PBF Energy Inc. (PBF) Earnings & Analysis

Latest quarter

PBF Energy reported third-quarter revenue of $12.1 billion, above the $10.8 billion consensus. Adjusted earnings of $12.78 per share also beat the $11.34 consensus.

Revenue rose from $7.7 billion a year earlier, while PBF’s filing reported net income attributable to stockholders of $1,529.3 million, or $12.54 per diluted share, compared with $170.1 million, or $1.45 per diluted share. The filing attributed higher revenue per barrel to higher hydrocarbon commodity prices.

PBF said refining margins increased as favorable spreads between product and crude prices and higher throughput at most refineries offset some higher compliance and shipping costs. The Martinez restart helped lift overall throughput, although planned maintenance and East Coast downtime partly offset the increase. Renewable Fuel Standard compliance costs rose to $522.8 million from $169.0 million a year earlier.

CFO Joseph Marino said operating cash flow was approximately $1.9 billion for the quarter, including a $56 million benefit from working capital.

Adjusted EPS is the figure the consensus estimates, not the GAAP EPS above.

What management said on the call

CEO Matthew Lucey said demand was holding up domestically, but refined-product availability remained constrained after disruptions to global trade. He said higher freight rates and overseas natural gas costs were raising the cost of running international refining capacity. PBF’s access to crude and its proximity to product markets, he said, helped limit its exposure to those costs.

Lucey expects crude price differentials to widen in the fourth quarter, while cautioning that near-term product prices and refining spreads can move around. Asked about freight, he said about half of PBF’s fleet was on time charter, providing insulation from rate volatility. CFO Joseph Marino said the full refining system was available during the third quarter, allowing PBF to improve its market capture.

On investment, Lucey said PBF was pursuing projects across its refineries rather than large expansions. He cited work at Chalmette to convert high-sulfur diesel to jet fuel. Asked about improvement-program savings, refining head Michael Bukowski said operating-cost savings were behind the year’s target, partly because of Martinez, while capital and turnaround savings were ahead; taken together, he said, the company was meeting its commitment.

Marino said PBF ended the quarter with approximately $2.5 billion in cash and $2.1 billion in total debt. After quarter-end, it redeemed $800 million of senior notes using cash, leaving approximately $1.4 billion of gross debt. Marino also said the quarterly dividend had increased by 18%.

Asked about the delayed Chalmette and Toledo turnarounds and their effect on next year’s spending, Lucey said PBF evaluates unit conditions when scheduling maintenance and was not yet giving specific capital expenditure guidance for 2027. Marino said the company was still working through its 2027 budget.

Guidance

CFO Joseph Marino said PBF’s 2026 capital expenditure guidance remains $825 million to $875 million, excluding the Martinez rebuild. On the call, CEO Matthew Lucey said the company was not yet giving specific capital expenditure guidance for 2027.