Financial research concept

Renewable Diesel Operating Income

Renewable Diesel operating income or loss is the segment result after renewable diesel margin is reduced by operating expenses and depreciation and amortization.

By Lee BaileyPublished Sep 25, 2026

Research context

See what supports this page, how current it is, and where comparable or historical context is available.

Research date: Sep 25, 2026Use the dated article and cited sources for the definition, examples, and stated limitations.
Operating-model context: 20 connected conceptsPart of the reviewed Integrated Refining & Renewable Fuels Economics; issuer definitions remain distinct where disclosed.
Company examples: 1 reviewed companyRelationships reflect supported examples, not a normalized cross-company KPI ranking.

The year-over-year earnings swing was $663 million
The segment bridge explains the loss
Segment operating income is not cash flow
Part of the Integrated Refining & Renewable Fuels Economics
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Renewable Diesel Operating Income measures the reported profit or loss of Valero's Renewable Diesel segment after the segment's operating expenses and depreciation and amortization.

Valero reported a $156 million operating loss in 2025, compared with $507 million of operating income in 2024.

The year-over-year earnings swing was $663 million

Moving from positive $507 million to negative $156 million is a $663 million deterioration.

The change was much larger than the decline in sales volume alone, showing that feedstock costs, tax incentives, product pricing, and the fixed cost structure also mattered.

The segment bridge explains the loss

Valero reported $419 million of Renewable Diesel margin, $308 million of operating expenses excluding D&A, and $267 million of D&A.

Those figures reconcile exactly to the $156 million operating loss.

Use Renewable Diesel Margin to keep the intermediate margin layer separate.

Segment operating income is not cash flow

The measure includes depreciation but excludes broader financing, working-capital, tax, and corporate effects.

It also sits inside the Diamond Green Diesel joint-venture structure, so ownership and consolidation context matter.

Primary source: Valero 2025 Form 10-K.

Part of the Integrated Refining & Renewable Fuels Economics

Connect refinery capacity, throughput, utilization, yield, realized per-barrel economics, renewable-fuel compliance costs, and Renewable Diesel and Ethanol volume, margin, and profit conversion.

Browse the full operating model in Company Analysis →

Where this concept fits

Renewable diesel capacity, sales volume, and margin conversionCurrent relationship
Production capacity defines potential physical output, sales volume is the period denominator Valero uses for unit economics, segment revenue preserves external and intersegment scope, and Renewable Diesel margin is reduced by operating expenses and depreciation and amortization to reach operating income or loss.
Renewable Diesel MarginRenewable Diesel Operating IncomeCurrent conceptRenewable Diesel Production Capacity Renewable Diesel Sales Volume Renewable Diesel Segment Revenue
Refining capacity, throughput, and per-barrel conversion
Feedstock throughput capacity sets physical scale, while utilization and throughput show realized activity and product yield shows output mix. Refining margin per barrel is reduced by operating costs and depreciation and amortization to reach adjusted operating income per barrel, while RVO cost adds a separate compliance-cost benchmark whose treatment in realized margin must be checked.
Refinery Capacity Utilization Refinery Product Yield Refinery Throughput Adjusted Refining Operating Income Adjusted Refining Operating Income per Barrel Refining D&A per Barrel Feedstock Throughput Capacity Refining Margin per Barrel Refining Operating Cost per Barrel RVO Cost per Barrel
Ethanol capacity, production, and margin conversion
Production capacity defines the plant network's stated output capability and production volume measures realized output. Ethanol and co-product revenue feed an issuer-defined Ethanol margin, which is reduced by operating expenses, depreciation and amortization, and specified other operating expenses to reach segment operating income.
Ethanol Margin Ethanol Operating Income Ethanol Production Capacity Ethanol Production Volume Ethanol Segment Revenue

See It in Company Research

These companies are examples of how the concept is reported or discussed in public filings. Definitions can differ by issuer; these links open company research rather than a normalized metric comparison.

VLOOpen operating-model research →20 of 20 reviewed concepts in Integrated Refining & Renewable Fuels EconomicsRenewable diesel capacity, sales volume, and margin conversion5 of 5 bridge concepts supportedContinue through this bridge:Renewable Diesel Margin Renewable Diesel Production Capacity Renewable Diesel Sales Volume Renewable Diesel Segment Revenue

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