Murphy USA Misses Q1 Forecasts as Storms and Rising Expenses Weigh on Profits

A Murphy USA location in Galveston, Texas, in November 2023 (Shutterstock)

Higher costs, severe storms and retail headwinds took a toll as fuel and convenience retailer Murphy USA (NYSE: MUSA) announced net income of $53 million, or $2.63 per share, for the first quarter of 2025.

It’s a 19.4% decrease from the $66 million profit the company reported in the same quarter a year ago.

The El Dorado-based convenience store chain reported total operating revenue of  $4.53 billion, down from $4.84 billion in Q1 2024, and company CEO Andrew Clyde conceded that the results fell slightly short of internal expectations.

Wall Street analysts had expected income of $3.87 per share, far more than the $2.63 Murphy USA reported.

The earnings announcement came after the market closed on Wednesday. Shares fell 4.99% to $481 in after-hours trading.

Same-store fuel sales were down, but Clyde said that all in all, the results were strong.

“The business performed admirably despite a 2% comparison headwind from temporal factors including the timing of Leap Day and the Easter holiday along with the relative severity of storms,” Clyde said in a statement included in the announcement.

Retail fuel margins were up by 2 cents year-over year, but Clyde cited a “flatter price environment” and lower-than-expected supply margins tied to an oversupplied product market helped hold down earnings, but he said he expects better results ahead.

“Candy and General Merchandise should help drive results through the rest of the year,” his statement said. “As always, we remain focused on cost discipline, as evidenced by lower Q1 G&A expense, and our long-term capital allocation strategy built around new store growth, business improvements, and consistent share repurchase.”

Fuel and merchandise contributions to the bottom line were higher than in the first quarter of 2024, and the company said lower general and administrative expenses and lower income taxes favored the current results.

However, the chain faced higher store operating expenses, higher depreciation and amortization, and higher interest costs.

The chain opened eight new Murphy stores in the quarter and closed two QuickCheks in the Northeast. It had 14 new-to-industry stores under construction as of March 31.

Before the end of the quarter, Murphy USA completed a refinancing of both its revolving credit facility and a loan called Term Loan B. “The revolver, now maturing in April 2030, was increased from $350 million to $750 million in capacity while the Term Loan B, now maturing in April 2032, was increased from its remaining $384 million to $600 million,” the company said in a news release.