How does Valero Energy (VLO) make money?

Valero Energy (VLO) generates revenue primarily from Refining, which accounted for 92.2% of total revenue in TTM through Q1 2026. The company reported $126B in revenue and converted 3.3% of it into net profit, equivalent to roughly $4.21B in net income — what's left after the cost of revenue, operating expenses, interest, and income taxes.

What is the gross profit margin of Valero Energy (VLO)?

Valero Energy (VLO) reported a gross profit margin of 7.2% in TTM through Q1 2026, equivalent to $9.14B in gross profit on $126B in revenue. Gross margin measures how much of each dollar of revenue remains after the direct cost of producing or delivering the product — a higher figure typically signals pricing power, scale, or a less capital-intensive business model.

What is the operating profit margin of Valero Energy (VLO)?

Valero Energy (VLO) reported an operating profit margin of 4.6% in TTM through Q1 2026, equivalent to $5.81B in operating income. Operating margin captures profitability after research & development, sales & marketing, and general & administrative expenses — but before interest, taxes, and one-off items — and is the cleanest single read on the underlying business's efficiency.

What is the net profit margin of Valero Energy (VLO)?

Valero Energy (VLO) reported a net profit margin of 3.3% in TTM through Q1 2026, equivalent to $4.21B in net income. Net margin is the bottom-line share of revenue that survives every expense — operating costs, interest, and income taxes — and is the figure that flows directly into earnings per share.

Is Valero Energy (VLO) profitable?

Yes. Valero Energy (VLO) reported $4.21B in net income for TTM through Q1 2026, with a net profit margin of 3.3%. The company earned more from its operations than it paid out in costs, interest, and income taxes, leaving positive earnings on the bottom line.

How much does Valero Energy (VLO) spend on capital expenditures?

Valero Energy (VLO) spent $337M on capital expenditures (CapEx) during TTM through Q1 2026, roughly 0.3% of total revenue. CapEx represents long-lived investment in property, equipment, data centres, and other physical infrastructure, and is subtracted from operating cash flow to arrive at free cash flow.

How much free cash flow does Valero Energy (VLO) generate?

Valero Energy (VLO) generated $5.93B in free cash flow during TTM through Q1 2026, a free-cash-flow margin of 4.7%. Free cash flow is the cash left after capital expenditures and represents the discretionary pool the company can use to pay dividends, repurchase shares, repay debt, or fund acquisitions without raising external capital.

What is the effective tax rate of Valero Energy (VLO)?

Valero Energy (VLO) had an effective tax rate of 25.2% in TTM through Q1 2026. The effective rate is the actual share of pre-tax income paid as income taxes and can differ materially from the statutory rate due to foreign earnings mix, tax credits (such as R&D), share-based compensation deductions, and one-off discrete items.

What are the main business segments of Valero Energy (VLO)?

Valero Energy (VLO) reports revenue across 3 reportable product segments, led by Refining at 92.2% of total revenue in TTM through Q1 2026. See the revenue-by-segment table on this page for the full breakdown and how each segment feeds into the income-statement waterfall above.

How Valero Energy Makes Money: 2026 Visual Revenue Map

Valero Energy (VLO) Income Statement Flow — TTM through Q1 2026

Calculated from the four most recent reported quarters, ending March 31, 2026 (reported April 30, 2026).

Valero Energy discloses geographic revenue only in annual filings. to view the full breakdown.

Valero Energy (VLO) Revenue by Product Segment — TTM through Q1 2026

Aggregated from the four quarterly disclosures behind this TTM. Minor differences vs the company's annual filing can occur if reported segments changed mid-year.

Revenue contribution by product segment for Valero Energy (VLO), TTM through Q1 2026.
Segment	Revenue (USD)	% of total
Refining	$116B	92.2%
Renewable Diesel	$5.04B	4%
Ethanol	$4.84B	3.8%
Total	$126B	100%

Refining$116B
Renewable Diesel$5.04B
Ethanol$4.84B
Total$126B

Revenue Breakdown — TTM through Q1 2026

In TTM through Q1 2026, Valero Energy (VLO) reports revenue across 3 reportable product segments; the largest segment was Refining at 92.2%, followed by Renewable Diesel (4%) and Ethanol (3.8%).

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