01—Abstract
Summary
Summary of the 10-Q filed November 3, 2026. Cited figures are marked; the original filing is the authoritative source.
Marathon Petroleum Corporation (MPC) reported a significant surge in financial performance for the nine months ended September 30, 2026, with net income attributable to MPC increasing by over $10.5 billiona compared to the same period in 2025, reaching $13.1 billion.
This substantial growth was driven by a $42 billionb increase in total revenues and other income, largely fueled by higher average refined product sales prices and volumes in the Refining & Marketing segment. The company also benefited from improved regulatory credit values in its Renewable Diesel segment and strategic acquisitions and optimization within its Midstream segment. The company announced a significant divestiture of its St. Paul Park and Mandan refineries for $4.2 billion, expected to close in the fourth quarter of 2026, and a new $5.0 billion share repurchase authorization, underscoring its commitment to shareholder returns and strategic portfolio management.
02—Key points
Key Highlights
- Net income attributable to MPC for the nine months ended September 30, 2026, was $13.1 billion, a substantial increase from $2.51 billion in the prior year period.
- Total revenues and other income for the nine months increased by $41.6 billion to $143.4 billion, primarily driven by the Refining & Marketing segment.
- Refining & Marketing segment adjusted EBITDA saw a dramatic increase to $17.9 billion for the nine months, up from $4.1 billion in the prior year, reflecting strong crack spreads and improved margins.
- The company announced the divestiture of St. Paul Park and Mandan refineries and related assets for $4.2 billion, expected to close in Q4 2026.
- MPC announced an additional $5.0 billion share repurchase authorization, in addition to the existing authorization, demonstrating a strong commitment to returning capital to shareholders.
- The company's cash and cash equivalents significantly increased to $12.8 billion as of September 30, 2026, up from $3.67 billion at the end of 2025, supported by robust operating cash flows.
- Net cash provided by operating activities for the nine months was $22.18 billion, a substantial increase from $5.18 billion in the prior year period.
03—One dollar
Follow one dollar
Of each $1.00 of revenue in Q3 FY2026, Marathon Petroleum kept $0.13.
- Revenue$56.03B100.0%
- Cost of revenue−$43.80B78.2%
- Gross profit$12.24B21.8%
- Operating costs−$1.79B3.2%
- Operating income$10.45B18.7%
- Interest, other & tax−$3.00B5.4%
- Net income$7.45B13.3%
04—Financials
Financial Highlights
Figures from 10-QQ3 FY2026filed November 3, 2026Financial Statements
Q3 FY2026 against Q3 FY2025
| Line item | Q3 FY2026Q3 FY2025 | Change |
|---|---|---|
| Revenue | $56.03B$34.81B | +61.0% |
| Cost of Revenue | $43.80B$31.20B | +40.4% |
| Gross Profit | $12.24B$3.61B | +239.1% |
| SG&A Expenses | $1.10B$863.00M | +27.5% |
| Operating Expenses | $46.04B$33.14B | +38.9% |
| Operating Income | $10.45B$2.71B | +285.2% |
| Interest Expense | $432.00M$368.00M | +17.4% |
| Net Income | $7.45B$1.37B | +443.6% |
| EPS (Basic) | $26.66$4.51 | +491.1% |
| EPS (Diluted) | $26.59$4.51 | +489.6% |
| Shares Outstanding (Basic) | 279.00M303.00M | −7.9% |
| Shares Outstanding (Diluted) | 280.00M304.00M | −7.9% |
05—Questions
Frequently Asked Questions
What were the primary drivers of Marathon Petroleum's significant increase in net income for the nine months ended September 30, 2026?
The substantial increase in net income was driven by a significant rise in total revenues and other income, largely due to higher average refined product sales prices and volumes in the Refining & Marketing segment. Additionally, improved regulatory credit values in the Renewable Diesel segment and strategic asset optimization within the Midstream segment contributed positively.
What major strategic transactions did Marathon Petroleum undertake or announce during the period?
Marathon Petroleum announced the divestiture of its St. Paul Park and Mandan refineries and related midstream assets for $4.2 billion, expected to close in the fourth quarter of 2026. Furthermore, the company announced an additional $5.0 billion share repurchase authorization, indicating a strong focus on capital return to shareholders.
How has the company's liquidity position changed, and what is its outlook?
The company's liquidity position has strengthened considerably, with cash and cash equivalents increasing to $12.8 billion as of September 30, 2026, up from $3.67 billion at the end of 2025. This increase is supported by robust operating cash flows, which more than doubled year-over-year for the nine-month period. The company believes its liquidity is adequate to fund operations, capital expenditures, share repurchases, dividends, and debt obligations.
What is the outlook for the Refining & Marketing segment, and how is it performing?
The Refining & Marketing segment showed exceptional performance, with segment adjusted EBITDA rising significantly due to strong crack spreads and improved margins, benefiting from stable demand and higher product prices influenced by global crude oil supply disruptions. The company anticipates a constructive environment for U.S. refiners due to expected demand growth outpacing capacity additions.
06—Continue