Valero Energy (NYSE:VLO) Issues Earnings Results

29 Jan 2026, 13:18 by Scott Moore · The Cerbat Gem

Valero Energy (NYSE:VLO – Get Free Report) announced its quarterly earnings results on Thursday. The oil and gas company reported $3.82 EPS for the quarter, beating the consensus estimate of $3.10 by $0.72, FiscalAI reports. Valero Energy had a return on equity of 8.69% and a net margin of 1.21%.The company had revenue of $30.37 billion for the quarter, compared to the consensus estimate of $28.20 billion.

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 Price Performance

Shares of NYSE VLO traded up $6.46 during midday trading on Thursday, reaching $190.48. 2,798,660 shares of the company traded hands, compared to its average volume of 3,846,023. Valero Energy has a 12 month low of $99.00 and a 12 month high of $194.50. The company has a debt-to-equity ratio of 0.36, a quick ratio of 1.09 and a current ratio of 1.60. The stock’s 50-day simple moving average is $174.85 and its 200-day simple moving average is $163.26. The firm has a market cap of $58.10 billion, a PE ratio of 39.68, a PEG ratio of 1.08 and a beta of 0.77.

Valero Energy Increases Dividend

The business also recently disclosed a quarterly dividend, which will be paid on Monday, March 9th. Shareholders of record on Thursday, February 5th will be issued a dividend of $1.20 per share. The ex-dividend date of this dividend is Thursday, February 5th. This is a boost from Valero Energy’s previous quarterly dividend of $1.13. This represents a $4.80 dividend on an annualized basis and a dividend yield of 2.5%. Valero Energy’s dividend payout ratio (DPR) is 94.36%.

Insider Activity

In related news, CFO Jason W. Fraser sold 9,933 shares of Valero Energy stock in a transaction dated Friday, November 21st. The shares were sold at an average price of $174.02, for a total transaction of $1,728,540.66. Following the completion of the transaction, the chief financial officer directly owned 134,196 shares of the company’s stock, valued at $23,352,787.92. This trade represents a 6.89% decrease in their position. The sale was disclosed in a document filed with the SEC, which is available at this hyperlink. 0.37% of the stock is owned by company insiders.

Institutional Trading of Valero Energy

Hedge funds have recently modified their holdings of the company. Arrowstreet Capital Limited Partnership acquired a new stake in Valero Energy during the 3rd quarter valued at $275,239,000. Raymond James Financial Inc. grew its holdings in shares of Valero Energy by 2.3% during the third quarter. Raymond James Financial Inc. now owns 1,007,335 shares of the oil and gas company’s stock worth $171,509,000 after purchasing an additional 22,322 shares during the last quarter. Merewether Investment Management LP increased its stake in shares of Valero Energy by 19.4% in the third quarter. Merewether Investment Management LP now owns 634,731 shares of the oil and gas company’s stock valued at $108,069,000 after buying an additional 103,300 shares in the last quarter. Voloridge Investment Management LLC raised its holdings in shares of Valero Energy by 96.5% in the third quarter. Voloridge Investment Management LLC now owns 444,919 shares of the oil and gas company’s stock valued at $75,752,000 after buying an additional 218,448 shares during the last quarter. Finally, Corient Private Wealth LLC lifted its position in shares of Valero Energy by 75.1% during the second quarter. Corient Private Wealth LLC now owns 440,569 shares of the oil and gas company’s stock worth $59,222,000 after purchasing an additional 189,009 shares in the last quarter. Institutional investors and hedge funds own 78.69% of the company’s stock.

Valero Energy News Summary

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

Positive Sentiment: Valero posted an earnings and revenue beat for Q4, with adjusted net income of about $1.2B and adjusted EPS $3.82, well above consensus — core results driving the rally. Business Wire: Q4 Results
Positive Sentiment: Management cited higher refining margins and stronger ethanol volumes as the primary drivers of the quarter’s outperformance — a direct positive for near-term refinery economics. OilPrice: Refining Margins
Positive Sentiment: Market coverage and headlines note the earnings surprise and have pushed shares higher in real time as traders price in improved refining profitability. Investing.com: Shares Rise
Neutral Sentiment: Valero said it will buy Venezuelan crude from three authorized sellers — this secures supply and could lower feedstock costs but may carry geopolitical/operational complexity. Reuters: Venezuelan Crude Purchases
Neutral Sentiment: Morgan Stanley raised its price target to $180 (maintaining an equal-weight rating) — a modest analyst upgrade but still implies limited upside from current levels. American Banking News: MS Price Target
Neutral Sentiment: Sector notes compare Valero with peers (e.g., Phillips 66), highlighting that softer crude can lift refining margins industry-wide — useful context but not company-specific guidance. Zacks: Peer Comparison
Negative Sentiment: Management noted weaker renewable diesel margins in the quarter, which offset some refining gains and could pressure segments of earnings if the trend continues. Zacks: Weaker Renewable Diesel Margins

Wall Street Analysts Forecast Growth

Several research analysts recently commented on the stock. Piper Sandler dropped their target price on shares of Valero Energy from $223.00 to $217.00 and set an “overweight” rating on the stock in a report on Thursday, January 8th. UBS Group reiterated a “buy” rating on shares of Valero Energy in a research note on Tuesday, January 6th. Zacks Research downgraded Valero Energy from a “strong-buy” rating to a “hold” rating in a research note on Tuesday, January 20th. Morgan Stanley lifted their price target on Valero Energy from $175.00 to $180.00 and gave the stock an “equal weight” rating in a research report on Tuesday. Finally, Raymond James Financial reissued a “strong-buy” rating and issued a $195.00 price objective (up from $181.00) on shares of Valero Energy in a research report on Friday, October 24th. Two analysts have rated the stock with a Strong Buy rating, nine have assigned a Buy rating and nine have issued a Hold rating to the company’s stock. Based on data from MarketBeat, the company currently has an average rating of “Moderate Buy” and an average price target of $183.33.

Read Our Latest Stock Report on Valero Energy

Valero Energy Company Profile

(Get Free Report)

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.