earnings release (Exhibit 99.1)
Nine-month Adjusted EBITDA	$6.21 billion	from $5.72 billion, +9%	SEC 8-K earnings release (Exhibit 99.1)
Q3 2026 available funds from operations	$1.59 billion	from $1.45 billion, +10%	SEC 8-K earnings release (Exhibit 99.1)
Q3 2026 GAAP diluted EPS	$0.56	from $0.53, +6%	SEC 8-K earnings release (Exhibit 99.1)
Debt-to-Adjusted EBITDA at quarter end	3.80x	from 3.73x	SEC 8-K earnings release (Exhibit 99.1)
2026 Adjusted EBITDA guidance	$8.3 billion to $8.5 billion		SEC 8-K earnings release (Exhibit 99.1)

Read more: The Williams Companies (WMB) company research

What drove the quarter

Higher service revenues did most of the work, up $198 million in the quarter and $512 million year to date. Williams credits new power generation revenues, the Momentum acquisition, projects placed in service and higher storage revenues.

By segment, nine-month Adjusted EBITDA in Transmission, Power & Gulf was $3 billion against $2.71 billion a year earlier. Northeast G&P reached $1.61 billion against $1.52 billion. Gas & NGL Marketing Services rose to $230 million from $151 million. Williams ties that rise to higher gas marketing margins driven by winter storms.

GAAP results got a lift from asset sales that Adjusted EBITDA excludes. The quarter included an $83 million gain on the sale of a Permian gathering system. The nine months also include a $130 million net gain on the June sale of the Brazos Permian II equity-method investment. They add a $194 million gain on the January sale of the South Mansfield upstream interests.

Those gains are part of the nine-month GAAP net income increase of $508 million, to $2.39 billion from $1.88 billion. Offsets included acquisition and JV formation costs. Unfavorable changes in unrealized gains on commodity derivatives were $29 million in the quarter and $116 million year to date.

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Why it matters

OptimistFi has argued that Williams turns its gas network into predictable cash flows and must then convert that cash into lower leverage. The quarter supports the first half. Transco's average daily transportation volumes were 15.4 MMdth against 14.9 MMdth in the third quarter of 2025, and firm reserved capacity was 20.7 MMdth against 20.6 MMdth.

Adjusted EBITDA rose $497 million year to date, to $6.21 billion from $5.72 billion. Reaching the low end of guidance requires about $2.09 billion in the fourth quarter, above the $2.03 billion of the fourth quarter of 2025.

The second half of the case is less settled. Williams did not raise guidance. Debt-to-Adjusted EBITDA was 3.80x at quarter end against 3.73x a year earlier and a 2026 midpoint of approximately 3.75x. Williams says the ratio is not the one used for credit agreement compliance or by rating agencies. It is net of cash and $857 million of reimbursable long-lead power equipment purchases.

Spending, debt and the growth slate

Capital investments excluding acquisitions were $2.73 billion in the third quarter against $1.05 billion a year earlier. For nine months they were $6.01 billion against $2.76 billion. The Momentum purchase, net of cash acquired, came on top of that at $2.82 billion.

Long-term debt stood at $31.73 billion on Sept. 30 against $27.32 billion at Dec. 31, 2025. Cash was $1.76 billion against $63 million. The cash flow statement also shows $3.74 billion of proceeds from the sale of a partial interest in a consolidated subsidiary.

On growth, Williams announced a 9.4 Bcf storage expansion at Clay Basin, Transco's 150+ MMcf/d Southeast Supply Enhancement II, and an 84 MMcf/d upsizing of Transco's Garden Connector. It expanded pipeline capacity by 413 MMcf/d across four projects. CEO Chad Zamarin cited confidence in an 11% plus Adjusted EBITDA compound annual growth rate through 2030.

What's next

Williams holds its third-quarter earnings call and webcast on Tuesday, Nov. 3, at 9:30 a.m. Eastern Time. The Socrates Plato North Power project is on track to enter service by mid-November.

Zamarin said Williams is working to commercialize additional power projects and expects to announce them soon. New power contracts, or a raise to the Adjusted EBITDA range, would strengthen the case. Leverage staying above the 3.75x midpoint would work against the debt-reduction half of it.

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