Valero Energy (NYSE:VLO) Releases Quarterly Earnings Results, Beats Estimates By $1.52 EPS

Key Points

• Valero beat expectations with $4.22 EPS vs. $2.70 consensus and revenue of $32.38 billion (vs. $31.04B expected), driven by stronger refining and renewable diesel margins, producing net income of $1.3 billion and $1.8 billion of refining operating income.
• Management plans to run its 13 U.S. and U.K. refineries to about 95% capacity in Q2, highlighting an advantaged Gulf Coast crude slate and a record monthly jet yield that should help sustain margins amid tight global inventories.
• A March Port Arthur fire damaged key units, reducing rates and creating uncertain repair timing and potential incremental 2026 capex (expected to be insured), but Valero finished the quarter with $5.7 billion cash, issued $850 million of 10‑year notes, raised the dividend 6%, and returned $938 million to shareholders.

Valero Energy (NYSE:VLO - Get Free Report) announced its quarterly earnings data on Thursday. The oil and gas company reported $4.22 earnings per share (EPS) for the quarter, topping the consensus estimate of $2.70 by $1.52, Zacks reports. Valero Energy had a return on equity of 12.35% and a net margin of 1.91%.The firm had revenue of $32.38 billion during the quarter, compared to analysts' expectations of $31.04 billion. During the same period last year, the business posted $0.89 earnings per share. The company's revenue for the quarter was up 7.0% compared to the same quarter last year.

Here are the key takeaways from Valero Energy's conference call:

• Valero delivered a strong Q1 with net income attributable to stockholders of $1.3 billion ($4.22/share) and $1.8 billion of refining operating income, reversing last year’s loss across the business segments.
• Management emphasized operational flexibility—an advantaged Gulf Coast slate that can run discounted heavy sour crudes and a record monthly jet yield in March—which, together with tight global product inventories, should support margins.
• A March Port Arthur fire damaged the diesel hydrotreater (and affected an adjacent kerosene unit), leading to reduced rates, uncertain repair timing, and potential incremental 2026 capex (expected to be insured subject to deductibles) that could weigh on near‑term capture rates.
• Financial strength and shareholder returns remain priorities—Valero opportunistically issued $850 million of 10‑year notes, ended the quarter with $5.7 billion cash (net debt-to-cap ~18%), raised the dividend 6%, and returned $938 million to shareholders in Q1.

Valero Energy Price Performance

Shares of VLO stock traded up $1.48 during mid-day trading on Thursday, hitting $252.78. 3,529,214 shares of the stock were exchanged, compared to its average volume of 2,874,924. The firm has a fifty day moving average of $232.26 and a 200 day moving average of $196.27. The company has a quick ratio of 1.11, a current ratio of 1.64 and a debt-to-equity ratio of 0.36. Valero Energy has a 52-week low of $114.30 and a 52-week high of $258.43. The company has a market cap of $75.59 billion, a PE ratio of 33.09, a price-to-earnings-growth ratio of 0.41 and a beta of 0.62.

Valero Energy News Roundup

Here are the key news stories impacting Valero Energy this week:

• Positive Sentiment: Valero reported a big Q1 earnings beat — $4.22 EPS versus consensus well below — driven by higher margins and a rebound from loss a year ago; that surprise is the primary catalyst for buyer interest. Valero Energy beats estimates for first-quarter profit
• Positive Sentiment: Management said it will run its 13 U.S. and U.K. refineries up to ~95% of combined throughput capacity in Q2 (≈3.0M bpd), signaling stronger utilization and higher revenue potential. Valero to run refineries up to 95% of capacity in Q2 2026, conf call
• Positive Sentiment: Refining and renewable diesel margins surged in the quarter — a key profitability driver cited by analysts and in company commentary — which amplified the EPS beat and revenue upside. Valero Q1 Earnings Top Estimates on Stronger Refining Margins
• Positive Sentiment: Some analysts have lifted FY2026/FY2027 EPS forecasts for Valero after the results, supporting higher forward expectations and contributing to buying interest. Valero earnings / analyst notes
• Neutral Sentiment: Valero has been appearing on investor “best growth” lists and pre-earnings positioning lifted activity ahead of results, which can magnify short-term moves but is not a fundamental change. QuiverQuant: Valero Energy rises as refining margins stay elevated
• Negative Sentiment: Sector-level geopolitical risks (Iran, Venezuela) and commentary suggesting big-oil earnings could face headwinds introduce downside risk to future quarters — volatility in crude/fuel spreads could reverse margin tailwinds. Big Oil Earnings Set To Sharply Decline. Blame This Tug-Of-War.
• Negative Sentiment: Notable insider sales and large institutional rebalancing were flagged in recent data — these flows can create selling pressure even amid good results. QuiverQuant: insider & institutional activity

Insider Activity

In other news, SVP Eric A. Fisher sold 400 shares of the stock in a transaction dated Thursday, March 12th. The shares were sold at an average price of $238.60, for a total transaction of $95,440.00. The transaction was disclosed in a document filed with the SEC, which can be accessed through this hyperlink. 0.36% of the stock is currently owned by insiders.

Institutional Investors Weigh In On Valero Energy

Several hedge funds have recently modified their holdings of VLO. JPL Wealth Management LLC purchased a new stake in shares of Valero Energy during the 3rd quarter worth about $27,000. Triumph Capital Management purchased a new stake in shares of Valero Energy during the 3rd quarter worth about $35,000. IFC & Insurance Marketing Inc. purchased a new stake in shares of Valero Energy during the 4th quarter worth about $41,000. Osterweis Capital Management Inc. boosted its stake in shares of Valero Energy by 7,180.0% during the 2nd quarter. Osterweis Capital Management Inc. now owns 364 shares of the oil and gas company's stock worth $49,000 after acquiring an additional 359 shares in the last quarter. Finally, DV Equities LLC purchased a new stake in shares of Valero Energy during the 4th quarter worth about $70,000. 78.69% of the stock is owned by hedge funds and other institutional investors.

Analyst Ratings Changes

Several brokerages have weighed in on VLO. Barclays increased their price target on Valero Energy from $184.00 to $261.00 and gave the stock an "overweight" rating in a research report on Wednesday, April 8th. Piper Sandler increased their price target on Valero Energy from $236.00 to $263.00 and gave the stock an "overweight" rating in a research report on Wednesday, April 8th. UBS Group increased their price target on Valero Energy from $215.00 to $280.00 and gave the stock a "buy" rating in a research report on Thursday, April 2nd. The Goldman Sachs Group increased their price target on Valero Energy from $203.00 to $237.00 and gave the stock a "buy" rating in a research report on Thursday, March 12th. Finally, Morgan Stanley increased their price target on Valero Energy from $182.00 to $222.00 and gave the stock an "equal weight" rating in a research report on Friday, April 24th. Two analysts have rated the stock with a Strong Buy rating, ten have issued a Buy rating, eight have issued a Hold rating and one has issued a Sell rating to the stock. Based on data from MarketBeat, Valero Energy presently has a consensus rating of "Moderate Buy" and a consensus price target of $235.94.

About Valero Energy

Valero Energy Corporation is a San Antonio, Texas–based integrated downstream energy company that manufactures and markets transportation fuels, petrochemical feedstocks and other industrial products. The company's operations focus on refining crude oil into finished fuels such as gasoline, diesel and jet fuel, as well as producing asphalt and other refined product streams for commercial and industrial customers.

In addition to refining, Valero has significant operations in renewable fuels, including the production of ethanol and other biofuels, and it manages an extensive logistics network of pipelines, terminals, rail and marine assets to move feedstocks and finished products.

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