Valero Energy lifts third-quarter profit to $6.8 billion from $1.1 billion a year ago

Valero Energy Corporation (VLO) reported third-quarter net income attributable to stockholders of $6.8 billion, or $23.89 per diluted share, the company said Thursday in a regulatory filing.

That compares with $1.1 billion, or $3.53 per share, in the third quarter of 2025.

Adjusted net income attributable to stockholders was $6.8 billion, or $23.90 per share, against $1.1 billion, or $3.66 per share, a year earlier.

The only adjustment in the quarter was $3 million net of taxes for expenses tied to the March 2026 incident at the Port Arthur Refinery.

Revenues rose to $46,098 million from $32,168 million a year earlier.

Operating income reached $9,073 million, compared with $1,509 million.

Here's how the company did:

• Net income per diluted share: $23.89 vs. $3.53 a year earlier
• Adjusted earnings per diluted share: $23.90 vs. $3.66 a year earlier
• Revenue: $46,098 million vs. $32,168 million a year earlier
• Operating income: $9,073 million vs. $1,509 million a year earlier

The Refining segment reported operating income of $8.8 billion for the quarter, compared with $1.6 billion a year earlier.

Adjusted Refining operating income was $8.8 billion, against $1.7 billion. Throughput volumes averaged 3.0 million barrels per day.

Refining margin, a non-GAAP measure, was $10,730 million, compared with $3,731 million a year earlier. The company said the measure is the most comparable to industry market reference product margins.

“Our refineries operated at near-record utilization rates, providing a reliable supply of critical transportation fuels during the quarter,” said Chairman, Chief Executive Officer and President Lane Riggs.

The Renewable Diesel segment, which consists of the Diamond Green Diesel joint venture (DGD), reported operating income of $353 million, compared with an operating loss of $28 million a year earlier. Valero is a 50% joint venture member in DGD.

Renewable Diesel sales volumes averaged 3.4 million gallons per day.

The Ethanol segment reported operating income of $272 million, up from $183 million a year earlier. Production averaged 4.8 million gallons per day, which the company said set a new quarterly record.

General and administrative expenses were $308 million, compared with $246 million a year earlier. The effective tax rate for the quarter was 23%.

Net cash provided by operating activities was $6.9 billion. Excluding a $526 million unfavorable working capital impact and $205 million attributable to the other joint venture member's share of DGD, adjusted net cash provided by operating activities was $7.3 billion.

Capital investments totaled $432 million, of which $371 million was for sustaining the business, including turnarounds, catalysts and regulatory compliance. Capital investments attributable to Valero were $429 million, compared with $382 million a year earlier.

Valero returned cash to stockholders at a payout ratio of 52% of adjusted net cash provided by operating activities. Dividends per common share were $1.20 in the quarter, up from $1.13 a year earlier.

During the quarter Valero repaid the outstanding principal of $100 million of its 7.65% Debentures, which matured in July. It also repaid $426 million of its 3.400% Senior Notes, which matured in September.

Valero ended the quarter with $8.6 billion of total debt, $2.4 billion of total finance lease obligations and $9.8 billion of cash and cash equivalents. The debt to capitalization ratio, net of cash and cash equivalents, was 4% as of Sept. 30.

“Our third-quarter performance underscores the quality of our assets and our consistent operational, commercial, and financial performance,” said Riggs. “This is a result of the long-term strategy that we’ve been committed to for well over a decade.”

The St. Charles Refinery FCC Unit optimization project was completed during the third quarter, on schedule and within budget. The company said the project is now operational and is expected to enhance the refinery's ability to produce higher-value products.

At the Benicia Refinery, full idling of all processing units was completed in April 2026. Decommissioning and redevelopment activities are now reported within Corporate and Other.

For the first nine months, net income attributable to stockholders was $11,811 million, or $40.29 per diluted share, compared with $1,214 million, or $3.89 per share, a year earlier. Revenues for the period were $122,955 million, against $92,315 million.

The company recorded a $1.1 billion asset impairment loss on its Benicia and Wilmington refineries in the first nine months of 2025, a figure that is included in the prior-year comparison.

Valero operates 14 petroleum refineries in the U.S., Canada and the U.K., with combined throughput capacity of about 3.0 million barrels per day. Its 12 ethanol plants have combined capacity of about 1.7 billion gallons per year.