Valero Energy beats estimates as refining margins surge

SAN ANTONIO - On Thursday, Valero Energy Corporation (NYSE:VLO) reported third quarter earnings that exceeded analyst expectations, driven by strong refining margins and record throughput volumes in key regions.

The company’s stock edged up 0.51% following the announcement.

The oil refiner posted adjusted earnings of $3.66 per share, significantly beating the analyst estimate of $3.04. Revenue came in at $32.17 billion, surpassing the consensus forecast of $30.67 billion. The company’s refining segment reported operating income of $1.6 billion for the quarter, nearly tripling from $565 million in the same period last year.

"We are pleased to report strong financial results for the third quarter, highlighting our long-standing track record of operational and commercial excellence," said Lane Riggs, Valero’s Chairman, CEO and President. "Our refinery throughput utilization was 97 percent, with the Gulf Coast and North Atlantic regions setting new all-time highs for throughput."

Refining margins expanded to $13.14 per barrel of throughput, up from $9.09 in the third quarter of 2024. The company’s ethanol segment also performed well, reporting operating income of $183 million compared to $153 million a year earlier, achieving record production volumes of 4.6 million gallons per day.

The renewable diesel segment, however, posted an operating loss of $28 million versus operating income of $35 million in the prior-year period.

Valero returned $1.3 billion to stockholders during the quarter through $351 million in dividends and $931 million in share repurchases, resulting in a 78% payout ratio of adjusted net cash provided by operating activities.

The company continues to make progress on its FCC Unit optimization project at the St. Charles Refinery, which is expected to begin operations in the second half of 2026 and will enhance the refinery’s ability to produce high-value products.

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