Hess Midstream (HESM) opened 2026 earnings season with Q1 results that sit against a backdrop of 2025 revenue between US$382 million and US$420.9 million per quarter and basic EPS ranging from US$0.65 to US$0.75, with trailing 12 month revenue at US$1.62 billion and basic EPS of US$2.87. Over the last year, revenue has moved from US$378.5 million in Q3 2024 to US$404.2 million in Q4 2025, while basic EPS has shifted from US$0.63 to US$0.72, giving investors a clear view of how both the top and bottom lines have tracked into the latest quarter. With trailing net margins at 21.8%, and with earnings growth and forecasts already in focus, this set of results puts profitability and income potential at the center of the conversation.

See our full analysis for Hess Midstream.

With the headline numbers in place, the next step is to see how they line up against the prevailing Hess Midstream narratives, highlighting which stories the figures support and which they push back on.

Margins: 21.8% net profit tells an efficiency story

• Trailing 12 month net income of US$352.9 million on US$1.62b of revenue works out to a 21.8% net margin, compared with 14.9% a year earlier.
• Consensus narrative highlights high operating leverage and fee based contracts as a key strength, and the margin move from 14.9% to 21.8% ties into that bullish angle, but also raises a question about how much of this can persist if Bakken production or Chevron activity slows.
  • Supportive for bulls, earnings grew 58.2% over the last year while revenue in the same trailing window rose from US$1.46b to US$1.62b, so profit grew faster than sales.
  • Backing the cautious side, forecasts point to earnings growth of about 14.1% per year and revenue growth of 3.7% per year, which is slower than the broader US market expectations mentioned in the analysis summary.

On this mix of solid current profitability and more moderate forecasts, some investors may want to see how different scenarios are reflected in valuation and cash flow expectations using the full narrative tools on Simply Wall St before deciding how durable they think this margin profile really is. 🐂 Hess Midstream Bull Case

Valuation: 14.4x P/E and DCF fair value gap

• With the stock at US$39.18, the reported P/E of 14.4x sits just under the US Oil & Gas industry at 14.9x, and well below peers at 39.3x, while the cited DCF fair value of about US$94.69 is well above the current price.
• Critics focus on the risk side of the story, arguing that high leverage and a dividend yield of 7.96% that is not fully covered by earnings could justify a lower multiple even with an apparent discount to DCF fair value.
  • Supporting the bearish concern, the analysis flags both high debt levels and limited dividend coverage from earnings, which can matter a lot when growth forecasts are for 14.1% earnings and 3.7% revenue per year rather than rapid expansion.
  • Challenging a purely bearish stance, the same data points out that trailing earnings grew 58.2% over the past year, so the current multiple is being applied to a higher earnings base than 12 months ago.

Skeptical investors who see the gap between the US$39.18 share price, the 14.4x P/E, and the higher DCF fair value may want a closer look at the more cautious case and how much weight to put on leverage and dividend coverage before leaning too hard on the discount argument. 🐻 Hess Midstream Bear Case

Earnings trend: from US$58.6m to US$97.7m quarterly

• Looking back six quarters, quarterly net income (excluding extra items) moved from US$58.6 million in Q3 2024 to US$97.7 million in Q3 2025, with the trailing 12 month figure reaching US$352.9 million by Q4 2025.
• Analysts’ consensus narrative ties this earnings path to stable, fee based revenue and long term contracts, but the forecasts for 14.1% annual earnings growth and 3.7% revenue growth suggest the sharp historical step up in net income is not assumed to repeat at the same pace.
  • On the supportive side, the trailing 12 month EPS lifted from US$2.38 in Q3 2024 to US$2.87 by Q4 2025, which lines up with the idea of stronger profitability from essentially the same asset base.
  • On the more cautious side, the same consensus expects earnings of US$505.3 million by about April 2029, so the move from US$352.9 million today to that level would represent a steadier, slower build than the 58.2% gain seen over the last year.

Next Steps

To see how these results tie into long-term growth, risks, and valuation, check out the full range of community narratives for Hess Midstream on Simply Wall St. Add the company to your watchlist or portfolio so you'll be alerted when the story evolves.

With bullish and cautious angles both on the table, this is a good moment to look at the numbers yourself and stress test your own thesis, starting with the 4 key rewards and 2 important warning signs.

See What Else Is Out There

Hess Midstream pairs a 7.96% dividend yield with high debt and limited earnings coverage, which can make income focused investors uneasy about sustainability.

If that mix of leverage and payout coverage feels uncomfortable, you may want to quickly compare it with companies in the solid balance sheet and fundamentals stocks screener (45 results) and see how stronger balance sheets change the risk profile.

This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.