Marathon Petroleum Q2 2026 earnings: Refining margins drive profit growth

Marathon Petroleum (NYSE: MPC) reported Q2 2026 sales and other operating revenue of $51.99 billion, up 53.8% from $33.80 billion a year earlier, while diluted EPS rose to $17.73 from $3.96. Net income attributable to MPC reached $5.14 billion, and adjusted EBITDA increased to $8.46 billion as wider refining margins more than offset lower refinery throughput and higher unit operating costs.

Core Earnings Data

For the quarter ended June 30, 2026, earnings grew substantially faster than revenue. Operating income more than tripled, reflecting the benefit of higher crack spreads across all refining regions and a return to positive adjusted EBITDA in Renewable Diesel.

There were no quarterly adjustments between GAAP and adjusted net income, so adjusted diluted EPS was also $17.73.

Adjusted EBITDA is a non-GAAP measure that excludes items including interest, taxes, depreciation and amortization, noncontrolling interests, and planned turnaround costs.

Business and Segment Performance

Refining & Marketing accounted for most of the increase in adjusted EBITDA. Midstream delivered a more moderate gain, while Renewable Diesel moved from a loss to a profit.

Midstream benefited from higher rates and throughput, including contributions from equity affiliates and acquisitions. Those gains were partially offset by the divestiture of non-core gathering and processing assets.

Renewable Diesel’s improvement reflected a stronger margin environment, higher throughput, and better regulatory credit values. Segment margin increased to $321 million from $49 million, while adjusted EBITDA reached $258 million.

Wider Refining Spreads Outweighed Lower Throughput and Higher Costs

Refining & Marketing margin increased to $36.33 per barrel from $17.58, primarily because crack spreads improved in every region. Segment adjusted EBITDA per barrel consequently rose to $24.84 from $6.79.

The margin expansion more than offset weaker operating volumes. Net refinery throughput declined to 2.944 million barrels per day from 3.060 million, while crude capacity utilization fell to 94% from 97%. Refining operating costs increased to $5.72 per barrel from $5.34, mainly because planned downtime reduced utilization in the Mid-Continent region. Planned turnaround costs also increased to $275 million from $250 million.

All three refining regions recorded substantially higher adjusted EBITDA per barrel. Gulf Coast increased to $27.01 from $5.65, Mid-Continent rose to $20.96 from $7.45, and West Coast reached $27.26 compared with $8.18.

Profitability, Capital Spending, and the Balance Sheet

MPC ended June with $7.77 billion of cash and cash equivalents, up from $2.15 billion at the end of March. Total consolidated debt was nearly unchanged at $32.82 billion, and the company had no outstanding borrowings under its $5 billion revolving credit facility.

Second-quarter capital expenditures and investments increased to $1.39 billion from $1.07 billion. Midstream represented $1.02 billion of the total, up from $691 million a year earlier, while Refining & Marketing spending declined slightly to $325 million.

The company returned more than $2.8 billion of capital to shareholders during the quarter and had $6.1 billion remaining under its share repurchase authorizations. Shares outstanding declined to 283 million at June 30 from 293 million at March 31.

Earnings Guidance

MPC provided quantitative operating assumptions for Q3 2026 and maintained a $1.5 billion 2026 capital spending outlook excluding MPLX. MPLX raised its 2026 growth capital outlook by $500 million to $2.9 billion, primarily to accelerate the Gulf Coast fractionation project.

MPLX expects to direct more than 90% of its organic growth capital toward natural gas and natural gas liquids infrastructure. The projects are concentrated in the Permian and Marcellus basins and include processing plants, pipelines, fractionators, and an LPG export terminal with expected service dates extending through 2029.

MPC also placed its El Paso yield improvement and Robinson product flexibility investments into service during Q2. The Robinson project is designed to enable approximately 10,000 barrels per day of incremental jet fuel production.

Recent Insider Transactions

The supplied six-month insider summary showed 45,226 shares acquired across 22 transactions and 17,098 shares sold across five transactions, for a net increase of 28,128 shares. The acquisition category included stock grants and derivative exercises, so it should not be interpreted as consisting entirely of open-market purchases.

The latest reported transactions were two sales, one derivative exercise, and seven director stock grants. No conclusion about insiders’ views can be drawn from these transactions alone.

Risks Investors Need to Watch

• Refining margin sensitivity: Most of the earnings increase came from higher crack spreads. A reversal in regional product margins would directly pressure Refining & Marketing EBITDA.
• Utilization and turnaround costs: Q2 throughput and utilization declined amid planned Mid-Continent downtime, and MPC expects $290 million of planned turnaround costs in Q3.
• Renewable fuel economics: Renewable Diesel’s return to profitability depended partly on stronger margins and improved regulatory credit values, leaving results exposed to changes in those factors.
• Project execution and capital intensity: MPLX raised its growth budget and has projects scheduled through 2029. Construction costs, timing, approvals, and realized returns will determine whether the additional spending produces the expected benefits.

Summary

Marathon Petroleum’s Q2 2026 earnings improvement was driven primarily by a sharp expansion in refining margins, which outweighed lower throughput and higher unit costs. Renewable Diesel also returned to positive adjusted EBITDA, while Midstream posted moderate growth. The main items to monitor are the durability of crack spreads, Q3 refinery throughput and turnaround spending, and execution of MPLX’s expanded natural gas and NGL investment program.