10-QPeriod: Q1 FY2026

Marathon Petroleum Corp Quarterly Report for Q1 Ended Mar 31, 2026

Filed May 5, 2026For Securities:MPC

Summary

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 million, 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.

Financial Highlights

49 data points
Beta

Revenue

$34.20B

8.6% Gross Margin

Net Income

$511.00M

1.5% Net Margin

EPS (Diluted)

$1.73

Total Assets

$88.19B

Cash & Equivalents

$2.15B

Free Cash Flow

$208.00M

Financial Statements
Beta
Revenue$34.20B
Cost of Revenue$31.26B
Gross Profit$2.94B
SG&A Expenses$867.00M
Operating Expenses$33.16B
Operating Income$1.40B
Interest Expense$420.00M
Net Income$511.00M
EPS (Basic)$1.73
EPS (Diluted)$1.73
Shares Outstanding (Basic)295.00M
Shares Outstanding (Diluted)295.00M

Key Highlights

  • 1Net 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.
  • 2Total 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.
  • 3Refining & Marketing segment adjusted EBITDA saw a substantial increase of $888 million to $1.38 billion in Q1 2026, primarily due to improved refining margins.
  • 4Midstream segment adjusted EBITDA decreased by $122 million to $1.60 billion in Q1 2026, mainly due to derivative losses and acquisition/divestiture activity.
  • 5The 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.
  • 6MPC 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.

Frequently Asked Questions

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.

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.

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.

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.