Delek US (DK) Q2 2025 earnings summary

Executive summary

• Achieved record throughput and strong operational performance in Q2 2025, with notable improvements at Big Spring and El Dorado, and robust reliability positioning for a strong summer season.

• Net loss attributable to shareholders was $106.4 million ($1.76 per share); adjusted net loss was $33.1 million ($0.56 per share); adjusted EBITDA reached $170.2 million.

• Enterprise Optimization Plan (EOP) exceeded expectations, delivering ~$30 million in Q2 improvements and raising the annual run-rate target to $130–$170 million, one quarter ahead of schedule.

• Completed Libby 2 gas plant and successful $700 million high-yield debt offering, expanding capacity and supporting growth.

• Returned ~$150 million to shareholders via buybacks and dividends over the last 12 months, representing a ~12% yield.

Financial highlights

• Q2 2025 net revenues were $2.76 billion, down 16.4% year-over-year, mainly due to lower refined product prices and volumes.

• Adjusted EBITDA was $170.2 million, up from $107.5 million in Q2 2024; Q2 2025 EBITDA: $185.2 million.

• Cash and cash equivalents stood at $615.5 million at quarter-end; consolidated net debt was $2,485.2 million; long-term debt totaled $3.10 billion.

• Operating cash flow for YTD 2025 was negative $9.9 million; capital expenditures YTD totaled $296.6 million.

• Paid $15.5 million in dividends and repurchased $13 million in shares during Q2.

Outlook and guidance

• EOP annual run-rate cash flow improvement target increased to $130–$170 million; logistics segment 2025 adjusted EBITDA guidance is $480–$520 million.

• Q3 2025 throughput guidance: Tyler 73–77K bpd, El Dorado 79–83K bpd, Big Spring 69–72K bpd, Krotz Springs 81–85K bpd, system 302–317K bpd.

• Q3 2025 operating expenses projected at $210–$225 million; G&A $52–$57 million; D&A $100–$110 million; net interest expense $85–$95 million.

• Management expects continued market volatility due to geopolitical risks, tariffs, and commodity price fluctuations.

• Strategic focus remains on cost optimization, margin enhancement, and expanding third-party logistics revenue.