ExxonMobil Continues to Prove It's in a League of Its Own

ExxonMobil (NYSE: XOM) is the biggest International Oil Company (IOC) by market cap by a wide margin. It's also the best-run company in the oil patch by far. That was clearly evident in its 2025 financial results.

The leading oil stock delivered industry-leading results across the board. Those strong numbers are a testament that its transformational strategy to become a more profitable oil company is working.

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Exxon's industry-leading profitability

ExxonMobil generated industry-leading earnings of $28.8 billion and cash flow from operations of $52 billion in 2025. The company has now delivered industry-leading compound annual growth rates of 21% and 10% in earnings per share and cash flow from operations, respectively, since 2019. That's a robust growth rate for such a large oil company.

Two catalysts helped fuel the company's peer-leading financial results. Exxon's investments in expanding its oil and gas production operations enabled it to deliver its highest production volumes in over 40 years, reaching 4.7 million barrels of oil equivalent per day. Exxon delivered production records in the Permian Basin and offshore Guyana, driven by its heavy investment to expand its output in those high-margin areas.

Additionally, Exxon has benefited from its structural cost savings initiatives. Exxon delivered $3 billion in savings last year, bringing its total to $15.1 billion since 2019, exceeding all other IOCs combined.

Exxon's industry-leading capital returns

Exxon produced $26.1 billion in free cash flow after capital expenditures last year. That helped support $37.2 billion in cash distributions to shareholders. Exxon paid $17.2 billion in dividends, the second-highest among S&P 500 companies. The oil company increased its dividend by 4% last year, extending its growth streak to 43 consecutive years. Additionally, it repurchased $20 billion in shares.

The oil giant funded the balance with its fortress balance sheet. The company ended the year with an industry-leading net-debt-to-capital ratio of 11% supported by a healthy $10.7 billion cash balance.

The best is yet to come

Exxon plans to keep following its successful strategy. The company expects to continue investing heavily in its best assets. Additionally, the oil giant anticipates delivering additional structural cost savings, aiming to increase its cumulative total to $20 billion by 2030. This combination of investment and cost savings should deliver $25 billion in earnings growth and $35 billion in cash flow growth from 2024's level at constant prices and margins by 2030. That will give the company even more cash to return to shareholders through dividends and buybacks.

The company's strategy has richly rewarded shareholders. Exxon has delivered industry-leading total annualized shareholder returns of 29% over the past five years. With strong earnings growth and cash returns expected through 2030, an investment in ExxonMobil stock could continue to deliver high-octane total returns in the future.

Matt DiLallo has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.