Vale — Income Statement, Cash Flows & Balance Sheet
Is Valero profitable?
Valero remained profitable in 2025, but earnings dropped sharply as refining margins compressed and a large one-time impairment charge hit the books.
| Metric | 2024 | 2025 | Change |
|---|---|---|---|
| Revenues ($M) | $129,881 | $122,687 | -5.5% |
| Operating Income ($M) | $3,755 | $3,181 | -15.3% |
| Asset Impairment Loss ($M) | $0 | $1,131 | n/a |
| Net Income Attributable to Valero ($M) | $2,770 | $2,348 | -15.2% |
| Earnings Per Share | $8.58 | $7.57 | -11.8% |
Revenue and operating income both declined year-over-year as lower commodity prices and weaker margins squeezed the top and bottom lines. The $1.1 billion impairment charge — tied to Valero's decision to shut down its Benicia, California refinery and reassess its Wilmington facility — meaningfully reduced reported profits; without it, underlying operating results would look somewhat better, though still weaker than 2024. It is worth noting that 2023 was an exceptional year by comparison, and the two-year trend reflects a normalization from unusually strong refining conditions.
Where does Valero's revenue come from?
Refining is overwhelmingly Valero's engine, while Renewable Diesel swung to a loss and Ethanol held steady.
| Segment | 2024 Operating Income ($M) | 2025 Operating Income ($M) | Change |
|---|---|---|---|
| Refining | $3,971 | $4,040 | +1.7% |
| Renewable Diesel | $507 | $(156) | n/m |
| Ethanol | $288 | $374 | +29.9% |
Refining's headline number was slightly better year-over-year only because the $1.1 billion impairment charge is shown as a separate line in the segment reconciliation; underlying refining economics were softer. The Renewable Diesel segment flipped to a loss — hurt by weaker market pricing for renewable diesel and compressed margins — even after accounting for the new clean fuel production tax credit. Ethanol was a quiet bright spot, growing modestly.
Does Valero generate cash?
Valero generated solid operating cash flow and returned most of it to shareholders, though free cash flow declined alongside earnings.
| Metric | 2024 | 2025 | Change |
|---|---|---|---|
| Operating Cash Flow ($M) | $6,683 | $5,826 | -12.8% |
| Capital Expenditures + Turnarounds ($M) | $(2,057) | $(1,885) | -8.4% |
| Free Cash Flow (approx., GAAP) ($M) | ~$4,626 | ~$3,941 | -14.8% |
| Share Buybacks ($M) | $(2,908) | $(2,634) | -9.4% |
| Dividends Paid ($M) | $(1,384) | $(1,405) | +1.5% |
Operating cash flow held up reasonably well despite lower earnings, partly because depreciation and the non-cash impairment charge are added back. Valero continued returning the bulk of free cash flow to shareholders through buybacks and a modestly growing dividend — a pattern it has maintained consistently.
How strong is Valero's balance sheet?
Valero carries a manageable debt load and holds a healthy cash cushion, but leverage is worth watching as earnings have come off peak levels.
| Metric | 2024 | 2025 | Change |
|---|---|---|---|
| Cash & Equivalents ($M) | $4,657 | $4,688 | +0.7% |
| Total Debt (excl. finance leases) ($M) | $8,085 | $8,261 | +2.2% |
| Finance Lease Obligations ($M) | $2,378 | $2,358 | -0.8% |
| Total Equity ($M) | $27,521 | $26,605 | -3.3% |
| Revolver Availability ($M) | — | $3,998 | n/a |
The cash position is nearly unchanged and Valero has almost $4 billion of undrawn revolving credit capacity — meaning near-term liquidity is comfortable. Total debt is largely long-term and fixed-rate, with the next meaningful maturity not until 2027. Equity has drifted lower as share buybacks exceed retained earnings growth, which is a deliberate capital return strategy rather than a sign of financial stress.