Murphy USA 2025 Q2 Earnings Revenue Declines Amidst EPS Growth

Murphy USA (MUSA) reported its fiscal 2025 Q2 earnings on July 30th, 2025. The company's performance exceeded analysts' expectations with a reported earnings per share (EPS) of $7.36, surpassing the $6.97 estimate. Despite challenges such as decreased retail fuel volumes and slightly weaker customer traffic, Murphy USA's strategic initiatives and financial management have positioned the company well for future growth. The company's guidance remains optimistic with plans to open 50 new stores over the next year, expected to positively impact EBITDA growth into 2026 and beyond.

Revenue

Murphy USA's total revenue decreased by 8.2% to $5 billion in 2025 Q2 compared to $5.45 billion in 2024 Q2. The decline was reflected across various segments: petroleum product sales generated $3.85 billion, merchandise sales contributed $1.09 billion, and other operating revenues amounted to $61.20 million, summing up to total operating revenues of $5 billion.

Earnings/Net Income

Murphy USA's EPS rose by 6.0% to $7.44 in 2025 Q2 from $7.02 in 2024 Q2, demonstrating continued earnings growth. The net income saw a modest increase of 0.6% to $145.60 million from $144.80 million in the previous year, indicating stable financial performance.

Price Action

The stock price of Murphy USA edged down 0.62% during the latest trading day, dropped 4.30% over the past week, and has slightly increased by 0.04% month-to-date.

Post-Earnings Price Action Review

The strategy of buying Murphy USA shares post-revenue announcement and holding them for 30 days has proven effective over the past three years. This period captures the immediate post-earnings reaction, typically characterized by heightened investor sentiment and potential price momentum. The strategy yielded a robust return of 20.5% from the start of the period to the end of the third quarter, outperforming the SPY ETF's 13.5% gain. Earnings surprises and positive sentiment consistently drove stock gains, with a notable 7.92% positive surprise in Q2 2025. Analysts maintained a positive outlook, with an average price target of $500, indicating potential for further price appreciation. Despite its success, the strategy faced risks such as volatility, particularly in Q2 2023, and was influenced by broader market conditions. This approach emphasizes the importance of leveraging earnings-driven momentum while being cautious of short-term market fluctuations.

CEO Commentary

“Second quarter results highlighted the resiliency of Murphy USA’s advantaged model, delivering stronger financial results despite relatively low fuel price volatility and slightly weaker customer traffic,” said President and CEO Andrew Clyde. He noted that supply margins improved modestly, driving all-in fuel margins up to 32 cents per gallon. The focus remains on store profitability, supported by favorable comparisons in operating expenses. Clyde emphasized the momentum of the NTI store program, anticipating the opening of 50 new stores over the next year, which is expected to enhance EBITDA growth into 2026 and beyond.

Guidance

The company anticipates continued growth driven by the successful NTI store program, with plans to deliver 50 new stores over the next 12 months. Management expects this expansion to positively impact EBITDA growth into 2026 and beyond. The focus on improving store profitability and managing operating expenses positions Murphy USA well for future performance, despite current challenges in customer traffic and fuel price volatility.

Additional News

Murphy USA has actively engaged in stock repurchase activities, acquiring approximately 470.7 thousand common shares for $211.9 million at an average price of $450.25 per share during Q2 2025. This move reflects the company's commitment to enhancing shareholder value. Additionally, the company increased its quarterly cash dividend by 2.0% from March 2025, paying $0.50 per share, resulting in a total cash payment of $9.8 million. Murphy USA's strategic focus also includes the NTI store program, with plans to open 50 new stores in the next 12 months, aiming to boost EBITDA growth into 2026 and beyond. These initiatives underscore Murphy USA's proactive approach to sustaining growth and profitability in challenging market conditions.