TotalEnergies SE: 2Q26 Results: Earnings In-Line; Net Debt Falls Sharply

Research evidence excerpt

TotalEnergies SE: 2Q26 Results: Earnings In-Line; Net Debt Falls Sharply

Update

July 23, 2026 07:12 AM GMT

Morgan Stanley & Co. International plc+MTotalEnergies SE | Europe Martijn Rats, CFA

Equity Analyst and Commodities Strategist

2Q26 Results: Earnings In-Line; Martijn.Rats@morganstanley.comAlice Bergier Winograd +44 20 7425-6618

Equity Analyst

Alice.Winograd@morganstanley.com +44 20 7425-0174

Net Debt Falls Sharply Guilherme Levy

Guilherme.Levy@morganstanley.com +44 20 7425-6616

AlphaSignals Earnings Reaction

TotalEnergies SE (TTEF.PA, TTE FP)

Unchanged In-line Largely unchanged Top Pick

Impact to our thesis Financial results versus consensus Direction of next 12-month

consensus EPS ADRTTE.N

Source: Company data, Morgan Stanley Research Energy | France

Stock Rating Overweight

Industry View In-Line

Key Takeaways Price target €77.00

Shr price, close (Jul 22, 2026) €74.29

Earnings in-line with expectations; cash flow marginally ahead 52-Week Range €81.34-49.24

Mkt cap, curr (mn) US$196,984

Gearing drops 240bp, from 15.5% to 13.1% Net debt (12/26e) (mn)* US$22,923

EV, curr (mn)* US$228,241

Share buyback continues at $1.5bn/qtr

* = GAAP or approximated based on GAAP

Underlying production growth (ex Middle East impact) continues strongly

Robust margin capture in Downstream businesses

Earnings: Adjusted net income was $6.0bn, in line with consensus which also stood

at $6.0bn. This was also the case for net operating income, which at $6.87bn was in-

line with consensus of $6.80bn. That said, divisional results were mixed:

E&P beat at $3.23bn (vs $3.10bn), capturing the +$17.9/b q/q rise in liquids

realisations. In fact, the underlying production result was outright strong: reported

production fell 4% year-on-year because the Middle East conflict cost roughly 8