Marathon Petroleum posts Q1 EPS $1.65 and raises buyback to $8.6B
Marathon delivered Q1 adjusted EPS $1.65 vs $1.09 est and revenue $34.57B, reversing a year-ago net loss. It reported adjusted EBITDA of $2.8B, 89% capacity utilization and expanded buyback by $5B to $8.6B.
1. Strong Q1 Earnings Beat
Marathon reported adjusted earnings per share of $1.65, surpassing estimates of $1.09, and generated $34.57 billion in revenue, up from a prior-year net loss. Operating cash flow reached $1.1 billion as the company completed roughly 40% of its scheduled 2026 turnaround activities.
2. Refining & Marketing Segment Surge
The refining & marketing unit delivered adjusted EBITDA of $1.4 billion versus $489 million a year earlier, with margins climbing to $17.74 per barrel from $13.38 and crude capacity utilization at 89%, driven by stronger crack spreads despite hedging losses.
3. Expanded Buyback and Cash Position
Marathon authorized an additional $5 billion share repurchase, lifting total capacity to $8.6 billion, and returned over $1 billion to shareholders. The company ended the quarter with $2.2 billion in cash and cash equivalents.
4. Midstream Segment Performance
The midstream division posted adjusted EBITDA of $1.6 billion, slightly down from $1.7 billion in the prior year due to derivative losses and the absence of a one-time benefit, reflecting stable volumes amid margin pressures.