Murphy USA (MUSA) Q1 2025 earnings summary

Executive summary

• Q1 2025 net income was $53.2M ($2.63 per diluted share) on $4.5B revenue, down from $66.0M ($3.12 per share) on $4.8B revenue in Q1 2024, as higher fuel and merchandise contributions were offset by increased operating, depreciation, and interest expenses.

• Retail fuel margins increased 9.2% to 23.7 cpg, but total retail gallons sold decreased 1.9% year-over-year; same-store gallons declined 4.2% due to temporal factors like leap year, Easter timing, and severe storms.

• Loyalty programs and digital capabilities drove customer stickiness, with Murphy Drive Rewards membership up 11% and QuickChek Rewards up 30% in Q1.

• Merchandise categories like candy (+15%) and non-combustible nicotine (+7% sales, +15% margin) outperformed, while overall inside sales faced headwinds from temporal factors.

• The company operated 1,761 stores at quarter-end, opening 8 new stores in Q1 with a strong pipeline for 2025-2026.

Financial highlights

• Revenue decreased 6.6% year-over-year to $4.5B, primarily due to lower retail fuel prices and volumes.

• Cash flow from operations was $128.5M; capital expenditures totaled $88M, resulting in $41M free cash flow.

• Net income fell 19.4% to $53.2M; diluted EPS was $2.63, down from $3.12.

• Effective income tax rate was 14.1% in Q1, down from 19.4% a year ago, due to energy tax credits and share-based compensation benefits.

• Operating cash flow was $128.5M, down from $136.0M in Q1 2024; long-term debt increased to $1,974.2M.

Outlook and guidance

• April per-store fuel volumes returned to prior-year levels, with May trending 1-2% higher year-over-year.

• Retail fuel margins in April and May averaged $0.28 per gallon, about $0.03 higher than last year.

• Merchandise results expected to strengthen through Q2 and into the second half, driven by the promotional cycle.

• Full-year 2025 capital expenditures are expected to range from $450M to $500M, with $350M–$390M for retail growth and $65M–$70M for maintenance.

• Management expects continued share gains in nicotine and center-of-store categories, with a focus on cost discipline, new store growth, and consistent share repurchase.