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

Valero Energy (NYSE:VLO) posted its quarterly earnings results on Thursday. The oil and gas company reported $3.82 EPS for the quarter, topping the consensus estimate of $3.27 by $0.55, FiscalAI reports. The company had revenue of $30.37 billion during the quarter, compared to analysts’ expectations of $28.20 billion. Valero Energy had a net margin of 1.91% and a return on equity of 12.34%. The firm’s revenue was down 1.2% on a year-over-year basis. During the same quarter in the previous year, the business posted $0.64 EPS.

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 Stock Down 0.4%

Shares of NYSE VLO opened at $181.70 on Friday. The company has a quick ratio of 1.09, a current ratio of 1.60 and a debt-to-equity ratio of 0.36. The firm has a 50-day moving average price of $175.25 and a 200 day moving average price of $163.61. 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 $55.42 billion, a price-to-earnings ratio of 23.78, a price-to-earnings-growth ratio of 1.04 and a beta of 0.77.

Valero Energy Increases Dividend

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

Insiders Place Their Bets

In other Valero Energy news, CFO Jason W. Fraser sold 9,933 shares of the business’s stock in a transaction on Friday, November 21st. The stock was sold at an average price of $174.02, for a total transaction of $1,728,540.66. Following the sale, the chief financial officer directly owned 134,196 shares in the company, valued at approximately $23,352,787.92. The trade was a 6.89% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through this link. 0.04% of the stock is owned by insiders.

Institutional Investors Weigh In On Valero Energy

Institutional investors and hedge funds have recently bought and sold shares of the stock. JPL Wealth Management LLC purchased a new position in shares of Valero Energy during the third quarter valued at approximately $27,000. Triumph Capital Management purchased a new position in shares of Valero Energy during the 3rd quarter worth $35,000. Osterweis Capital Management Inc. boosted its holdings in shares of Valero Energy by 7,180.0% during the second quarter. Osterweis Capital Management Inc. now owns 364 shares of the oil and gas company’s stock worth $49,000 after purchasing an additional 359 shares during the last quarter. WFA of San Diego LLC purchased a new stake in shares of Valero Energy in the second quarter valued at $95,000. Finally, MUFG Securities EMEA plc acquired a new position in Valero Energy in the second quarter valued at $125,000. Hedge funds and other institutional investors own 78.69% of the company’s stock.

Valero Energy News Roundup

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

• Positive Sentiment: Q4 earnings beat — Valero posted adjusted EPS of $3.82 vs. consensus ~$3.27 and reported higher refining margins that lifted profitability. Read More.
• Positive Sentiment: Record throughput and operational strength highlighted on the earnings call — management cited record throughput that supports margin recovery and cash generation. Read More.
• Positive Sentiment: Analyst upgrade — Piper Sandler raised its price target to $220 and set an “overweight” rating, signaling ~21% upside versus recent levels and reinforcing bullish analyst sentiment. Read More.
• Neutral Sentiment: Other analyst moves mixed — Morgan Stanley increased its target to $180 (below some peers’ targets and close to current levels), showing varied analyst views on near-term upside. Read More.
• Neutral Sentiment: Supply actions — Valero said it will buy Venezuelan crude from three authorized sellers; operationally notable but carries geopolitical/supply considerations rather than immediate earnings surprises. Read More.
• Negative Sentiment: Offsetting margin and revenue notes — analysts and reports flagged weaker renewable-diesel margins and a small (-1.2%) y/y revenue decline; Valero’s net margin remained modest, which could limit multiple expansion despite the EPS beat. Read More.

Analyst Upgrades and Downgrades

A number of brokerages recently issued reports on VLO. Zacks Research cut Valero Energy from a “strong-buy” rating to a “hold” rating in a research report on Tuesday, January 20th. Morgan Stanley boosted their price objective on Valero Energy from $175.00 to $180.00 and gave the company an “equal weight” rating in a research note on Tuesday. Weiss Ratings restated a “hold (c)” rating on shares of Valero Energy in a research report on Wednesday, January 21st. Mizuho reaffirmed a “neutral” rating and issued a $192.00 target price (up from $190.00) on shares of Valero Energy in a report on Friday, December 12th. Finally, Piper Sandler increased their price target on shares of Valero Energy from $217.00 to $220.00 and gave the stock an “overweight” rating in a research note on Friday. Two equities research analysts have rated the stock with a Strong Buy rating, nine have issued a Buy rating and nine have issued a Hold rating to the stock. Based on data from MarketBeat.com, the company currently has an average rating of “Moderate Buy” and an average target price 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.