Williams Companies Inc (NYSE:WMB) stock fell 4.91% (As on August 5, 11:18:42 AM UTC-4, Source: Google Finance) after the company raised the guidance for fiscal 2025, however missed the estimates for the second quarter of FY25. Williams reported Q2 2025 Adjusted EBITDA of $1,808 million, compared to $1,667 million in the same period last year. This 8% increase was primarily driven by the company’s Transmission & Gulf segment, which saw a $91 million improvement year-over-year due to Transco and Gulf expansions, higher Transco rates, and favorable storage re-contracting. The Northeast G&P and West segments also contributed positively to the year-over-year growth, each adding $22 million to Adjusted EBITDA. However, when compared sequentially to Q1 2025, these segments showed slight declines, with Northeast G&P down $13 million and West down $13 million. For the quarter, available Funds from Operations grew 5% to $1,317 million. The dividend coverage ratio remained stable at 2.16x, indicating sustainable shareholder returns despite increased capital investments, which grew from $663 million in Q2 2024 to $1,039 million in Q2 2025.

Meanwhile, the company signed a precedent agreement for Transco’s Northeast Supply Enhancement and accelerated the timeline for Southeast Supply Enhancement. Williams also placed the Texas to Louisiana Energy Pathway and Southeast Energy Connector in-service, along with Ballymore and Shenandoah projects in the Deepwater Gulf. The company noted that 17.8 Bcf/d of LNG projects are already operational within its Transco footprint, with an additional 10.5 Bcf/d under construction and 13.3 Bcf/d awaiting final investment decisions. This positioning aligns with the growing demand for natural gas exports, which the company reported averaged 100 Bcf/d in Q2 2025, up from 96 Bcf/d in Q2 2024.

WMB in the second quarter of FY25 has reported the adjusted earnings per share of 45 cents, missing the analysts’ estimates for the adjusted earnings per share of 47 cents. The company had reported the adjusted revenue of $2.78 billion in the second quarter of FY25, slightly missing the analysts’ estimates for revenue of $2.82 billion.

Williams increased its 2025 Adjusted EBITDA guidance by $50 million, now guiding to a midpoint of $7.75 billion. This represents the third guidance increase since the company’s original 2025 forecast, for a cumulative increase of $350 million. The company also anticipates improving its debt-to-Adjusted EBITDA ratio to approximately 3.65x by the end of 2025, down from 3.79x in 2024. Williams expects 9% year-over-year growth in both Adjusted EBITDA and Adjusted Diluted EPS.