The Williams Companies, Inc.

Worth knowing

• Profitable, but burning cash. Reports a profit, but free cash flow is negative.

  Williams Companies reports a profit but its free cash flow is negative: it spent more on investment and running the business than it brought in. That's common for companies building capacity, but it means the profit isn't yet turning into cash.

• Stock pay outran buybacks. Stock-based pay expense $269M vs $130M spent repurchasing shares over the 3 fiscal years to 2025.

  Over three fiscal years Williams Companies recorded $269M of stock-based pay expense and spent $130M repurchasing shares (repurchases can include shares withheld to cover employees' taxes). Repurchases were smaller than the stock pay, so they did little to offset new employee shares.Over three fiscal years Williams Companies recorded $269M of stock-based pay expense and spent $130M repurchasing shares. Repurchases were smaller than the stock pay, so they did little to offset new employee shares.

• Much more borrowing than peers. Debt is 2.3× equity vs a peer median of 0.5×.Debt is 2.3× equity vs peers 0.5×.

  Debt is 2.3× shareholders' equity, against a peer median of 0.5×, among the highest 10% of its peer group.Debt is 2.3× shareholders' equity, vs peers 0.5×, among the highest 10% of its peer group.

• Investment surge. Capital spending 41% of revenue, up from 21% in 2022.

  Williams Companies is spending 41% of revenue on facilities and equipment, up from 21% in 2022. That weighs on free cash flow today; whether it pays off depends on the returns those investments earn.