Highlights

  • Third quarter net income attributable to Valero stockholders was $6.8 billion, or $23.89 per share, compared with $1.1 billion.
  • Non-GAAP adjusted net income attributable to Valero stockholders was $6.8 billion, or $23.90 per share, compared with $3.66 per share.
  • Valero repaid $100 million of 7.65% Debentures and $426 million of 3.400% Senior Notes, ending the quarter with $8.6 billion of total debt.
  • The St. Charles FCC Unit optimization project was completed during the third quarter, on schedule and within budget.

Valero Energy Corporation (NYSE: VLO) shares were trading at USD 394.30 on October 27, 2026, down 7.61%, with a relative volume at time of 2.22. The refiner repaid $100 million of debentures that matured in July, repaid $426 million of senior notes that matured in September, and reported third quarter 2026 results on October 22, 2026.

Valero is incorporated in Delaware and lists its principal executive offices in San Antonio, Texas. It is a multinational manufacturer and marketer of petroleum-based and low-carbon liquid transportation fuels and petrochemical products, selling primarily in the United States, Canada, the United Kingdom, Ireland and Latin America. It operates 14 petroleum refineries with combined throughput capacity of approximately 3.0 million barrels per day, owns 12 ethanol plants, and is a joint venture member in Diamond Green Diesel. Its segments are Refining, Renewable Diesel and Ethanol.

Third Quarter 2026 Results

For the third quarter ended September 30, 2026, unaudited revenues were $46,098 million, compared with $32,168 million in the third quarter of 2025. Operating income was $9,073 million, compared with $1,509 million. Net income was $6,989 million, and net income attributable to Valero stockholders was $6,828 million, compared with $1,095 million. Earnings per common share assuming dilution were $23.89, compared with $3.53. The effective tax rate was 23 percent.

For the nine months ended September 30, 2026, net income attributable to Valero stockholders was $11,811 million, or $40.29 per share assuming dilution, compared with $1,214 million, or $3.89.

Segment Results

The Refining segment reported operating income of $8.8 billion, compared with $1.6 billion in the third quarter of 2025. Refining throughput volumes averaged 3.0 million barrels per day.

The Renewable Diesel segment, which consists of the Diamond Green Diesel joint venture, reported operating income of $353 million, compared with an operating loss of $28 million. Sales volumes averaged 3.4 million gallons per day. The Ethanol segment reported operating income of $272 million, compared with $183 million, with production volumes averaging 4.8 million gallons per day.

Cash Flow, Balance Sheet and Capital

Net cash provided by operating activities was $6.9 billion in the third quarter, which included a negative $526 million working capital impact. Capital investments totaled $432 million, of which $371 million was for sustaining the business. Stockholder cash returns resulted in a payout ratio of 52 percent of adjusted net cash provided by operating activities,.

Valero ended the quarter with $8.6 billion of total debt, $2.4 billion of total finance lease obligations and $9.8 billion of cash and cash equivalents. The debt to capitalization ratio, net of cash and cash equivalents, was 4 percent as of September 30, 2026. On the call, management said cash remained above its long-term $4 billion to $5 billion target range and that $146 million of debt maturing later this year would be repaid with proceeds from debt issued in the first quarter.

Developments and Outlook

Valero completed the St. Charles FCC Unit optimization project during the quarter, on schedule and within budget. The company said the project is operational and expected to enhance the production of higher-value products.

On the October 22, 2026 call, management said it expects 2026 capital investments attributable to Valero of approximately $2 billion, with approximately $1.7 billion for sustaining the business. That figure includes the estimated cost to repair the DHT unit at the Port Arthur refinery, which management estimated at approximately $250 million, with a large portion expected to be covered by insurance. It said repairs remain on track for completion by year end.

For the fourth quarter, management expects Gulf Coast throughput of 1.855 to 1.91 million barrels per day and North Atlantic throughput of 480 thousand to 500 thousand barrels per day. It expects refining cash operating expenses of $4.85 per barrel, ethanol production of 4.9 million gallons per day and net interest expense of about $135 million.