01—Abstract
Summary
Summary of the 10-Q filed July 30, 2026. Cited figures are marked; the original filing is the authoritative source.
HF Sinclair Corporation's Form 10-Q for the quarter ended June 30, 2026 shows a sharp improvement in profitability.
Net income attributable to HF Sinclair stockholders was $892 milliona ($4.93 per diluted share) for the three months ended June 30, 2026, versus $208 million ($1.10 per share) a year earlier. For the six months, net income attributable to stockholders was $1.54 billion ($8.48 per share), compared with $204 million ($1.07 per share). Sales and other revenues rose 53% in the quarter to $10.39 billion, driven by higher average refined product prices and volumes.
Adjusted refinery gross margin per barrel sold increased to $25.95b from $16.50 in the quarter, and the company reported a Lower of cost or market inventory valuation charge of only $30 million, compared with $148 million a year earlier. Balance sheet strength improved. Cash and cash equivalents rose to $2.26 billion from $978 million at December 31, 2025, and operating cash flow for the six months was $1.97 billion versus $498 million.
Total debt was $2.77 billionc, and the company had about $4.3 billion of liquidity, including $2.0 billion available under its revolving credit facility. The company repurchased 2,509,918 shares in the quarter for $175 million, including 1,455,180 shares bought from REH Advisors for $100 million, and declared a quarterly dividend of $0.525 per share, up 5% from $0.50. The filing also discloses strategic actions and contingent risks.
On July 28, 2026, HF Sinclair announced plans to pursue a separation of its Lubricants & Specialties segment through the capital markets and to retire its Mississauga, Ontario base oil refining assets. The company expects total pre-tax costs of approximately $405 million to $505 milliond for the Mississauga retirement and a workforce reduction of about 250 employees. In addition, litigation over small refinery exemptions under the Renewable Fuel Standard remains pending, and the company says it is unable to estimate the impact of these matters.
02—Key points
Key Highlights
- Net income attributable to HF Sinclair stockholders was $892 million ($4.93 per diluted share) for Q2 2026, versus $208 million ($1.10 per share) in Q2 2025.
- Sales and other revenues increased 53% to $10.39 billion for the quarter, principally due to higher average refined product sales prices and sales volumes.
- Adjusted refinery gross margin per produced barrel sold rose to $25.95 for the quarter from $16.50 a year earlier, and to $18.13 for the six months from $12.91.
- Cash and cash equivalents increased to $2.26 billion, and net cash provided by operating activities was $1.97 billion for the six months versus $498 million a year earlier.
- The company repurchased $175 million of stock in Q2 2026, including 1,455,180 shares from REH Advisors for $100 million, and declared a $0.525 quarterly dividend, up 5%.
- On July 28, 2026, the company announced plans to pursue a separation of its Lubricants & Specialties segment and to retire its Mississauga base oil refining assets, with total pre-tax costs estimated at $405 million to $505 million.
- Renewable Fuel Standard small refinery exemption litigation remains pending in the D.C. Circuit, and the company says it cannot estimate the impact.
03—One dollar
04—Financials
Financial Highlights
Figures from 10-QQ2 FY2026filed July 30, 2026Financial Statements
Q2 FY2026 against Q2 FY2025
| Line item | Q2 FY2026Q2 FY2025 | Change |
|---|---|---|
| Revenue | $10.39B$6.78B | +53.2% |
| SG&A Expenses | $130.00M$114.00M | +14.0% |
| Operating Income | $1.17B$275.00M | +324.7% |
| Net Income | $892.00M$208.00M | +328.8% |
| EPS (Basic) | $4.93$1.10 | +348.2% |
| EPS (Diluted) | $4.93$1.10 | +348.2% |
| Shares Outstanding (Basic) | 179.42M188.11M | −4.6% |
| Shares Outstanding (Diluted) | 179.42M188.11M | −4.6% |
05—Questions
Frequently Asked Questions
How much did HF Sinclair earn in the second quarter of 2026?
Net income attributable to HF Sinclair stockholders was $892 million, or $4.93 per basic and diluted share, for the three months ended June 30, 2026, compared with $208 million, or $1.10 per share, in the prior-year quarter.
What drove the improvement in results?
The filing attributes the increase primarily to stronger product demand and higher sales prices, which lifted adjusted refinery gross margins and refined product sales volumes. Lower of cost or market inventory valuation charges also fell to $30 million from $148 million a year earlier.
What is the company's financial position and capital return activity?
Cash and cash equivalents were $2.26 billion at June 30, 2026, and liquidity was about $4.3 billion including $2.0 billion available under the revolving credit facility. The company paid $180 million in dividends and repurchased $255 million of common stock, including excise tax, in the six months ended June 30, 2026, and declared a quarterly dividend of $0.525 per share.
What is the Lubricants & Specialties separation and the Mississauga asset retirement?
On July 28, 2026, HF Sinclair announced plans to pursue a separation of its Lubricants & Specialties segment through the capital markets, creating a new independent public company, and to retire its Mississauga, Ontario base oil refining assets with the transition expected to be substantially completed over 2027. Completion of the separation is subject to final Board approval, and the filing says it is expected to be executed over the next twelve to eighteen months. The Mississauga retirement is expected to cost $405 million to $505 million pre-tax and reduce the workforce by about 250 employees.
What legal and regulatory risks are disclosed?
The company is challenging EPA small refinery exemption decisions under the Renewable Fuel Standard in the D.C. Circuit. Its Parco refinery won a unanimous ruling on April 7, 2026, and the company filed an emergency motion on July 24, 2026 after the EPA did not issue a new decision within 90 days. The company states it is unable to estimate the impact of these matters.
06—Continue