Murphy USA Inc. — Third Quarter 2026 Earnings Summary

Financial Performance:

• Net income for Q3 2026 was $176.0 million ($9.59 per diluted share), compared to $129.9 million ($6.76 per diluted share) in Q3 2025.
• Adjusted EBITDA for Q3 2026 was $336.6 million, compared to $285.1 million in Q3 2025.
• Total operating revenues for Q3 2026 were $6,889.7 million, up from $5,110.0 million in Q3 2025.
• Total fuel contribution for Q3 2026 was $479.4 million, a 24.6% increase from $384.8 million in Q3 2025.
• Total merchandise contribution for Q3 2026 was $234.5 million, a 2.8% decrease from $241.2 million in Q3 2025.
• Total store and other operating expenses for Q3 2026 were $317.9 million, compared to $285.9 million in Q3 2025.
• Cash and cash equivalents as of September 30, 2026, were $161.8 million, compared to $42.8 million in Q3 2025.
• Long-term debt, including finance lease obligations, was $2,167.4 million as of September 30, 2026, compared to $2,223.0 million in Q3 2025.
• Net cash provided by operating activities for the nine months ended September 30, 2026, was $903.1 million, compared to $568.4 million in the prior year period.

Guidance and Future Outlook:

• Management stated a focus on disciplined execution, cost control, and building a durable business to perform across varying environments.
• The company highlighted underlying strength across the nicotine ecosystem despite the absence of a comparable 2025 promotional activity.
• Management expressed confidence in the durability of the business model and the resilience of customers relying on essential fuel and convenience trips.

Business Segments and Product Lines:

• Fuel: Total retail fuel contribution was $355.0 million in Q3 2026, a 0.1% increase from Q3 2025. Retail fuel margins were 27.4 cpg in Q3 2026, a 3.2% decrease from 28.3 cpg in Q3 2025. Total retail fuel volumes increased 3.3% year-over-year.
• Merchandise: Total merchandise sales were $1,155.0 million in Q3 2026, compared to $1,122.3 million in Q3 2025. Merchandise unit margins were 20.3% in Q3 2026, down from 21.5% in Q3 2025.
• Nicotine: Total nicotine contribution dollars decreased 8.0% in Q3 2026 compared to Q3 2025, impacted by a significant nicotine pouch promotion in 2025 that did not repeat.
• Non-Nicotine: Non-nicotine contribution dollars increased 3.1% in Q3 2026 compared to Q3 2025.
• RINs: RINs contribution was $134.5 million in Q3 2026, compared to $61.7 million in Q3 2025.

Market and Competitive Landscape:

• The company noted higher and more volatile fuel prices in Q3 2026, which led to proportional increases in payment fees accounting for approximately three-fourths of the increase in store and other operating expenses.
• Fuel supply capabilities generated meaningful value from market volatility and supply dynamics.
• The company maintains a strong business relationship with Walmart, which is cited as a key factor in its operational success.

Risks and Challenges:

• Risks include the ability to maintain the business relationship with Walmart, execution of growth strategy, and timely completion of store construction.
• Potential impacts from geopolitical events, trade policies, tariffs, and conflicts affecting crude oil supply and demand.
• Risks related to severe weather events, global health pandemics, and cybersecurity breaches.
• Reduced demand due to stricter fuel economy requirements or widespread adoption of electric vehicle technology.
• Future nicotine or e-cigarette legislation that could make purchasing products more costly or difficult.
• Compliance with debt covenants and availability/cost of credit.

Management Commentary and Tone:

• President and CEO Mindy West expressed pleasure with the third-quarter performance, citing customer resilience and the durability of the business model.
• Management emphasized that retail fuel margins remained strong despite a rising price environment.
• The tone reflected confidence in the company's ability to generate earnings power and long-term value creation for shareholders.

Other Key Points:

• The Company repurchased approximately 287.1 thousand common shares for $157.7 million in Q3 2026 at an average price of $549.22 per share.
• The Company completed its previous $1.5 billion 2023 share repurchase authorization; virtually all of the $2.0 billion 2025 authorization remains available as of September 30, 2026.
• A quarterly cash dividend of $0.65 per share was paid on September 3, 2026, representing a 22.6% year-over-year increase.
• On October 22, 2026, the Board declared a quarterly cash dividend of $0.72 per share, an 11% increase from Q3 2026, payable on December 1, 2026.
• Store count increased to 1,808 at September 30, 2026, with a net change of 2 stores in Q3 2026 (4 new-to-industry, 2 closed).
• There were 53 stores under construction at the end of Q3 2026 (51 new-to-industry, 2 raze-and-rebuilds).
• 8 raze-and-rebuild stores reopened year-to-date, with 2 reopening in Q3 2026.
• The effective income tax rate was approximately 24.6% for Q3 2026, compared to 25.1% in Q3 2025.