Valero(US:VLO)2026-01-29 13:19Financial Performance - Valero reported net income attributable to stockholders of $1.1 billion, or $3.73 per share, for Q4 2025, a significant increase from $281 million, or $0.88 per share, in Q4 2024[2]. - For the full year 2025, net income attributable to stockholders was $2.3 billion, or $7.57 per share, compared to $2.8 billion, or $8.58 per share, in 2024[3]. - Adjusted net income for Q4 2025 was $1.2 billion, or $3.82 per share, up from $207 million, or $0.64 per share, in Q4 2024[4]. - Net income attributable to Valero Energy Corporation stockholders for the three months ended December 31, 2025, was $1,134 million, compared to $281 million in the same period of 2024, showing a significant increase of 303.2%[30]. - Adjusted net income attributable to Valero Energy Corporation stockholders for the year ended December 31, 2025, was $3,292 million, compared to $2,739 million in 2024, representing an increase of 20.2%[30]. - Earnings per common share for the year ended December 31, 2025, was $7.57, down from $8.58 in 2024, a decrease of approximately 11.8%[30]. Segment Performance - Refining segment reported operating income of $1.7 billion for Q4 2025, compared to $437 million in Q4 2024, with throughput averaging 3.1 million barrels per day[5]. - Renewable Diesel segment reported operating income of $92 million for Q4 2025, down from $170 million in Q4 2024, with sales volumes averaging 3.1 million gallons per day[6]. - Ethanol segment reported operating income of $117 million for Q4 2025, compared to $20 million in Q4 2024, with production averaging 4.8 million gallons per day[7]. - Operating income for the refining segment was $4,040 million for the year ended December 31, 2025, compared to $3,971 million in 2024, indicating an increase of 1.7%[28]. - The company’s operating income (loss) by segment for the year ended December 31, 2025, was $3,181 million, compared to $3,755 million in 2024, reflecting a decrease of 15.3%[28]. Revenue and Costs - Total revenues for the year ended December 31, 2025, were $122,687 million, a decrease from $129,881 million in 2024, representing a decline of approximately 5.5%[28]. - The cost of materials and other for the year ended December 31, 2025, was $101,096 million, up from $110,616 million in 2024, reflecting a decrease of about 8.6%[28]. - Total cost of sales for the year ended December 31, 2025, was $117,255 million, compared to $125,076 million in 2024, indicating a reduction of about 6.3%[28]. - Operating expenses (excluding depreciation and amortization) for the Refining segment were $5.426 billion for the year ended December 31, 2025, an increase from $4.946 billion in 2024[65]. Capital Expenditures and Investments - Capital investments totaled $412 million in Q4 2025, with $368 million allocated for sustaining the business[11]. - Capital expenditures attributable to Valero for the year ended December 31, 2025, were $1,797 million, a decrease of 4.8% from $1,888 million in 2024[58]. - The expected capital investments attributable to Valero for the year ending December 31, 2026, are projected to be $1,700 million[58]. Debt and Equity - Valero's total debt at the end of 2025 was $8.3 billion, with cash and cash equivalents of $4.7 billion, resulting in a debt to capitalization ratio of 18%[14]. - Total debt and finance lease obligations increased to $10,619 million as of December 31, 2025, compared to $10,463 million in 2024, marking an increase of 1.5%[56]. - Valero's stockholders' equity decreased to $23,725 million as of December 31, 2025, from $24,512 million in 2024, a decline of 3.2%[56]. Margins and Pricing - The refining margin for the year ended December 31, 2025, reached $13,403 million, compared to $11,325 million in 2024, indicating an increase of 18.4%[32]. - Refining margin per barrel of throughput for Q4 2025 was $13.61, compared to $8.44 in Q4 2024, showing an increase of 61.5%[39]. - The average product margin for U.S. Gulf Coast ultra-low-sulfur diesel less Brent increased to $23.86 per barrel in Q4 2025, compared to $12.41 in Q4 2024, reflecting a significant increase of 92.5%[53]. - The average price for New York Mercantile Exchange ultra-low-sulfur diesel was $2.33 per gallon in Q4 2025, compared to $2.23 in Q4 2024, indicating an increase of 4.5%[54]. - The average price for California Low-Carbon Fuel Standard carbon credit was $53.53 per metric ton in Q4 2025, down from $72.27 in Q4 2024, representing a decrease of 26%[54]. Asset Impairment and Losses - The company reported an asset impairment loss of $1,131 million for the year ended December 31, 2025[30]. - The asset impairment loss for the Benicia and Wilmington refineries was recognized at a combined total of $1.1 billion due to non-recoverable carrying values[63]. - Incremental depreciation expense related to the Benicia Refinery was approximately $300 million for the year ended December 31, 2025[63]. - The company plans to cease refining operations at the Benicia Refinery by the end of April 2026[63]. Other Notable Items - Total stockholder cash returns were $1.4 billion in Q4 2025, resulting in a payout ratio of 66% of adjusted net cash provided by operating activities[12]. - A current income tax benefit of $79 million was recognized in December 2024 for the tax credit related to cellulosic ethanol produced and sold from 2020 through 2024[63]. - The employee retention and separation costs related to the Benicia Refinery amounted to $50 million for the year ended December 31, 2025[63]. - Navigator Energy Services canceled a large-scale carbon capture project, resulting in a charge of $29 million recognized in the year ended December 31, 2024[63].