Murphy USA reported higher earnings for the third quarter, as stronger fuel contribution and increased retail fuel volumes more than offset weaker merchandise contribution and higher operating costs. The company also returned capital through share repurchases and a dividend increase.
Key details
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Third-quarter net income rose to $176.0 million, or $9.59 per diluted share, from $129.9 million, or $6.76 per share, a year earlier. Adjusted EBITDA increased to $336.6 million from $285.1 million.
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Fuel contribution improved: Total fuel contribution was 37.0 cents per gallon, up from 30.7 cents a year earlier. Retail gallons sold rose 3.3%; same-store volume increased 0.1%.
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Merchandise contribution declined: It fell 2.8% to $234.5 million. Average unit margin was 20.3%, compared with 21.5% in the prior-year quarter. The company attributed the comparison in part to last year’s promotional activity in nicotine products.
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Fuel performance was the main earnings driver. Murphy USA cited stronger fuel supply results and higher retail fuel volumes, as well as the absence of restructuring expenses recorded in the year-earlier quarter. Those gains were partly offset by higher store and other operating expenses—including payment fees—higher income tax expense and lower merchandise contribution.
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Nine-month results also increased: Net income for the first nine months of 2026 was $521.4 million, or $28.09 per diluted share, compared with $328.7 million, or $16.64 per share, in the same period of 2025. Adjusted EBITDA rose to $991.8 million from $728.5 million.
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The company repurchased about 287,100 shares in the third quarter for $157.7 million, at an average price of $549.22 per share.
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The quarterly dividend is increasing to $0.72 per share, an 11% rise from the $0.65 paid in September. The new dividend is payable December 1 to shareholders of record November 4. The September payment represented $2.60 per share on an annualized basis; the new rate equates to $2.88.
Plain-English implications
Murphy USA’s quarter showed stronger fuel-related earnings alongside modest same-store volume growth, while merchandise contribution and margins were lower. The company also continued returning cash through both buybacks and a higher dividend.