Valero Energy Corporation
CorpDigest
Valero Energy Corporation
Financial Performance
Last reviewed: July 2025 · By Swet Parvadiya
Revenue
$139.5B
Market Cap
$52.0B
Net Income
$8.5B
Employees
9,700
Valero's free cash flow exceeded $8.2 billion in fiscal 2024, driven by refining margins that remained constructive through a year of lower headline crude prices and the high-margin contribution from the renewable fuels and environmental credit segments. Net income of $8.5 billion on $139.5 billion in revenue — a 6.1% net margin — reflects the spread-based economics of refining, where revenue is large but the input cost (crude oil) is also large and margins are earned on the differential. Revenue has declined from the $176.4 billion fiscal 2022 peak to $139.5 billion in fiscal 2024, a $37 billion reduction that mirrors the decline in crude oil and refined product prices from their war-disruption highs. Volume processed at the refineries has been relatively stable — the revenue change reflects commodity prices, not capacity use. Valero's financial performance is more meaningfully measured by crack spreads (the difference between refined product prices and crude oil input costs) than by absolute revenue. The $52 billion market capitalization on $139.5 billion in revenue is a 0.37 times multiple — a conventional refining sector discount that does not appear to fully value the Diamond Green Diesel operation or the ethanol network's credit generation capacity. Diamond Green Diesel produces over 1 billion gallons annually and generates RIN and LCFS credits at near-100% gross margins; that credit stream valued independently at comparable renewable energy margins would represent a meaningful fraction of Valero's current total market capitalization. The 9,700 employees managing $139.5 billion in revenue — $14.4 million per employee — reflects refining's capital intensity. The refineries themselves, their crude unit capacities, and the downstream processing capability represent assets accumulated through two decades of acquisitions that cannot be replicated quickly regardless of available capital. New refinery construction has not occurred in the United States since 1977, making Valero's existing capacity an asset with structural scarcity value that balance sheet accounting does not capture.
Revenue Trend Analysis
YoY Change
+0.2%
2-Year CAGR
-11.1%
Peak Year
2022
Trend
Mostly Growing
Valero Energy Corporation has reported revenue across 3 fiscal years, compounding at -11.1% annually over 2 years. The most recent year saw a 0.2% increase versus the prior year. Revenue peaked in 2022 at $176.4B. Out of 2 reported periods, 1 showed growth and 1 showed a decline.
| Fiscal Year | Revenue | Net Income | YoY Change |
|---|---|---|---|
| FY2024 | $139.5B | $8.5B | +0.2% |
| FY2023 | $139.2B | — | -21.1% |
| FY2022 | $176.4B | — | — |
Source: SEC EDGAR filings, annual earnings releases, and verified financial disclosures.
Click any row to see year details.
Valero Energy reported $129.9 billion in 2024 revenue, down from $144.8 billion in 2023 and well below the $176.4 billion peak set in 2022 when refining margins surged after Russian crude flows were rerouted. Net income attributable to Valero stockholders totaled approximately $2.7 billion in 2024 versus $8.8 billion in 2023, reflecting normalization of crack spreads from the unusual 2022 peak. Adjusted operating income from Refining declined as gasoline and diesel margins narrowed, while Renewable Diesel earnings compressed sharply as renewable identification number prices fell and the federal blender tax credit transition to the producer tax credit under the Inflation Reduction Act created uncertainty about credit monetization. Operating cash flow remained healthy at approximately $5.3 billion, supporting capital expenditures of roughly $2 billion and shareholder returns of approximately $4 billion. The company exited 2024 with $4.7 billion of cash and short-term investments and total debt of approximately $8.5 billion, maintaining investment-grade credit ratings and one of the strongest balance sheets among independent refiners.
Valero Energy operates one of the most aggressive capital return programs in the US refining sector, distributing approximately $4 billion to shareholders in 2024 through dividends and share repurchases. The quarterly dividend was raised to $1.13 per share in early 2025 from $1.07 the prior year, representing an annualized payout of approximately $4.52 per share and a payout ratio in the 25 to 35 percent range of mid-cycle earnings. Valero has raised its dividend annually since 2017. Share repurchases reduced the diluted share count from approximately 460 million in 2018 to roughly 320 million by year-end 2024 through cumulative buybacks executed during cyclical highs in refining margins. The company maintains a long-term payout target of returning 40 to 50 percent of adjusted net cash from operating activities to shareholders across the cycle, with flexibility to lean above the range when refining margins are favorable. The capital return discipline distinguishes Valero from peers like Phillips 66 and Marathon Petroleum, which have also returned substantial capital but with different cadence.
Valero Energy has historically maintained one of the strongest balance sheets in the US refining industry, with total debt of approximately $8.5 billion at year-end 2024 against approximately $4.7 billion of cash and short-term investments, producing a net debt position of roughly $3.8 billion. Net debt to capital ran around 17 percent, below management's target range and well below most independent refiner peers. Credit ratings of BBB and Baa2 from S&P and Moody's respectively reflect the conservative posture. The financial strategy emphasizes maintaining investment-grade ratings through cyclical downturns, preserving capacity to invest in renewable diesel and other growth projects, and supporting the dividend through troughs in refining margins. Compared with Phillips 66, Marathon Petroleum, and HF Sinclair, Valero typically holds more cash and less leverage relative to mid-cycle earnings. The 2022 to 2024 period of strong refining margins allowed the company to repay debt, build cash, and accelerate share repurchases simultaneously, leaving the company well capitalized entering the 2025 to 2026 margin normalization.
Valero Energy's earnings are highly sensitive to refining margins, which can swing by billions of dollars annually as crude oil prices, refined product demand, and regional supply imbalances move. The 2022 peak in refining margins, driven by Russia's invasion of Ukraine, sanctions on Russian oil exports, and tight global product inventories, produced record earnings of more than $11 billion in net income on $176.4 billion of revenue. The subsequent normalization in 2023 and 2024 saw net income fall to $8.8 billion and then $2.7 billion as gasoline and diesel cracks narrowed. The 2020 collapse during the pandemic produced a $1.4 billion loss as transportation fuel demand collapsed. Across these cycles Valero has emphasized cost discipline, with operating expenses per barrel among the lowest in the industry, refinery utilization typically above 90 percent, and access to discounted heavy crude through Gulf Coast pipeline and water-borne supply. Hedging programs are used selectively for renewable identification numbers and natural gas inputs but Valero generally does not hedge crude oil purchases or product sales.
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CorpDigest. "Valero Energy Corporation Revenue & Financials." CorpDigest, https://corpdigest.com/company/valero/financials.<div style="font-family:system-ui,sans-serif;font-size:14px;line-height:1.5;border:1px solid #e2e8f0;border-radius:8px;padding:12px 16px;max-width:520px"><strong>Valero Energy Corporation reported $140B in revenue (FY2024).</strong><br>Source: <a href="https://corpdigest.com/company/valero/financials" target="_blank" rel="noopener">CorpDigest — Valero Energy Corporation financials</a></div>