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SEC filingPBF Energy reported a strong turnaround in Q1 2026, with revenue up 11.9% to $7.9B and net income reversing from a $401.8M loss to $198.3M profit — driven by improved industry margins and the reversal of a prior-year non-cash LCM inventory adjustment.
Operating income followed suit, turning positive at $299.6 million versus a $511.2 million loss in Q1 2025. This shift reflects not only the LCM reversal but also broader industry margin strength. Operating margin reached 3.8%, consistent with the underlying improvement in refining economics during the period.
Net income improved to $198.3 million ($1.65 per diluted share), reversing last year’s $401.8 million loss ($3.53 per diluted share). The year-over-year swing underscores the combined effect of margin recovery and inventory accounting normalization.
Cash flow from operations used $323.7 million, a meaningful improvement over the $661.4 million used in Q1 2025. This narrowing reflects better alignment between receivables, payables, and inventory valuations amid rising price environments — though it does not imply positive operating cash generation. Capital expenditures totaled $349.4 million, more than triple the prior-year level, and were directed toward safety-related enhancements, facility improvements, and continued execution of the Martinez refinery rebuild. Management notes these investments remain partially covered by insurance proceeds, though specific coverage amounts are not quantified in the authoritative packet. Free cash flow was -$673.1 million, reflecting the combination of negative operating cash flow and elevated capex.
Looking ahead, management emphasizes continued operation in line with demand and prevailing market conditions, while acknowledging uncertainty around the duration and scope of geopolitical conflict and its downstream effects on supply routes and global markets.