Valero Energy reports Q2 2026 earnings and revenue beats as refining profits and renewable diesel results strengthen.
Stock Earnings Results
July 30, 2026
Table of Contents
July 30, 2026
Valero Energy Corporation (NYSE: VLO) reported second-quarter 2026 results above expectations, supported by sharply higher refining profit, stronger renewable diesel results, higher ethanol operating income, strong operating cash flow, and large stockholder cash returns.
Valero is a multinational manufacturer and marketer of petroleum-based and low-carbon liquid transportation fuels and petrochemical products. The company operates refineries in the United States, Canada, and the United Kingdom, owns ethanol plants in the U.S. Mid-Continent, and participates in the Diamond Green Diesel joint venture.
The company reported adjusted EPS of $12.54, above estimates of $9.87, representing a 27.1% earnings surprise. Revenue came in at $44.48 billion, above estimates of $35.95 billion, with revenue growth of 48.8%.
Revenue increased to $44.48 billion from $29.89 billion in the prior-year quarter.
Net income attributable to Valero stockholders was $3.72 billion, or $12.62 per share.
Adjusted net income attributable to Valero stockholders was $3.70 billion, or $12.54 per share.
That compared with net income attributable to Valero stockholders of $714 million, or $2.28 per share, in the prior-year quarter.
Operating income increased to $5.20 billion from $997 million a year earlier.
The Refining segment reported operating income of $4.47 billion.
That compared with $1.27 billion in the prior-year quarter.
Adjusted Refining operating income was $4.44 billion.
Refining throughput volumes averaged 3.0 million barrels per day.
Refining margin increased to $6.34 billion from $3.28 billion in the prior-year quarter.
Adjusted Refining operating income per barrel of throughput increased to $16.56 from $4.78.
The Renewable Diesel segment reported operating income of $717 million.
That compared with an operating loss of $79 million in the prior-year quarter.
The segment includes Valero’s Diamond Green Diesel joint venture.
Sales volumes averaged 3.8 million gallons per day.
Renewable Diesel margin increased to $879 million from $54 million a year earlier.
Renewable Diesel operating income per gallon of sales improved to $2.06 from a loss of $0.32.
The Ethanol segment reported operating income of $318 million.
That compared with $54 million in the prior-year quarter.
Ethanol production volumes averaged 4.7 million gallons per day.
Ethanol margin increased to $489 million from $217 million.
Ethanol operating income per gallon of production increased to $0.75 from $0.13.
Net cash provided by operating activities was $5.58 billion.
Adjusted net cash provided by operating activities was $4.49 billion.
Capital investments totaled $350 million.
Capital investments attributable to Valero were $346 million.
Valero returned $2.6 billion to stockholders during the quarter.
The payout ratio was 59% of adjusted net cash provided by operating activities.
The company also declared a quarterly cash dividend of $1.20 per share on July 16.
Valero ended the quarter with $7.87 billion in cash and cash equivalents.
Total debt was $9.10 billion.
Total finance lease obligations were $2.25 billion.
The debt-to-capitalization ratio, net of cash and cash equivalents, was 11%.
Management said the balance sheet gives Valero significant financial flexibility.
Valero continued to advance the St. Charles FCC Unit optimization project.
The $230 million project is expected to improve the refinery’s ability to produce higher-value products.
The company still expects the project to be completed and begin operations in the third quarter of 2026.
Valero delivered a much stronger quarter as refining margins and fuel demand supported earnings.
Revenue beat expectations, adjusted EPS came in well above estimates, operating income increased sharply, and all three operating segments improved. The company also generated strong cash flow and returned $2.6 billion to stockholders through dividends and buybacks.
The key question is whether refining margins, renewable diesel economics, and ethanol profitability can remain strong after a major quarter.
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