VLO · Valero Energy Corporation

Valero Energy reported a strong first quarter for 2026, with net income attributable to stockholders of $1.3 billion ($4.22 per share), a significant turnaround from a net loss of $595 million ($1.90 per share) in the same quarter last year. The improvement was driven primarily by the Refining segment, which posted operating income of $1.8 billion versus an operating loss of $530 million in Q1 2025. Refining throughput volumes averaged 2.9 million barrels per day, and the company benefited from favorable margins despite considerable commodity market disruption. The Renewable Diesel segment (Diamond Green Diesel joint venture) also rebounded to $139 million in operating income from a loss of $141 million, with sales volumes averaging 3.0 million gallons per day. The Ethanol segment contributed $90 million in operating income, up from $20 million. Management highlighted operational excellence and system-wide optimization as key drivers. The company increased its quarterly dividend by 6% to $1.20 per share and returned $938 million to stockholders. On the financing side, Valero issued $850 million of 5.150% Senior Notes due 2036 to repay maturing debt and for general corporate purposes. The St. Charles FCC unit optimization project, with a $230 million investment, is on track for completion in the third quarter of 2026. Adjusted net cash provided by operating activities was $1.6 billion, and capital investments attributable to Valero totaled $430 million. The debt to capitalization ratio (net of cash) stood at 18% as of March 31, 2026.