Key Highlights

  • Diluted EPS rose 42% to USD 9.59 from USD 6.76, topping the USD 8.37 consensus estimate for the quarter.
  • Total fuel contribution reached 37.0 cents per gallon, up from 30.7 cents, and fuel contribution dollars rose 24.6%.
  • Merchandise contribution fell 2.8% to USD 234.5 million as unit margin slipped to 20.3% from 21.5% a year earlier.
  • Quarterly dividend rises 11% to USD 0.72 per share after USD 157.7 million of repurchases during the third quarter.

Murphy USA Inc. (NYSE:MUSA) reported third-quarter 2026 net income of USD 176.0 million, or USD 9.59 per diluted share, up from USD 129.9 million, or USD 6.76 per share, a year earlier. The EPS figure was above a consensus estimate of USD 8.37. Total operating revenues were USD 6.89 billion, up 34.8% from USD 5.11 billion and above a consensus estimate of USD 6.25 billion. Adjusted EBITDA rose to USD 336.6 million from USD 285.1 million.

The company attributed the improvement mainly to a larger fuel contribution, stronger fuel supply results, higher retail volumes and the absence of restructuring costs that appeared in the prior-year quarter. Higher store operating expenses, a higher tax bill and softer merchandise contribution offset part of the gain. For the first nine months, net income reached USD 521.4 million, or USD 28.09 per diluted share, versus USD 328.7 million, or USD 16.64.

Fuel Economics and Merchandise Trends

Total fuel contribution was USD 479.4 million, up USD 94.6 million. Retail fuel contribution was nearly flat at USD 355.0 million, as a 3.3% rise in chain volume to 1,295.7 million gallons offset a retail margin of 27.4 cents per gallon, down from 28.3 cents. The larger swing came from fuel supply, where contribution including RINs improved to 9.6 cents per gallon from 2.4 cents. RIN revenue alone was USD 134.5 million, compared with USD 61.7 million a year ago.

Merchandise contribution declined to USD 234.5 million. Nicotine contribution dropped 8.0%, reflecting a nicotine pouch promotion in the 2025 quarter that did not repeat, while non-nicotine contribution grew 3.1%. Store and other operating expenses rose USD 32.0 million to USD 317.9 million, with payment fees tied to higher fuel prices accounting for about three-fourths of the increase. SG&A was USD 59.6 million, up USD 4.3 million on incentive accruals.

Capital Returns and Balance Sheet

Murphy USA repurchased 287,102 shares for USD 157.7 million at an average price of USD 549.22, finishing its 2023 authorization of USD 1.5 billion. Nearly all of a USD 2.0 billion 2025 authorization remained available at quarter end, and that program runs through December 31, 2030. The company paid a USD 0.65 dividend on September 3 and declared USD 0.72 per share, payable December 1 to holders of record on November 4.

Cash totaled USD 161.8 million and long-term debt, including finance leases, stood at USD 2,167.4 million, with the revolving credit facility due 2030 undrawn. The effective tax rate was 24.6%. CEO Mindy West said customers continue to rely on the company for essential fuel and convenience trips despite higher and more volatile fuel prices. The release carried no numerical guidance.

Items to Monitor

Four readings frame the next report. Retail fuel margin is first, at 27.4 cents per gallon against 28.3 cents, since management called margins strong in a rising price environment. Fuel supply and RINs are second, at 9.6 cents per gallon and USD 134.5 million of RIN revenue. Merchandise is third, with unit margin at 20.3% and same-store contribution down 4.7% against a comparison that included a nicotine promotion. Store growth is fourth, with 1,808 stores at September 30 and 53 locations under construction, including 51 new-to-industry sites.