Valero Energy tops Q2 revenue, profit estimates as refining margins improve
Valero Energy tops Q2 revenue, profit estimates as refining margins improve
Overview
U.S. fuels producer's Q2 revenue rose, beating analyst expectations
Adjusted EPS for Q2 beat analyst expectations
Company attributed results to strong operations in refining, renewable diesel, and ethanol
Outlook
Valero expects St. Charles FCC Unit optimization project to begin operations in Q3 2026
Result Drivers
REFINING MARGINS - Higher refining margins and throughput volumes drove a sharp increase in segment operating income
RENEWABLE DIESEL TURNAROUND - Renewable Diesel segment swung to operating income from a prior-year loss, supported by higher sales volumes and margins
ETHANOL SEGMENT GROWTH - Ethanol segment operating income rose sharply on higher production volumes and improved margins
Company press release: ID:nBw17Lvwra
Key Details
Metric | Beat/Miss | Actual | Consensus Estimate |
Q2 Revenue | Beat | $44.48 bln | $39.06 bln (11 Analysts) |
Q2 Adjusted EPS | Beat | $12.54 | $10.12 (18 Analysts) |
Q2 EPS |
| $12.62 |
|
Analyst Coverage
The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 11 "strong buy" or "buy", 9 "hold" and 2 "sell" or "strong sell"
The average consensus recommendation for the oil & gas refining and marketing peer group is "buy"
Wall Street's median 12-month price target for Valero Energy Corp is $287.50, about 4.6% below its July 29 closing price of $301.32
The stock recently traded at 11 times the next 12-month earnings vs. a P/E of 14 three months ago
Reuters Recommended Reads
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July 28 - HF Sinclair posts highest profit since 2022, plans lubricants unit spin-off
July 30 - SK Innovation swings to Q2 profit, tops estimates as refining rebounds
For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.
(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)