Plains GP Holdings (PAGP) closed FY 2025 with fourth quarter revenue of US$10.6b and basic EPS of a US$0.20 loss, while trailing twelve month revenue came in at US$44.3b with basic EPS of a US$0.62 loss. The company reported quarterly revenue of US$12.4b in Q4 2024 and US$10.6b in Q4 2025, with basic EPS moving from a US$0.06 loss to a US$0.20 loss over the same period. This has set up a results season where investors are weighing volume stability against pressure on earnings. Given the mix of high top line and thin profitability, the focus now turns to how margins are evolving and what that may imply for the potential path back to stronger earnings power.

With the headline numbers reported, the next step is to see how these results align with the widely discussed narratives around Plains GP Holdings, and where the latest margin and earnings trends either support or challenge those views.

US$44.3b in sales, but trailing losses of US$123m

• Over the last twelve months Plains GP generated US$44.3b of revenue while recording a net loss from continuing operations of US$123m and basic EPS of a US$0.62 loss, so high sales are still not translating into positive earnings.
• What really stands out for a bullish view is the tension between those losses and the expectation that earnings could grow very quickly, with commentary pointing to shrinking losses over the past five years and an anticipated move into profitability. However, the most recent trailing figures still show net income from continuing operations in the red and Q4 FY 2025 EPS at a US$0.20 loss, which means anyone leaning bullish has to be comfortable that this recent run of quarterly losses will eventually reverse.

Curious how these mixed profit signals fit into a fuller story for Plains GP Holdings? 📊 Read the full Plains GP Holdings Consensus Narrative.

Valuation gap, P/S at just 0.1x

• The shares trade at a P/S of 0.1x versus a peer average of 5.9x and a US Oil & Gas industry average of 1.6x, and the current price of US$20.71 sits far below a cited DCF fair value of about US$114.79, which together point to a very large discount relative to those reference points.
• Supporters of a bullish case lean heavily on this discount, arguing that such a low P/S multiple and the big gap to the DCF fair value leave room for upside. At the same time, the market is also reacting to fundamentals, including trailing twelve month losses of US$123m and revenue growth that is described as slower than a 10.2% market rate, so that same discount can just as easily be read as the market pricing in meaningful business risk rather than ignoring an opportunity.
  • The contrast between the 0.1x P/S and the 1.6x industry average raises the question of whether the market is heavily penalizing current unprofitability or if expectations for that earnings recovery remain cautious.
  • The roughly 82% gap between the DCF fair value and the current share price only becomes meaningful for investors if future earnings actually move from a US$0.62 per share loss into the forecast positive territory, which is not yet reflected in the reported results.

Interest and dividend coverage still under strain

• On the risk side, interest payments are flagged as not well covered by current earnings and the indicated dividend yield of 8.06% is also described as not well covered by earnings, which ties directly back to the trailing loss of US$123m over the last year.
• Critics with a more bearish tilt point to these coverage issues as a key concern, and the latest figures support that focus, since Q4 FY 2025 net income from continuing operations was a US$40m loss and the full year remained unprofitable. Even though losses have been shrinking over five years, the combination of weak interest coverage and a dividend that is not backed by current earnings gives bears concrete numbers to highlight.
  • Trailing twelve month EPS at a US$0.62 loss and the sequence of quarterly EPS swings through FY 2025, including losses of US$0.26 in Q1 and US$0.20 in both Q2 and Q4, underline that profit stability is not yet in place.
  • With revenue growth cited at about 3.3% per year over the last 12 months versus a 10.2% reference rate for the broader US market, bears can argue that Plains GP is working with slower top line growth at the same time it is trying to support interest and dividends from a loss making base.

Next Steps

Don't just look at this quarter; the real story is in the long-term trend. We've done an in-depth analysis on Plains GP Holdings's growth and its valuation to see if today's price is a bargain. Add the company to your watchlist or portfolio now so you don't miss the next big move.

See What Else Is Out There

Plains GP Holdings is operating with thin profitability, interest and dividends that are not covered by earnings, and slower revenue growth alongside ongoing losses.

If that combination of weak coverage and ongoing losses feels uncomfortable, you may wish to look at 82 resilient stocks with low risk scores that focus on companies with more resilient financial profiles and potentially steadier fundamentals.

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.