Valero Energy Corporation (NYSE:VLO) reported stronger-than-expected first-quarter results on Thursday, supported by robust refining margins.
Adjusted earnings per share came in at $4.22, beating analyst forecasts of $3.16 by $1.06.
Revenue totaled $32.38 billion, exceeding the $31.37 billion consensus estimate and marking a 7% increase from $30.26 billion in the same quarter of 2025.
The company posted net income attributable to shareholders of $1.3 billion, compared with a net loss of $595 million a year earlier.
Performance was driven largely by the Refining segment, which delivered operating income of $1.8 billion, a sharp turnaround from a $530 million loss in the prior-year quarter, as margins improved amid volatility in commodity markets. Refining throughput averaged 2.9 million barrels per day.
Shares rose about 1% following the announcement.
“I am pleased to report that Valero had an excellent first quarter, demonstrating our team’s ability to optimize our refining system and deliver strong financial returns,” said Lane Riggs, Valero’s Chairman, Chief Executive Officer and President.
“In a period marked with considerable disruption in commodity markets, our operations, commercial, and financial teams executed well.”
The Renewable Diesel segment recorded operating income of $139 million, reversing a $141 million loss in the same period last year. Meanwhile, the Ethanol segment generated operating income of $90 million, up from $20 million previously.
Valero returned $938 million to shareholders during the quarter, equivalent to a 59% payout ratio of adjusted operating cash flow. The company also raised its quarterly dividend by 6% to $1.20 per share in January and issued $850 million in senior notes in March.
Progress continues on the company’s $230 million FCC Unit optimization project at the St. Charles Refinery, which is expected to come online in the third quarter of 2026.