iMetal

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.