Third quarter 2026
Filed Oct 22, 2026Valero reported third-quarter net income attributable to stockholders of $6.8 billion, or $23.89 per share, versus $1.1 billion, or $3.53 per share, in the third quarter of 2025.
Third-quarter revenue, operating income, net income, adjusted earnings, operating cash flow, and segment profitability were substantially higher than the prior-year quarter. Refining, Renewable Diesel, and Ethanol each reported stronger profitability, while Valero ended the period with $9.8 billion of cash and cash equivalents and a 4 percent debt-to-capitalization ratio, net of cash and cash equivalents.
Key metrics
shortened, hover for the filing’s print| Metric | Value | q/q | y/y |
|---|---|---|---|
| Revenue, three months ended September 30GAAP | $46.10B | – | – |
| Revenue, nine months ended September 30GAAP | $123.0B | – | – |
| Operating income, three months ended September 30GAAP | $9.07B | – | – |
| Operating income, nine months ended September 30GAAP | $16B | – | – |
| Net income, three months ended September 30GAAP | $6.99B | – | – |
| Net income attributable to Valero Energy Corporation stockholders, three months ended September 30GAAP | $6.83B | – | – |
| Net income attributable to Valero Energy Corporation stockholders, nine months ended September 30GAAP | $11.81B | – | – |
| Earnings per common share, three months ended September 30GAAP | $23.90 | – | – |
| Earnings per common share – assuming dilution, three months ended September 30GAAP | $23.89 | – | – |
| Adjusted net income attributable to Valero Energy Corporation stockholders, three months ended September 30non-GAAP | $6.83B | – | – |
| Adjusted earnings per common share – assuming dilution, three months ended September 30non-GAAP | $23.90 | – | – |
| Adjusted net income attributable to Valero Energy Corporation stockholders, nine months ended September 30non-GAAP | $11.79B | – | – |
| Adjusted earnings per common share – assuming dilution, nine months ended September 30non-GAAP | $40.22 | – | – |
| Refining operating income, three months ended September 30GAAP | $8.78B | – | – |
| Adjusted Refining operating income, three months ended September 30non-GAAP | $8.77B | – | – |
| Refining margin, three months ended September 30non-GAAP | $10.73B | – | – |
| Refining margin per barrel of throughput, three months ended September 30non-GAAP | $39.24 | – | – |
| Adjusted Refining operating income per barrel of throughput, three months ended September 30non-GAAP | $32.09 | – | – |
| Renewable Diesel operating income (loss), three months ended September 30GAAP | $353M | – | – |
| Renewable Diesel margin, three months ended September 30non-GAAP | $510M | – | – |
| Renewable Diesel margin per gallon of sales, three months ended September 30non-GAAP | $1.62 | – | – |
| Ethanol operating income, three months ended September 30GAAP | $272M | – | – |
| Ethanol margin, three months ended September 30non-GAAP | $455M | – | – |
| Ethanol margin per gallon of production, three months ended September 30non-GAAP | $1.03 | – | – |
| Net cash provided by operating activities, three months ended September 30GAAP | $6.93B | – | – |
| Adjusted net cash provided by operating activities, three months ended September 30non-GAAP | $7.25B | – | – |
| Capital investments, three months ended September 30GAAP | $432M | – | – |
| Capital investments attributable to Valero, three months ended September 30non-GAAP | $429M | – | – |
| Dividends per common share, three months ended September 30GAAP | $1.20 | – | – |
| Effective tax rate, third quarter of 2026GAAP | 23 percent | – | – |
Segments
| Segment | Revenue | q/q | y/y |
|---|---|---|---|
| RefiningThird-quarter operating income was $8,782 million, compared to $1,610 million. Throughput volumes were 2,972 thousand barrels per day, compared to 3,087 thousand barrels per day. Refining margin was $10,730 million, compared to $3,731 million. | $44.37B | – | – |
| Renewable DieselThird-quarter operating income was $353 million, compared to an operating loss of $28 million. Sales volumes were 3,423 thousand gallons per day, compared to 2,717 thousand gallons per day, and Renewable Diesel margin was $510 million, compared to $126 million. | $2.39B | – | – |
| EthanolThird-quarter operating income was $272 million, compared to $183 million. Production volumes were 4,799 thousand gallons per day, compared to 4,635 thousand gallons per day, and Ethanol margin was $455 million, compared to $352 million. | $1.42B | – | – |
| Corporate and OtherThird-quarter operating loss was $(334) million, compared to $(256) million. General and administrative expenses were $308 million, compared to $246 million. | −$2.08B | – | – |
Capital returns
- Valero stockholder cash returns resulted in a payout ratio of 52 percent of adjusted net cash provided by operating activities.
- Dividends per common share were $1.20 for the three months ended September 30, 2026.
- Valero repaid the outstanding principal balances of $100 million of 7.65% Debentures that matured in July and $426 million of 3.400% Senior Notes that matured in September.
What drove it
- Refining operating income was $8,782 million and Refining margin was $10,730 million in the third quarter of 2026.
- U.S. Gulf Coast Refining margin was $6,472 million, U.S. Mid-Continent Refining margin was $1,706 million, North Atlantic Refining margin was $2,127 million, and U.S. West Coast Refining margin was $425 million.
- Renewable Diesel operating income improved to $353 million from an operating loss of $28 million, while Renewable Diesel margin rose to $510 million from $126 million.
- Ethanol production volumes averaged 4.8 million gallons per day, setting a new quarterly record.
- The St. Charles FCC Unit optimization project was completed during the third quarter, on schedule and within budget. The project is operational and is expected to enhance the refinery’s ability to produce higher-value products.
- The release stated that refineries operated at near-record utilization rates during the quarter.
Concerns
- Refining throughput volumes were 2,972 thousand barrels per day in the third quarter of 2026, compared to 3,087 thousand barrels per day in the third quarter of 2025.
- U.S. West Coast throughput volumes were 119 thousand barrels per day, compared to 259 thousand barrels per day, following the phased idling and cessation of refining operations at the Benicia Refinery.
- Other operating expenses included $4 million of repair costs directly attributable to the March 2026 incident at the Port Arthur Refinery.
- The release identifies market dynamics, crude oil and petroleum product market disruptions, inflation, legislative or political changes, tariffs, low-carbon-fuels regulation, geopolitical conflicts, weather events, cyberattacks, and Port Arthur Refinery uncertainties as factors that could affect results.
What to watch
- Refining margin per barrel of throughput was $39.24 in the third quarter of 2026, compared to $13.14 in the third quarter of 2025.
- Renewable Diesel margin per gallon of sales was $1.62, compared to $0.50.
- Ethanol margin per gallon of production was $1.03, compared to $0.83.
- The operational performance and higher-value-product contribution of the completed St. Charles FCC Unit optimization project.
- The continuing decommissioning and redevelopment activities at the Benicia Refinery, which are reported in Corporate and Other effective in the second quarter of 2026.
- Capital investments attributable to Valero were $429 million for the third quarter and $1,205 million for the nine months ended September 30, 2026.
Balance sheet and cash flow
- Valero ended the third quarter of 2026 with $8.6 billion of total debt, $2.4 billion of total finance lease obligations, and $9.8 billion of cash and cash equivalents.
- Total debt was $8,579 million as of September 30, 2026, compared to $8,261 million as of December 31, 2025.
- Total finance lease obligations were $2,422 million as of September 30, 2026, compared to $2,358 million as of December 31, 2025.
- Cash and cash equivalents included in current assets were $9,840 million as of September 30, 2026, compared to $4,688 million as of December 31, 2025.
- The debt to capitalization ratio, net of cash and cash equivalents, was 4 percent as of September 30, 2026.
- Net cash provided by operating activities was $6,932 million for the third quarter of 2026. Adjusted net cash provided by operating activities was $7,253 million.
- Capital investments totaled $432 million, including $371 million for sustaining the business, including costs for turnarounds, catalysts and regulatory compliance.
Analysis
Valero reported a sharply stronger third quarter. Revenue was $46,098 million, compared with $32,168 million in the third quarter of 2025, while operating income was $9,073 million, compared with $1,509 million. Net income attributable to Valero Energy Corporation stockholders was $6,828 million, or $23.89 per diluted share, compared with $1,095 million, or $3.53 per diluted share. Adjusted net income attributable to Valero stockholders was $6,831 million and adjusted diluted earnings per share were $23.90.
Refining remained the principal earnings contributor. The segment generated operating income of $8,782 million and Refining margin of $10,730 million, compared with $1,610 million and $3,731 million, respectively, in the prior-year quarter. Refining throughput volumes were 2,972 thousand barrels per day versus 3,087 thousand barrels per day. The reported improvement was therefore associated with substantially higher reported Refining margin per barrel of throughput of $39.24 versus $13.14. All four reported regions delivered positive Refining operating income, including $5,246 million in the U.S. Gulf Coast, $1,394 million in the U.S. Mid-Continent, $1,837 million in North Atlantic, and $305 million in the U.S. West Coast.
The low-carbon and ethanol operations also improved. Renewable Diesel moved to operating income of $353 million from an operating loss of $28 million, supported by sales volumes of 3,423 thousand gallons per day and Renewable Diesel margin of $1.62 per gallon of sales. Ethanol operating income was $272 million versus $183 million, as production reached 4,799 thousand gallons per day and Ethanol margin was $1.03 per gallon of production. The company also completed the St. Charles FCC Unit optimization project on schedule and within budget, and stated that the project is expected to enhance production of higher-value products.
Cash generation and liquidity were substantial. Net cash provided by operating activities was $6,932 million, while adjusted net cash provided by operating activities was $7,253 million after excluding a $526 million unfavorable impact from working capital and $205 million associated with the other joint venture member’s share of DGD. Capital investments attributable to Valero were $429 million. Valero reported a 52 percent payout ratio of adjusted operating cash flow, repaid $100 million of debentures and $426 million of senior notes, and ended the quarter with $9.8 billion of cash and cash equivalents, $8.6 billion of total debt, and a 4 percent debt-to-capitalization ratio net of cash.
The release did not provide forward financial or operational guidance. Key reported operating items to follow include the durability of Refining margins, Renewable Diesel margin, the contribution from the St. Charles project, the ongoing impact of the Benicia refinery cessation, and repair costs associated with the March 2026 Port Arthur Refinery incident.
Management, verbatim
Our refineries operated at near-record utilization rates, providing a reliable supply of critical transportation fuels during the quarter.
Lane Riggs, Chairman, Chief Executive Officer and President
We also completed the St. Charles FCC Unit optimization project, which increases the production capacity of higher value products, including alkylate and gasoline, further strengthening our ability to supply transportation fuels to the market.
Lane Riggs, Chairman, Chief Executive Officer and President
Our third-quarter performance underscores the quality of our assets and our consistent operational, commercial, and financial performance.
Lane Riggs, Chairman, Chief Executive Officer and President
Not in the filing
stated, not guessed- Forward guidance for revenue, margins, operating expenses, tax rate, capital investments, throughput, sales volumes, production volumes, dividends, or other financial metrics was not provided.
- Previous-release outlook was not provided, so a comparison of actual results with prior guidance is unavailable.
- GAAP gross margin was not reported.
- Free cash flow was not reported.
- Share repurchases and the dollar amount of total stockholder cash returns were not reported.
- Sequential prior-quarter figures and quarter-over-quarter changes were not reported for the disclosed metrics.
- Year-over-year percentage changes were not reported for the disclosed consolidated and segment metrics.
Written by an AI language model from the company’s SEC earnings filing (Form 8-K Item 2.02, or Form 6-K for a foreign private issuer). Every figure is checked against the filing text, and a metric the filing does not print, or whose value, prior period and change do not add up, is dropped from the metrics. The model can still misread a table, in the metrics or in the text, so check a number in the filing before you rely on it. Consensus estimates, price targets and share-price reactions are not shown because they are not in the filing. AI-generated research, not investment advice.