10-Q · May 7, 2026
Murphy USA Inc. reported strong results for Q1 2026, with revenue reaching $4.819 billion, a 6.5% increase from Q1 2025, and EPS of $7.28, significantly ahead of previous expectations. The marketing segment's net income…
Earnings analysis · 10-Q
MUSA earnings analysis
Filed October 30, 2026 · Our reading of the company's report
The latest report
Murphy USA delivered strong Q3 results, with revenue of $6,889.7 million and diluted EPS of $9.59, up 34.8% and 41.9% year over year, respectively, and above consensus. Fuel contribution and operating cash flow were the…
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Murphy USA delivered strong Q3 results, with revenue of $6,889.7 million and diluted EPS of $9.59, up 34.8% and 41.9% year over year, respectively, and above consensus. Fuel contribution and operating cash flow were the primary strengths, while merchandise contribution and gross margin weakened and operating expenses increased. Liquidity remained adequate with $161.8 million of cash, an undrawn $750.0 million revolver commitment, and maintained 2026 capital-spending expectations of $475 million-$525 million.
From revenue to operating profit
Where each $100 of revenue went in this report.
Cost of sales, operating expenses, and what remained. Figures are rounded to whole dollars.
Where revenue came from
The business segments reported by the company.
Shares of the segments disclosed in this filing, largest first.
Reported figures
- Earnings per share
- $9.59
What stood out
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Revenue grew 34.8% year over year
Q3 revenue was $6,889.7 million, up $1,779.7 million, or 34.8%, year over year, and approximately 1.2% above Q2 2026 revenue of $6.81 billion. Revenue growth reflected a 35.5% increase in average retail fuel prices, a 3.3% increase in fuel volumes and 2.9% higher merchandise sales.
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EPS materially exceeded estimates
Diluted EPS increased to $9.59 from $6.76 in Q3 2025, a 41.9% increase, and exceeded the $8.50 consensus estimate by $1.09. Net income rose to $176.0 million from $129.9 million.
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Fuel contribution drove earnings growth
Fuel contribution increased 24.6% to $479.4 million from $384.8 million. Total fuel contribution rose to 37.0 cents per gallon from 30.7 cents, supported by fuel supply contribution of $9.6 cents per gallon versus $2.4 cents.
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Marketing profit and corporate losses improved
Marketing segment net income increased $36.0 million to $199.9 million, while Corporate and other losses improved to $23.9 million from $34.0 million, primarily because the prior-year period included $12.6 million of restructuring expense.
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Operating cash flow strengthened
Operating cash flow for the first nine months increased 58.9% to $903.1 million from $568.4 million. The increase included $130.0 million of cash provided by operating working capital, including a $188.1 million increase in accounts payable and accrued liabilities.
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Liquidity remained available
The company had $161.8 million of cash and cash equivalents, $34.2 million of marketable securities and no revolver borrowings at September 30, 2026. The revolving facility provides $750.0 million of aggregate commitments, subject to $6.2 million of outstanding letters of credit.
What to watch
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Fuel-price mix pressured margins
Gross margin compressed to approximately 10.4% from 12.3% in Q3 2025 and 11.0% in Q2 2026, while operating margin declined to approximately 3.8% from 4.0% year over year. Cost of sales increased 37.7%, faster than revenue growth of 34.8%.
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Merchandise margin deterioration
Merchandise contribution declined 2.8% to $234.5 million despite merchandise sales growth of 2.9% to $1,155.0 million. Same-store merchandise contribution fell 4.7%, including a 9.3% decline in nicotine contribution, primarily because a prior-year nicotine-pouch promotion did not repeat.
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Leverage and commodity exposure
Total long-term debt was $2,187.5 million at September 30, 2026, including a $595.5 million floating-rate term loan, while cash was $161.8 million. Management also identified volatility in crude oil, tariffs, supply-chain disruptions, cybersecurity, nicotine regulation and electric-vehicle adoption as risks; however, the filing states that no additional risk factors were identified versus the 2025 Form 10-K.
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Operating cost inflation
Store and other operating expenses increased 11.2% to approximately $318.0 million, with payment fees representing about three-fourths of the $32.0 million increase. SG&A also increased 7.8%, or $4.3 million, year over year.
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Growth spending raises funding needs
Capital expenditures and investments totaled $377.2 million for the first nine months, up from $309.1 million, while full-year 2026 planned capital spending is $475 million-$525 million. The company expects to fund the remainder primarily with operating cash flow and borrowings if necessary.
Management's outlook
No revenue or EPS guidance was provided. The company maintained its full-year 2026 capital-expenditure outlook of approximately $475 million-$525 million, including $375 million-$400 million for retail growth and $80 million-$95 million for maintenance capital.
Earlier filings 1
This is our reading of a public filing, not the filing itself. Analysis can contain errors; check the source document for full context.