01—Abstract
Summary
Summary of the 10-Q filed May 5, 2026. Cited figures are marked; the original filing is the authoritative source.
Marathon Petroleum Corporation (MPC) reported a strong financial performance for the first quarter of 2026, demonstrating a significant turnaround from the prior year.
Net income attributable to MPC surged to $511 milliona, or $1.73 per diluted share, a substantial improvement from a net loss of $74 million, or ($0.24) per diluted share, in the first quarter of 2025. This impressive growth was driven by a combination of factors, including higher revenues and improved operational efficiencies across its key segments. The Refining & Marketing segment was a primary contributor to this success, with adjusted EBITDA increasing substantially year-over-year, reflecting higher refining margins.
The Midstream segment, while experiencing some impact from derivative losses due to market volatility, continues to play a crucial role in supporting producer development plans. Furthermore, the company benefited from favorable market conditions and strategic initiatives, including clean fuel production tax credits, contributing to an overall positive financial outlook.
02—Key points
Key Highlights
- Net income attributable to MPC turned positive, reaching $511 million ($1.73/share) in Q1 2026, a significant recovery from a net loss of $74 million ($0.24/share) in Q1 2025.
- Total revenues and other income increased by $2.72 billion to $34.57 billion in Q1 2026 compared to Q1 2025, driven by higher sales and other operating revenues.
- Refining & Marketing segment adjusted EBITDA saw a substantial increase of $888 million to $1.38 billion in Q1 2026, primarily due to improved refining margins.
- Midstream segment adjusted EBITDA decreased by $122 million to $1.60 billion in Q1 2026, mainly due to derivative losses and acquisition/divestiture activity.
- The company's cash position decreased from $3.67 billion at the end of 2025 to $2.15 billion at the end of Q1 2026, with net cash used in financing activities totaling $1.60 billion.
- MPC announced an additional $5.0 billion share repurchase authorization on May 5, 2026, indicating confidence in its financial position and commitment to returning capital to shareholders. As of March 31, 2026, $3.63 billion remained available under the previous authorization.
03—One dollar
Follow one dollar
Of each $1.00 of revenue in Q1 FY2026, Marathon Petroleum kept $0.01.
- Revenue$34.20B100.0%
- Cost of revenue−$31.26B91.4%
- Gross profit$2.94B8.6%
- Operating costs−$1.53B4.5%
- Operating income$1.40B4.1%
- Interest, other & tax−$893.0M2.6%
- Net income$511.0M1.5%
04—Financials
Financial Highlights
Figures from 10-QQ1 FY2026filed May 5, 2026Financial Statements
Q1 FY2026 against Q1 FY2025
| Line item | Q1 FY2026Q1 FY2025 | Change |
|---|---|---|
| Revenue | $34.20B$31.52B | +8.5% |
| Cost of Revenue | $31.26B$29.36B | +6.5% |
| Gross Profit | $2.94B$2.16B | +36.3% |
| SG&A Expenses | $867.00M$783.00M | +10.7% |
| Operating Expenses | $33.16B$31.16B | +6.4% |
| Operating Income | $1.40B$687.00M | +104.4% |
| Interest Expense | $420.00M$352.00M | +19.3% |
| Net Income | $511.00M-$74.00M | +790.5% |
| EPS (Basic) | $1.73$-0.24 | +820.8% |
| EPS (Diluted) | $1.73$-0.24 | +820.8% |
| Shares Outstanding (Basic) | 295.00M313.00M | −5.8% |
| Shares Outstanding (Diluted) | 295.00M313.00M | −5.8% |
05—Questions
Frequently Asked Questions
What was the primary driver of the significant increase in net income in the first quarter of 2026 compared to the first quarter of 2025?
The primary driver was a substantial increase in net income attributable to MPC, rising from a loss of $74 million in Q1 2025 to a profit of $511 million in Q1 2026. This was largely fueled by an increase in total revenues and other income by $2.72 billion, driven by higher sales and other operating revenues, as well as improved refining margins in the Refining & Marketing segment.
How did the company's share repurchase program evolve during this period?
MPC continued its share repurchase activities, with $750 million used in Q1 2026, compared to $1.06 billion in Q1 2025. As of March 31, 2026, $3.63 billion remained under the existing authorization. Importantly, on May 5, 2026, the company announced an additional $5.0 billion share repurchase authorization, signaling ongoing confidence in capital returns to shareholders.
What is the outlook for the Refining & Marketing segment, and what factors are influencing its performance?
The outlook for the Refining & Marketing segment appears constructive. Performance is driven by refining margins, which saw a significant increase in Q1 2026 due to favorable market conditions. The company expects global demand growth to outpace refining capacity additions, supporting U.S. refiners. Key influences on margins include crack spreads, crude oil differentials, and the cost of RINs.
How is MPC managing its liquidity, and what are its financial resources?
MPC's liquidity position is robust. As of March 31, 2026, MPC (excluding MPLX) had total liquidity of $5.64 billion, including $4.99 billion available under its revolving credit facility. Net cash provided by operating activities was $1.12 billion in Q1 2026, a significant improvement from a net cash used of $64 million in Q1 2025. The company believes its liquidity is adequate to fund its operations, capital programs, share repurchases, and other obligations.
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