Par Pacific’s Q1 2026: Hawaii’s Refineries Fire Up Earnings, While Net Income Keeps Pace

Executive snapshot

• Net income attributable to Par Pacific stockholders: $54.5 million, or $1.10 per diluted share (Q1 2026).
• Adjusted net income: $38.5 million, or $0.78 per diluted share.
• Adjusted EBITDA: $91.5 million.
• Stock repurchases: $28.0 million of common stock at an average price of $37.96 per share.
• Refining segment: operating income of $56.3 million in Q1 2026, versus an operating loss of $(24.7) million in Q1 2025.
• Throughput: Hawaii refinery at 89.8 Mbpd; Hawaii overall throughput 90 Mbpd in Q1 2026; first-quarter Hawaii operations began commercial operations in April.

What changed vs. prior year

The quarter shows a notable swing from a prior-year loss to a positive, with net income of $54.5 million and a strengthened Adjusted EBITDA of $91.5 million. The company highlighted robust refining performance, supported by higher throughput and stronger margins, even as it faced a significant net price lag impact in Hawaii that offset some margin benefits. Production costs per throughput barrel were $4.67 in Q1 2026, compared with $4.81 in the first quarter of 2025.

Segment and margin analysis

The Refining segment delivered operating income of $56.3 million in Q1 2026, reversing last year’s loss and aligning with a broader narrative of improved cash generation. Adjusted Gross Margin for the Refining segment was $185.1 million in Q1 2026, up from $104.3 million in Q1 2025. The company reported Refining Adjusted EBITDA of $69.2 million (vs. $(14.3) million in Q1 2025). Throughput rose to 184 thousand barrels per day (Mbpd) in Q1 2026, up from 176 Mbpd in Q1 2025, underscoring volume-driven margin resilience.

Hawaii focus and milestones

The Hawaii index averaged $31.11 per barrel in Q1 2026, well above the prior-year level of $8.13 per barrel. Throughput in Hawaii for Q1 2026 stood at 90 Mbpd, up from 79 Mbpd a year earlier. The Hawaii renewable fuels facility began commercial operations in April, a milestone the management framed as a meaningful contributor to the system’s margin and throughput narrative.

The Hawaii refinery’s Adjusted Gross Margin was $13.10 per barrel in Q1 2026, including a net price lag impact of approximately $(125.5) million, or $(15.52) per barrel, compared to $8.90 per barrel in Q1 2025. The net price lag impact reflects the Hawaii refinery’s exposure to price timing and lag effects that compress near-term EBITDA even as underlying throughput and margins improve.

Leadership commentary and strategic takeaways

“Our continued focus on reliability and commercial performance through market cycles enabled strong first quarter results,” said Will Monteleone, President and Chief Executive Officer. “During April, the Hawaii renewable fuels facility successfully achieved commercial operations, a major milestone for the project. Our outlook is strong and we are well positioned to capitalize on the elevated margin environment across our system.”

That note from the CEO underscores a strategic pivot around volume recovery and asset leverage, particularly in Hawaii where the new renewable fuels facility acts as a potential margin driver beyond the conventional throughputs. Investors looking for “EPS consensus” or a near-term revenue forecast may not find explicit guidance in this release, but the headline numbers and the Hawaii-operating-story offer a narrative that this cycle’s margin tailwinds could persist if refinery demand holds and crude differentials stay favorable.

Implications for peers and the sector

Par Pacific’s quarterly performance centers on a few themes that could ripple through refining-sector peers: stronger refinery throughput combined with meaningful net price lag exposure in Hawaii suggests a fragile margin dynamic that could unwind quickly if price lag timing shifts. The Hawaii facility’s commercial operation adds an incremental cash-flow stream that may elevate the value of integrated refiners with similar geography or feedstock flexibility. In the near term, the stock repurchase and the improving operating income signal a discipline around capital allocation—invest, optimize, reward shareholders—while continuing to finance the expansion of a more resilient Hawaii-focused margin mix.

What to watch next

Key prompts for the next quarterly cycle include: will EPS trend higher on the back of stronger throughput and better gross margins, and how will the market price the Hawaii refinery’s cash-flow stability given the net price lag’s ongoing influence? Investors will also monitor any updates to revenue forecasts or new guidance to gauge whether the current equity risk premium on PARR reflects a durable margin structure or a temporary lift from one-off items and the April startup in Hawaii. In the wider peer group, look for how similar refining portfolios manage feedstock costs, utilization rates, and the timing risk embedded in price lag and interim margins.