Murphy USA Inc., a prominent marketer of retail motor fuel products and convenience merchandise, has released its financial results for the first quarter of 2025. The company, headquartered in El Dorado, Arkansas, provided a detailed overview of its performance for the three months ended March 31, 2025.

Financial Highlights

Murphy USA reported a net income of $53.2 million, or $2.63 per diluted share, for Q1 2025, a decrease from $66.0 million, or $3.12 per diluted share, in Q1 2024. The total fuel contribution for the quarter was 25.4 cents per gallon (cpg), slightly up from 24.8 cpg in the same period last year. However, total retail gallons decreased by 1.9%, and same-store sales (SSS) volumes declined by 4.2% compared to Q1 2024.

Business and Operational Highlights

Despite the decline in net income, the company saw a 2.3% increase in merchandise contribution dollars, reaching $195.9 million with an average unit margin of 19.6%. This is up from $191.6 million and a 19.2% margin in Q1 2024. The company also repurchased approximately 321.1 thousand common shares for $151.2 million at an average price of $470.80 per share during the quarter.

Strategic Initiatives and Corporate Developments

Murphy USA paid a quarterly cash dividend of $0.49 per share on March 5, 2025, and announced a subsequent quarterly dividend of $0.50 per share, payable on June 2, 2025. Additionally, the company completed a refinancing and upsizing of its revolving credit facility and Term Loan B, extending maturities and increasing liquidity.

Management's Perspective

President and CEO Andrew Clyde commented on the results, noting that while the Q1 results fell slightly short of internal expectations, the business performed admirably despite several temporal factors. He highlighted the growth in retail fuel margins and continued share gains in nicotine and other merchandise categories as positive indicators for the rest of the year.

Future Outlook

The company remains focused on cost discipline and its long-term capital allocation strategy, which includes new store growth, business improvements, and consistent share repurchase. The successful refinancing and upsizing of credit facilities are expected to provide additional liquidity for the coming years.