10-KPeriod: FY2025

VALERO ENERGY CORP/TX Annual Report, Year Ended Dec 31, 2025

Filed February 25, 2026For Securities:VLO

Summary

Valero Energy Corporation (VLO) reported strong operational performance for the year ended December 31, 2025, with net income attributable to stockholders of $2.3 billion. This was driven by robust demand for petroleum-based transportation fuels and favorable refining margins, although partially offset by an $1.1 billion asset impairment loss related to its California operations and negative impacts from trade and policy changes affecting its Renewable Diesel segment. The company generated $5.8 billion in cash from operations, which was used to fund capital investments, return $4.0 billion to stockholders through dividends and share repurchases, and repay debt. Valero's diversified business model spans Refining, Renewable Diesel, and Ethanol segments. The Refining segment demonstrated strength with increased margins and throughput volumes, contributing significantly to adjusted operating income. The Renewable Diesel segment faced headwinds from higher feedstock costs and changes in tax incentives but saw a favorable impact from higher product prices. The Ethanol segment also experienced margin improvement and increased production volumes. The company maintains a strong liquidity position with $9.8 billion in total liquidity as of December 31, 2025, and continues to invest in its low-carbon fuels business, having invested $6.0 billion to date.

Financial Statements
Beta
Revenue$122.69B
Cost of Revenue$117.25B
Gross Profit$5.43B
Operating Income$3.18B
Interest Expense$556.00M
Net Income$2.35B
EPS (Basic)$7.57
EPS (Diluted)$7.57
Shares Outstanding (Basic)309.00M
Shares Outstanding (Diluted)309.00M

Key Highlights

  • 1Valero reported a net income of $2.3 billion for the year ended December 31, 2025, supported by strong refining margins and demand for its products.
  • 2The company generated $5.8 billion in cash flow from operations and returned $4.0 billion to shareholders via dividends and share repurchases.
  • 3An asset impairment loss of $1.1 billion was recognized related to the company's California operations, specifically the Benicia and Wilmington refineries.
  • 4The Renewable Diesel segment experienced a decrease in operating income due to higher feedstock costs and a decline in the value of low-carbon fuel tax incentives.
  • 5The company invested $1.9 billion in capital investments, with a significant portion directed towards sustaining operations and continuing its low-carbon fuels growth strategy.
  • 6Valero maintained a strong liquidity position with $9.8 billion in total liquidity as of December 31, 2025.
  • 7The company announced a new $2.5 billion share repurchase authorization, adding to the remaining amount from a previous program.

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