Valero Energy Corporation (VLO)

Valero's stock has experienced several notable events in the past six months. In Q1 2025, the company reported a net loss of $595 million, a decline from $1.2 billion net income in Q1 2024, largely due to a $1.1 billion pre-tax asset impairment loss related to West Coast assets. In Q2 2025, the ethanol segment reported $54 million in operating income, while the renewable diesel segment posted an operating loss of $79 million. In Q3 2025, Valero reported a net income of $1.1 billion, a significant increase from $364 million in Q3 2024, with the refining segment's operating income rising substantially. Valero announced in April 2025 that it would close its Benicia refinery in California by April 2026, which is expected to affect quarterly earnings. Over the last 12 months, Valero's stock price has increased by 29.09%, with a year-to-date return of 39.42%.

Demand for Valero's products exhibits seasonality, particularly for transportation fuels. Gasoline demand can be influenced by driving seasons, while jet fuel demand has shown consistent strength. Ethanol operations achieved record production levels in Q3 2025, benefiting from a strong corn crop and robust global demand. Renewable diesel profitability in Q3 2025 was adversely affected by unfavorable feedstock economics and U.S. policy headwinds.

Valero Energy Corporation operates in the oil and gas industry, focusing on oil refining and marketing, transforming crude oil into products like gasoline, diesel, jet fuel, asphalt, petrochemicals, and lubricants. Valero is also a major producer of corn ethanol and renewable diesel, and has expanded into sustainable aviation fuel (SAF) production through its Diamond Green Diesel joint venture.

Valero operates 15 refineries across the United States, Canada, and the United Kingdom, with a throughput capacity of approximately 3.2 million barrels per day. The company owns and operates two renewable diesel plants in the U.S. Gulf Coast and 12 ethanol plants primarily located in the U.S. Midwest. Valero markets its refined products on a wholesale basis in the U.S., the UK, Canada, Ireland, Mexico, and Latin America.

Valero emphasizes its commitment to being an outstanding corporate citizen and employer, fostering a culture of diversity and inclusion, and providing a safe, healthy, and rewarding work environment. The company also highlights its dedication to operational excellence, environmental stewardship, and community development. The decision to close the Benicia refinery in California by April 2026 could impact its reputation.

Valero Energy Corporation has a high level of institutional ownership, with institutions holding approximately 87% of the company's shares. Major institutional owners include Vanguard Group Inc., BlackRock, Inc., State Street Global Advisors, Inc., Charles Schwab Investment Management Inc., and T. Rowe Price Group, Inc. Individual insiders own less than 1% of the company, while the general public holds about 13% ownership.