PBF Energy Inc. (PBF) Income Statement

The 56.2% revenue growth in 2026Q2 is a dramatic acceleration from the negative growth rates seen throughout 2024 and 2025, which ranged from -2.9% to -21.9%. This suggests a strong recovery in refining margins and/or throughput, likely driven by improved crack spreads. However, the sustainability of this growth is uncertain given the cyclical nature of refining margins, and investors should monitor whether this reflects a structural improvement or a temporary peak.

The gross margin improvement from -5.9% in 2025Q1 to 9.8% in 2026Q2 is substantial, reflecting a recovery in crack spreads and possibly better utilization. This is a stark contrast to the negative gross margins that persisted for most of 2024 and 2025, which were likely due to weak refining margins and inventory losses. The current margin level is above the peer average (e.g., Valero at 4.4%, Marathon at 7.5%), suggesting PBF may be benefiting from favorable regional dynamics or operational improvements. However, given the historical volatility, this margin expansion may not be durable.

The operating income swing of over $1.8B from 2025Q1 to 2026Q2, while SG&A only increased from $70.4M to $148.6M, highlights the high operating leverage inherent in refining. This means that as revenues recover, a disproportionate share flows to the bottom line, but the reverse is also true during downturns. The SG&A-to-revenue ratio dropped from about 1% in 2025Q1 to 1.3% in 2026Q2, indicating that overhead costs are not scaling with revenue, which is positive. However, this leverage cuts both ways, and any margin compression could quickly erode profitability.

COGS is the overwhelming cost component, ranging from 90.2% to 105.9% of revenue, which is typical for refiners where crude oil and other feedstocks are the main inputs. This means that PBF's profitability is highly sensitive to crude prices and crack spreads. SG&A is small, averaging around $80M per quarter, and has not increased significantly, indicating disciplined overhead management. However, the volatility in COGS is the key risk, as seen in the negative gross margins during 2024-2025.

2026Q2 stands out as a clear inflection point: revenue jumped to $11.7B from $7.9B in the prior quarter, and gross margin expanded to 9.8% from 6.1%. This suggests a fundamental shift in refining conditions, possibly due to tighter supply or increased demand. The lasting impact is uncertain, but if this level of profitability persists, it could signal a new cycle. However, given the historical volatility, this may be a cyclical peak rather than a structural change.