01—Abstract
Summary
Summary of the 10-Q filed May 1, 2026. Cited figures are marked; the original filing is the authoritative source.
HF Sinclair Corporation's first-quarter 2026 results show a sharp swing to profitability.
Net income attributable to HF Sinclair stockholders was $648 milliona ($3.56 per basic and diluted share), compared with a net loss of $4 million ($(0.02) per share) in the first quarter of 2025. Sales and other revenues rose $753 million, or 12%, to $7,123 million, principally on higher average refined product prices and higher sales volumes. The filing attributes the improvement primarily to a $672 million pre-tax lower of cost or market inventory valuation benefit, along with higher adjusted refinery gross margin ($9.95 per barrel sold versus $9.12) and higher adjusted renewables gross margin.
Income tax expense rose to $189 millionb, and EBITDA was $1,097 million versus $262 million a year earlier. Cash generation improved meaningfully. Net cash provided by operating activities was $457 million, compared with a use of $89 million in the prior-year quarter, driven by working capital changes that added $316 million.
Cash and cash equivalents ended the quarter at $1,148 millionc, and total liquidity was approximately $3.1 billion, including $2.0 billion available under the HF Sinclair Credit Agreement. Long-term debt, net, was $2,771 million, with no borrowings outstanding under the revolver. The company repurchased 1,514,810 shares for $76 million, paid $91 million in dividends, and had $383 million of remaining authorization under its 2024 Share Repurchase Program.
Management flagged several items for the coming quarters: expected second-quarter crude throughput of 600,000 to 630,000 barrels per day, continued strength in RINs and LCFS prices, and ongoing exposure to Renewable Fuel Standard small refinery exemption litigation. On April 7, 2026, the D.C. Circuit ruled unanimously in the company's favor that the EPA erred in denying the Parco refinery's 2024 exemption, remanding it to the agency.
The company's opening brief in the consolidated cases is due July 10, 2026. Management also declared a $0.50d per share quarterly dividend on May 1, 2026, payable June 2, 2026.
02—Key points
Key Highlights
- Net income attributable to HF Sinclair stockholders was $648 million, or $3.56 per diluted share, versus a net loss of $4 million, or $(0.02) per share, a year earlier.
- Lower of cost or market inventory valuation adjustments added $672 million to pre-tax earnings, compared with $117 million in the first quarter of 2025.
- Adjusted refinery gross margin rose to $9.95 per barrel sold from $9.12, driven mainly by the West region.
- Operating cash flow was $457 million, compared with a use of $89 million a year earlier, with working capital contributing $316 million.
- Liquidity was approximately $3.1 billion at March 31, 2026, including $1.1 billion of cash and $2.0 billion available under the revolving credit facility.
- The company repurchased $76 million of common stock and paid $91 million in dividends, with $383 million remaining under its share repurchase authorization.
- On April 7, 2026, the D.C. Circuit ruled in the company's favor that the EPA erred in denying the Parco refinery's 2024 small refinery exemption, remanding the matter to the agency.
03—One dollar
04—Financials
Financial Highlights
Figures from 10-QQ1 FY2026filed May 1, 2026Financial Statements
Q1 FY2026 against Q1 FY2025
| Line item | Q1 FY2026Q1 FY2025 | Change |
|---|---|---|
| Revenue | $7.12B$6.37B | +11.8% |
| SG&A Expenses | $115.00M$104.00M | +10.6% |
| Operating Income | $847.00M$81.00M | +945.7% |
| Net Income | $648.00M-$4.00M | +16300.0% |
| EPS (Basic) | $3.56$-0.02 | +17900.0% |
| EPS (Diluted) | $3.56$-0.02 | +17900.0% |
| Shares Outstanding (Basic) | 180.65M188.49M | −4.2% |
| Shares Outstanding (Diluted) | 180.65M188.49M | −4.2% |
05—Questions
Frequently Asked Questions
What drove the swing from a net loss to net income this quarter?
The filing states the increase was primarily driven by the Lower of cost or market inventory valuation adjustments, which increased pre-tax earnings by $672 million, along with improved adjusted refinery and renewables gross margins. These benefits were partially offset by a $188 million increase in income tax expense.
How strong is the company's liquidity and balance sheet position?
At March 31, 2026, cash and cash equivalents were $1,148 million and liquidity was approximately $3.1 billion, including $2.0 billion available under the HF Sinclair Credit Agreement, which had no outstanding borrowings. Long-term debt, net, was $2,771 million, and total debt at face value was $2,800 million, with the company in compliance with all covenants.
What are the near-term operating expectations?
For the second quarter of 2026, the company expects to run between 600,000 and 630,000 barrels per day of crude oil, reflecting completed turnarounds at Puget Sound and Woods Cross, planned maintenance at Parco and Navajo, and unplanned maintenance at El Dorado. It also expects continued strength in RINs and LCFS prices.
What is the status of the small refinery exemption litigation?
On April 7, 2026, the D.C. Circuit unanimously held that the EPA erred in deeming the Parco refinery ineligible for a 2024 exemption, vacating the denial and remanding it to the agency. Other consolidated cases remain pending, with the company's opening brief due July 10, 2026, and the company is unable to estimate the impact at this time.
What returns are being provided to shareholders?
The company paid $91 million in dividends during the quarter and repurchased 1,514,810 shares for $76 million. On May 1, 2026, the board declared a regular quarterly dividend of $0.50 per share, payable June 2, 2026 to holders of record on May 11, 2026.
06—Continue