TotalEnergies Q2 profit jumps 67% to $6 billion as Iran war lifts oil prices and refining margins

Earnings surge

TotalEnergies reported adjusted net income of $6 billion for the second quarter of 2026, a 67% increase from $3.6 billion in the same period a year earlier. The result was in line with analyst expectations, according to a consensus polled by LSEG. Net income (IFRS) reached $5.4 billion, or €4.7 billion, roughly double the €2.36 billion recorded in Q2 2025. For the first half of 2026, net income totalled $11.2 billion, up 73% year-on-year. The company had already posted a near-50% jump in Q1 2026 profit, when adjusted net income stood at $5.4 billion.

In an environment of high prices linked to the conflict in the Middle East, TotalEnergies is leveraging its integrated model and its diversification to post an adjusted net income of $6 billion in the second quarter.

War-driven price environment

The earnings surge was fuelled by a sharp rise in oil and refined-product prices following the resumption of hostilities between the United States and Iran. The conflict entered its twelfth consecutive day on Thursday, with crude benchmarks climbing as markets priced in supply disruption risks. TotalEnergies benefited from both higher upstream crude realisations and exceptionally strong refining margins, which offset a decline in profits from its gas division. The company's integrated model, spanning production, refining and trading, amplified the price tailwind.

Shareholder returns and debt reduction

Flush with cash, TotalEnergies said it would continue its share buyback programme, with up to $1.5 billion earmarked for the third quarter. The board also declared a second interim dividend of €0.90 per share for the 2026 financial year, matching the first interim payment and representing a 5.9% increase over the total dividends paid for 2025. The Wall Street Journal reported that the company is prioritising debt reduction, using the windfall to strengthen its balance sheet.

Government response in France

The French government, meanwhile, is grappling with the domestic fallout of higher pump prices. Energy Minister and government spokesperson Maud Bregeon acknowledged the uncertainty on Tuesday.

The situation is extremely uncertain.

Industry Minister Roland Lescure said on Franceinfo that a state fuel subsidy scheme for heavy drivers would remain in place until the end of August. Around 3 million French citizens are eligible, but only 1.2 million have applied so far, according to the government.

## Outlook TotalEnergies did not provide specific forward guidance in Thursday's statement, but the ongoing conflict suggests elevated hydrocarbon prices may persist. Analysts will watch for any supply disruptions in the Strait of Hormuz, a critical chokepoint for global oil flows. The company's strong cash generation and low debt levels position it to maintain shareholder payouts even if prices moderate later in the year.