Valero Energy (NYSE:VLO) Announces Quarterly Earnings Results, Beats Expectations By $0.55 EPS

Valero Energy (NYSE:VLO) announced its quarterly earnings data on Thursday. The oil and gas company reported $3.82 earnings per share (EPS) for the quarter, topping analysts’ consensus estimates of $3.27 by $0.55, FiscalAI reports. Valero Energy had a net margin of 1.21% and a return on equity of 8.69%. The firm had revenue of $30.37 billion for the quarter, compared to the consensus estimate of $28.20 billion. During the same period in the prior year, the company posted $0.64 earnings per share. The business’s revenue for the quarter was down 1.2% on a year-over-year basis.

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

• Valero reported record throughput and strong fourth-quarter results — adjusted net income of about $1.2 billion and refining operating income of $1.7 billion with ~98% throughput utilization, underscoring operational momentum.
• Management is moving to cease refining at Benicia, which added roughly $100 million of incremental depreciation and is expected to depress first-quarter EPS by about $0.25; idling is phased and will require temporary imports to meet Bay Area supply commitments.
• The company reaffirmed disciplined capital allocation with 2026 capital spending of ~$1.7 billion (~$1.4B sustaining), a board-approved 6% dividend increase, $4.0 billion of shareholder returns in 2025, and a target net debt-to-cap range of 20%–30%.
• Renewables/ethanol performance diverged in Q4 — renewable diesel operating income fell to $92 million while ethanol rose to $117 million — and management says the business is positioned to capture the new PTC but outcomes depend on final RVO/PTC and tariff guidance.
• Widening sour crude discounts (Canada, Venezuela) plus higher freight have improved heavy-crude economics and Valero expects to benefit given its high-complexity refiners and expanded coker capability to process additional heavy barrels.

Valero Energy Trading Down 0.6%

Shares of VLO traded down $1.09 during mid-day trading on Friday, reaching $181.40. 745,862 shares of the company were exchanged, compared to its average volume of 3,879,860. The business has a 50 day simple moving average of $175.08 and a two-hundred day simple moving average of $163.39. Valero Energy has a 52 week low of $99.00 and a 52 week high of $194.50. The stock has a market capitalization of $55.33 billion, a PE ratio of 37.76, a PEG ratio of 1.05 and a beta of 0.77. The company has a debt-to-equity ratio of 0.36, a quick ratio of 1.09 and a current ratio of 1.60.

Valero Energy Increases Dividend

The business also recently disclosed a quarterly dividend, which will be paid on Monday, March 9th. Stockholders of record on Thursday, February 5th will be given a dividend of $1.20 per share. This represents a $4.80 dividend on an annualized basis and a dividend yield of 2.6%. This is a positive change from Valero Energy’s previous quarterly dividend of $1.13. The ex-dividend date is Thursday, February 5th. Valero Energy’s dividend payout ratio is 94.36%.

Insider Activity at Valero Energy

In other news, CFO Jason W. Fraser sold 9,933 shares of Valero Energy stock in a transaction dated Friday, November 21st. The stock was sold at an average price of $174.02, for a total value of $1,728,540.66. Following the completion of the transaction, the chief financial officer directly owned 134,196 shares of the company’s stock, valued at approximately $23,352,787.92. This trade represents a 6.89% decrease in their position. The transaction was disclosed in a legal filing with the SEC, which is accessible through this link. Corporate insiders own 0.04% of the company’s stock.

Institutional Investors Weigh In On Valero Energy

A number of hedge funds have recently added to or reduced their stakes in the company. JPL Wealth Management LLC bought a new stake in shares of Valero Energy during the 3rd quarter worth $27,000. Triumph Capital Management purchased a new stake in Valero Energy during the third quarter worth about $35,000. Osterweis Capital Management Inc. raised its position in Valero Energy by 7,180.0% in the second 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 during the period. WFA of San Diego LLC purchased a new position in Valero Energy in the second quarter valued at about $95,000. Finally, MUFG Securities EMEA plc purchased a new position in Valero Energy in the second quarter valued at about $125,000. Institutional investors and hedge funds own 78.69% of the company’s stock.

More Valero Energy News

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

• Positive Sentiment: Q4 earnings beat — Valero reported adjusted EPS of $3.82 (vs. consensus ~ $3.10) and revenue of $30.37B, driven by higher throughput and refining results; this stronger-than-expected report is a primary positive catalyst. Valero Q4 Results
• Positive Sentiment: Operational strength — management highlighted record throughput and elevated refining margins on the earnings call, supporting near-term profit resilience. Earnings Call Highlights
• Positive Sentiment: Bullish analyst action — Piper Sandler raised its price target to $220 and kept an overweight rating, signaling meaningful upside in some sell?side views. Piper Sandler PT Raise
• Neutral Sentiment: Other analyst moves — Morgan Stanley lifted its target to $180, a less aggressive stance that provides mixed signals to investors. Morgan Stanley PT
• Neutral Sentiment: Venezuelan crude purchases — Valero said it will buy crude from three authorized Venezuelan sellers; this can lower feedstock cost/boost supply but introduces geopolitical and execution considerations. Venezuelan Crude
• Neutral Sentiment: Primary source material available — full earnings call transcript and coverage are published for deeper review of guidance and segment detail. Earnings Call Transcript
• Negative Sentiment: Margin mix headwinds — reports note weaker renewable?diesel margins offsetting some refining gains; that mix can cap margin improvement going forward. Margins Coverage
• Negative Sentiment: Valuation and profit-taking risk — VLO trades at an elevated P/E and near its 52?week high, which can prompt short?term selling despite the beat. Valuation Snapshot

Analyst Ratings Changes

Several brokerages have commented on VLO. Erste Group Bank started coverage on shares of Valero Energy in a research report on Monday, November 10th. They set a “buy” rating for the company. Zacks Research downgraded Valero Energy from a “strong-buy” rating to a “hold” rating in a research report on Tuesday, January 20th. Bank of America reissued a “neutral” rating and set a $195.00 target price (down previously from $198.00) on shares of Valero Energy in a research note on Thursday, December 11th. Raymond James Financial restated a “strong-buy” rating and issued a $195.00 price target (up from $181.00) on shares of Valero Energy in a research note on Friday, October 24th. Finally, Morgan Stanley raised their target price on shares of Valero Energy from $175.00 to $180.00 and gave the company an “equal weight” rating in a research report on Tuesday. Two investment analysts have rated the stock with a Strong Buy rating, nine have given a Buy rating and nine have given a Hold rating to the company. According to data from MarketBeat, the company presently has a consensus rating of “Moderate Buy” and a consensus price target of $183.53.

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.