Valero Q2 Profit Jumps as Weiss Exits After 35% Gain
Valero Energy reports Q2 adjusted EPS of $12.54, beating estimates. Steve Weiss sells his stake after a 35% gain, citing sector skepticism.
Key points
- Valero Energy Q2 2026 adjusted EPS was $12.54, beating the $10.13 estimate.
- Steve Weiss sold his Valero position for a 35% gain, citing sector skepticism.
- Valero's 10-year return of 877.39% tripled the S&P 500's 255.83% gain.
Valero Energy reported second-quarter 2026 results on July 30. The company beat earnings estimates significantly. Steve Weiss sold his entire position in the stock. He realized a 35% gain over one month.
Weiss announced the exit on September 23 during a CNBC interview. He cited long-term skepticism about the energy sector. He stated he preferred to book profits while they were available. This decision contrasts with Valero's strong recent performance.
Strong Second Quarter Financials
Valero delivered adjusted earnings per share of $12.54. This exceeded the analyst estimate of $10.13. Revenue rose 48.8% year-over-year to $44.48 billion. Refining operating income reached $4.5 billion, up from $1.3 billion previously.
The refining margin per barrel nearly doubled to $23.62. It had been $12.35 a year earlier. The company returned $2.6 billion to shareholders in the quarter. CEO Lane Riggs attributed the strength to low global product inventories.
Riggs noted that limited excess refining capacity supports current fundamentals. Resilient demand for transportation fuels also contributed to the results. COO Gary Simmons expressed a bullish view on future mid-cycle margins. These comments were part of the earnings call details.
Insider Sales and Sector Context
Gary Simmons sold 4,000 shares on September 16, 2026. This filing occurred while the stock traded near its 52-week high. The share price range for the year is $155 to $419.04. Weiss's exit aligns with this insider activity.
Valero returned 877.39% over the trailing ten years. The S&P 500 proxy returned 255.83% in the same period. The Energy Select Sector SPDR returned 177.32%. Valero thus outperformed the broader market significantly.
Market Reaction and Future Outlook
Shares fell 6.12% in the week before Weiss's announcement. The stock slipped 1.16% intraday on September 23. However, the shares remain up 130.8% year-to-date. They are also up 120.5% over the past year.
Analyst price targets average $355 according to AOL.com reports. This is below the current share price of $373. A potential diesel export ban poses a near-term headwind. These factors create uncertainty despite the strong quarterly results.
