HF Sinclair Q3 Net Income Reaches $2.0 Billion on Refining Margins; Ledbetter to Become CEO

HF Sinclair's third-quarter profit soared to more than $2 billion as tight fuel supplies and wide refining margins lifted results, and the refiner named President and Chief Operating Officer Steve Ledbetter as its next CEO.

The Dallas-based company reported net income attributable to stockholders of $2.015 billion, or $11.38 a diluted share, for the quarter ended Sept. 30, up from $403 million, or $2.15, a year earlier, according to the earnings release it filed with an 8-K on Wednesday. Adjusted net income was $2.079 billion, or $11.75 a share, compared with $2.44 a year ago.

Refining drives the surge

Sales and other revenues rose 50% to $10.857 billion. The Refining segment's income before interest and taxes jumped to $2.435 billion from $476 million, and its adjusted EBITDA rose to $2.582 billion from $661 million.

The company attributed the increase mainly to "the tight supply of transportation fuels across the markets, elevated crack spreads" and benefits from small refinery RINs waivers granted by the EPA. Adjusted refinery gross margin was $54.22 per produced barrel sold, up 183% from $19.16.

Crude charge averaged 614,060 barrels per day, down from 639,050, as a planned turnaround at the El Dorado refinery weighed on Mid-Continent sales.

• Adjusted EBITDA: $2.984 billion
• Renewables adjusted EBITDA: $109 million, versus a loss of $13 million
• Lubricants & Specialties adjusted EBITDA: $174 million
• Cash and equivalents at Sept. 30: $3.333 billion

Mississauga charges

The Lubricants & Specialties segment's results included costs tied to the decision to retire base oil refining assets in Mississauga, Ontario, with the transition expected to be substantially completed in the second half of 2027. Those costs included a $27 million impairment, $28 million of severance and $54 million of accelerated depreciation and amortization.

HF Sinclair is still pursuing the separation of Lubricants & Specialties into an independent public company announced in July, expected to take the form of a distribution of at least 80.1% of the new company's stock and to be substantially completed over the course of 2027.

Cash returns

The company returned $572 million to stockholders in the quarter, including $479 million of share repurchases and a $0.525-a-share dividend totaling $93 million. The board declared another regular quarterly dividend of $0.525 a share, payable Dec. 2 to holders of record on Nov. 12.

New CEO in January

Ledbetter will become CEO and president on Jan. 1, 2027, succeeding Franklin Myers, the company said in the same 8-K. Myers will stay on as an officer and serve as executive chairperson until the Lubricants & Specialties separation is completed, advising on that deal. The board plans to expand and add Ledbetter as a director later.

Ledbetter has been president and COO since July 2026 and joined HF Sinclair in March 2023 as executive vice president, commercial. The board has not approved changes to his compensation in connection with the appointment, according to the filing.

Sources

1. HF Sinclair Form 8-K with third-quarter 2026 earnings release (Exhibit 99.1) and CEO succession release (Exhibit 99.2), filed Oct. 28, 2026 (accession 0001915657-26-000071)

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