Earnings

Murphy USA Turns Same-Store Fuel Volumes Positive

The Tip Desk · August 5, 2026 · 4 min read

Net income was $209.1 million, or $11.27 a share, as total fuel contribution reached 40.6 cents a gallon.

Murphy USA Inc. (MUSA), a marketer of retail motor fuel and convenience merchandise, posted net income of $209.1 million, or $11.27 a share, for the three months ended June 30, 2026, compared with $145.6 million, or $7.36 a share, a year earlier.

The quarter’s defining turn was in fuel volumes. Same-store gallons rose 0.5% after a 0.8% decline in the first quarter, and total retail gallons increased 3.9%. President and CEO Mindy West said retail fuel margins reflected persistent volatility through the second quarter, with the company delivering year-over-year and sequential improvement in both same-store and total fuel volumes.

Total fuel contribution was 40.6 cents per gallon, versus 32.0 cents a year earlier. Retail fuel margin was 35.1 cents a gallon, a 20.2% increase from 29.2 cents. Total fuel contribution dollars were $518.8 million, up $125.8 million, or 32.0%, from $393.0 million. Retail fuel contribution dollars rose 25.0% to $448.9 million. Fuel supply contribution including RINs increased $36.0 million, primarily due to market-driven pricing and the timing of inventory activity.

Adjusted EBITDA was $377.3 million. Contribution for both fuel and merchandise grew, driven by higher total fuel contribution margins, higher total fuel volumes, and improved merchandise sales and unit margins. Those gains were partially offset by higher store and other operating expenses, including payment fees, higher income taxes, increased general and administrative expenses, greater depreciation and amortization, and higher interest expense. Increased retail fuel prices led to a significant increase in payment fees that accounted for two-thirds of the increase in operating expenses.

Merchandise contribution dollars increased 4.0% to $227.4 million, on average unit margins of 20.1%. Nicotine contribution dollars increased 6.1%, and non-nicotine contribution dollars increased 2.9%. Total merchandise contribution increased 2.2% on a same-store-sales basis. Total merchandise sales were $1,132.1 million.

Total store and other operating expenses were $308.7 million, $33.5 million higher than $275.2 million, mainly due to increases in payment fees and higher employee-related expenses at existing stores, combined with increases in net new store operating expenses. Store OPEX excluding payment fees and rent on an average-per-store-month basis was 1.1% higher versus the year-ago quarter, primarily attributable to increased employee-related expenses tied to new store growth. SG&A costs were $60.5 million.

The company ended June 30 with 1,806 stores. It opened six net new stores in the quarter, including five Murphy USA/Express locations, and had 36 sites under construction at quarter-end. Cash and cash equivalents were $175.4 million. Long-term debt, including finance lease obligations, was $2,167.0 million. In May, the company issued $500 million of 5.875% Senior Notes due 2034 and used the majority of net proceeds to retire $300 million of Senior Notes due 2027 and pay down revolver balances.

It repurchased approximately 143.1 thousand shares for $76.8 million at an average price of $536.60. The quarterly cash dividend was $0.64 a share, or $2.56 a share annualized, a 28.0% year-over-year increase from June 2025, for a total cash payment of $11.8 million. About $145.1 million remained under the 2023 repurchase authorization, with $2.0 billion of capacity under a 2025 authorization that becomes effective upon completion of the 2023 authorization.

West said that, given strong year-to-date results, market conditions remain supportive of healthy retail margins and suggest the business is on pace to deliver significantly higher net income and Adjusted EBITDA in 2026. If second-half all-in fuel margins average 35 cents a gallon, versus 37.9 cents in the first half, the company expects net income of approximately $636 million and Adjusted EBITDA of approximately $1.25 billion.

Full-year guidance was left unchanged for new stores (45 to 55), retail fuel volume per store, and same-store fuel volume. The company moved merchandise contribution, store OPEX excluding payment fees and rent, and SG&A to the low end of original ranges, the effective tax rate to the higher end, and capital expenditures to the higher end. NTI additions will be closer to 45 new stores in the calendar year, with the higher end still attainable through small tuck-in purchases, and it expects to complete 10 raze-and-rebuilds this year.

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