Valero Energy Corporation (NYSE:VLO) posted a strong fourth-quarter performance on Thursday, with earnings comfortably beating market expectations as refining margins strengthened across most regions. The shares gained 2.71% following the results.
Adjusted earnings for the quarter came in at $3.82 per share, well ahead of the analyst consensus of $3.11. Revenue reached $30.37 billion, also surpassing forecasts of $29.03 billion. Refining operating income jumped to $1.7 billion in the fourth quarter of 2025, up sharply from $437 million a year earlier, reflecting significantly improved margins.
Valero also delivered record operating volumes. Refining throughput averaged 3.1 million barrels per day in the fourth quarter, while ethanol production hit a record 4.8 million gallons per day. Both metrics marked all-time highs for the quarter and the full year.
“2025 was our best year for mechanical availability, personnel safety, and environmental performance, building on the personnel and process safety records we set in 2024,” said Lane Riggs, Valero’s Chairman, Chief Executive Officer and President.
For the full year 2025, Valero reported adjusted net income of $3.3 billion, or $10.61 per share, compared with $2.7 billion, or $8.48 per share, in 2024. Shareholder returns remained robust, with $1.4 billion returned through dividends and buybacks in the fourth quarter alone and total distributions of $4.0 billion for the year.
The company also raised its quarterly dividend by 6% to $1.20 per share, underlining confidence in its balance sheet. Valero finished 2025 with total debt of $8.3 billion and cash and cash equivalents of $4.7 billion.
Looking ahead, Valero said it continues to advance the FCC Unit optimization project at its St. Charles Refinery. The $230 million investment is expected to come online in the second half of 2026 and is designed to increase the refinery’s capacity to produce higher-value products.