10-K annual report · filed Feb 25, 2026

Valero Energy (VLO) FY2025 10-K Annual Report

Short answer

Valero Energy (VLO) filed its fiscal 2025 10-K annual report with the SEC on Feb 25, 2026. It reported revenue of $122.7B (−5.5% year over year) and net income of $2.3B.

  • Top risk flagged: EPA's proposed RFS Set II rules (June 2025) could increase RVOs for 2026-2027, reduce RINs from foreign feedstocks by 50%, and cut hydrogenation equivalency values, threatening DGD margins

FY2025 key financial metrics · XBRL

Revenue
$122.7B
−5.5% YoY
Net income
$2.3B
−15.2% YoY
Operating margin
2.6%
−0.3 pp YoY
EPS (diluted)
$7.57
−11.8% YoY
ROE
9.9%
−1.4 pp YoY
Operating cash flow
$5.8B
−12.8% YoY

Source: XBRL data from the Valero Energy (VLO) FY2025 10-K on SEC EDGAR. USD.

Valero Energy FY2025 10-K analysis

AI summary of each section, grounded in the filing text

Business Overview

  • Section 'business' was empty or not found.

Management Discussion & Analysis

  • Revenue $122.7B, down $7.2B YoY; decline driven by lower petroleum product prices in Refining segment
  • Net income $2.3B vs $2.8B in 2024; GAAP operating margin 2.6% vs 2.9%; adjusted operating income $4.4B vs $3.8B
  • Best segment: Refining, adjusted operating income $5.3B (+$1.3B YoY); worst: Renewable Diesel, operating loss $156M vs profit $507M in 2024, hit by $940M higher feedstock costs and $675M tax incentive decline
  • Operating cash flow $5.8B; capex $1.9B; returned $4.0B to stockholders ($2.6B buybacks + $1.4B dividends); $9.8B total liquidity; new $2.5B buyback authorized Feb 2026
  • Key risks: Benicia Refinery idling by April 2026 with $1.1B impairment already booked; tariff pressure on renewable feedstocks and blender's tax credit replacement continue to weigh on Renewable Diesel margins

Risk Factors

  • EPA's proposed RFS Set II rules (June 2025) could increase RVOs for 2026-2027, reduce RINs from foreign feedstocks by 50%, and cut hydrogenation equivalency values, threatening DGD margins
  • DGD's renewable diesel/SAF facing asymmetric tariff pressure: U.S. tariffs on foreign feedstocks plus foreign duties on U.S.-exported product, with no reciprocal broad tariff on foreign finished imports
  • California SBx 1-2 and LCFS amendment (approved June 2025) cap biomass-based diesel credits at 20% per producer and target 30% CI reduction by 2030, acutely pressuring refinery operations
  • Competitors with company-owned crude production and integrated retail networks better positioned to absorb margin compression: Valero owns no primary feedstock production and no retail network
  • Texas grid "scarcity pricing" exposure creates ongoing electricity cost volatility across multiple refinery sites, compounded by growing electrification and AI-driven data center power demand

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