Valero Energy (NYSE:VLO) Issues Quarterly Earnings Results

Valero Energy (NYSE:VLO) posted its quarterly earnings data on Thursday. The oil and gas company reported $12.54 EPS for the quarter, beating the consensus estimate of $10.13 by $2.41, Zacks reports. Valero Energy had a net margin of 3.37% and a return on equity of 15.94%. The firm had revenue of $44.48 billion during the quarter, compared to analyst estimates of $39.47 billion. During the same quarter last year, the business posted $2.28 EPS. The company’s revenue for the quarter was up 48.8% on a year-over-year basis.

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

• Record second-quarter results: Net income attributable to Valero stockholders rose to $3.7 billion, or $12.62 per share, versus $714 million, or $2.28 per share, a year earlier. Refining, renewable diesel, and ethanol all reported substantially higher operating income.
• Management expects a constructive near-term environment, citing stronger refining margins and capture rates early in the third quarter, low global fuel inventories, limited excess capacity, resilient demand, and ongoing disruptions affecting Middle Eastern and Russian refining capacity.
• Valero ended the quarter with $7.9 billion in cash, $11% net debt-to-capitalization, and $5.3 billion of available liquidity excluding cash. The company returned $2.6 billion to shareholders, declared a $1.20 per-share dividend, and said excess cash could support accelerated buybacks if commodity-price volatility declines.
• Valero maintained approximately $2 billion of 2026 capital-investment guidance, including $250 million to repair the Port Arthur DHT unit, which is expected to return to service by year-end and be substantially covered by insurance. The company also plans shorter-cycle refinery optimization projects and 100–200 million gallons per year of ethanol debottlenecking, while it does not currently plan renewable-diesel expansion.
• Management warned that the renewable-fuels market faces policy and supply uncertainty, including a potentially depleted RIN bank, tariff impacts on feedstocks and imports, and uncertainty over EPA action if compliance becomes infeasible. Refining and renewable-fuels earnings also remain exposed to geopolitical volatility, commodity prices, and the timing of disrupted capacity returning to service.

Valero Energy Stock Performance

Shares of NYSE VLO traded down $3.88 during trading on Friday, reaching $307.83. 931,007 shares of the stock traded hands, compared to its average volume of 3,413,448. Valero Energy has a 52-week low of $130.78 and a 52-week high of $320.24. The company has a debt-to-equity ratio of 0.39, a current ratio of 1.58 and a quick ratio of 1.15. The company has a 50-day moving average of $269.31 and a 200-day moving average of $238.16. The stock has a market capitalization of $91.40 billion, a P/E ratio of 22.40, a price-to-earnings-growth ratio of 0.19 and a beta of 0.55.

Valero Energy Dividend Announcement

The company also recently announced a quarterly dividend, which will be paid on Monday, August 31st. Shareholders of record on Friday, July 31st will be paid a $1.20 dividend. The ex-dividend date is Friday, July 31st. This represents a $4.80 annualized dividend and a dividend yield of 1.6%. Valero Energy’s payout ratio is presently 34.88%.

Insiders Place Their Bets

In related news, SVP Eric A. Fisher sold 7,500 shares of the business’s stock in a transaction dated Monday, June 29th. The stock was sold at an average price of $268.17, for a total value of $2,011,275.00. Following the sale, the senior vice president directly owned 19,742 shares in the company, valued at approximately $5,294,212.14. The trade was a 27.53% decrease in their position. The sale was disclosed in a legal filing with the SEC, which is accessible through this hyperlink. Company insiders own 0.36% of the company’s stock.

Hedge Funds Weigh In On Valero Energy

Several large investors have recently modified their holdings of VLO. Arrowstreet Capital Limited Partnership purchased a new position in Valero Energy in the 3rd quarter valued at approximately $275,239,000. Victory Capital Management Inc. boosted its holdings in shares of Valero Energy by 49.3% in the fourth quarter. Victory Capital Management Inc. now owns 1,696,811 shares of the oil and gas company’s stock worth $276,224,000 after acquiring an additional 560,116 shares during the period. Renaissance Technologies LLC grew its position in shares of Valero Energy by 527.6% in the fourth quarter. Renaissance Technologies LLC now owns 299,288 shares of the oil and gas company’s stock valued at $48,721,000 after purchasing an additional 251,600 shares in the last quarter. EP Wealth Advisors LLC purchased a new position in shares of Valero Energy in the fourth quarter valued at $36,825,000. Finally, Voloridge Investment Management LLC raised its stake in shares of Valero Energy by 96.5% during the 3rd quarter. Voloridge Investment Management LLC now owns 444,919 shares of the oil and gas company’s stock valued at $75,752,000 after purchasing an additional 218,448 shares during the period. Hedge funds and other institutional investors own 78.69% of the company’s stock.

Wall Street Analysts Forecast Growth

Several equities analysts have recently issued reports on the company. Wolfe Research reaffirmed an “underperform” rating and issued a $203.00 target price on shares of Valero Energy in a report on Tuesday, April 21st. Weiss Ratings raised Valero Energy from a “hold (c+)” rating to a “buy (b-)” rating in a research report on Thursday, July 23rd. Wall Street Zen raised Valero Energy from a “buy” rating to a “strong-buy” rating in a research report on Saturday, April 4th. Barclays lifted their target price on Valero Energy from $279.00 to $323.00 and gave the stock an “overweight” rating in a research note on Friday. Finally, Zacks Research lowered shares of Valero Energy from a “strong-buy” rating to a “hold” rating in a research report on Monday, June 22nd. One analyst has rated the stock with a Strong Buy rating, eleven have given a Buy rating, eight have assigned a Hold rating and one has given a Sell rating to the company’s stock. According to MarketBeat, the stock presently has an average rating of “Moderate Buy” and an average price target of $273.06.

Key Stories Impacting Valero Energy

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

• Positive Sentiment: Exceptional second-quarter results: Valero reported adjusted EPS of $12.54, well above the $10.13 analyst consensus, while revenue increased 48.8% year over year to $44.48 billion, beating estimates of $39.47 billion. Net income reached a record $3.7 billion, compared with $714 million a year earlier. Strong refining margins, fuel demand and renewable diesel and ethanol performance drove the upside. Valero Energy beats quarterly profit estimates on higher refining margins
• Positive Sentiment: Analysts raised their targets: Wells Fargo lifted its target from $292 to $356 and maintained an “overweight” rating. Barclays raised its target from $279 to $323 and also kept an “overweight” rating, reinforcing the bullish view on refining profitability. Analyst price target updates
• Neutral Sentiment: Dividend goes ex-date: Valero’s $1.20-per-share quarterly dividend is scheduled for payment on August 31 to eligible shareholders. The ex-dividend date is July 31, which may contribute to a technical adjustment in the stock even though the payout supports the company’s income-investment appeal. Valero Energy Corp’s Dividend Analysis
• Negative Sentiment: Biofuel policy remains a risk: A Valero executive said changes to tax credits and registration hurdles have slowed biofuel imports, potentially making it harder for the industry to meet renewable-fuel blending mandates and creating uncertainty for the company’s renewable fuels operations. US refiner Valero says tax credit overhaul, registration hurdles have slowed biofuel imports

Valero Energy Company Profile

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.