Earnings Recap — Q2 FY2026
CY Q3 2026 · Reported August 3, 2026 · Beat 3 of last 6 quarters
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Williams' Q2 results underscore the accelerating AI infrastructure buildout, with the Power Innovation business delivering its first utility-scale project on time and within budget, validating the behind-the-meter model for data center power. The Momentum acquisition and new Gulf Coast expansions position Williams to capture the growing natural gas demand from LNG exports and power generation, directly supporting the AI-driven load growth along the Gulf Coast.
Williams delivered Q2 2026 adjusted EBITDA of $1.92 billion, up 6% year-over-year, with growth led by Transmission & Gulf (up 6%, Gulf businesses up 23%) and Northeast G&P (up 8%). The company achieved in-service for Phase 1 of the Socrates Power Innovation project, delivering 200 MW in under 18 months, and signed customer agreements for Leidy Access and Garden Connector expansions. Williams announced the $5.5 billion acquisition of Momentum Midstream, funded with $3.5 billion cash/debt and $2 billion equity, and launched two new expansion projects (Shelby Connector and Delta Access) alongside the deal. The Power Innovation JV with Blackstone provides $5.34 billion of committed capital, including $4.4 billion for 49% of growth CapEx and $900 million additional consideration, enhancing project returns by ~56%.
Management raised full-year 2026 EBITDA guidance to $8.3–8.5 billion, reflecting the Momentum acquisition and strong base business performance, and increased the long-term EBITDA CAGR target to 11%+ through 2030. They highlighted the Power Innovation JV with Blackstone as a flexible, low-cost equity source that preserves balance sheet capacity, with leverage expected at 3.75x on a full year run rate basis, opening up over $2 billion of incremental capacity for near-term projects. The company expects to commercialize additional Power Innovation projects between now and year-end, with a pipeline of large-scale Transco expansions and Gulf Coast projects (Shelby Connector, Delta Access) underpinning growth. Management emphasized that leverage tightness is a 2026–2027 issue before expected earnings growth in 2028 and beyond, and they remain confident in exceeding the new 11% CAGR target given the contracted backlog and ongoing commercialization.
“This is how America wins the race for the next generation of technology.”
on Socrates in-service milestone
“We are raising full year 2026 EBITDA guidance by $200 million at the midpoint and we are increasing our long-term EBITDA growth rate target to 11-plus percent compound annual growth through 2030 versus our previously announced 10-plus percent compound annual growth target.”
on Guidance raise and growth target
“The combination of Williams and Momentum is exciting for the existing assets we bring together and even more exciting for the new opportunities that we unlock to even better serve customers along the Gulf Coast.”
on Momentum acquisition rationale
The EBITDA CAGR was increased to 11% from 10%. If we layer in Momentum and Delta Access, it seems like those projects alone would add 200 bps. Is the 11% target conservative?
John Porter explained that the 11% target is centered on the existing contracted book of business, excluding additional power or pipe projects, and includes conservatism across other parts of the business, so they feel well positioned to exceed it.
Can you talk about the behind-the-meter backlog and whether you can do deals with multiple hyperscalers?
Chad Zamarin said commercial interest has strengthened, with conversations ongoing with multiple counterparties, and they expect to commercialize additional projects by year-end. He confirmed that discussions are not exclusive to any single customer.
How will the next wave of Power Innovation projects differ from the first, and can you allocate most of the $5 billion over the next 12 months?
Chad Zamarin said projects will evolve to include scale and hybrid solutions, with longer contract terms, and the JV provides capacity to recycle capital. He noted they are scaling up the team and expect to commercialize more projects by year-end.