Murphy USA Inc. (MUSA): Results of Operations and Financial Condition
Murphy USA Inc. (MUSA) filed an SEC Form 8-K — Results of Operations and Financial Condition. Exhibit 99.1 Murphy USA Inc. Reports Second Quarter 2026 Results El Dorado, Arkansas, August 5, 2026 (BUSINESS WIRE) – Murphy USA Inc. (NYSE: MUSA), a leading marketer of retail motor fuel products and convenience merchandise, today announced financial results for the three and s
How this was made
The 30-second read
Why it matters
Traders can update valuation and positioning based on the quarter’s quantified improvement in fuel contribution (cpg), merchandise contribution, and the company’s explicit 2026 Net Income and Adjusted EBITDA estimate.
Market read
Fresh quarterly earnings data plus a management-provided 2026 earnings trajectory can drive immediate repricing versus prior expectations.
What to watch
Payment fees rose due to higher retail fuel prices and accounted for two-thirds of operating expense increases, so any reversal in fuel price levels could swing costs and margins quickly.
Murphy USA Inc. Reports Second Quarter 2026 Results
Q2 net income, diluted EPS, Adjusted EBITDA, total fuel contribution, retail fuel volumes, and merchandise contribution increased versus Q2 2025, while the company indicated it is on pace to deliver significantly higher full-year Net Income and Adjusted EBITDA assuming stated second-half fuel-margin conditions.
Key metrics
as reported| Metric | Value | q/q | y/y |
|---|---|---|---|
| Net income (loss)GAAP | $209.1 million | – | – |
| Earnings per share (diluted)GAAP | $11.27 per diluted share | – | – |
| Adjusted EBITDAnon-GAAP | $377.3 million | – | – |
| Six-month net income (loss)GAAP | $345.4 million | – | – |
| Six-month earnings per share (diluted)GAAP | $18.54 per diluted share | – | – |
| Six-month Adjusted EBITDAnon-GAAP | $655.2 million | – | – |
| Total retail fuel contributionother | $448.9 million | – | 25.0% |
| Total fuel supply contributionother | $(54.9) million | – | – |
| RINs (included in Other operating revenues on Consolidated Income Statement)other | $124.8 million | – | – |
| Total fuel contributionother | $518.8 million | – | 32.0% |
| Retail fuel volume - chainother | 1,277.6 million gal | – | 3.9% |
| Retail fuel volume - (K gal APSM)other | 242.4 K gal APSM | – | – |
| Retail fuel volume - (K gal SSS)other | 242.6 K gal SSS | – | 0.5% |
| Total fuel contributionother | 40.6 cpg | – | – |
| Retail fuel marginother | 35.1 cpg | – | 20.2% |
| Fuel supply including RINs contributionother | 5.5 cpg | – | – |
| Six-month total fuel contributionother | $922.7 million | – | – |
| Six-month retail fuel marginother | 30.5 cpg | – | – |
| Six-month total fuel contributionother | 37.9 cpg | – | – |
| Total merchandise contributionother | $227.4 million | – | 4.0% |
| Total merchandise salesother | $1,132.1 million | – | – |
| Total merchandise sales ($K SSS)other | $212.0 | – | – |
| Merchandise unit marginother | 20.1% | – | – |
| Nicotine contribution ($K SSS)other | $20.6 | – | – |
| Non-nicotine contribution ($K SSS)other | $22.7 | – | – |
| Total merchandise contribution ($K SSS)other | $43.3 | – | 2.2% |
| Six-month total merchandise contributionother | $437.6 million | – | – |
| Six-month total merchandise salesother | $2,181.3 million | – | – |
| Six-month merchandise unit marginother | 20.1% | – | – |
| Total store and other operating expensesother | $308.7 million | – | – |
| Store OPEX excluding payment fees and rent ($K APSM)other | $36.5 | – | 1.1% |
| Total SG&A costother | $60.5 million | – | – |
| Effective income tax rateGAAP | approximately 24.7% | – | – |
| Cash and cash equivalentsGAAP | $175.4 million | – | – |
| Long-term debt, including finance lease obligationsGAAP | $2,167.0 million | – | – |
| Average shares outstanding (diluted)GAAP | 18,552 thousand | – | – |
Segments
| Segment | Revenue | q/q | y/y |
|---|---|---|---|
| FuelHigher total fuel contribution margin and higher retail fuel volumes; fuel supply contribution including RINs increased primarily due to market-driven pricing and the timing of inventory activity during the period. | $518.8 million total fuel contribution | – | 32.0% |
| MerchandiseHigher merchandise sales volume and improved unit margins drove total merchandise contribution growth. | $1,132.1 million total merchandise sales | – | – |
Full-year 2026 outlook
- Gross marginFull-year merchandise margin towards the low end of the guided range
- Operating expensesStore OPEX excluding payment fees and rent: $37.0 to $38.0 ($K, APSM), low-end; SG&A: $240 to $250 million, low-end
- Tax rate23% to 25%, higher-end
- NoteOrganic Growth New Stores: 45 to 55, unchanged
- NoteRaze-and-Rebuilds: Up to 30, low-end
- NoteRetail fuel volume per store: 233 to 237 (K gallons APSM), unchanged
- NoteRetail fuel volume per store (same-store YoY): (3.0)% to (1.0)%, unchanged
- NoteMerchandise contribution: $890 to $900 million, low-end
- NoteCapital expenditures: $475 to $525 million, higher-end
- NoteAssuming second half all-in fuel margins average 35 cents per gallon, versus 37.9 cents per gallon in the first half, the company expects Net Income of approximately $636 million and Adjusted EBITDA of approximately $1.25 billion.
Capital returns
- Repurchased approximately 143.1 thousand common shares for $76.8 million at an average price of $536.60 per share during Q2 2026.
- Approximately $145.1 million remained available under the existing $1.5 billion 2023 authorization as of June 30, 2026.
- The company had $2.0 billion of capacity available under its previously announced share repurchase 2025 authorization, which becomes effective upon completion of the 2023 authorization and expires on December 31, 2030.
- Paid a quarterly cash dividend of $0.64 per share, or $2.56 per share on an annualized basis, on June 1, 2026, for a total cash payment of $11.8 million.
- Year-to-date dividends were $23.5 million, or $1.27 per share.
What drove it
- Higher total fuel contribution margins and a 3.9% increase in total retail fuel volumes drove fuel contribution growth.
- Retail fuel margins were 35.1 cpg, and fuel supply including RINs contribution was 5.5 cpg.
- Merchandise contribution growth reflected higher sales volume and a 20.1% merchandise unit margin.
- Total nicotine contribution dollars increased 6.1%, while non-nicotine contribution dollars increased 2.9%.
- The store portfolio had a net change of 3 stores in Q2 2026 and 6 stores year to date in 2026.
Concerns
- Increased retail fuel prices led to a significant increase in payment fees that accounted for two-thirds of the increase in operating expenses for the quarter.
- Total store and other operating expenses increased to $308.7 million, and total SG&A cost increased to $60.5 million.
- Higher income taxes, general and administrative expenses, depreciation and amortization, and interest expense partially offset contribution growth.
- Total fuel supply contribution was $(54.9) million in Q2 2026.
- The ultimate outcome within fuel-volume guidance ranges is highly dependent on the macro fuel environment.
What to watch
- Second-half all-in fuel margins relative to the 35 cents per gallon assumption cited by management.
- Full-year retail fuel volume per store guidance of 233 to 237 K gallons APSM and same-store volume guidance of (3.0)% to (1.0)%.
- Delivery against the low-end expectation for merchandise contribution, merchandise margin, store OPEX excluding payment fees and rent, and SG&A.
- Delivery against the higher-end expectation for the effective tax rate and capital expenditures.
- New-store development, with 32 NTI stores and 4 raze-and-rebuilds under construction at the end of Q2.
Balance sheet and cash flow
- Cash and cash equivalents were $175.4 million as of June 30, 2026.
- Long-term debt, including finance lease obligations, was $2,167.0 million as of June 30, 2026.
- Issued $500 million aggregate principal amount of 5.875% Senior Notes due 2034 during the quarter.
- Retired $300 million 5.625% Senior Notes due 2027 during the quarter.
- The revolving credit facility due 2030 was undrawn at quarter end.
- Common shares outstanding were 18,380,347 at June 30, 2026.
Analysis
Murphy USA reported materially higher Q2 profitability versus Q2 2025. Net income was $209.1 million and diluted EPS was $11.27, compared with $145.6 million and $7.36 per diluted share, respectively. Adjusted EBITDA was $377.3 million compared with $286.0 million. For the six months ended June 30, 2026, net income was $345.4 million and Adjusted EBITDA was $655.2 million.
Fuel was the central contributor to the quarter's improvement. Total fuel contribution was $518.8 million, compared with $393.0 million, supported by a 35.1 cpg retail fuel margin, 5.5 cpg of fuel supply including RINs contribution, and a 3.9% increase in chain retail fuel volume. Same-store fuel volume increased 0.5%. Management attributed the fuel supply contribution improvement to market-driven pricing and the timing of inventory activity.
Merchandise performance also improved, though at a more modest rate than fuel. Total merchandise contribution rose 4.0% to $227.4 million as total merchandise sales reached $1,132.1 million and unit margin was 20.1%. Total merchandise contribution increased 2.2% on a same-store basis. Nicotine contribution growth outpaced non-nicotine contribution growth, with reported increases of 6.1% and 2.9%, respectively.
Expenses increased alongside the higher contribution. Total store and other operating expenses were $308.7 million and total SG&A cost was $60.5 million. The company stated that payment fees resulting from increased retail fuel prices accounted for two-thirds of the operating-expense increase, while employee-related costs, incentive accruals, depreciation and amortization, interest expense, and taxes also increased. Store OPEX excluding payment fees and rent was 1.1% higher on an APSM basis.
The company continued both development and shareholder-return activity. The portfolio grew by a net 3 stores during Q2, while 36 projects were under construction at quarter end. Murphy USA repurchased approximately 143.1 thousand shares for $76.8 million and paid $11.8 million in quarterly dividends. It also issued $500 million of 5.875% Senior Notes due 2034, retired $300 million of 5.625% Senior Notes due 2027, and ended the quarter with an undrawn revolving credit facility.
Full-year operating guidance remained largely within the original ranges, with several expectations positioned at the low end, including merchandise contribution, store OPEX excluding payment fees and rent, and SG&A. The effective tax rate and capital expenditures are expected at the higher end of their respective ranges. Management additionally stated that, if second-half all-in fuel margins average 35 cents per gallon, it expects approximately $636 million of Net Income and approximately $1.25 billion of Adjusted EBITDA for 2026.
Management, verbatim
Murphy USA delivered another quarter of strong financial and operational performance, demonstrating the earnings power and durability of our low-cost, high-volume business model.
Mindy West, President and CEO
Given strong year-to-date results, while we remain in line with most of our guided performance metrics, market conditions remain supportive of healthy retail margins and suggest the business is on pace to deliver significantly higher Net Income and Adjusted EBITDA in 2026.
Mindy West, President and CEO
Not in the filing
stated, not guessed- Total revenue was not reported in the provided filing text.
- Gross profit and consolidated gross margin were not reported in the provided filing text.
- Operating income was not reported in the provided filing text.
- Operating cash flow was not reported in the provided filing text.
- Free cash flow was not reported in the provided filing text.
- Prior-quarter comparisons for reported metrics were not provided.
- A prior-release outlook was not provided; therefore, no reported-result comparison with prior guidance is included.
- The provided filing text ends mid-sentence in the 2026 Guidance Update, so any guidance content after "Income taxes should land" is unavailable.
AlphaAI analysis generated from the company’s SEC earnings filing (Form 8-K Item 2.02, or Form 6-K for a foreign private issuer). Every figure was cross-checked against the filing text; consensus estimates, price targets and share-price reactions are not shown because they are not in the filing. AI-generated research, not investment advice.
Background
The SEC 8-K files Murphy USA’s Q2 2026 results (three and six months ended June 30, 2026) and includes operating metrics, capital allocation, and a 2026 earnings/EBITDA estimate based on an assumed second-half fuel margin.
Ticker impact
Murphy USA reported Q2 2026 net income of $209.1M, up from $145.6M, plus higher fuel contribution (40.6 cpg vs 32.0 cpg) and a 2026 outlook.
Likely positive near-term bias as the quarter beat prior-year metrics and management reiterated an earnings path for 2026.
The filing includes multiple quantified operating drivers (fuel cpg, merchandise contribution, volumes) and a forward-looking estimate assuming second-half fuel margins, which can directly re-anchor trader expectations.
Market effects
Improving retail fuel contribution and merchandise margins reinforce the earnings sensitivity of convenience retailers to fuel margin volatility and payment-fee pass-through.
No specific regional demand shock is disclosed; impact is company-specific to store volumes and margin structure.
Limited global relevance; primarily US retail fuel and convenience merchandise economics.
Counterpoint
The outlook depends on an assumed second-half all-in fuel margin of 35 cents per gallon, below first-half 37.9 cents, so margin compression risk remains.
Key entities
- companyMurphy USA Inc.
NYSE-listed retailer and fuel marketer reporting Q2 2026 results and providing a 2026 Net Income and Adjusted EBITDA estimate.
- executiveMindy West
CEO quoted on quarter performance and margin/earnings durability.
