MUSA · Murphy USA Inc.

Murphy USA Inc. delivered robust Q1 2026 results, with net income surging to $136.3 million from $53.2 million in the prior year, propelled by a 40.6% increase in total fuel contribution to $403.9 million. This was driven by retail fuel margins expanding to 25.4 cpg from 23.7 cpg and fuel supply contribution flipping to a $39.0 million gain from a $15.3 million loss, aided by rising refined product prices and favorable inventory timing. Retail fuel volumes grew 2.1% to 1,154.5 million gallons, though same-store volumes dipped 0.8%. Merchandise contribution rose 7.3% to $210.2 million, supported by 20.0% unit margins (up from 19.6%) and higher sales of $1,049.2 million, with nicotine categories outperforming despite softer non-nicotine discretionary spending. Adjusted EBITDA climbed to $277.9 million from $157.4 million. Offsetting factors included higher store operating expenses at $279.8 million (up due to new stores and employee costs), increased depreciation, interest, and taxes at 22.6% effective rate. CEO Mindy West highlighted the low-cost, high-volume model's resilience amid commodity volatility, with April volumes flat year-over-year and fuel margins of 35-40 cpg. Store growth advanced with 6 new-to-industry openings, bringing total to 1,803 stores, and 45-55 planned for 2026. Capital returns remained strong: $70.9 million in share repurchases reduced outstanding shares to 18.47 million, with $221.4 million left under the 2023 authorization and $2.0 billion more available from 2025 program; quarterly dividend of $0.63 per share paid $11.7 million. Balance sheet showed $118.6 million cash versus $2,137.3 million debt, including revolver draw of $160.0 million.