PBF Energy Q2 Earnings Beat Estimates on Higher Refining Margins

PBF Energy Inc. PBF reported second-quarter 2026 adjusted earnings of $6.22 per share, reversing the year-ago loss of $1.03. The bottom line beat the Zacks Consensus Estimate of $4.05 by 53.6%.

Revenues surged 56.2% year over year to $11.68 billion and surpassed the consensus estimate of $8.11 billion by 44.1%.

Favorable crack spreads, increased throughput volumes and the Martinez refinery restart supported results. Notably, the refining environment remained constructive, as supply and trade flows were affected by geopolitical conditions. Total throughput increased to 887,300 barrels per day (bpd) from 839,100 bpd.

PBF Energy Inc. Price, Consensus and EPS SurprisePBF Energy Inc. Price, Consensus and EPS Surprise

PBF Energy Inc. price-consensus-eps-surprise-chart | PBF Energy Inc. Quote

PBF's Refining Segment Delivers Sharp Upswing

Refining revenues totaled $11,676.3 million, up from $7,465.6 million in the year-ago quarter, while Logistics revenues decreased to $94.9 million from $98 million. Intersegment eliminations brought consolidated revenues to $11,678.3 million.

The Refining segment's income from operations climbed to $1,342.2 million from $72.8 million a year earlier. Logistics operating income declined to $53 million from $56.3 million, while the Corporate segment posted an operating loss of $123.1 million compared with a loss of $86.1 million a year ago.

PBF Energy's Throughput & Margins Strengthen

Companywide production averaged 893,500 bpd, up from 845,800 bpd in the second quarter of 2025. East Coast throughput increased 3.1% to 309,100 bpd, while Gulf Coast throughput rose 2.2% to 177,400 bpd from the year-ago period. West Coast throughput jumped 32.6% to 269,900 bpd following the Martinez refinery's return to full operations in May. Mid-Continent throughput fell 19.3% on a year-over-year basis to 130,900 bpd due to unplanned work at Toledo.

The company-wide gross refining margin per barrel of throughput, excluding special items, was $23.40, up from the year-earlier figure of $8.38. The gross refining margin per barrel of throughput was $20.80 for the East Coast, up from $7.37 in the year-ago quarter. The realized refining margin rose to $20.06 per barrel for the Gulf Coast from $7.35 a year ago. The metric was $20.13 per barrel in the Mid-Continent and $30.16 per barrel on the West Coast compared with $10.14 and $9.35, respectively, in the year-ago period.

PBF Energy's Renewable Diesel Output Improves

St. Bernard Renewables, PBF's 50%-owned renewable diesel joint venture, averaged production of approximately 15,100 barrels per day in the second quarter, reflecting the impact of a catalyst change completed in April. Robust distillate margins and elevated Renewable Identification Number ("RIN") prices also supported renewable diesel profitability.

Story Continues

PBF Costs Rise as Special Items Aid Reported Profit

Total costs and expenses increased to $10.41 billion from $7.43 billion a year ago. Cost of products and other expenses rose to $9.7 billion from $6.74 billion, while operating expenses increased to $670.1 million from $631.7 million. RFS compliance costs more than doubled to $331.3 million from $165.0 million. This increase can be attributed to the new RFS requirements for 2026 and 2027, respectively, which drove RIN prices higher in 2026 than in the prior year. Refining operating expense averaged $8 per barrel of throughput, higher than $7.96 in the year-ago quarter.

Reported income from operations was $1.27 billion compared with $43 million a year ago. Results included a $250 million insurance recovery gain, partly offset by $22.7 million of Martinez-related expenses and $9.2 million of Refinery Business Improvement costs. Adjusted EBITDA totaled $1.24 billion in the second quarter.

PBF Energy Cuts Debt and Builds Liquidity

PBF generated $1.6 billion of operating cash flow during the reported quarter, including a working-capital benefit of approximately $430 million. Consolidated capital expenditures were $188.5 million, excluding about $56 million associated with the Martinez rebuild.

The company ended June with $894.1 million in cash and cash equivalents and $1.75 billion in debt, resulting in net debt of roughly $855 million. Its net debt-to-capitalization ratio was 15% at the end of the second quarter. PBF reduced net debt by more than 62% during the quarter by repaying its asset-backed lending facility and refinancing approximately $802 million of notes due in 2028. It declared a quarterly dividend of 27.5 cents per share.

PBF's Q3 Outlook Signals Higher Throughput

For the third quarter of 2026, PBF expects total throughput between 900,000 bpd and 960,000 bpd. Regional guidance calls for 300,000-320,000 bpd on the East Coast, 155,000-165,000 bpd in the Mid-Continent, 175,000-185,000 bpd on the Gulf Coast and 270,000-290,000 bpd on the West Coast.

Renewable diesel production is projected at 18,000-20,000 bpd, up from the second quarter figure. PBF lowered its 2026 capital-spending guidance to $825-$875 million after moving planned Chalmette and Toledo turnarounds to 2027. The Martinez hydrocracker turnaround is scheduled to begin late in the third quarter, with completion expected in October.

PBF's Zacks Rank & Other Key Picks

PBF currently sports a Zacks Rank #1 (Strong Buy).

Some other top-ranked stocks from the energy sector are Valero Energy VLO, HF Sinclair DINO and FuelCell Energy FCEL, each carrying a Zacks Rank #2 (Buy) at present. You can see the complete list of today's Zacks Rank #1 stocks here.

Valero Energy is a leading refining player with a robust network of 14 refineries and a combined high-complexity throughput capacity of 3 million barrels per day, which distinguishes it from other independent refiners. Valero's refineries have a combined Nelson Complexity Index of 11.5, which implies that they can process a wide variety of feedstocks, convert them into higher-value products and shift product yields according to market conditions.

HF Sinclair is an independent energy company producing and marketing gasoline, diesel, jet fuel, renewable diesel, lubricants, and specialty products. Incorporated in Delaware in 1947 and headquartered in Dallas, TX, it operates refineries in Kansas, Oklahoma, New Mexico, Wyoming, Washington and Utah. It also provides transportation, terminaling and storage services to its refineries and third parties.

FuelCell Energy is a clean energy company that offers scalable, reliable, low-carbon power solutions. It produces power using flexible fuel sources such as biogas, natural gas and hydrogen. The company's proprietary molten carbonate fuel cell systems generate electricity through an electrochemical process instead of burning fuel, reducing carbon emissions and minimizing the environmental impact of power generation. FCEL is anticipated to play a crucial role in the energy transition by enabling industries and communities to shift from traditional fossil fuels to low-carbon alternatives.

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