Solid Financial Performance: For Q2 2025, Valero reported net income of $714 million ($2.28 per share), compared to $880 million ($2.71 per share) in Q2 2024. Refining segment operating income rose to $1.3 billion from $1.2 billion year-over-year, demonstrating strong operational execution despite facing challenges in renewable diesel.

Refining Margins Outlook: Refining throughput reached a record 2.9 million barrels per day with 92% utilization capacity. Distillate demand remains robust, forecasted to increase with the transition into heating oil season. However, gasoline demand is anticipated to be flat due to efficiency gains in automotive fleets, potentially stabilizing gasoline crack spreads moving forward.

Renewable Diesel Challenges: The Renewable Diesel (RD) segment incurred an operating loss of $79 million, a shift from a $112 million profit year-over-year, driven by challenging market conditions. Future profitability hinges on EPA decisions regarding RIN prices and the eventual recalibration in pricing for renewable diesel versus conventional fuels.