VALERO ENERGY CORP/TX (VLO) Earnings History

VALERO ENERGY CORP/TX - Q4 2025 EarningsBeat

Filed at: Jan 29, 2026, 8:19 AM EST|Read from source

EXECUTIVE SUMMARY

Valero Energy reported a strong fourth quarter and full year 2025, driven by record refining throughput and ethanol production, alongside robust mechanical availability and safety performance. The company demonstrated significant year-over-year improvements in net income and EPS, reflecting operational excellence and effective capital allocation.

POSITIVE HIGHLIGHTS

  • •

    Net income attributable to Valero stockholders was $1.1 billion, or $3.73 per share, for Q4 2025, a significant increase from $281 million, or $0.88 per share, in Q4 2024.

    positive
  • •

    Adjusted net income attributable to Valero stockholders was $1.2 billion, or $3.82 per share, for Q4 2025, up from $207 million, or $0.64 per share, in Q4 2024.

    positive
  • •

    Refining segment operating income was $1.7 billion for Q4 2025, a substantial increase from $437 million in Q4 2024.

    positive
  • •

    Ethanol segment operating income was $117 million for Q4 2025, a significant improvement from $20 million in Q4 2024.

    positive
  • •

    Increased quarterly cash dividend on common stock by 6 percent to $1.20 per share.

    positive

CONCERNS & RISKS

  • •

    Renewable Diesel segment operating income decreased to $92 million in Q4 2025 from $170 million in Q4 2024.

    attention
  • •

    Asset impairment loss of $1.1 billion recognized in 2025 related to the Benicia and Wilmington refineries.

    negative
  • •

    Inventory levels decreased from $7.761 billion at the end of 2024 to $7.591 billion at the end of 2025.

    neutral
  • •

    Total debt increased from $8.027 billion to $8.238 billion (excluding VIEs) from year-end 2024 to year-end 2025.

    attention

FINANCIAL METRICS

Revenue
Quarterly
$30.37B
-1.3%
Prior year: $30.76B
Annual (YTD)
$122.69B
N/A
Prior year: $129.88B
Net Income
Quarterly
$1.13B
+303.6%
Prior year: $281.00M
Annual (YTD)
$2.35B
N/A
Prior year: $2.77B
EPS (Diluted)
Quarterly
$3.73
+325.0%
Prior year: $0.88
Operating Income
Quarterly
$1.57B
+352.6%
Prior year: $348.00M
Annual (YTD)
$3.18B
N/A
Prior year: $3.75B
EPS (Basic)
Quarterly
$3.73
+318.0%
Prior year: $0.89

MARGIN ANALYSIS

Operating Margin
Current Quarter
5.2%
Prior Year
1.1%
YoY Change
+405 bps
Net Margin
Current Quarter
3.7%
Prior Year
0.9%
YoY Change
+282 bps

Margin expansion indicates improving profitability and operational efficiency. Measured in basis points (bps): 100 bps = 1.0%.

REVENUE BY SEGMENT — Q4 2025 2025

VISUAL OVERVIEW

|
Refining
0.0%
N/A
Renewable Diesel
0.0%
N/A
Ethanol
0.0%
N/A

DETAILED BREAKDOWN

|
SegmentCurrentPrior YrYoY% Total
Refining
N/A———
Renewable Diesel
N/A———
Ethanol
N/A———
Total Revenue$0.00M——100.0%

Segment performance shows business unit health and growth drivers.

SPECIAL ITEMS & ADJUSTMENTS

FY 2025
Asset impairment loss related to Benicia and Wilmington refineries
Carrying values reduced to estimated fair values.
+$1,131M
FY 2025
Employee retention and separation costs related to Benicia Refinery
In connection with planned cessation of operations.
+$50M
FY 2024
Project liability adjustment related to cancellation of Navigator's carbon capture project
Obligation to Navigator.
+$29M
FY 2024
Second-generation biofuel tax credit
Benefit recognized for cellulosic ethanol produced 2020-2024.
$79M
Q4 2025
LIFO liquidation adjustment
Impacted by decrease in inventory levels at West Coast operations.
+$37M
$0.09 per share
Total Impact
+$1,168M$0.09 per share

Special items are non-recurring events that may distort period-over-period comparisons. Analysts typically adjust for these when calculating normalized earnings.

MANAGEMENT COMMENTARY

2025 was our best year for mechanical availability, personnel safety, and environmental performance, building on the personnel and process safety records we set in 2024.

— VALERO ENERGY CORP/TX, Q4 2025 2025 Earnings Call

We also achieved record refining throughput and ethanol production in both the fourth quarter and the full year.

— VALERO ENERGY CORP/TX, Q4 2025 2025 Earnings Call

These accomplishments reflect the hard work, expertise, and dedication of our entire team.

— VALERO ENERGY CORP/TX, Q4 2025 2025 Earnings Call

Commentary excerpts from earnings call transcripts provide management's perspective on performance, strategy, and outlook. Always review full transcripts for complete context.

OPERATIONAL METRICS

Ethanol margin per gallon of sales
N/A
USD
Refining margin per barrel of throughput
13.6
+61.3% YoY
Prior year: 8.4
USD
Renewable Diesel margin per gallon of sales
0.8
-22.6% YoY
Prior year: 1.1
USD

Operational metrics provide insight into business drivers and customer engagement beyond traditional financial measures.

Related Research

Analysis

CTRA 10-K Analysis: Devon Inherits 63% Margins and $3.5B in Hidden Exposures

Analysis

The ROIC Illusion: Why PSX's 21% vs VLO's 4.5% Tells the Wrong Story About Refiner Quality

Analysis

Why Refiners Don't Record Retirement Costs Until It's Too Late: The $337M Valero Wake-Up Call