Valero demonstrates strong earnings quality with an OCF/NI ratio of 1.10 in 2026Q1, enabling consistent capital returns despite low capital expenditure intensity averaging below 1.5% of revenue.
| Metric | TTM | Dec'25 | Dec'24 | Dec'23 | Dec'22 | Dec'21 | Dec'20 | Dec'19 | Dec'18 | Dec'17 | Dec'16 | Dec'15 | Dec'14 | Dec'13 | Dec'12 | Dec'11 | Dec'10 | Dec'09 | Dec'08 | Dec'07 | Dec'06 | Dec'05 | Dec'04 | Dec'03 | Dec'02 | Dec'01 | Dec'00 | Dec'99 | Dec'98 | Dec'97 | Dec'96 |
|---|
| Cash from Operations | 6.26B | 5.83B | 6.68B | 9.23B | 12.57B | 5.86B | 948M | 5.53B | 4.37B | 5.48B | 4.82B | 5.61B | 4.24B | 5.56B | 5.27B | 4.04B | 3.04B | 1.82B | 2.99B | 5.26B | 6.31B | 5.8B | 2.96B | 1.42B | 272.3M | 905.51M | 601.3M | 435.1M | 165.8M | 221.1M | 275.8M |
| Operating CF Margin % | - | 4.75% | 5.15% | 6.38% | 7.13% | 5.14% | 1.46% | 5.11% | 3.73% | 5.83% | 6.37% | 6.39% | 3.24% | 4.03% | 3.78% | 3.21% | 3.7% | 2.68% | 2.51% | 5.52% | 6.87% | 7.06% | 5.41% | 3.73% | 1.01% | 6.04% | 4.1% | 5.47% | 2.99% | 3.84% | 5.53% |
| Operating CF Growth % | 121.37% | -12.82% | -27.59% | -26.6% | 114.61% | 518.04% | -82.86% | 26.54% | -20.27% | 13.73% | -14.1% | 32.3% | -23.78% | 5.58% | 30.51% | 32.61% | 67.03% | -39.07% | -43.1% | -16.7% | 8.85% | 96.1% | 108.78% | 420.16% | -69.93% | 50.59% | 38.2% | 162.42% | -25.01% | -19.83% | 77.02% |
| Net Income | 4.21B | 2.35B | 2.77B | 9.15B | 11.88B | 1.29B | -1.11B | 1.33B | 3.12B | 4.07B | 2.29B | 3.99B | 3.71B | 2.73B | 2.08B | 2.09B | 324M | -1.98B | -1.13B | 5.23B | 5.46B | 3.59B | 1.8B | 621.5M | 91.5M | 563.55M | 339.12M | 14.3M | -47.3M | 96.1M | 72.7M |
| Depreciation & Amortization | 3.31B | 3.16B | 2.77B | 2.7B | 2.47B | 2.4B | 2.35B | 2.25B | 2.07B | 1.99B | 1.89B | 1.84B | 1.69B | 1.72B | 1.57B | 1.53B | 1.47B | 1.53B | 1.48B | 1.38B | 1.16B | 875M | 618.4M | 510.5M | 449.3M | 252.35M | 173.06M | 139M | 78.7M | 65.2M | 138.4M |
| Stock-Based Compensation | 0 | 0 | 100M | 0 | 103M | 88M | 0 | 89M | 86M | 77M | 0 | 59M | 60M | 64M | 58M | 58M | 54M | 66M | 59M | 100M | 108M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Deferred Taxes | -270M | -197M | -87M | 103M | 50M | -126M | 158M | 234M | 203M | -2.54B | 230M | 165M | 445M | 501M | 963M | 461M | 347M | -343M | 675M | -131M | 290M | 255M | 344.8M | 287.2M | 1.5M | 270.7M | 103.1M | -9.4M | -31.7M | 32.3M | 20M |
| Other Non-Cash Items | -698M | 1.03B | 136M | -11M | -1.72B | 43M | -19M | 2.09B | 145M | 14M | -563M | 842M | 145M | -371M | 897M | 12M | 838M | 2.47B | 3.69B | -837M | -297M | -3M | 64M | 57.9M | -8.7M | -28.25M | -17.47M | -5.1M | 212.3M | 35.8M | 50.9M |
| Working Capital Changes | -295M | -512M | 990M | -2.71B | -210M | 2.16B | -435M | -465M | -1.25B | 1.88B | 970M | -1.29B | -1.81B | 922M | -302M | -116M | 9M | 82M | -1.77B | -484M | -407M | 1.08B | 126.2M | 429.2M | -261.3M | -152.84M | 3.49M | 296.3M | -46.2M | -8.3M | -6.2M |
| Change in Receivables | -2.98B | 1.13B | 1.56B | 0 | -1.62B | -4.38B | 2.77B | -1.58B | -457M | -870M | -1.53B | 1.29B | 2.75B | -753M | 437M | -2.57B | -195M | -1.14B | 0 | 0 | 0 | 0 | -418.9M | 0 | 0 | 122.13M | 0 | -89.1M | 0 | 0 | 0 |
| Change in Inventory | 95M | 362M | -286M | 0 | -672M | -253M | 1.01B | -385M | -197M | -516M | 771M | -222M | -1.01B | -13M | -282M | 643M | -407M | -77M | -705M | -249M | -405M | 0 | 0 | 0 | 0 | -66.53M | 0 | 11.2M | 0 | 0 | 0 |
| Change in Payables | 2.48B | -2.02B | -430M | -169M | 521M | 6.3B | -4.07B | 1.53B | 304M | 1.84B | 1.56B | -1.79B | -3.15B | 977M | -113M | 2B | 670M | 1.48B | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Cash from Investing | -1.61B | -1.84B | -1.98B | -1.86B | -2.81B | -2.16B | -2.42B | -3B | -3.93B | -2.38B | -2.01B | -2.49B | -2.84B | -2.81B | -3.35B | -5.3B | -1.41B | -3.29B | -2.86B | -582M | -2.97B | -4.9B | -2.69B | -1.33B | 248.6M | -3.3B | -1.19B | -172.2M | -566.3M | -486.7M | -156.2M |
| Capital Expenditures | -337M | 0 | 0 | -911M | -1.68B | -1.67B | -1.79B | -2B | -3.2B | -1.38B | -1.28B | -1.62B | -2.15B | -2.12B | -2.93B | -2.35B | -1.73B | -2.33B | -2.79B | -2.26B | -3.19B | -2.13B | -1.29B | -975.8M | -811.2M | -393.56M | -194.89M | -100.6M | -500.7M | -122M | -128.5M |
| CapEx % of Revenue | 0.27% | 0.65% | 0.7% | 0.63% | 0.95% | 1.46% | 2.75% | 1.84% | 2.73% | 1.47% | 1.69% | 1.84% | 1.65% | 1.54% | 2.1% | 1.87% | 2.1% | 3.41% | 2.34% | 2.37% | 3.47% | 2.6% | 2.36% | 2.57% | 3.01% | 2.63% | 1.33% | 1.26% | 9.04% | 2.12% | 2.57% |
| Acquisitions | 0 | 0 | 0 | 0 | 31M | 261M | -54M | -236M | -556M | -406M | -4M | -141M | 0 | 0 | 80M | -2.27B | 287M | -585M | -169M | -86M | 779M | -2.34B | -594.7M | -50.6M | -23.9M | -1.91B | -889.73M | 0 | 0 | 0 | 0 |
| Investments | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - |
| Other Investing | -1.27B | -1.85B | -2.03B | -992M | -1.19B | -1.02B | -583M | -768M | 8M | -597M | -724M | -728M | -691M | -691M | -500M | -668M | -512M | 1.88B | -415M | -455M | -545M | -499M | -799M | -304.6M | 1.08B | -1B | -109.37M | -71.6M | -65.6M | -366.1M | -28.8M |
| Cash from Financing | -3.68B | -4.18B | -5.05B | -6.94B | -8.85B | -2.85B | 2.08B | -3B | -3.17B | -2.27B | -2.01B | -2.54B | -1.93B | -163M | -1.23B | -1.07B | 816M | 1.29B | -1.61B | -3.83B | -2.19B | -1.33B | 207.3M | -135.5M | -412.4M | 2.65B | 547.19M | -214.1M | 401.7M | 275.5M | -127.8M |
| Debt Issued (Net) | 998M | -94M | -648M | -262M | -2.81B | -1.21B | 4.08B | 335M | 8M | 359M | 678M | 933M | -176M | 531M | -562M | -628M | 1.03B | 813M | -374M | 1.78B | -303M | -879M | 63M | -69M | 1.64B | 2.75B | 279.34M | -198.2M | 429.4M | 468.2M | -51.6M |
| Equity Issued (Net) | -2.92B | -2.6B | -2.88B | -5.14B | -4.58B | -27M | -156M | -1.73B | -1.71B | -1.37B | -1.34B | -2.84B | -1.25B | -928M | -222M | -300M | -13M | 806M | -939M | -5.63B | -1.9B | -344M | 223.3M | 477M | 56.5M | -78.24M | 286.54M | 2.1M | -27.8M | 48.5M | 1.4M |
| Dividends Paid | -1.41B | -1.41B | -1.38B | -1.45B | -1.56B | -1.6B | -1.6B | -1.49B | -1.37B | -1.24B | -1.11B | -848M | -566M | -462M | -360M | -169M | -114M | -324M | -299M | -271M | -184M | -106M | -79.4M | -50.6M | -42.3M | -20.7M | -18.69M | -17.9M | 0 | -5.4M | -34.2M |
| Share Repurchases | -2.92B | -2.6B | -2.88B | -5.14B | -4.58B | -27M | -156M | -1.73B | -1.71B | -1.37B | -1.34B | -2.84B | -1.3B | -928M | -281M | -349M | -13M | -4M | -955M | -5.79B | -2.02B | -571M | -318M | -73.2M | -45.5M | -156.68M | -64.29M | -13.5M | -34.5M | -10.6M | -5.8M |
| Other Financing | -341M | -85M | -142M | -91M | 100M | -10M | -242M | -113M | -99M | -17M | -243M | 208M | 49M | 696M | -89M | 31M | -84M | -6M | 5M | 287M | 197M | -2M | 0 | -492.9M | -2.07B | 0 | 0 | -100K | 100K | -235.8M | 100K |
| Net Change in Cash | 1.1B | 36M | -595M | 562M | 740M | 809M | 730M | -399M | -2.87B | 1.03B | 702M | 425M | -603M | 2.57B | 699M | -2.31B | 2.51B | -115M | -1.52B | 874M | 1.15B | -428M | 494.4M | -9.7M | 109.5M | 254.84M | -45.49M | 48.9M | 401.7M | 275.5M | -127.8M |
| Free Cash Flow | 5.93B | 5.03B | 5.78B | 8.32B | 10.89B | 4.19B | -840M | -1.68B | 2.3B | 4.1B | 3.54B | 3.99B | 2.09B | 3.44B | 2.34B | 1.68B | 1.31B | -504M | 202M | 3B | 3.13B | 3.67B | 1.67B | 440.6M | -538.9M | 511.95M | 406.41M | 334.5M | -334.9M | 99.1M | 147.3M |
| FCF Margin % | 4.7% | 4.1% | 4.45% | 5.75% | 6.18% | 3.68% | -1.29% | -1.55% | 1.96% | 4.37% | 4.68% | 4.55% | 1.6% | 2.49% | 1.68% | 1.34% | 1.6% | -0.74% | 0.17% | 3.15% | 3.4% | 4.46% | 3.05% | 1.16% | -2% | 3.42% | 2.77% | 4.2% | -6.05% | 1.72% | 2.95% |
| FCF Growth % | 28.65% | -12.92% | -30.56% | -23.64% | 159.73% | 599.29% | 50.06% | -173.16% | -43.97% | 15.84% | -11.29% | 91.24% | -39.36% | 47.2% | 38.98% | 27.98% | 360.91% | -349.5% | -93.26% | -4.06% | -14.76% | 120.09% | 278.05% | 181.76% | -205.26% | 25.97% | 21.5% | 199.88% | -437.94% | -32.72% | 372.12% |
| FCF per Share | 19.89 | 16.28 | 17.94 | 23.56 | 27.51 | 10.30 | -2.06 | -4.07 | 5.37 | 9.24 | 7.63 | 7.99 | 3.94 | 6.28 | 4.21 | 2.96 | 2.32 | -0.93 | 0.39 | 5.18 | 4.94 | 6.23 | 3.02 | 0.90 | -1.24 | 2.01 | 1.68 | 1.47 | -1.49 | 0.47 | 0.83 |
| FCF Conversion (FCF/Net Income) | 1.41x | 2.48x | 2.41x | 1.04x | 1.09x | 6.30x | -0.66x | 2.28x | 1.40x | 1.35x | 2.11x | 1.41x | 1.17x | 2.05x | 2.53x | 1.93x | 9.40x | -0.92x | -2.65x | 1.00x | 1.16x | 1.62x | 1.64x | 2.28x | 2.98x | 1.61x | 1.77x | 30.43x | -3.51x | 2.30x | 3.79x |
| Interest Paid | 278M | 0 | 556M | 562M | 570M | 0 | 526M | 452M | 463M | 457M | 427M | 416M | 392M | 361M | 302M | 397M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Taxes Paid | 363M | 0 | 843M | 3.49B | 3.29B | 0 | 203M | 116M | 1.36B | 410M | 444M | 2.09B | 1.62B | 387M | 705M | 486M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
Feedstock spread volatility
According to quarterly financial statements, Valero consistently generates operating cash flow significantly exceeding net income, with an OCF/NI ratio that reached 1.10 in 2026Q1, underscoring the company's ability to convert accounting profits into tangible liquidity despite the inherent volatility of the refining sector's earnings.
The persistent gap between net income and operating cash flow suggests that non-cash charges, particularly depreciation and amortization, play a substantial role in the company's cash generation profile. Investors should monitor this relationship closely, as the reliance on high depreciation to bolster cash flow may mask underlying margin compression during periods of narrowing crack spreads.
Based on reported figures, Valero maintained a positive free cash flow trajectory throughout the last ten quarters, peaking at $2.1 billion in 2024Q2, which demonstrates the firm's structural capacity to self-fund operations and return capital to shareholders even during periods of significant commodity price fluctuations.
The stability of free cash flow margins, which have remained consistently positive despite the 2025Q1 net loss, indicates a robust operational model that is less sensitive to accounting-based earnings volatility than its peers. This suggests that the company's core refining assets are capable of generating meaningful cash even when headline profitability is temporarily pressured by LIFO inventory adjustments.
As reported in recent filings, Valero's capital expenditure as a percentage of revenue has remained remarkably low, averaging below 1.5% over the last ten quarters, which suggests that the company is effectively managing its asset base without requiring excessive reinvestment to maintain its competitive refining capacity.
The relatively modest capital intensity implies that the company's existing infrastructure is well-optimized, allowing for significant free cash flow conversion. However, analysts should investigate whether this low level of spending is sufficient to sustain long-term operational efficiency or if it reflects a strategic deferral of major maintenance projects that could impact future throughput.
Data from recent financial disclosures indicates that Valero prioritizes shareholder returns, with share repurchases totaling over $1 billion in multiple quarters, such as 2025Q4, which highlights a management strategy focused on returning excess cash rather than pursuing large-scale, capital-intensive acquisitions in the current market environment.
The consistent use of buybacks and dividends suggests that management views the current valuation as attractive or at least prefers returning capital over aggressive expansion. This approach appears to be supported by the company's strong cash flow generation, though investors should monitor if this pace of capital return remains sustainable if refining margins face a prolonged downturn.
Quick answers to the most common questions about buying VLO stock.
Valero Energy Corporation (VLO) generated $5.83B in net cash from operating activities in 2025. This reflects the cash generated directly from core business operations.
Valero Energy Corporation (VLO) generated $5.03B in free cash flow in 2025. Free cash flow is the cash left over after capital expenditures, which can be used to pay dividends, repurchase shares, or pay down debt.
Valero Energy Corporation (VLO) spent $0.0M on capital expenditures in 2025. CapEx represents the cash invested in physical assets like property, plant, and equipment to maintain or grow the business.
In 2025, Valero Energy Corporation (VLO) returned $1.41B to shareholders via cash dividends and spent $2.60B on share repurchases. This shows the company's commitment to returning capital to its equity investors.