Valero Energy reported net income of $3.7 billion, or $12.62 a share, for the second quarter of 2026, up from $714 million, or $2.28 a share, a year earlier, the refiner said in its earnings release. Adjusted net income was also $3.7 billion, or $12.54 a share.
All three of the company's segments, refining, renewable diesel and ethanol, posted higher operating income than in the second quarter of 2025.
Segment results
| Segment | Q2 2026 operating income | Q2 2025 operating income |
|---|---|---|
| Refining | $4.5 billion | $1.3 billion |
| Renewable diesel | $717 million | -$79 million |
| Ethanol | $318 million | $54 million |
The refining segment processed 3.0 million barrels of crude a day; adjusted operating income for the segment was $4.4 billion. The renewable diesel segment, run through the Diamond Green Diesel joint venture, sold an average of 3.8 million gallons a day. Diamond Green Diesel has about 1.2 billion gallons a year of production capacity in the Gulf Coast region, making renewable diesel and sustainable aviation fuel. The ethanol segment produced an average of 4.7 million gallons a day across Valero's 12 ethanol plants, which have combined capacity of about 1.7 billion gallons a year.
Lane Riggs, Valero's chairman, chief executive and president, called it a quarter driven by "excellent operations and commercial execution across all three of our business segments."
Cash returns and balance sheet
Valero returned $2.6 billion to stockholders in the quarter, a payout ratio of 59 percent of adjusted net cash provided by operating activities. The board declared a quarterly dividend of $1.20 a share on July 16, 2026. Net cash provided by operating activities was $5.6 billion, which included a $706 million favorable working-capital swing and $389 million tied to the other joint-venture member's share of Diamond Green Diesel; excluding those items, adjusted net cash from operations was $4.5 billion.
Valero ended the quarter with $9.1 billion of total debt, $2.2 billion of finance lease obligations and $7.9 billion of cash and equivalents. Net debt to capitalization was 11 percent as of June 30, 2026. The effective tax rate for the quarter was 21 percent, and general and administrative expenses were $233 million.
St. Charles upgrade on track for the third quarter
Valero is still on track to finish the $230 million fluid catalytic cracking, or FCC, unit optimization project at its St. Charles refinery in the third quarter of 2026. An FCC unit breaks heavier crude fractions into lighter, more valuable fuels; the project is meant to expand the refinery's ability to produce high-value products. Total capital investments for the quarter were $350 million, with $290 million going to sustaining work such as turnarounds, catalysts and regulatory compliance.
Valero operates 14 petroleum refineries in the United States, Canada and the United Kingdom, with combined throughput capacity of about 3.0 million barrels a day, and sells its fuels in the U.S., Canada, the U.K., Ireland and Latin America.
Benchmark WTI crude was $84.65 a barrel and Henry Hub natural gas was $3.06 per million British thermal units as of June 15, 2026, according to the EIA. The U.S. rig count stood at 562 that week, per Baker Hughes.
