Valero Energy (VLO) Q1 2025 earnings summary

Executive summary

• Reported a net loss of $595 million ($1.90/share) for Q1 2025, compared to net income of $1.2 billion ($3.75/share) in Q1 2024, driven by a $1.1 billion asset impairment on West Coast assets and lower segment margins.

• Adjusted net income was $282 million ($0.89/share), down from $1.3 billion ($3.84/share) year-over-year.

• Returned $633 million to shareholders via dividends and buybacks; increased quarterly dividend by 6% in January 2025.

• Cash generated from operations was $952 million; $650 million in new senior notes were issued.

• Progressing with the $230 million FCC unit optimization project at St. Charles, expected to start up in 2026.

Financial highlights

• Revenues were $30.3 billion, down from $31.8 billion year-over-year, mainly due to lower petroleum product prices.

• Net loss per share was $(1.90), compared to EPS of $3.75 in Q1 2024.

• Refining segment had an operating loss of $530 million (adjusted operating income $605 million) vs. $1.7 billion operating income (adjusted $1.8 billion) in Q1 2024.

• Renewable diesel segment posted a $141 million operating loss vs. $190 million operating income last year; ethanol segment operating income was $20 million vs. $10 million.

• Net cash provided by operating activities was $952 million; adjusted net cash provided was $862 million after working capital and JV adjustments.

Outlook and guidance

• Expect 2025 capital investments attributable to the company to be ~$2 billion, with $1.6 billion for sustaining and the rest for growth.

• Q2 refining throughput guidance: Gulf Coast 1.75–1.8M bpd, Midcontinent 385–405K bpd, West Coast 240–260K bpd, North Atlantic 320–340K bpd.

• Q2 refining cash operating expenses expected at ~$5.15/bbl; renewable diesel sales volumes for 2025 expected at 1.1B gallons, with $0.53/gal operating expenses.

• Management remains focused on operational excellence, disciplined capital deployment, and shareholder returns, supported by a strong balance sheet.

• Gasoline and diesel demand exceeded pre-pandemic levels and are expected to follow seasonal patterns; jet fuel demand is improving.