How XOM (Exxon Mobil) Makes Money in 2025: A Deep-Dive With Income Statement

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Understanding how a global energy leader like ExxonMobil (XOM) makes money is essential for investors and anyone interested in the business of integrated oil and gas. In this post, we break down ExxonMobil's quarterly income statement (Q3 2025) using a Sankey chart to visualize the financial flows — what comes in, where it goes, and what's left as profit.

Quick ExxonMobil Overview

ExxonMobil operates as one of the world’s largest integrated oil and gas companies, engaging in the exploration, production, refining, and marketing of petroleum and petrochemical products. Revenue comes primarily from the sale of crude oil, natural gas, refined petroleum products, and chemicals. The company’s business segments typically include Upstream (exploration and production), Downstream (refining and marketing), and Chemical, though in Q3 2025, segment reporting is consolidated under "Other" revenue.

Revenue Breakdown

• Total Revenue (Q3 2025): $83.3B (−5.1% YoY)
  • Other: $83.3B (100% of total)
  • Chemical Non-U.S. Revenue: $0.0B 0%
  • Chemical U.S. Revenue: $0.0B 0%
  • Downstream U.S. Revenue: $0.0B 0%
  • Downstream Non-U.S. Revenue: $0.0B 0%
  • Growth is impacted by lower commodity prices and softer demand in certain markets.

Gross Profit and Margins

• Gross Profit: $18.7B (22.4% gross margin)
  • Cost of Revenue: $64.6B (−4.1% YoY)
  • ExxonMobil maintains moderate margins due to its scale, integrated operations, and ongoing cost discipline.
• Most costs come from raw material procurement (crude oil and feedstocks), production, and refining operations.

Operating Income and Expenses

• Operating Income: $9.18B (−16.9% YoY, 11.0% margin)
• Operating Expenses: $9.51B (+1.7% YoY)
  • R&D: Not separately disclosed for Q3 2025
  • SG&A: $3.03B (+32.1% YoY, 3.6% of revenue) — Includes corporate overhead, marketing, and administrative costs
  • ExxonMobil continues to control costs while investing in operational efficiency and selective growth initiatives.

Net Income

• Pre-Tax Income: $10.9B (−16.1% YoY, 13.1% margin)
• Income Tax: $3.16B (28.9% effective tax rate)
• Net Income: $7.55B (−12.3% YoY, 9.1% net margin)
• ExxonMobil converts a moderate portion of sales into profit due to its integrated structure and focus on operational efficiency, despite cyclical industry pressures.

What Drives ExxonMobil's Money Machine?

• Crude oil and petroleum product sales: Over 90% of revenue is derived from the sale of crude oil, natural gas, and refined products, reflecting ExxonMobil’s core integrated energy operations.
• Production volumes: Daily oil and gas production levels directly impact revenue, with Q3 2025 seeing modest declines due to market conditions.
• Strategic investments: ExxonMobil invests in upstream projects, refinery upgrades, and low-carbon initiatives to sustain long-term growth and competitiveness.
• Future growth areas: Expansion into carbon capture, hydrogen, and biofuels is underway, though these segments are not yet material contributors to profit.

Visualizing ExxonMobil's Financial Flows

The Sankey chart below visualizes how each dollar flows from gross revenue, through costs and expenses, down to net income. This helps investors spot where value is created, what areas weigh on profits, and how efficiently the company operates.

• Most revenue flows into gross profit, with operating expenses (especially cost of revenue and SG&A) taking the largest chunk.
• Even after significant costs, 9.1% of revenue drops to the bottom line.

Key Takeaways

• ExxonMobil’s money comes overwhelmingly from the sale of crude oil, natural gas, and refined petroleum products.
• High gross and net margins illustrate the power of ExxonMobil’s integrated business model and operational scale.
• Heavy investment in operational efficiency and select growth projects, balanced by disciplined cost management.
• Ongoing growth is driven by production optimization, cost control, and emerging investments in low-carbon solutions.

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FAQ About ExxonMobil's Income Statement

1. What is the main source of ExxonMobil's revenue in 2025?

ExxonMobil generates over 90% of its revenue from the sale of crude oil, natural gas, and refined petroleum products. Other business lines, such as chemicals, contributed minimally in Q3 2025.

2. How profitable is ExxonMobil in Q3 2025?

ExxonMobil reported net income of $7.55B in Q3 2025, with a net margin of approximately 9.1%, reflecting moderate profitability driven by integrated operations and cost management.

3. What are the largest expense categories for ExxonMobil?

The biggest expenses on ExxonMobil's income statement are cost of revenue (primarily raw materials and production costs) and operating expenses, particularly Sales, General & Administrative (SG&A) costs. SG&A reached $3.03B in Q3 2025, as ExxonMobil manages corporate and marketing functions.

4. Why does the Chemical segment operate at a loss?

In Q3 2025, the Chemical segment reported $0.0B in revenue and did not contribute to operating profit, reflecting challenging market conditions and lower demand. ExxonMobil continues to invest in this segment for long-term growth, despite near-term unprofitability.

5. How does ExxonMobil's effective tax rate compare to previous years?

ExxonMobil's effective tax rate in Q3 2025 was 28.9%, consistent with historical averages. This moderate rate is primarily due to the company’s global operations and the mix of international and domestic earnings.