An independent energy company that refines crude oil into gasoline, diesel, and other fuels at refineries across the United States, selling through the familiar Sinclair brand. The company came together in 2022 when HollyFrontier acquired Sinclair Oil, whose roots reach back to founder Harry F. Sinclair in 1916. Its green dinosaur mascot, DINO, first appeared in 1930 to remind customers that its oil had been aging in the ground since the age of the dinosaurs.
HF Sinclair net income rose 329% to $892M as adjusted refinery gross margin climbed 57% to $25.95 per barrel.
Refining margins more than recovered from a year ago. rose 53% to $10.4 billion and reached $892 million, or $4.93 per diluted share, driven by a 57% increase in the adjusted refinery to $25.95 per barrel on stronger product demand and higher sales prices. The company now plans to separate its Lubricants & Specialties into a standalone public company.
Key takeaways
attributable to HF Sinclair stockholders rose to $892 million from $208 million a year ago, as the consolidated adjusted refinery increased 57% to $25.95 per produced barrel, reflecting improved market crack spreads and higher volumes in both the Mid-Continent and West regions.
rose 53% to $10.4 billion, and increased 325% to $1.17 billion, with widening to 11.2% from 4.1% in the prior-year quarter.
reached $1.51 billion, up 157% , and rose 192% to $1.39 billion, reflecting the earnings recovery.
Section summaries
Management's Discussion and Analysis
HF Sinclair Q2 FY2026 net income surged to $892M, driven by a 57% increase in adjusted refinery gross margin and higher volumes.
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attributable to HF Sinclair stockholders rose to $892 million in Q2 2026 from $208 million in Q2 2025, driven by stronger product demand and higher sales prices.
The Renewables benefited from improved prices, higher benefits, and increased sales volumes.
The company announced plans to pursue a separation of its Lubricants & Specialties into a new public company and to retire its Mississauga base oil refining assets, introducing material execution, cost, and tax risks over a 12–18 month timeline.
Liquidity stood at approximately $4.3 billion as of June 30, 2026, with $2.3 billion in cash and full availability under a $2.0 billion .
What changed
The adjusted refinery of $25.95 per barrel more than recovered from the $9.95 reported in Q1 2026, as seasonal demand strengthened and market crack spreads improved in both regions.
The Renewables sustained its improved performance from Q1 2026, when its adjusted reached $2.96 per gallon, helped by continued strength in prices and benefits.
The D.C. Circuit ruled in the company's favor on the Parco refinery's 2024 small refinery exemption petition, vacating the EPA's denial and remanding for reconsideration; an emergency motion was filed in July 2026 to compel a new decision after the agency missed a 90-day deadline.
Discussions with the NWCAA, EPA, and DOJ over alleged violations at the Puget Sound Refinery remain ongoing, with no penalties yet demanded and the outcome still too early to predict.
What to watch
Whether the adjusted refinery can be sustained near the $25.95 per barrel Q2 level as seasonal demand patterns shift in the second half of 2026.
Progress and costs associated with the planned separation of the Lubricants & Specialties , including any IRS rulings, SEC filings, and the timeline for the Mississauga asset retirement.
The financial impact of the ongoing D.C. Circuit litigation over small refinery exemption petitions, including the emergency motion to compel a new decision on the Parco refinery's 2024 petition.
Any penalties or costs arising from the ongoing discussions with the NWCAA, EPA, and DOJ over alleged violations at the Puget Sound Refinery.
Consolidated adjusted refinery increased 57% to $25.95 per barrel, reflecting improved market crack spreads and volumes in both the Mid-Continent and West regions.
The Renewables benefited from improved prices, higher benefits, and increased sales volumes.
The Lubricants & Specialties saw solid performance driven by higher sales volumes and product prices, excluding impacts.
Liquidity stood at approximately $4.3 billion as of June 30, 2026, with $2.3 billion in cash and full availability under a $2.0 billion .
The company announced plans to pursue a separation of its Lubricants & Specialties and retire its Mississauga base oil refining assets.
Company believes pending legal and environmental proceedings will not materially affect its financial condition or operations.
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Management states that resolution of all current proceedings is not expected to have a material adverse effect on financial condition, results of operations, or cash flows.
Multiple challenges to EPA decisions for several refineries remain pending in the D.C. Circuit, with potential impact not estimable.
The D.C. Circuit ruled in the company's favor on the Parco refinery's 2024 SRE petition, vacating the EPA's denial and remanding for reconsideration.
An emergency motion was filed in July 2026 to compel the EPA to issue a new decision on the Parco refinery's 2024 SRE petition after the agency missed a 90-day deadline.
Discussions continue with government agencies regarding compliance at the Puget Sound refinery; no penalties have been demanded and the outcome is too early to predict.
The planned separation of Lubricants & Specialties and the Mississauga asset retirement introduce material execution, cost, and tax risks.
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The separation of the Lubricants & Specialties into a new public company may not be completed on the expected 12–18 month timeline or at all, and depends on IRS rulings, SEC filings, and market conditions.
Retiring the Mississauga Base Oil Plant could trigger significant costs including accelerated , severance, contract terminations, and environmental liabilities, with uncertain timing and amounts.
The separation may divert management attention, disrupt operations, and create substantial dis-synergy and stand-alone infrastructure costs that could exceed expectations.
If the transaction fails to qualify as tax-free, it could result in significant U.S. federal income tax liabilities for the company and its shareholders.
Post-separation, each company would be less diversified and more vulnerable to macroeconomic conditions, with potentially more volatile results and reduced financial flexibility.