Murphy USA (US:MUSA) ZACKS·2025-08-04 13:56Core Insights - Murphy USA Inc. (MUSA) reported second-quarter 2025 earnings per share of $7.36, exceeding the Zacks Consensus Estimate of $6.82 and slightly down from the previous year's profit of $6.92, primarily driven by higher fuel margins [1][10] - The company's operating revenues totaled $5 billion, reflecting an 8.2% year-over-year decline and missing the consensus estimate by $468 million due to lower petroleum product sales [1][10] Revenue Breakdown - Revenues from petroleum product sales were $3.9 billion, significantly below the estimated $4.2 billion and down 11.3% from the second quarter of 2024 [2] - Merchandise sales reached $1.1 billion, marking a 1.1% increase year over year [2] Fuel Contribution Analysis - Total fuel contribution increased by 0.7% year over year to $393 million, attributed to higher retail contributions and margin expansion, with total fuel contribution at 32 cents per gallon, up 1% from the previous year [3] - Retail fuel contribution decreased by 1.7% year over year to $359.1 million, with margins narrowing to 29.2 cents per gallon from 29.7 cents in the same period of 2024 [4] Merchandise Performance - Contribution from merchandise rose by 1% to $218.7 million, despite flat unit margins at 20% year over year [5] - On a same-store sales (SSS) basis, total merchandise contribution fell by 0.9% year over year, primarily due to a 2.4% decline in non-nicotine margins [5] Operational Metrics - Monthly fuel gallons sold decreased by 2.3% compared to the prior year, while merchandise sales saw a 0.7% decline on an average per-store monthly basis [6] - As of June 30, Murphy USA operated 1,766 retail locations, having opened six new stores and closed one [7] Financial Position - The company reported cash and cash equivalents of $54.1 million and long-term debt of $2.1 billion, resulting in a debt-to-capitalization ratio of 76.2% [7] - During the quarter, MUSA repurchased shares worth $211.9 million [7]