Valero Q3 Revenue and Adjusted EPS Crush Estimates on Near-Record Refinery Runs
VLO has more than doubled off its 52-week low of $156.26.
Summary
Valero beat on both lines for Q3: revenue of $46.10 billion against a $38.85 billion consensus, and adjusted EPS of $23.90 versus $21.07 expected. Refining adjusted operating income surged to $8.8 billion from $1.7 billion in the third quarter of 2025, with throughput averaging 3 million barrels per day and plants running at near-record utilization, helped by the St. Charles FCC unit optimization completed on time and within budget, which added alkylate and gasoline capacity. The Renewable Diesel segment swung to $353 million of operating income from a $28 million operating loss a year earlier on higher sales volumes, which averaged 3.4 million gallons per day, while ethanol segment operating income rose to $272 million from $183 million with production averaging a record 4.8 million gallons per day. Operating cash flow was $6.9 billion, including a $526 million working capital headwind and $205 million attributable to DGD's other joint venture member, and adjusted operating cash flow totaled $7.3 billion excluding those items; capital investments totaled $432 million, including $371 million for maintenance, refinery turnarounds, catalysts and regulatory compliance, and capital spending excluding investments related to DGD's other joint venture member and other variable interest entities totaled $429 million. The company ended the quarter with $9.8 billion in cash and cash equivalents, $8.6 billion in debt and $2.4 billion in finance lease obligations, with a net debt-to-capitalization ratio of 4% as of Sept. 30, 2026. This follows the Q2 blowout ($12.54 adjusted EPS, a 24% beat) and the $5 billion buyback expansion filed in July, extending a record year for the stock; no forward guidance was given, so the read-through is entirely on realized margins and run rates.
Updated with a Benzinga report · What changed
Updates
· Benzinga — Valero's ethanol segment operating income rose to $272 million from $183 million, with production averaging a record 4.8 million gallons per day.
- Refining Results — Refining adjusted operating income surged to $8.8 billion from $1.7 billion in the third quarter of 2025, with throughput averaging 3 million barrels per day.
- St. Charles FCC Project — The St. Charles Refinery fluid catalytic cracking unit optimization project was completed on time and within budget.
- Renewable Diesel — Renewable Diesel segment operating income was $353 million versus a $28 million operating loss a year earlier, with sales volumes averaging 3.4 million gallons per day.
- Operating Cash Flow — Operating cash flow was $6.9 billion, including a $526 million working capital headwind and $205 million attributable to DGD's other joint venture member; adjusted operating cash flow totaled $7.3 billion excluding those items.
- Capital Investments — Capital investments totaled $432 million, including $371 million for maintenance, refinery turnarounds, catalysts and regulatory compliance; excluding investments related to DGD's other joint venture member and other variable interest entities, capital spending totaled $429 million.
- Balance Sheet — The quarter ended with $9.8 billion in cash and cash equivalents, $8.6 billion in debt and $2.4 billion in finance lease obligations, with a net debt-to-capitalization ratio of 4% as of Sept. 30, 2026.
All 11 details
- St. Charles Refinery fluid catalytic cracking (FCC) unit optimization project completed on time and within budget
- Refining adjusted operating income surged to $8.8 billion from $1.7 billion in the third quarter of 2025
- Refining throughput averaged 3 million barrels per day during the quarter
- Renewable Diesel sales volumes averaged 3.4 million gallons per day
- Operating cash flow $6.9 billion, including a $526 million working capital headwind and $205 million attributable to DGD's other joint venture member
- Adjusted operating cash flow totaled $7.3 billion excluding those items
- Capital investments totaled $432 million, including $371 million for maintenance, refinery turnarounds, catalysts and regulatory compliance
- Excluding investments related to DGD's other joint venture member and other variable interest entities, capital spending totaled $429 million
- Ended quarter with $9.8 billion in cash and cash equivalents, $8.6 billion in debt and $2.4 billion in finance lease obligations
- Net debt-to-capitalization ratio stood at 4% as of Sept. 30, 2026
- Renewable Diesel segment operating income $353 million versus $28 million operating loss a year earlier
At the time of this announcement, VLO was trading at $446.92 on NYSE in the Energy & Transportation sector, with a market capitalization of approximately $125.8B. The 52-week trading range was $156.26 to $461.52. This news item was assessed with positive market sentiment and an importance score of 9 out of 10. Source: Reuters.