Murphy USA released second-quarter earnings on August 5 that highlighted strength in its core fuel and convenience store business. The company reported net income of $209.1 million, or $11.27 per diluted share, compared with $145.6 million and $7.36 per share in the same quarter of 2025. Adjusted EBITDA climbed to $377.3 million from $286.0 million.
Fuel operations drove the results, with total fuel contribution reaching 40.6 cents per gallon in the quarter, up from 32.0 cents a year earlier. Retail fuel margins alone rose 20.2% to 35.1 cents per gallon. The company simultaneously grew volume, with total retail gallons up 3.9% and same-store sales volumes up 0.5%. Merchandise operations also contributed, with contribution dollars up 4.0% to $227.4 million on unit margins of 20.1%, as nicotine contribution rose 6.1% and non-nicotine contribution grew 2.9%.
Murphy USA continued returning capital to shareholders, repurchasing 143.1 thousand shares for $76.8 million and raising its quarterly dividend 28.0% year over year to $0.64 per share. The company added 6 net new stores during the quarter with 36 more under construction. It also refinanced debt, issuing $500 million of notes due 2034 and retiring $300 million of 2027 notes.
Operating expenses increased alongside the growth, with total store and other operating expenses rising to $308.7 million from $275.2 million. The company attributed two-thirds of that increase to payment processing fees that rise automatically with retail fuel prices. SG&A costs increased to $60.5 million from $50.9 million due to higher employee costs and incentive accruals. The effective tax rate rose to 24.7% from 24.4%, with guidance pointing to the higher end of the company’s 23% to 25% full-year range.
Management’s full-year outlook projects net income of roughly $636 million and Adjusted EBITDA of $1.25 billion, assuming second-half fuel margins average 35 cents per gallon, down from 37.9 cents in the first half. Capital expenditures are guided to the higher end of the $475 million to $525 million range. Hedge fund ownership slipped modestly, and short interest stood at 3.98% of the float. The stock traded at a forward P/E of 17.67 as of September 4.
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