second quarter of 2026
Filed Jul 30, 2026Valero Energy Reports Second Quarter 2026 Results
Second-quarter net income attributable to Valero stockholders rose to $3.7 billion from $714 million, while all three operating segments reported substantially higher operating income and stockholder cash returns totaled $2.6 billion.
Key metrics
as reported| Metric | Value | q/q | y/y |
|---|---|---|---|
| RevenuesGAAP | $44,476 | – | – |
| Operating incomeGAAP | $5,196 | – | – |
| Income before income tax expenseGAAP | $5,167 | – | – |
| Income tax expenseGAAP | $1,094 | – | – |
| Net incomeGAAP | $4,073 | – | – |
| Net income attributable to Valero Energy Corporation stockholdersGAAP | $3,720 | – | – |
| Earnings per common shareGAAP | $12.62 | – | – |
| Earnings per common share – assuming dilutionGAAP | $12.62 | – | – |
| Adjusted net income attributable to Valero stockholdersnon-GAAP | $3.7 billion | – | – |
| Adjusted earnings per common share – assuming dilutionnon-GAAP | $12.54 per share | – | – |
| Refining operating incomeGAAP | $4.5 billion | – | – |
| Adjusted Refining operating incomenon-GAAP | $4.4 billion | – | – |
| Renewable Diesel operating incomeGAAP | $717 million | – | – |
| Ethanol operating incomeGAAP | $318 million | – | – |
| General and administrative expensesGAAP | $233 million | – | – |
| Effective tax rateGAAP | 21 percent | – | – |
| Net cash provided by operating activitiesGAAP | $5.6 billion | – | – |
| Adjusted net cash provided by operating activitiesnon-GAAP | $4.5 billion | – | – |
| Capital investmentsGAAP | $350 million | – | – |
| Capital investments attributable to Valeronon-GAAP | $346 million | – | – |
| Six-month revenuesGAAP | $76,857 | – | – |
| Six-month operating incomeGAAP | $6,927 | – | – |
| Six-month net income attributable to Valero Energy Corporation stockholdersGAAP | $4,983 | – | – |
| Six-month earnings per common share – assuming dilutionGAAP | $16.78 | – | – |
third quarter of 2026 outlook
- NoteThe $230 million St. Charles FCC Unit optimization project is still expected to be completed and begin operations.
Capital returns
- Valero stockholder cash returns totaled $2.6 billion in the second quarter of 2026.
- Valero stockholder cash returns resulted in a payout ratio of 59 percent of adjusted net cash provided by operating activities.
- Valero declared a regular quarterly cash dividend on common stock of $1.20 per share on July 16, 2026.
What drove it
- Management cited excellent operations and commercial execution across Refining, Renewable Diesel, and Ethanol.
- Refineries, renewable diesel plants, and ethanol plants operated safely and reliably, helping to meet resilient demand for transportation fuels.
- Refining throughput volumes averaged 3.0 million barrels per day in the second quarter of 2026.
- Renewable Diesel segment sales volumes averaged 3.8 million gallons per day in the second quarter of 2026.
- Ethanol production volumes averaged 4.7 million gallons per day in the second quarter of 2026.
Concerns
- The release identifies risks from legislative or political changes, market dynamics, cyberattacks, weather events, inflation, crude oil and petroleum product market disruptions, economic activity levels, and refined-product supply and demand imbalances.
- Forward-looking statements cite ongoing uncertainties related to the Port Arthur Refinery.
- The filing does not provide forward financial guidance for revenue, margins, operating expenses, or tax rate.
What to watch
- Completion and start-up of the St. Charles FCC Unit optimization project in the third quarter of 2026.
- Refining throughput volumes, Renewable Diesel sales volumes, and Ethanol production volumes.
- Working-capital effects on operating cash flow.
- The level and composition of stockholder cash returns relative to adjusted net cash provided by operating activities.
Balance sheet and cash flow
- Net cash provided by operating activities was $5.6 billion in the second quarter of 2026.
- Net cash provided by operating activities included a $706 million favorable impact from working capital.
- Net cash provided by operating activities included $389 million of adjusted net cash provided by operating activities associated with the other joint venture member’s share of DGD.
- Capital investments totaled $350 million, of which $290 million was for sustaining the business, including costs for turnarounds, catalysts and regulatory compliance.
- Valero ended the second quarter of 2026 with $9.1 billion of total debt, $2.2 billion of total finance lease obligations, and $7.9 billion of cash and cash equivalents.
- The debt to capitalization ratio, net of cash and cash equivalents, was 11 percent as of June 30, 2026.
Analysis
Valero reported a strong second quarter of 2026. Revenues were $44,476, compared with $29,889 in the second quarter of 2025, and GAAP operating income was $5,196 versus $997. Net income attributable to Valero Energy Corporation stockholders was $3,720, or $12.62 per common share, compared with $714, or $2.28 per share. Adjusted net income attributable to Valero stockholders was $3.7 billion, or $12.54 per share.
The improvement was broad across the operating portfolio. Refining operating income was $4.5 billion compared with $1.3 billion, and adjusted Refining operating income was $4.4 billion. Renewable Diesel moved from an operating loss of $79 million to operating income of $717 million, while Ethanol operating income rose from $54 million to $318 million. Management attributed the performance to operations and commercial execution, and cited resilient demand for transportation fuels. Refining throughput averaged 3.0 million barrels per day, Renewable Diesel sales volumes averaged 3.8 million gallons per day, and Ethanol production volumes averaged 4.7 million gallons per day.
Cash generation and capital allocation were also significant features of the period. Net cash provided by operating activities was $5.6 billion, including a $706 million favorable working-capital impact and $389 million associated with the other joint venture member’s share of DGD. Adjusted net cash provided by operating activities was $4.5 billion. Capital investments totaled $350 million, including $290 million for sustaining the business, while capital investments attributable to Valero were $346 million. Stockholder cash returns totaled $2.6 billion and represented a 59 percent payout ratio of adjusted net cash provided by operating activities.
The balance sheet ended the period with $9.1 billion of total debt, $2.2 billion of total finance lease obligations, and $7.9 billion of cash and cash equivalents. The debt to capitalization ratio, net of cash and cash equivalents, was 11 percent. Valero also declared a regular quarterly cash dividend of $1.20 per share on July 16, 2026.
The only quantified forward item was the St. Charles FCC Unit optimization project. The $230 million project is still expected to be completed and begin operations in the third quarter of 2026. The release did not provide numerical guidance for revenue, margins, operating expenses, tax rate, cash flow, or capital investment, making operational execution and the FCC project timing the principal disclosed forward markers.
Management, verbatim
We are pleased to report a strong second quarter, driven by excellent operations and commercial execution across all three of our business segments.
Lane Riggs, Chairman, Chief Executive Officer and President
Our refineries, renewable diesel plants, and ethanol plants operated safely and reliably, helping to meet resilient demand for transportation fuels.
Lane Riggs, Chairman, Chief Executive Officer and President
Our strong results reflect the discipline and consistency of our operational and commercial execution.
Lane Riggs, Chairman, Chief Executive Officer and President
Not in the filing
stated, not guessed- Segment revenue for Refining, Renewable Diesel, and Ethanol was not available in the provided filing text.
- Gross profit and gross margin were not reported in the provided filing text.
- Quarter-over-quarter comparisons for reported financial and operating metrics were not reported.
- Prior-year comparisons for adjusted net income, adjusted earnings per share, adjusted Refining operating income, operating cash flow, capital investments, capital returns, cash, debt, and tax rate were not reported.
- Free cash flow was not reported.
- Share repurchase amount and shares repurchased were not reported.
- Forward financial guidance for revenue, gross margin, operating expenses, tax rate, cash flow, and capital investments was not reported.
- Prior outlook was not provided.
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.