Valero Energy Corp. on Jan. 29 released fourth quarter 2025 financing results, reporting a profitable three-month period for its ethanol segment and Diamond Green Diesel joint venture, which produces renewable diesel and sustainable aviation fuel (SAF).&nbsp;Valero’s ethanol segment, which consists of 12 ethanol plants with a combined production capacity of approximately 1.7 billion gallons per year, reported $117 million in operating income for the fourth quarter of 2025, up from $20 million during the same period of 2024. Ethanol production volumes averaged 4.8 million gallons per day during the period.&nbsp;For the full year, the ethanol segment reported $374 million in operating income, up from $288 million during 2024.During a fourth quarter earnings call, Valero President and CEO Jane Riggs said the company the company’s ethanol segment achieved record-setting ethanol production for both the final quarter of last year and the full year 2025.&nbsp;Homer Bhullar, senior vice president and chief financial officer at Valero, said the company’s ethanol segment is expected to produce 4.6 million gallons per day during the first quarter of 2026.Valero’s renewable diesel segment, which consists of the Diamond Green Diesel joint venture, reported $92 million in operating income for the fourth quarter, down from $170 million during the same period of last year. Segment sales volumes averaged 3.1 million gallons per day during the three-month period. The Diamon Green Diesel joint venture has the capacity to produce approximately 1.2 billion gallons of renewable diesel and SAF annually.For the full year 2025, the renewable diesel segment reported a $156 million operating loss, compared to a $507 million operating profit reported for the previous year.&nbsp;According to Bhullar, the renewable diesel segment sales volumes are expected to reach approximately 260 million gallons during the first quarter of this year.&nbsp;Eric Fisher, senior vice president of product supply, trading and wholesale, briefly discussed the renewable diesel segment’s strong fourth quarter performance. He cited the company’s ability to capture the value of the 45Z clean fuel production tax credit, sustainable aviation fuel (SAF) production and tightening margins as factors that allowed Valero’s renewable diesel operation to outcompete many of its competitors during the second half of 2025. “As we have started 2026, there's a lot of capacity off-line,” he added. “There's a lot of players that are now sitting out waiting for guidance to get finalized before they reenter the market, and that has caused fat prices to really level off and even drop throughout the fourth quarter and into this first quarter.”According to Valero’s fourth quarter earnings release, additional information its SAF is expected to be included in its 2025 annual report, which will be filed with the U.S. Securities and Exchange Commission soon. &nbsp;Overall, Valero reported net income of $1.1 billion, or $373 per share, for the fourth quarter of 2025, compared to net income of $281 million, or 88 cents per share, for the same period of 2024. For the full year 2025, net income attributable to Valero stockholders was $2.3 billion, or $7.57 million per share, compared to $2.8 billion, or $8.58 per share for 2024.

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Valero Energy Corp. on Jan. 29 released fourth quarter 2025 financing results, reporting a profitable three-month period for its ethanol segment and Diamond Green Diesel joint venture, which produces renewable diesel and SAF.

Valero reports record high ethanol production, profitable Q4 for biobased diesel

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