Murphy USA Profit Jumps on Fuel Supply Gains; Dividend Raised 11%

Murphy USA's third-quarter profit jumped 35% as volatile fuel markets lifted its wholesale fuel supply business, the gas-station chain said Wednesday, and diluted earnings per share climbed to $9.59 from $6.76 a year earlier.

Net income rose to $176.0 million from $129.9 million, and adjusted EBITDA increased to $336.6 million from $285.1 million, according to the earnings release Murphy USA filed with an 8-K on Wednesday. The company said the gain was driven mainly by higher total fuel contribution, along with the absence of restructuring expenses that hit the prior-year quarter.

Fuel supply does the heavy lifting

Total fuel contribution rose 24.6%, or $94.6 million, to $479.4 million, or 37.0 cents per gallon, up from 30.7 cents. Nearly all of that improvement came from fuel supply and renewable fuel credits, known as RINs, whose combined contribution rose $94.1 million on market-driven pricing and the timing of inventory activity.

At the pump, the story was steadier. Retail fuel contribution edged up 0.1% to $355.0 million, as total retail gallons rose 3.3% while retail fuel margins slipped 3.2% to 27.4 cents per gallon. Same-store fuel volumes rose 0.1%.

"Retail fuel margins remain strong despite a rising price environment, while our Fuel Supply capabilities generated meaningful value from the volatility and supply dynamics in the market," CEO Mindy West said in the release.

Tough nicotine comparison

Merchandise contribution fell 2.8% to $234.5 million, and merchandise unit margins narrowed to 20.3% from 21.5%, even as merchandise sales rose to $1.155 billion. Nicotine contribution dollars dropped 8.0%, against a year-ago quarter that included a significant nicotine pouch promotion that did not repeat. Non-nicotine contribution rose 3.1%.

Store and other operating expenses rose $32.0 million to $317.9 million. Higher payment fees, driven by higher retail fuel prices, accounted for about three-fourths of that increase.

Buybacks and a higher dividend

Murphy USA repurchased about 287,100 shares for $157.7 million in the quarter, at an average price of $549.22. It completed its previous $1.5 billion repurchase authorization during the quarter, and virtually all of its $2.0 billion 2025 authorization remained available as of Sept. 30.

The company announced on Oct. 22 a quarterly dividend of 72 cents a share, up 11% from the third-quarter payout of 65 cents, payable Dec. 1 to holders of record on Nov. 4.

Diluted shares outstanding averaged 18.36 million, down from 19.23 million a year earlier. The effective income tax rate was about 24.6%, compared with 25.1% a year earlier. For the first nine months, net income rose to $521.4 million, or $28.09 a share, from $328.7 million, or $16.64.

Murphy USA ended the quarter with 1,808 stores, including 1,662 Murphy USA and Murphy Express sites and 146 QuickChek locations, and had 53 more under construction.

Sources

1. Murphy USA Form 8-K with third-quarter 2026 earnings release (Exhibit 99.1), filed Oct. 28, 2026 (accession 0001573516-26-000193)

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