Murphy USA Q4 2024 Earnings Report
Key Takeaways
Murphy USA reported a net income of $142.5 million, or $6.96 per diluted share, for Q4 2024. Total fuel contribution remained flat at 32.5 cpg, while merchandise contribution dollars increased by 5.6%. The company also repurchased approximately 239.7 thousand common shares for $126.2 million during the quarter.
Net income decreased slightly to $142.5 million compared to $150.0 million in Q4 2023.
Total fuel contribution remained consistent at 32.5 cpg.
Merchandise contribution dollars increased by 5.6% to $208.8 million.
The company repurchased 239.7 thousand common shares for $126.2 million.
Murphy USA
Murphy USA
Murphy USA Revenue by Segment
Forward Guidance
Management expects to sustain a higher level of growth into 2025 and beyond, with flat to slightly higher per store volumes. Merchandise contribution growth of 3% to 5% is expected. The company does not provide a projected range of all-in fuel margin, Adjusted EBITDA, or Net Income.
Positive Outlook
- New store additions and investments in raze-and-rebuild sites reflect our expectation of being able to sustain a higher level of growth into 2025 and beyond.
- Our disciplined capital approach combined with a more robust NTI pipeline will allow us to prioritize NTI construction while managing a similar number of total projects
- The company's low-price offering continues to resonate with our customers, retaining recent year market share gains which we expect to persist in 2025, resulting in flat to slightly higher per store volumes
- Merchandise contribution growth of 3% to 5% is based on expected impact from new stores, raze and rebuilds, and ongoing promotional and center-of-store focused initiatives
- SG&A costs reflect continued investments in productivity initiatives that will improve the company's ability to better serve customers through consistent execution and improved efficiencies creating a more engaging customer experience over the long-term
Challenges Ahead
- Growth in store operating expenses per site, before payment fees and rent, will likely be modestly higher in 2025 as we build larger new stores, raze and rebuild existing stores, and invest in people and technology, coupled with normal cost inflation in this area
- The effective tax rate in 2025 is expected to be in a range of 23% to 25% and moves slightly lower consistent with recent performance
- Capital expenditures primarily reflect a higher expected level of new store growth, raze-and-rebuild activity, store remodels, as well as corporate infrastructure projects and back office technology investments
- The Company does not provide a projected range of all-in fuel margin
- The Company does not provide a projected range of Adjusted EBITDA, or Net Income.