PEMEX 2Q26 Net Profit Reaches MX$18 Billion

PEMEX's 2Q26 results demonstrate near-term balance sheet de-risking through MX$510.4 billion in sales and a 9.1% debt reduction, despite net profit contracting 69.8% year-over-year to MX$59.52 billion baseline comparison levels. However, persistent free operating cash flow deficits and recurring liquidity shortfalls threaten sovereign debt metrics, posing systemic risk for energy supply chains, capital market issuers, and Mexico's fiscal trajectory.


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PEMEX published its operational and financial results for 2Q26, reporting a net profit of MX$18 billion (US$1.03 billion). Despite remaining in positive territory, the net profit figure represents a 69.8% decline when compared to the amount reached in 2Q25.

According to PEMEX, total sales for the period reached MX$510.4 billion, representing a 30.3% increase compared to the same period of the previous year. Despite remaining in positive territory for 2Q26, the net profit figure represents a 69.8% decline when compared to the MX$59.52 billion registered in 2Q25.

During 2Q26, total hydrocarbon production averaged 2.44MMboe/d, representing a 4.6% increase relative to 2Q25. Liquid hydrocarbon extraction reached 1.6MMb/d, supported by output from key fields including Ixachi, Bakté, Itta, Koban, and Maloob.

In downstream operations, crude processing across refineries increased by 2.9% year-over-year to average 1MMb/d. Total refined product output grew 3.4% to 1.03MMb/d, driven by production increases across key fuels where diesel production grew by 19.3%, gasoline production by 2.9%, and jet fuel production by 2.3%. Domestic fuel sales reached 1.47MMb/d, representing a 9.8% increase compared to 2Q25, with gasoline sales volume rising 11.4% and diesel sales expanding by 19.1%.

Operating income for 2Q26 reached MX$85.5 billion, reversing the loss recorded in the past year period. As of June 30, 2026, financial debt stood at US$77.5 billion, representing a 9.1% reduction compared to the end of 2025. The state-owned enterprise noted a lower proportion of short-term liabilities within its total debt profile. "Short-term debt reduced its share of total debt, easing immediate financial pressures and strengthening the company's financial flexibility. The foregoing is consistent with PEMEX’s commitment to maintaining zero net debt expansion," reads PEMEX’s filing to the Mexican Stock Exchange (BMV).

S&P Assessment Points to Medium-Term Liquidity Deficits

On April 8, 2026, S&P Global Ratings published that it maintained PEMEX’s Mexican national scale issuer credit rating at mxAAA with a stable outlook, driven entirely by the support of the federal government. However, S&P’s standalone credit profile assessment for the NOC stands at mxccc+, citing an unsustainable capital structure in the absence of state intervention.

The agency noted that while government coordination and a MX$31.5 billion debt issuance in February 2026 successfully mitigated near-term liquidity deficits, structural challenges persist. S&P projects that PEMEX will face recurring liquidity shortfalls in 2027 and 2028 unless internal cash generation improves substantially through higher upstream production and operational efficiencies. 

Financial projections from the rating agency indicate that revenues will plateau at MX$1.53 trillion in 2026 before declining 14.1% to MX$1.315 trillion in 2027. Driven by projected capital expenditures of MX$279 billion and negative funds from operations of MX$29 billion, S&P forecasts PEMEX’s free operating cash flow deficit to expand to MX$392 billion in 2026, compared to a deficit of MX$30 billion in 2025. Under these estimates, adjusted leverage will remain elevated above 6.0x through 2028, with EBITDA interest coverage ratios remaining below 2.0x.