HF Sinclair returns to profit as refining margins climb
The energy company reported consolidated revenue of $7.12 billion for the first quarter of 2026.
HF Sinclair (DINO), the energy company, reported a return to profitability in the first quarter of 2026 as refining margins and renewables income rebounded.
The results marked a sharp reversal from the prior year's performance, characterized by a recovery in both net income and operational cash flow. The company reported net income attributable to stockholders of $648 million, compared to a net loss of $4 million in the first quarter of 2025.
Consolidated revenue rose 12% year-over-year to $7.12 billion. Adjusted EBITDA increased 112% to $426 million, up from $201 million in the same period last year.
The refining segment drove much of the recovery, reporting income before interest and taxes of $514 million against a $30 million loss in the prior-year quarter. This result followed a 9% increase in adjusted refinery gross margins, which reached $9.95 per produced barrel sold. The company said higher margins in the West region and increased sales volumes supported the gain, though lower margins in the Mid-Continent region acted as a partial offset. Consolidated crude charge averaged 613,050 barrels per day, up from 606,140 barrels per day in the first quarter of 2025.
Renewables also shifted to profitability, with income before interest and taxes reaching $182 million compared to a $39 million loss in the prior year. The company attributed the swing to higher adjusted gross margins—driven by higher RINs prices, increased PTC benefits, and a narrowing BOHO spread—alongside an increase in sales volumes to 52 million gallons from 44 million gallons.
Performance across other segments was mixed. Lubricants & Specialties Adjusted EBITDA rose to $103 million from $85 million, aided by a $53 million FIFO benefit. Conversely, Midstream Adjusted EBITDA fell to $111 million from $119 million, which the company attributed to higher operating costs stemming from a fuel-contamination incident in Colorado. In the marketing segment, branded fuel sales volumes increased to 325 million gallons from 294 million gallons.
Concurrent with the financial results, the company announced a leadership update on July 8, 2026. Steven Ledbetter was appointed President and Chief Operating Officer, while Valerie Pompa was named President, Growth, Technology and Transformation.