Murphy USA Q4 EPS Climbs to $7.53, Retail Fuel Margins Surge 7.3%
Murphy USA posted Q4 net income of $141.9 million, or $7.53 per diluted share, up from $6.96 a year ago, driven by a 7.3% jump in retail fuel margins to 31.0 cents per gallon. The company repurchased 175,400 shares for $67.5 million and hiked its dividend 18.9% to $0.63.
1. Strong Q4 Performance
Murphy USA reported net income of $141.9 million, or $7.53 per diluted share, for the quarter ended December 31, 2025, exceeding the Zacks Consensus Estimate of $6.67 and up from $6.96 a year ago. This result reflects stable earnings power, with per-share profitability rising 8.2% year over year. Adjusted EBITDA grew to $290.9 million, a 4.6% increase from $278.3 million in Q4 2024, driven by higher fuel and merchandise contributions as well as disciplined cost controls across the network.
2. Fuel and Retail Metrics
Total fuel contribution dollars climbed 8.9% to $423.6 million, with retail fuel margins up 7.3% to 31.0 cents per gallon and volumes rising 3.1% to 1,234.2 million gallons. On an average-per-store-month basis, retail fuel volume was 236.2 thousand gallons, nearly matching the prior-year period despite a 0.6% same-store sales decline. Overall retail gallons for the full year remained flat at 4.8 billion, while total fuel contribution for 2025 edged up to $1.49 billion, supported by steady margin performance and improved spot-to-rack spreads on renewable identification numbers (RINs).
3. Merchandise and Operating Expenses
Merchandise contribution increased 2.1% to $213.2 million in Q4, on unit margins of 19.6% and total sales of $1.09 billion. For the full year, merchandise contribution rose 4.2% to $869.0 million, with average margins of 20.2%. Total store operating expenses were $281.3 million, up 5.6% due to new store openings and higher labor and maintenance costs; on an APSM basis, expenses grew 3.4%. SG&A climbed $11.0 million to $65.2 million in the quarter, reflecting increased incentive accruals, while full-year SG&A of $231.5 million was slightly below the prior period.
4. Capital Allocation and Growth Outlook
During Q4, the company repurchased 175.4 thousand shares for $67.5 million and paid a quarterly dividend of $0.63 per share, marking an 18.9% increase. For the full year, share buybacks totaled 1.5 million shares at $652.0 million. The network added 29 new stores in Q4, ending the year with net growth of 28 locations and surpassing the 50-store target. With two stores already open in 2026 and 18 under construction, management reaffirmed its commitment to organic expansion and efficient capital deployment to drive shareholder value.