VLO · Q2 2026
Archived report (Q2 2026). Latest deep dive →
The quarter in brief
A textbook refining-cycle peak — revenue +49% but the real story is the spread: costs grew far slower, so operating income multiplied 5x to $5.2B and EPS hit $12.62 (vs $2.28); enjoy it as a cyclical high, not a run-rate — this is what tight product markets pay a refiner.
Net Income (consolidated)
$4,073M
up ×6.1 y/y
Revenues
$44,476M
up 48.8% y/y
Operating Income
$5,196M
up ×5.2 y/y
Operating Expenses
$1,506M
down 1.1% y/y
All figures in $M.
| Line item | Amount and change |
|---|---|
| Revenues | $44,476 · +48.8% |
| Cost of Materials | $35,130 · +42.4% |
| Excise & Other Taxes | $1,648 · -0.4% |
| Operating Expenses | $1,506 · -1.1% |
| Depreciation & Amortization* | $737 · -9.5% |
| G&A | $233 · +5.9% |
| Other Operating Expenses | $26 · vs $4 |
| Operating Income | $5,196 · ×5.2 · 11.7% margin vs 3.3% |
| Other Income, net | $116 · +34.9% |
| Interest & Debt Expense | $145 · +2.8% |
| Pre-Tax Income | $5,167 · ×5.5 |
| Income Tax | $1,094 · ETR 21.2% |
| Net Income (consolidated) | $4,073 · ×6.1 |
| Noncontrolling Interests (DGD) | $353 · vs −$51 |
| Net Income to Shareholders | $3,720 · ×5.2 · $12.62/sh vs $2.28 |
Verdict: a textbook refining-cycle peak — revenue +49% but the real story is the spread: costs grew far slower, so operating income multiplied 5x to $5.2B and EPS hit $12.62 (vs $2.28); enjoy it as a cyclical high, not a run-rate — this is what tight product markets pay a refiner.
Cash rose to $7.9B from $4.7B at year-end. Share count down 6% y/y (buybacks). Prior-year H1 carried a $1.1B asset impairment (California exposure) that is absent this year.
Source and notation
* marks non-cash / ≈ estimated. D&A combines cost-of-sales and G&A depreciation. Source: Valero 10-Q (SEC EDGAR).
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- The quarter is a margin story, not a volume story: revenue +48.8% while cost of materials rose 42.4% — the widening crack spread dropped almost entirely into operating income, which multiplied 5.2x to $5,196M.
- Noncontrolling interests swung from −$51M to +$353M — the Diamond Green Diesel renewable-fuels JV went from losing money to strongly profitable, and its partner's share comes out of consolidated income.
- EPS grew even faster than income (×5.5): the share count fell 6% y/y to 294M on continued buybacks.
- Effective tax rate normalized at 21.2% (vs 29.6% in the weak prior-year quarter where one-offs distorted the rate).
- The y/y H1 comparison is flattered by the absence of 2025's $1,131M asset impairment (California refining exposure); the Q2-vs-Q2 comparison is clean.
- Taxes other than income taxes ($1,648M — excise and similar) and operating expenses were both flat: a refiner's cost base barely moves, which is exactly why margins swing profits so violently.
- Cash balance jumped to $7.9B from $4.7B in six months — a reminder of how fast refining prints cash at cycle peaks.
What distorts the picture in this report and what to watch beyond the headlines.
VLO — Valero Energy Corporation is a Fortune 500 company engaged in refining, marketing, and distributing transportation fuels and petrochemical products.
It is headquartered in San Antonio, Texas, and operates refineries across North America.
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