At a glance
Valero Energy Corporation is worth $106.38B, about 50 times its fiscal 2025 earnings. Revenue fell 5.5% to $122.69B in fiscal 2025, with 1.9% kept as profit; over 5 years it has grown 13.6% a year. It pays a 1.24% dividend yield, raised every year for at least 3 years, and returned $22.62B to shareholders in dividends and buybacks over FY2021–FY2025. The stock returned +129.9% over the past year with dividends reinvested and +42.5% a year over five years, against +11.5% and +11.7% for the S&P 500. At its worst it fell 61.2% in the 2020 crash (S&P 500: 33.7%) and 31.9% in the 2022 bear market (S&P 500: 24.5%), and was back at its earlier high 11 months and 4 months after the lows.
The business in plain English
Valero Energy, based in San Antonio, Texas, makes and markets transportation fuels and petrochemical products. Its Refining segment runs 15 refineries in the US, Canada and the UK that can process about 3.2 million barrels a day. Valero purchases crude oil and other feedstocks (raw materials), turns them into fuels such as gasoline and diesel, and earns the difference between the two prices. Profit per dollar of sales is thin: fiscal 2025 revenue was $122.7 billion, but net income was $2.3 billion.
Valero also has two low-carbon segments. Renewable Diesel runs through DGD, a joint venture with Darling Ingredients whose two Gulf Coast plants can make about 1.2 billion gallons a year, including a blending component for sustainable aviation fuel. Valero includes all of DGD's results in its accounts. The Ethanol segment's 12 plants in the US Mid-Continent can make about 1.7 billion gallons a year. US, California, Canadian and UK rules require fuel suppliers to blend in low-carbon fuel or purchase credits. That adds costs for the refineries, but Valero's low-carbon fuels earn credits and benefit from the demand.
In fiscal 2025, 71.6% of revenue came from the US, 12.9% from the UK and Ireland, 6.6% from Canada, 4.2% from Mexico and Peru, and 4.7% from other countries.
Price history
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VLO +129.9% over the year to Nov 2, 2026, total return with dividends reinvested.
How it makes money
By geography
| U.S. | $87.82B | 71.6% |
| U.K. and Ireland | $15.83B | 12.9% |
| Canada | $8.14B | 6.6% |
| Other Countries | $5.73B | 4.7% |
| Mexico and Peru | $5.17B | 4.2% |
Latest results
- In Q3 FY2026 (ended Sep 30, 2026), revenue was $46.10B, up 43.3% from a year earlier, and net income was $6.83B (+523.6%).
- For fiscal 2025, revenue was $122.69B (-5.5% year over year; +13.6% a year from FY2020 to FY2025) with a 1.9% net margin.
Financial health check
| Revenue growth a year (FY2020–FY2025) | +13.6% good |
|---|---|
| Operating margin | 2.6% weak |
| Return on equity (FY2025) | 9.9% watch |
| Return on assets (FY2025) | 4% watch |
| Net cash (cash minus debt) | $1.26B good |
| Fiscal year | Revenue | Net income | Free cash flow |
|---|---|---|---|
| FY2020 | $64.91B | $-1.42B | $-1.49B |
| FY2021 | $113.98B | $930.0M | $3.40B |
| FY2022 | $176.38B | $11.53B | $9.84B |
| FY2023 | $144.77B | $8.84B | $7.31B |
| FY2024 | $129.88B | $2.77B | $4.63B |
| FY2025 | $122.69B | $2.35B | — |
Valuation snapshot
| Market value | $106.38B |
|---|---|
| P/E ratio | 50.4 |
| Dividend yield | 1.24% |
Rank among 1514 US companies
Market value at each year end
Valero Energy’s market value went from $30.93B at the end of 2016 to $106.38B on Nov 2, 2026, about 3.4 times as much; since the end of 2025 it is up 114%.
Show as a table
| Year end | Market value | Change |
|---|---|---|
| Nov 2, 2026 | $106.38B | +114.3% |
| 2025 | $49.65B | +27.9% |
| 2024 | $38.81B | -12.3% |
| 2023 | $44.26B | -9.5% |
| 2022 | $48.91B | +59.3% |
| 2021 | $30.71B | +33.1% |
| 2020 | $23.07B | -40.0% |
| 2019 | $38.46B | +20.9% |
| 2018 | $31.81B | -20.9% |
| 2017 | $40.22B | +30.0% |
| 2016 | $30.93B |
Price behavior
| YTD | 1 yr | 3 yr | 5 yr | 10 yr | |
|---|---|---|---|---|---|
| VLO price data to Nov 2, 2026 | +137.9% | +129.9% | +47.6% | +42.5% | +25.3% |
Show as a table
| Year | Price data |
|---|---|
| 2026 (to date) | +137.9% |
| 2025 | +37.1% |
| 2024 | -2.9% |
| 2023 | +5.9% |
| 2022 | +75.0% |
| 2021 | +40.3% |
| 2020 | -35.6% |
| 2019 | +30.4% |
| 2018 | -15.7% |
| 2017 | +38.7% |
| 2016 | +0.8% |
| 2015 | +46.8% |
| 2014 | +0.3% |
| 2013 | +64.5% |
| 2012 | +66.2% |
| 2011 | -7.8% |
| 2010 | +39.5% |
| 2009 | -20.2% |
| 2008 | -68.5% |
| 2007 | +37.9% |
| 2006 | -0.4% |
| 2008 financial crisis stocks fell Oct 9, 2007 – Mar 9, 2009 | Lost 76.4% over that stretch · deepest drop along the way 80.7%, back to its old high 74.9 months after the low |
|---|---|
| 2020 COVID crash stocks fell Feb 19, 2020 – Mar 23, 2020 | Lost 60.8% over that stretch · deepest drop along the way 61.2%, back to its old high 11.4 months after the low |
| 2022 bear market stocks fell Jan 3, 2022 – Oct 12, 2022 | Gained 53.6% over that stretch · deepest drop along the way 31.9%, back to its old high 3.9 months after the low |
Insider activity
Form 4 filings from 2025-10-31 to 2026-10-31 (25 read): 0 open-market purchases and 6 sales ($7.7M).
| Date | Insider | Type | Value |
|---|---|---|---|
| Jun 29, 2026 | Eric A Fisher SVP | sell | $2.0M |
| Mar 11, 2026 | Eric A Fisher SVP | sell | $1.9M |
| May 18, 2026 | Eric A Fisher SVP | sell | $1.9M |
| Jun 18, 2026 | Eric A Fisher SVP | sell | $1.8M |
| Mar 12, 2026 | Eric A Fisher SVP | sell | $48K |
Who owns it
Large shareholders (13G filings)
| Vanguard Capital Management | 7.58% | Mar 31, 2026 |
| BlackRock, Inc. | 7.3% | Mar 31, 2025 |
| Vanguard Portfolio Management | 5.01% | Jun 30, 2026 |
ETFs with the most weight in VLO
| CRAK VanEck Oil Refiners ETF | 6.42% |
| PXE Invesco Energy Exploration & Production ETF | 5.08% |
| RSPG Invesco S&P 500 Equal Weight Energy ETF | 4.5% |
| IEO iShares U.S. Oil & Gas Exploration & Production ETF | 4.5% |
| PWER Macquarie Energy Transition ETF | 4.09% |
| DRLL Strive U.S. Energy ETF | 3.82% |
| WEEI Westwood Salient Enhanced Energy Income ETF | 2.99% |
| XOP SPDR S&P Oil & Gas Exploration & Production ETF | 2.84% |
What could go wrong
- Thin profit margins that swing widely. Profit depends on the gap between feedstock costs (crude oil, corn) and fuel prices, which OPEC+ oil producers and new global refining capacity can squeeze. Fiscal 2025 operating income was 2.6% of revenue.
- Losing its cheaper-crude advantage. Much of Valero's profit comes from processing crude oils that cost less than benchmark grades (widely quoted reference oils). Past narrowing of that discount hurt results, and Valero says future narrowing likely would too.
- Changing fuel credits and tax rules. Its refineries must blend in renewable fuel or purchase credits under US, California, Canadian and UK rules, while its low-carbon fuels earn credits and tax breaks. Rule changes can raise costs or cut income.
- Shutdowns at refineries or plants. Valero has 15 refineries, 12 ethanol plants and a stake in two renewable diesel plants. An unplanned outage at any of them can cut output and profit, and insurance does not cover every loss.
- Sales abroad and trade tensions. The UK and Ireland (12.9% of fiscal 2025 revenue) and Canada (6.6%) are big markets with their own rules. Tariffs, sanctions and other trade restrictions can also squeeze margins.
- Climate rules and weaker fuel demand. Climate laws, lawsuits and political pressure aimed at the fossil fuel industry could raise costs or restrict refining. Wider industry and market shifts could also reduce demand for Valero's fuels.
Recent events
- Investor presentation or announcement; Other company announcement
- Quarterly results released
- Executive or board change; Investor presentation or announcement
- Quarterly results released
- Investor presentation or announcement
- Executive or board change; Shareholder vote results; Other company announcement
- Quarterly results released
- Major agreement signed
- Quarterly results released
For income and retirement investors
Valero held its dividend at $3.92 a share from fiscal 2020 through 2022, even in 2020 when it lost $3.50 a share. It then raised the payout three years in a row, to $4.52 in fiscal 2025, about 2.9% a year of growth since 2020. That dividend used 59.8% of fiscal 2025 earnings. The yield was 1.22% as of October 28, 2026, held down by a 142.2% share-price gain since the start of 2026. Valero returns more cash through buybacks (repurchasing its own shares): $15.2 billion from fiscal 2021 to 2025, versus $7.4 billion in dividends. Its share count fell 31.9% between February 2022 and October 2026.
The shares fell 80.7% in the 2008 financial crisis, taking about 75 months to recover, and 61.2% in the 2020 COVID crash, recovering in about 11 months. They rose 53.6% over the 2022 bear market, despite a 31.9% slide from June to September. Single stocks carry more risk than diversified funds.
Questions investors ask
How does Valero make money?
By turning crude oil, corn and other raw materials into fuels and keeping the gap between what it pays and what its products fetch. Its 15 refineries make fuels such as gasoline and diesel, and much of its profit comes from processing crude that costs less than benchmark oils. It also makes renewable diesel through DGD, a joint venture with Darling Ingredients, and ethanol at 12 plants. Government low-carbon fuel programs add value to those fuels.
Does Valero raise its dividend every year?
No. Valero held its dividend at $3.92 a share from fiscal 2020 through 2022, then raised it three years in a row, reaching $4.52 in fiscal 2025. That is average growth of about 2.9% a year since 2020. It did not cut the dividend in 2020, when it lost $3.50 a share. The fiscal 2025 dividend used 59.8% of earnings, and the yield was 1.22% as of October 28, 2026.
Does Valero make renewable fuels?
Yes. Its Renewable Diesel segment runs through DGD, a joint venture with Darling Ingredients whose two Gulf Coast plants can make about 1.2 billion gallons a year, including a blending component for sustainable aviation fuel. Its 12 ethanol plants can make about 1.7 billion gallons a year. A July 4, 2025 law extended the federal clean fuel tax credit these fuels can earn through 2029. For fuel made from 2026 on, it is generally capped at $1.00 a gallon and requires US, Mexican or Canadian feedstocks.
Why is Valero's P/E ratio so high?
Mostly because it compares a much higher share price with a low-profit year. As of October 28, 2026, the P/E (share price divided by a year's earnings per share) was 51.3, based on fiscal 2025 earnings of $7.57 a share, down from $29.04 in fiscal 2022. The shares gained 142.2% from the start of 2026 to that date, and profits jumped: net income in the quarter ended September 30, 2026 was $6.8 billion, up 523.6% from a year earlier. Refiners' profits swing, so one year's P/E can mislead.
How much debt does Valero have?
About $8.6 billion as of September 30, 2026, less than its $9.8 billion of cash and investments. That left roughly $1.3 billion of net cash (cash minus debt). Shareholders' equity (assets minus liabilities) was about $28.0 billion. Having more cash than debt gives a refiner more room in lean years, though Valero's 10-K warns that changes in its credit ratings or shaky financial markets could raise its borrowing costs.