Delek US (DK) Q1 2025 earnings summary

Executive summary

• Reported net loss of $172.7 million, or $(2.78) per share, and adjusted net loss of $144.4 million, or $(2.32) per share, for Q1 2025, driven by lower refining margins and decreased crack spreads.

• Advanced operational performance with planned outages at Tyler and Big Spring, and completed maintenance positioning for summer demand.

• Closed Gravity Water Midstream acquisition, expanding water disposal and recycling operations, and began commissioning the Libby 2 gas plant.

• Prioritized shareholder returns with $32 million in share buybacks and $16 million in dividends during the quarter.

• Continued focus on midstream deconsolidation, increasing DKL's third-party cash flow to ~80% and improving liquidity by $250 million.

Financial highlights

• Net revenues were $2,641.9 million, down from $3,128.0 million year-over-year.

• Adjusted EBITDA was $26.5 million, down from $158.7 million in Q1 2024.

• Cash flow from operations was a use of $62 million, with $26 million inflow from working capital movements.

• Consolidated net debt increased to $2.41 billion as of March 31, 2025.

• Capital expenditures totaled $132.6 million, including regulatory, maintenance, and growth projects.

Outlook and guidance

• EOP expected to deliver at least $120 million in annual cash flow improvement in 2H 2025.

• DKL maintains full-year adjusted EBITDA guidance of $480–$520 million.

• Q2 2025 operating expenses expected at $215–$225 million; G&A at $52–$57 million; D&A at $95–$105 million; net interest $80–$90 million.

• Total crude throughput guidance for Q2: 292,000–318,000 bpd across all refineries.

• 2025 refining and corporate capex forecast: $150–$170 million, reduced from prior years.