Murphy USA tops Q3 profit estimates on higher fuel contribution

Murphy USA Inc. (MUSA) earned $9.59 per diluted share in the third quarter of 2026, topping the $8.61 consensus estimate compiled by Finnhub. Revenue of $6.89 billion also beat the $6.31 billion estimate, the company said in a filing on Oct. 28.

Net income rose to $176.0 million from $129.9 million a year earlier. Adjusted EBITDA, or earnings before interest, taxes, depreciation and amortization with certain items added back, reached $336.6 million, compared with $285.1 million.

Here's how the company did:

• Diluted EPS: $9.59 vs. $6.76 a year earlier, against the $8.61 estimate, according to Finnhub
• Revenue: $6.89 billion vs. $5.11 billion a year earlier, against the $6.31 billion estimate, according to Finnhub
• Net income: $176.0 million vs. $129.9 million a year earlier
• Adjusted EBITDA: $336.6 million vs. $285.1 million a year earlier

CEO Mindy West said: “We are pleased with our third quarter performance, which reflects the resilience of our customers and the durability of our business model.” She said the company’s teams remained focused on disciplined execution and cost control.

Fuel and merchandise

Total fuel contribution rose $94.6 million, or 24.6%, to $479.4 million from $384.8 million a year earlier. On a per-gallon basis it was 37.0 cents, compared with 30.7 cents.

Retail fuel contribution was nearly flat at $355.0 million, as higher volumes offset lower margins. Retail fuel volumes rose 3.3%, while retail fuel margins fell to 27.4 cents per gallon from 28.3 cents.

The company said fuel supply contribution including RINs increased $94.1 million, primarily due to market-driven pricing and the timing of inventory activity.

Merchandise contribution fell 2.8% to $234.5 million from $241.2 million. Unit margins were 20.3%, compared with 21.5%. The company said the 2025 quarter included a nicotine pouch promotion that did not repeat this year.

Costs and charges

Store and other operating expenses rose $32.0 million to $317.9 million. Payment fees, which rose with retail fuel prices, accounted for about three-fourths of the increase.

The company recorded $12.6 million of restructuring expense in the prior-year quarter and none in the third quarter of 2026. Its effective income tax rate was 24.6%, compared with 25.1% a year earlier.

Selling, general and administrative expense rose $4.3 million to $59.6 million, mainly on higher incentive accruals.

Guidance

The company said it expects several 2026 metrics toward the low end of the ranges it gave on Aug. 5. Merchandise contribution is now expected at the low end of the $890 million to $900 million range.

SG&A is expected at the low end of $240 million to $250 million. Capital expenditures are expected at the higher end of $475 million to $525 million. The effective tax rate is expected at the higher end of 23% to 25%.

New stores remain at 45 to 55, and retail fuel volume guidance is unchanged.

Capital returns

During the quarter, the company repurchased 287.1 thousand common shares for $157.7 million, at an average price of $549.22 per share. It completed its $1.5 billion 2023 repurchase authorization.

Virtually all of the $2.0 billion under its 2025 authorization remained available at Sept. 30. That authorization expires Dec. 31, 2030.

On Oct. 22, the board declared a quarterly dividend of $0.72 per share, an increase of 11% from the $0.65 paid on Sept. 3. It is payable Dec. 1 to holders of record as of Nov. 4.

Cash and cash equivalents were $161.8 million at Sept. 30. Long-term debt, including finance lease obligations, was $2,167.4 million, and the revolving credit facility due 2030 was undrawn.