Murphy USA 2025 Q2 Earnings Surpasses Expectations with Net Income Growth

Murphy USA (MUSA) reported its fiscal 2025 Q2 earnings on July 31st, 2025. The company exceeded analyst expectations, achieving a net income of $145.6 million, or $7.36 per diluted share, surpassing the estimated $6.97 per share. Despite the challenges of decreased retail fuel volumes and slightly weaker customer traffic, Murphy USA's strategic focus on store profitability and its NTI store program contributed to its successful quarter. The company anticipates continued growth, driven by the opening of 50 new stores over the next year.

Revenue

Murphy USA experienced an 8.2% decline in total revenue, generating $5 billion in Q2 2025 compared to $5.45 billion in Q2 2024. The petroleum product sales contributed $3.85 billion, while merchandise sales accounted for $1.09 billion. Other operating revenues added $61.20 million, culminating in total operating revenues of $5 billion for the quarter.

Earnings/Net Income

Murphy USA's EPS increased by 6.0% to $7.44 in Q2 2025, up from $7.02 in the same quarter last year, reflecting a positive earnings trajectory. The company's net income also grew by 0.6% to $145.60 million compared to $144.80 million in Q2 2024. This performance indicates solid earnings growth for the company.

Price Action

The stock price of Murphy USA has plummeted 15.06% during the latest trading day, 15.29% during the most recent full trading week, and has tumbled 10.89% month-to-date.

Post Earnings Price Action Review

The strategy of investing in Murphy USA shares following a quarterly revenue increase and holding for 30 days has yielded remarkable returns over the past three years. This approach achieved a return of 230.54%, significantly outperforming the benchmark return of 85.57%, indicating that the strategy's focus on post-revenue raise performance is highly effective. With a compound annual growth rate of 27.23% and a maximum drawdown of 0.00%, the strategy exhibited strong risk-adjusted returns. It was further supported by a Sharpe ratio of 0.98 and volatility of 27.80%, demonstrating a successful investment strategy during the post-earnings period.

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 Andrew Clyde, President and CEO. He noted improvements in supply margins resulting in all-in fuel margins of 32 cents per gallon, and emphasized a focus on store profitability, as evidenced by favorable comparisons in operating expenses. Clyde also mentioned the momentum of the NTI store program, projecting the delivery of 50 new stores over the next 12 months, which is expected to drive EBITDA growth into 2026 and beyond.

Guidance

The company anticipates continued growth in store profitability and EBITDA, driven by the opening of 50 new stores in the upcoming year. Management expects the NTI store program to maintain its momentum, contributing positively to financial performance. They also express confidence in navigating market conditions, with a focus on maintaining operational efficiency while leveraging favorable supply margins.

Additional News

Murphy USA has been proactive in managing its financial resources, notably repurchasing approximately 470.7 thousand common shares for $211.9 million during Q2 2025. The company also increased its quarterly cash dividend by 2.0%, paying $0.50 per share, or $2.00 annually, reflecting a total cash payment of $9.8 million in June 2025. Moreover, Murphy USA continues to expand its store network, with plans to open 50 new stores over the next year, reinforcing its strategic positioning in the market. These initiatives demonstrate Murphy USA's commitment to enhancing shareholder value while supporting its growth trajectory.