Summary
Valero Energy Corporation (VLO) reported a strong first quarter for 2026, with net income attributable to Valero stockholders of $1.3 billion, a significant turnaround from a net loss of $595 million in the first quarter of 2025. This improvement was driven by robust global demand for petroleum-based transportation fuels, coupled with constrained worldwide supply, which led to higher refining margins. The company's financial performance benefited from strong demand for diesel and an increase in crude oil differentials. The Renewable Diesel segment also showed improvement due to higher product prices and increased clean fuel production credits. However, gasoline margins experienced a decrease, and the company is managing the impact of a fire at its Port Arthur Refinery, which has resumed operations at reduced capacity. Valero generated substantial operating cash flow of $1.4 billion in the quarter and ended with $5.9 billion in cash, cash equivalents, and restricted cash, indicating a healthy liquidity position. The company also continued its share repurchase program and paid dividends, demonstrating a commitment to returning value to shareholders.
Financial Highlights
43 data points| Revenue | $32.38B |
| Cost of Revenue | $30.33B |
| Gross Profit | $2.05B |
| Operating Income | $1.73B |
| Interest Expense | $140.00M |
| Net Income | $1.26B |
| EPS (Basic) | $4.22 |
| EPS (Diluted) | $4.22 |
| Shares Outstanding (Basic) | 298.00M |
| Shares Outstanding (Diluted) | 298.00M |
Key Highlights
- 1Valero achieved a net income of $1.3 billion in Q1 2026, a substantial recovery from a net loss of $595 million in Q1 2025, driven by strong refining margins and product demand.
- 2The Refining segment's adjusted operating income increased by $1.2 billion year-over-year, primarily due to higher distillate margins and increased crude oil differentials.
- 3The Renewable Diesel segment saw its operating income increase by $280 million, supported by rising product prices and increased clean fuel production credits.
- 4The company generated $1.4 billion in cash flow from operations during the quarter, leading to a significant increase in its cash position to $5.9 billion.
- 5Valero experienced a fire at its Port Arthur Refinery on March 23, 2026, which has since resumed operations at reduced capacity; the full impact and repair costs are still being assessed.
- 6The company continues to return capital to shareholders, with $932 million used for share repurchases and dividend payments in Q1 2026.
- 7The Benicia Refinery ceased fuel production operations and is being idled as planned, impacting throughput volumes but offset by increased activity at other refineries.