Valero Energy Q3 Results Show Record Ethanol Production, Strong Profits

Valero Energy Corporation (NYSE:VLO) reported third-quarter adjusted EPS of $23.90, beating analyst expectations of $21.01.

Revenue reached $46.098 billion, surpassing the consensus estimate of $39.481 billion.

• Valero Energy stock is feeling bearish pressure. Why is VLO stock dropping?

Management Commentary and Refinery Upgrade

Chairman, CEO and President Lane Riggs said Valero’s refineries operated at utilization rates close to historical records during the quarter, helping ensure a dependable supply of essential transportation fuels.

Valero also completed its St. Charles Refinery fluid catalytic cracking (FCC) unit optimization project on time and within budget.

The upgrade expands capacity for higher-value products, including alkylate and gasoline, strengthening the refinery’s ability to meet market demand for transportation fuels.

Business Performance

Refining: Adjusted operating income surged to $8.8 billion from $1.7 billion in the third quarter of 2025. Refining throughput averaged 3 million barrels per day during the quarter.

Renewable Diesel: The segment, which includes the Diamond Green Diesel (DGD) joint venture, recorded operating income of $353 million, compared with an operating loss of $28 million a year earlier. Sales volumes averaged 3.4 million gallons per day.

Ethanol: Operating income increased to $272 million from $183 million in the third quarter of 2025. Ethanol production averaged 4.8 million gallons per day, setting a new quarterly record.

Cash Flow, Capital Spending and Balance Sheet

Valero generated $6.9 billion in operating cash flow during the third quarter, including a $526 million working capital headwind and $205 million attributable to DGD’s other joint venture member. Excluding these items, adjusted operating cash flow totaled $7.3 billion.

Capital investments totaled $432 million, including $371 million for maintenance, refinery turnarounds, catalysts and regulatory compliance. Excluding investments related to DGD’s other joint venture member and other variable interest entities, capital spending totaled $429 million.

Valero ended the quarter with $9.8 billion in cash and cash equivalents, alongside $8.6 billion in debt and $2.4 billion in finance lease obligations. Its net debt-to-capitalization ratio stood at 4% as of Sept. 30, 2026.

VLO Stock Price Activity: Valero Energy shares were down 3.80% at $420.15 at the time of publication on Thursday.

Photo via Shutterstock