Valero Energy Corporation (NYSE: VLO) easily beat analyst forecasts of third-quarter earnings as refining margins surged by 44% from a year earlier, exceeding the average increase in U.S. refining margins.
Valero reported on Thursday an adjusted net income of $1.1 billion, or $3.66 per share, for the third quarter of 2025. This compares to $371 million, or $1.16 per share, in net income for the third quarter of 2024.
The $3.66 per share income easily beat the $3.05 consensus estimate for EPS in the Wall Street Journal.
The refining giant’s refining margin per barrel of throughput surged by 44% to $13.14 between July and September, up from $9.09 for the same period of 2024, as U.S. refining margins rebounded this summer amid solid demand and falling gasoline and diesel inventories.
Less operating and depreciation and amortization expenses, Valero’s adjusted refining operating income per barrel of throughput more than doubled to $5.86 in the third quarter from $2.14 a year earlier.
The average U.S. refining margin jumped by 29% in the third quarter from the third quarter last year, so Valero outperformed the average U.S. market.
Diesel crack spreads—a measure of the refinery margins for diesel—at New York Harbor reached in July the highest level since February 2024 and almost double the crack spread from the same time last year, the EIA said in an analysis earlier this month.
Moreover, gasoline crack spreads in early September were more than double their level from the same time last year. As a result, the gasoline refinery margin exceeded its five-year average in mid-August for the first time since last April, per EIA data.
Valero’s refining throughput volumes averaged 3.1 million barrels per day (bpd) in the third quarter of 2025, up from 2.9 million bpd for the same period of 2024.
“Our refinery throughput utilization was 97 percent, with the Gulf Coast and North Atlantic regions setting new all-time highs for throughput – following last quarter’s record performance in the Gulf Coast,” said Lane Riggs, Valero’s chairman, CEO, and President.
By Michael Kern for Oilprice.com
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