Valero Energy Corp. reported sharply higher fourth-quarter 2025 earnings as strong refining margins, record throughput, and improved mechanical availability more than offset weaker results in renewable diesel, the company said.
For fourth-quarter 2025, Valero reported revenue of $1.1 billion, compared with $281 million, a year earlier. Adjusted net income by quarter’s end was $1.2 billion, up from $207 million in fourth-quarter 2024.
For full-year 2025, net income totaled $2.3 billion, compared with $2.8 billion, in 2024. Adjusted net income rose to $3.3 billion from $2.7 billion a year earlier.
Lane Riggs, Valero’s chief executive officer and president, said 2025 marked the company’s best year for personnel safety, environmental performance, and mechanical availability, while delivering record refining throughput and ethanol production for both the quarter and full year.
Valero’s refining segment generated operating income of $1.7 billion during the final quarter of 2025, nearly quadrupling fourth-quarter 2024 results of $437 million. Adjusted operating income was $1.7 billion, compared with $441 million in fourth-quarter 2024.
Refining throughput in the fourth quarter averaged 3.1 million b/d, supported by strong product cracks, widening sour crude discounts, and high mechanical availability across the operator’s system. On the earnings call, management cited favorable heavy crude differentials, including increased availability of Canadian and Venezuelan barrels, as support for refining margins heading into 2026.
The company said it expects Venezuelan crude to make up a "large part of its heavy diet" in February and March, and that its capability to process the crude could be more than 240,000 b/d.
Riggs said refining fundamentals remain underpinned by demand growth and limited global capacity additions, while execution risks could constrain new supply.
Mixed results across renewables, ethanol
Valero’s renewable diesel segment Diamond Green Diesel Holdings LLC—a 50-50 joint venture of Valero Energy Corp. and Darling Ingredients Inc.— posted fourth-quarter 2025 operating income of $92 million, down from $170 million a year earlier. Sales volumes averaged 3.1 million gal/day.
Management attributed the year-over-year decline to tighter margins and policy uncertainty, though executives said Valero’s ability to capture production tax credits and commercialize sustainable aviation fuel provided a competitive advantage during the second half of 2025.
The ethanol segment reported operating income of $117 million, up sharply from $20 million in fourth-quarter 2024, with production averaging 4.8 million gal/day. The company reported record ethanol production for both the quarter and full year.
Cash flow, capital spending
Valero generated $2.1 billion in operating cash flow during the fourth quarter and $5.8 billion for the year. Adjusted operating cash flow totaled $6.0 billion in 2025, excluding working capital impacts and joint venture adjustments.
Fourth-quarter 2025 capital investments totaled $412 million primarily for sustaining capital, including turnarounds, catalysts, and regulatory compliance. Capital spending attributable to Valero was $1.8 billion for the year.
Strategic projects, outlook
Valero continues to advance its $230-million fluid catalytic cracking unit optimization project at the 340,000-b/d St. Charles refinery in Norco, La., designed to increase yields of high-value products, including alkylate. The project remains on schedule to begin operations in second-half 2026.
For 2026, Valero expects capital investments attributable to the company of about $1.7 billion, with about $1.4 billion allocated to sustaining capital and the balance directed toward optimization and growth projects across refining and ethanol operations.
Management reaffirmed that it will proceed with plans to idle the 145,000-b/d Benicia refinery in California by the end of April 2026, citing unfavorable operating costs for the plant as the reason for its decision amid ongoing regulatory and market challenges in the state. The refinery, however, said it will continue to operate 85,000-b/d Wilmington refinery near Los Angeles.
