Motor fuel retailer Murphy USA Inc. (MUSA Quick QuoteMUSA - Free Report) posted first-quarter 2026 earnings of $7.28 per diluted share, up 176.8% from $2.63 a year ago and ahead of the Zacks Consensus Estimate of $5.37 by 35.6%. Total operating revenues rose 6.5% year over year to $4.8 billion and topped the consensus mark of $4.7 billion by 3.9%.

Results reflected a more favorable refined-products environment and solid execution, with total fuel contribution of 35 cents per gallon and total retail fuel volumes up 2.1% year over year.

MUSA’s Fuel Results Benefit From Pricing Dynamics

Total fuel contribution climbed 40.6% year over year to $403.9 million, supported by both higher margins and higher volumes. Retail fuel contribution increased 9.5% to $293 million as retail fuel margin expanded to 25.4 cents per gallon from 23.7 cents a year earlier.

Fuel supply, including RINs, also swung meaningfully positive, contributing 9.6 cents per gallon versus 1.7 cents per gallon in the year-ago quarter. Management attributed the fuel supply lift largely to market-driven pricing effects and the timing of inventory movements during the period.

Murphy USA Inc. Price, Consensus and EPS Surprise

Murphy USA Inc. price-consensus-eps-surprise-chart | Murphy USA Inc. Quote

Murphy USA’s Merchandise Mix Keeps Increasing Contribution

Merchandise contribution increased 7.3% to $210.2 million, driven by higher sales volume and improved unit margins. Merchandise sales advanced 5% year over year to $1 billion, while average unit margin improved to 20% from 19.6%.

On a same-store basis, total merchandise contribution rose 4.9%. Nicotine remained the standout, with nicotine contribution on a same-store basis increasing to $20.2 thousand per store month from $18.5 thousand, while non-nicotine contribution was $19.7 thousand versus $19.9 thousand a year ago.

MUSA Sees Loyalty Momentum as Prices Stay Elevated

Management emphasized that customer behavior shifts tend to build as higher pump prices persist. In April, the company indicated volumes were running roughly flat to the prior year on an average per-store month basis, alongside expectations for all-in fuel margins between 35 cents and 40 cents per gallon for the month.

Loyalty metrics were a notable signal of traffic opportunity. Murphy Drive Rewards added about 600,000 members in a month, the highest monthly total since 2022, and management also cited year-over-year increases of 8.5% in active members and about 12% in total transactions, pointing to more frequent visits even as baskets may moderate.

Murphy USA Leans on Self-Help and Cost Discipline

Profitability gains were not limited to fuel and merchandise. Adjusted EBITDA rose to $277.9 million from $157.4 million in the prior-year quarter, reflecting a higher contribution against relatively steady operating cost intensity.

Below the operating line, interest expense increased to $29 million from $25.4 million, while the effective tax rate rose to about 22.6% from 14.1% a year ago. The higher rate reflected lower excess tax benefits tied to share-based compensation, partially offset by federal energy tax credits.

MUSA Pairs Growth Buildout With Returns of Capital

Murphy USA ended the quarter with $118.6 million of cash and cash equivalents and $2.1 billion of long-term debt, with a debt-to-capitalization of 76.4%. Operating cash flow increased to $320 million from $128.5 million a year ago, aided by working capital dynamics.

Capital returns remained active. During the quarter, the company repurchased about 169,000 shares for $70.9 million at an average price of $419.87 per share and paid a quarterly dividend of 63 cents per share. On the growth front, Murphy USA opened six new-to-industry stores and closed three QuickChek sites, ending March with 1,803 stores. It had 28 total sites under construction at quarter-end (including raze-and-rebuild projects) and reiterated that it is on pace to open 45 to 55 new stores in 2026. As of March 31, $221.4 million remained under the 2023 repurchase authorization, with an additional $2 billion authorization set to become effective once that program is completed. Currently, Murphy USA sports a Zacks Rank #1 (Strong Buy). 

You can see the complete list of today’s Zacks #1 Rank stocks here.

Some Key Refining Earnings

While we have discussed MUSA’s first-quarter results in detail, let’s see how some other refining companies have fared this earnings season.

Valero Energy (VLO Quick QuoteVLO - Free Report) reported first-quarter 2026 adjusted earnings of $4.22 per share, up from 89 cents a year ago. The result beat the Zacks Consensus Estimate of $3.07 by 37.5%. Total revenues rose 7% year over year to $32.4 billion and topped the consensus mark of $30.9 billion by 4.9%.

Valero’s strong quarterly results reflected strong execution across the system, with refining throughput averaging 2.9 million barrels per day. Segment profitability also improved in renewable diesel and ethanol, helping Valero capitalize on a volatile commodity backdrop.

Another refining giant, Phillips 66 (PSX Quick QuotePSX - Free Report) , reported first-quarter 2026 adjusted earnings of 49 cents per share. The Zacks Consensus Estimate was of a loss of 55 cents. The bottom line skyrocketed 154.4% year over year from an adjusted loss of 90 cents. Phillips 66’s total revenues and other income came in at $33 billion, rising 4% from the year-ago quarter’s $31.7 billion and beating the consensus mark of $29.5 billion, reflecting an 11.8% surprise.

The strong quarterly results were supported by solid operating performance in the refining system, which ran at 95% capacity utilization and delivered an 87% clean product yield. However, mark-to-market losses tied to short derivative positions used to manage price risk weighed on Phillips 66’s first-quarter profitability.