10-Q · May 5, 2026
Marathon Petroleum Corporation reported Q1 2026 results with notable improvements, showcasing a revenue of $34.20 billion and an EPS of $1.73, both exceeding analyst expectations. The significant ramp-up in…
Earnings analysis · 10-Q
MPC earnings analysis
Filed August 4, 2026 · Our reading of the company's report
The latest report
MPC delivered an exceptionally strong Q2, with revenue of $52.337 billion, diluted EPS of $17.73, and operating income of $7.322 billion, driven primarily by a $36.33-per-barrel refining margin and substantially higher…
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MPC delivered an exceptionally strong Q2, with revenue of $52.337 billion, diluted EPS of $17.73, and operating income of $7.322 billion, driven primarily by a $36.33-per-barrel refining margin and substantially higher crack spreads. Segment momentum was broad-based, with major R&M gains supplemented by Midstream growth and a Renewable Diesel turnaround. Cash generation was very strong, lifting cash to $7.765 billion, though lower refinery throughput, elevated RIN costs, increased MPLX growth spending, and commodity-margin volatility remain key counterweights.
Gross and operating margin
How much of each revenue dollar the business keeps.
One point per quarterly or annual filing. Both margins are shares of that report's revenue.
Where revenue came from
The business segments reported by the company.
Shares of the segments disclosed in this filing, largest first.
How we read each report
Our analysis across the last few reports.
Our model's reading of each filing, not the share price or the market's reaction. Annual and quarterly reports each occupy one position.
Reported figures
- Earnings per share
- $17.73
- Operating margin
- 14.0%
What stood out
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Revenue and operating margin surged
Q2 total revenues and other income increased $18.236 billion year over year to $52.337 billion, while operating income rose $5.125 billion to $7.322 billion. Operating margin expanded to 14.0% from 6.4% in Q2 2025; revenue was also up roughly $17.769 billion sequentially from the implied Q1 level of $34.568 billion.
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EPS rose sharply year over year and sequentially
Net income attributable to MPC reached $5.138 billion, or $17.73 diluted EPS, versus $1.216 billion, or $3.96, a year ago. First-half EPS was $19.30, implying approximately $1.57 in Q1 and a sequential Q2 increase of about $16.16 per share.
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Refining margins drove earnings upside
R&M adjusted EBITDA rose to $6.655 billion from $1.890 billion as refining margin per barrel more than doubled to $36.33 from $17.58. Higher crack spreads contributed an estimated $4.0 billion positive impact to R&M margin versus Q2 2025.
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Midstream and renewable diesel also improved
All reported segments improved: Midstream EBITDA increased $137 million to $1.778 billion on $295 million higher sales and operating revenue, while Renewable Diesel turned from negative $19 million to positive $258 million EBITDA on improved regulatory-credit values.
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Cash generation and liquidity strengthened
Six-month operating cash flow increased to $11.448 billion from $2.575 billion. Less $2.099 billion of PP&E additions, derived free cash flow was approximately $9.349 billion, with capex equal to 18.3% of operating cash flow.
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Cash balance and available liquidity expanded
Cash and equivalents increased $4.095 billion from year-end to $7.765 billion at June 30. MPC excluding MPLX reported $11.736 billion of liquidity, including $6.737 billion of cash and short-term investments and $4.999 billion of revolver availability.
What to watch
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Turnarounds reduced refining throughput
Net refinery throughput declined 116 mbpd year over year to 2,944 mbpd, and crude-capacity utilization fell to 94% from 97%, as increased Mid-Continent turnaround activity constrained operations.
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RIN compliance costs more than doubled
Purchased RIN expense increased to $683 million in Q2 from $314 million in Q2 2025, driven mainly by higher RIN costs and blending requirements. This offsets part of the benefit from higher refining margins.
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Higher growth spending alongside debt exposure
MPLX raised 2026 growth-capital-spending outlook by $500 million to $2.9 billion. Consolidated long-term fixed-rate debt had a $31.111 billion fair value at June 30, exposing the company to funding and capital-allocation demands despite strong liquidity.
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Galveston Bay environmental penalty exposure
EPA assessed stipulated penalties in Q2 2026 tied to alleged 2020–2024 consent-decree violations at Galveston Bay; MPC expects a resolution could require payment of $1 million or more.
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No formal risk-factor update; margins remain volatile
Item 1A states there were no material changes to the risk factors disclosed in the 2025 Form 10-K. Nonetheless, the filing cites supply disruptions tied to the U.S.-Iran conflict and notes an annual R&M EBITDA sensitivity of $1.125 billion for each $1.00 per-barrel change in blended crack spreads.
Management's outlook
No company revenue or EPS guidance was provided in the 10-Q. MPLX increased its 2026 growth-capital-spending outlook by $500 million to $2.9 billion, principally for accelerated Gulf Coast fractionation and export expansions. Management expects global demand growth to outpace the net effect of refining capacity additions and rationalizations through the end of the decade.
Earlier filings 4
10-K · February 26, 2026
Marathon Petroleum (MPC) positions itself as a large, integrated downstream and midstream operator with ~2.99 million barrels per day of crude refining capacity and three reportable segments (Refining & Marketing,…
10-Q · November 5, 2024
Marathon Petroleum reported total revenues and other income of $35,373 million and diluted EPS of $1.87 for the three months ended September 30, 2024. Results show a material year-over-year decline in profitability…
10-K · February 28, 2024
Marathon Petroleum positions itself as a leading, integrated downstream energy company operating one of the nation’s largest refining systems with 2,950 mbpcd of crude oil refining capacity and two reportable segments:…
This is our reading of a public filing, not the filing itself. Analysis can contain errors; check the source document for full context.