Valero Energy

VLO Q1 2025 Earnings

Reported Apr 24, 2025 at 8:13 AM ET · SEC Source

Q1 25 EPS

$0.89

BEAT +116.97%

Est. $0.41

Q1 25 Revenue

$30.26B

BEAT +6.32%

Est. $28.46B

vs S&P Since Q1 25

+95.6%

BEATING MARKET

VLO +126.5% vs S&P +30.9%

Market Reaction

Did VLO Beat Earnings? Q1 2025 Results

Valero Energy delivered a first-quarter 2025 earnings beat that masked a deeply troubled underlying business, as the San Antonio-based refiner posted adjusted EPS of $0.89 against a Wall Street consensus of $0.41, a 116.97% beat, while revenue of $30… Read more Valero Energy delivered a first-quarter 2025 earnings beat that masked a deeply troubled underlying business, as the San Antonio-based refiner posted adjusted EPS of $0.89 against a Wall Street consensus of $0.41, a 116.97% beat, while revenue of $30.26 billion topped estimates by 6.32%, even as sales fell 4.7% year over year. The headline figures, however, were overshadowed by a $1.13 billion pre-tax asset impairment charge tied to the company's California refining assets, swinging GAAP results to a net loss of $595 million, or $1.90 per share. The write-down accompanied Valero's decision to cease refining operations at its Benicia Refinery by April 2026, a move CEO Lane Riggs attributed to California's increasingly restrictive regulatory environment, a challenge that has pushed multiple major refiners toward similar exits from the state. Total refining margin compressed sharply to $2.49 billion from $3.53 billion a year ago, while the Renewable Diesel segment swung to a $141 million operating loss. Despite the turbulence, Valero raised its quarterly dividend 6% to $1.13 per share, signaling confidence for income-focused investors watching the sector.

Key Takeaways

  • Compressed refining margins across all regions with margin per barrel declining from $14.07 to $9.78 year-over-year
  • $1.1 billion pre-tax asset impairment loss on West Coast (Benicia and Wilmington) refinery assets
  • Heavy maintenance and turnaround activity across refining system
  • Challenging margin environment in Renewable Diesel segment with margin per gallon declining from $1.02 to $0.02
  • Increased heavy sour crude oil processing (555 thousand barrels per day vs. 347 thousand in Q1 2024)
  • Higher throughput volumes of 2,828 thousand barrels per day vs. 2,760 in Q1 2024
  • Ethanol operating income doubled to $20 million from $10 million
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VLO YoY Financials

Q1 2025 vs Q1 2024, source: SEC Filings

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VLO Revenue by Segment

With YoY comparisons, source: SEC Filings

Q1 25 Q1 26

“We delivered positive results for the first quarter despite heavy maintenance activity across our refining system and a challenging margin environment in the Renewable Diesel segment. This is a credit to the strength and discipline of our operations, optimization, and commercial teams.”

— Lane Riggs, Q1 2025 Earnings Press Release