Valero Energy Corp
Q2 2026 Earnings
Market Reaction
S&P 500 over the same 30 days: +3.42%.
Did VLO Beat Earnings? Q2 2026 Results
Valero Energy delivered a blowout second quarter in 2026, with earnings per diluted share of $12.54 beating the Wall Street consensus of $10.13 by 23.84%, extending the San Antonio-based refiner's streak of consensus EPS beats to five consecutive quarters. Revenue surged 48.8% year-over-year to $44.48 billion, exceeding analyst expectations of $38.43 billion by 15.74%, as sharply higher crude oil prices and dramatically wider refining crack spreads supercharged results across every segment. The Refining segment was the headline driver, with margin per barrel of throughput nearly doubling to $23.62 from $12.35 a year ago as Brent crude averaged $97.06 per barrel versus $66.59 in Q2 2025. The Renewable Diesel segment added further momentum, swinging to $717 million in operating income from a $79 million loss a year ago, aided by surging RIN prices, a trend that has drawn broad attention across the refining sector. Looking ahead, Valero expects its $230 million St. Charles FCC Unit optimization project to begin operations in Q3 2026, positioned to further enhance high-value product yields.
- Significantly wider refining crack spreads with refining margin per barrel of throughput nearly doubling to $23.62 from $12.35 YoY
- Higher Brent crude oil prices ($97.06/bbl vs. $66.59/bbl YoY)
- Renewable Diesel segment swing to profitability driven by higher RIN prices ($2.12 vs. $1.09) and elevated LCFS carbon credit prices ($68.34 vs. $52.36 per metric ton)
- Strong U.S. Gulf Coast refining margin of $24.42 per barrel vs. $11.78 YoY
- Ethanol margin per gallon more than doubled to $1.15 from $0.52 YoY
- ULS diesel margins significantly expanded (U.S. Gulf Coast: $43.52/bbl vs. $14.79/bbl)
“We are pleased to report a strong second quarter, driven by excellent operations and commercial execution across all three of our business segments. Our refineries, renewable diesel plants, and ethanol plants operated safely and reliably, helping to meet resilient demand for transportation fuels.”
Valero Energy CEO, on the earnings call
Forward Guidance & Outlook
Valero expects the St. Charles FCC Unit optimization project, a $230 million investment, to be completed and begin operations in the third quarter of 2026, enhancing the refinery's ability to produce high-value products. The company expects inventory levels at December 31, 2026 to remain below those at December 31, 2025 due to the cessation of refining operations at Benicia Refinery.
VLO YoY Financials
VLO Revenue by Segment
Figures from SEC filings and company reports. Not investment advice.