Murphy USA Inc

Murphy USA reported second-quarter net income of $209.1 million, or $11.27 per diluted share, up from $145.6 million and $7.36 per share a year earlier, driven by surging fuel margins. Adjusted EBITDA rose to $377.3 million from $286.0 million, with total fuel contribution reaching 40.6 cents per gallon versus 32.0 cents, and retail fuel margin up 20.2% to 35.1 cents per gallon. The company also grew retail gallons by 3.9%, raised its dividend 28% to $0.64 per share, and bought back shares worth $76.8 million. However, operating expenses increased to $308.7 million from $275.2 million, partly due to higher payment processing fees, and fuel supply contribution excluding renewable credits widened to a loss of $54.9 million. Management's full-year outlook assumes second-half fuel margins averaging 35 cents per gallon, down from 37.9 cents in the first half, with capital expenditures guided to the higher end of the $475 million to $525 million range.

Murphy USA reported second-quarter revenue of US$6,806.1 million and net income of US$209.1 million, alongside a quarterly dividend increase to US$0.65 per share, payable on September 3, 2026, to shareholders of record on August 24, 2026. The dividend is 23% higher than in the third quarter of 2025, highlighting the company's willingness to return more cash to shareholders while continuing buybacks under its existing repurchase programs. The strong earnings and higher dividend support the near-term catalyst of capital returns, but do not remove key risks around fuel volume pressure, merchandise softness, and potential limits to further cost savings.

Murphy USA expects all-in fuel margins of approximately $0.35 per gallon during the second half of the year, supported by tighter supply conditions and its fuel-sourcing capabilities. President and CEO Mindy West said the company's 'controllables' fuel-supply contribution exceeded $0.07 per gallon in the second quarter, up from about $0.025 a year earlier, and that the current geopolitical supply shock is not expected to unwind until well into next year. Same-store fuel volume rose 0.5% in the second quarter, but management is maintaining a conservative outlook and forecasts a 1% to 3% decline for the full year. The company expects about 45 new stores this year, capital spending near the high end of its range, and continued share repurchases. QuickChek's food-and-beverage sales and margins have turned positive as management works to improve promotions, labor efficiency and store execution.

Murphy USA reported second quarter 2026 net income of $209.1 million, or $11.27 per diluted share, up from $145.6 million, or $7.36 per diluted share, a year earlier. Total fuel contribution reached 40.6 cents per gallon, compared to 32.0 cents per gallon in the prior-year quarter, while total retail gallons increased 3.9% and same-store volumes rose 0.5%. Merchandise contribution dollars grew 4.0% to $227.4 million on unit margins of 20.1%. The company repurchased approximately 143.1 thousand common shares for $76.8 million at an average price of $536.60 per share and paid a quarterly cash dividend of $0.64 per share, a 28.0% year-over-year increase. In May 2026, Murphy USA issued $500 million of Senior Notes due 2034 and used the majority of the net proceeds to retire its $300 million Senior Notes due 2027 and pay down outstanding revolver balances. President and CEO Mindy West noted that given strong year-to-date results and supportive market conditions, the business is on pace to deliver significantly higher full-year Net Income and Adjusted EBITDA, with an illustrative second-half scenario of 35 cents per gallon all-in fuel margins yielding approximately $636 million in Net Income and $1.25 billion in Adjusted EBITDA.

A bullish thesis on Murphy USA Inc. highlights the company as a leading low-cost fuel and convenience retailer positioned for compounding through fuel economics, store expansion, and disciplined capital returns. Fuel contributes more than half of gross profits and benefits directly from volatility, with margins historically around 30 cents per gallon in normal periods and spiking near 40 cents per gallon in volatile environments, creating significant gross profit leverage across 1,800 stores. Management plans roughly 50 new stores annually, each generating 12 to 16 percent cash-on-cash returns and contributing approximately 35 to 40 million dollars in EBITDA per 50-store cohort at maturity. Capital allocation remains anchored in a 50/50 framework, with consistent buybacks reducing share count by about 8 percent annually, creating a durable earnings per share tailwind. At around 11 times forward EBITDA, valuation appears reasonable versus expectations of 1.2 to 1.3 billion dollars in mid-term EBITDA, implying steady growth and potential rerating.

Murphy USA's nicotine category is emerging as a key profit driver, with first-quarter merchandise contribution rising 7.3% year over year to $210.2 million. Same-store nicotine contribution surged 11.5%, far outpacing the 2.7% growth in non-nicotine merchandise, while overall merchandise margins improved to 20.0% from 19.6%. Management noted that elevated fuel prices are attracting more value-conscious customers, boosting nicotine purchases, and the category now provides a stable source of higher-margin earnings that offsets softness in discretionary items like snacks. Compared with peers Casey's General Stores and ARKO Corp., Murphy USA appears to be extracting greater earnings leverage from nicotine, supported by robust demand for modern nicotine products and its everyday low-price strategy. The stock trades at a forward price-to-earnings ratio of 17.84, well below Casey's 39.59 and ARKO's 22.11, and analysts have raised 2026 EPS estimates by 26.57% and 2027 estimates by 7.35% over the past 60 days.

Zacks.com featured Murphy USA, DaVita, Hewlett Packard, and Vishay Intertechnology as stocks trading near 52-week highs that still have room to rise. Murphy USA reported strengthening fuel contribution and merchandise growth, raised its dividend 28% to 64 cents per share, and priced $500 million in senior notes to refinance debt. DaVita raised full-year guidance to adjusted operating income of $2.15 to $2.25 billion and adjusted EPS of $14.1 to $15.2, while repurchasing 5 million shares through early May. Hewlett Packard completed its H3C divestiture for roughly $1.36 billion, posted record second-quarter revenues, and raised full-year guidance across revenues, EPS, and free cash flow. Vishay Intertechnology posted first-quarter revenues of $839.2 million with a 1.34 book-to-bill ratio, guided second-quarter revenues to $875 to $905 million, and introduced new products targeting EVs, solar inverters, and aerospace.

Zacks Investment Research added five stocks to its Zacks Rank Number 1 Strong Buy list on June 18. TWFG saw its current-year earnings consensus estimate rise 9.7 percent over the last 60 days, XPO's estimate increased 8 percent, Murphy USA's estimate jumped 26.7 percent, Flywire's estimate surged 236.7 percent, and Kiniksa Pharmaceuticals International's estimate climbed 13.8 percent.

Murphy USA has emerged as the more compelling near-term buy among convenience store stocks, according to Zacks Investment Research, driven by stronger earnings momentum and a lower valuation. Murphy USA's first-quarter 2026 net income more than doubled to $136.3 million, or $7.28 per diluted share, while adjusted EBITDA rose to $277.9 million, fueled by a fuel contribution of 35 cents per gallon. In contrast, Casey's General Stores posted a 49.3% increase in fiscal third-quarter 2026 net income to $130.1 million, with inside gross profit up 8.9% to $624 million and prepared food margins at 58.3%. Murphy USA trades at a forward P/E of 18.9X versus Casey's 41.8X, and analysts have raised Murphy USA's fiscal 2026 consensus estimates by 26.65% over the past 60 days, compared with more modest revisions for Casey's. Both stocks carry a Zacks Rank #1, but Murphy USA's combination of value, estimate revisions, and near-term earnings growth makes it the preferred pick.