Murphy USA's $290M Volume Drop to No. 432 Market Rank Hides Strong Earnings and Aggressive Buybacks

On August 1, 2025, Murphy USA (MUSA) traded with a turnover of $290 million, a 39.43% decline from the previous day, ranking 432nd in the market. Shares fell 0.08%. The company reported Q2 2025 earnings per share (GAAP) of $7.36, exceeding estimates by 12.4%, driven by disciplined cost management and strong fuel margins. However, revenue dropped 8.2% year-over-year to $5.01 billion, reflecting softer fuel and merchandise volumes. Adjusted EBITDA rose 2.7% to $286 million, while the company continued aggressive share repurchases, reducing the share count and raising the quarterly dividend by 2.0%.

Operational resilience was evident despite revenue challenges. Fuel contribution increased 0.7% year-over-year to $393 million, supported by higher margins (32.0 cents per gallon) and reduced SG&A expenses. Merchandise sales reached $1.09 billion, with a stable 20.0% margin. New store openings and expansion plans remain a focus, with 39 locations under construction and a target of 50 new stores in 12 months. Management emphasized normalization of PS&W margins in the second half of 2025 and continued execution in fuel and merchandise operations.

Debt levels rose to $2.07 billion as of June 30, 2025, financing growth and buybacks. Leverage remains within targets, but rising debt is a key balance sheet consideration. The company’s capital return strategy includes $211.9 million in share repurchases during the quarter, lowering the diluted share count below 20 million. Liquidity is bolstered by a robust credit facility, with limited drawdowns at quarter-end. Store productivity and same-store sales trends for fuel and merchandise will be critical metrics to monitor in future quarters.

A strategy of purchasing the top 500 stocks by daily trading volume and holding for one day generated a 166.71% return from 2022 to the present, significantly outperforming the 29.18% benchmark. This approach underscores the impact of liquidity concentration on short-term stock performance, with high-volume equities like Murphy benefiting from rapid trading dynamics in the current market environment.