Valero Energy (VLO) FY2025 results: revenue $122.7 billion, down 5.5% on the year

Valero Energy is a multinational manufacturer and marketer of petroleum-based and low-carbon liquid transportation fuels and petrochemical products, selling mainly in the United States, Canada, the United Kingdom, Ireland and Latin America. It is based in San Antonio, Texas, was incorporated in Delaware in 1981 as Valero Refining and Marketing Company, and took its present name in 1997. The business runs in three segments: Refining, Renewable Diesel and Ethanol. It had 9,785 people in permanent full-time positions at the end of 2025, 1,782 of them covered by collective bargaining or similar agreements.

Refining

Valero owns 15 petroleum refineries in the United States, Canada and the United Kingdom with combined feedstock throughput capacity of 3,190,000 barrels per day, of which estimated crude oil capacity is about 2.7 million. Twelve of them are in the United States: Port Arthur in Texas at 435,000 barrels per day is the largest, then Corpus Christi at 370,000, which is two refineries counted together, St. Charles in Louisiana at 340,000, Texas City at 260,000, Houston at 255,000, McKee at 200,000, Memphis in Tennessee at 195,000, Benicia in California at 170,000, Wilmington in California and Meraux in Louisiana at 135,000 each, Three Rivers in Texas at 100,000 and Ardmore in Oklahoma at 90,000. Outside the United States it runs Quebec City in Quebec at 235,000 and Pembroke in Wales at 270,000. In March 2025 the company approved a plan for the Benicia refinery and states that it currently intends to idle the processing units and cease refining operations there by the end of April 2026.

How the fuel is sold

Refined products are sold in both the wholesale rack and the bulk markets, and include products bought or received on exchange from third parties as well as Valero's own output. Most refineries have marine access and interconnect with common-carrier pipeline systems, which lets the company sell into the United States, Canada, the United Kingdom, Ireland, Latin America and elsewhere. The principal purchasers at terminal truck racks are wholesalers, distributors, retailers and truck-delivered end users, and the majority of rack volume goes through unbranded channels. The rest goes to independently owned branded sites supplied under multi-year contracts, about 7,000 outlets, trading as Valero, Beacon, Diamond Shamrock and Shamrock in the United States, Ultramar in Canada, Valero and Texaco in the United Kingdom and Ireland, and Valero in Mexico. The company also owns the logistics behind all of this: crude oil and product pipelines, terminals, tanks, marine docks and truck rack bays, with terminal access in Mexico and Peru to serve Latin America.

Renewable Diesel

The Renewable Diesel segment is DGD, a joint venture with Darling Ingredients that Valero consolidates. DGD owns two plants on the Gulf Coast, one next to the St. Charles refinery that began operating in 2013 and one next to the Port Arthur refinery that began in 2022. The St. Charles plant can make about 700 million gallons of renewable diesel and about 30 million gallons of renewable naphtha a year, and Port Arthur about 470 million and 20 million, for combined capacity of roughly 1.2 billion gallons of renewable diesel and 50 million gallons of renewable naphtha. A sustainable aviation fuel project at Port Arthur started up in the fourth quarter of 2024 and gives that plant the option to upgrade about half of its renewable diesel capacity to neat SAF. DGD sells under the Diamond Green Diesel brand, mostly for blending into petroleum diesel, gasoline and conventional jet fuel, and moves the product by rail, ship and barge to domestic and international markets. As at the end of 2025 the company had invested $6.0 billion in its low-carbon fuels businesses.

Ethanol

The ethanol business began in 2009 with the purchase of the first plants and has grown by buying more. The 12 plants are in the Mid-Continent region of the United States with combined production capacity of about 1.7 billion gallons a year. They are dry mill facilities that process corn into ethanol plus co-products, including livestock feed in the form of dry distillers grains and syrup, and inedible corn oil. The filing states that several plants sit near geology believed to be suitable for sequestering carbon dioxide, and in 2025 it signed a stand-alone agreement covering its plant at Linden, Indiana to capture, transport and store the carbon dioxide from the manufacturing process.

From Valero Energy's annual report on Form 10-K for the year ended 31 December 2025. The filing

Written from the 10-K filed 25 February 2026: read the full 10-K.