Valero Energy Surges After Strong Q4 Earnings Beat Estimates
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 4h ago
0mins
Source: seekingalpha
- Significant Earnings Growth: Valero Energy (VLO) reported Q4 profit attributable to stockholders surged to $1.13 billion, or $3.73 per share, compared to $281 million and $0.88 per share a year earlier, indicating a substantial improvement in profitability.
- Adjusted EPS Exceeds Expectations: The adjusted EPS, excluding one-time items, reached $3.82, surpassing FactSet's expectation of $3.27, reflecting strong performance and enhanced management efficiency in the market.
- Refining Margin Surge: The company's refining margin per barrel skyrocketed 61% from $8.44 to $13.61 year-over-year, demonstrating Valero's strengthened competitiveness and profitability in its refining operations.
- Venezuelan Crude Procurement: Valero has engaged with three authorized sellers to procure Venezuelan crude, anticipating a significant increase in heavy crude processing capacity, which will further solidify its position in the heavy oil market.
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Analyst Views on VLO
Wall Street analysts forecast VLO stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for VLO is 186.56 USD with a low forecast of 149.00 USD and a high forecast of 223.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
17 Analyst Rating
11 Buy
6 Hold
0 Sell
Moderate Buy
Current: 184.020
Low
149.00
Averages
186.56
High
223.00
Current: 184.020
Low
149.00
Averages
186.56
High
223.00
About VLO
Valero Energy Corporation, through its subsidiaries, is a multinational manufacturer and marketer of petroleum-based and low-carbon liquid transportation fuels and petrochemical products. The Company sells its products primarily in the United States, Canada, the United Kingdom, Ireland and Latin America. Its segments include Refining, Renewable Diesel, and Ethanol. The Refining segment includes the operations of its petroleum refineries, the associated activities to market its refined petroleum products, and the logistics assets that support its refining operations. The Renewable Diesel segment represents the operations of Diamond Green Diesel (DGD), and the associated activities to market renewable diesel, renewable naphtha, and neat SAF. The Ethanol segment includes the operations of its ethanol plants and the associated activities to market its ethanol and co-products. It owns 15 petroleum refineries located in the United States, Canada and the United Kingdom.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
Valero Energy Corporation Q4 2025 Earnings Highlights
- Record Financial Performance: Valero achieved a net income of $1.1 billion or $3.73 per share in Q4 2025, significantly up from $281 million or $0.88 per share in Q4 2024, demonstrating the company's exceptional performance amid strong refining margins and market demand.
- Increased Refining Capacity Utilization: The fourth quarter saw refining throughput reach 3.1 million barrels per day with a utilization rate of 98%, marking record highs for both the quarter and the full year, reflecting the company's ongoing progress in operational efficiency and market adaptability.
- Increased Shareholder Returns: The company announced a 6% increase in quarterly cash dividends to $3.73 per share, with total shareholder cash returns of $1.4 billion for the quarter, indicating a strong commitment to shareholder value while maintaining financial health and boosting investor confidence.
- Future Investment Plans: Valero expects capital investments of approximately $1.7 billion for 2026, with $1.4 billion allocated to sustaining operations and the remainder to optimization projects, highlighting the company's focus on efficient capital allocation and risk management while pursuing growth.
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Valero Energy Stock Reaches All-Time High Following Strong Q4 Earnings, Up 3.4% Today
- Company Performance: Valero Energy shares hit a record high following a strong performance in Q4, surpassing profit expectations.
- Stock Increase: The company's stock rose by 3.4% after the announcement of its quarterly results.
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