Delek US (DK) Q4 2025 earnings summary

Executive summary

• Q4 2025 marked a transformational year with strong operational performance, highlighted by net income of $78.3M ($1.26/share), adjusted net income of $143M ($2.31/share), and adjusted EBITDA of $374.8M, with significant progress in free cash flow and economic separation between DK and DKL.

• The Enterprise Optimization Plan (EOP) drove substantial value, raising its annual run rate target to at least $200M, with $50M realized in Q4, reflecting ongoing improvements in cash flow and operational efficiency.

• Restructured Inventory Intermediation Agreement is expected to generate at least $40M incremental free cash flow and improve liquidity.

• Peer-leading capital returns were achieved, with 11% total shareholder return over the last twelve months, outperforming peers by 4%.

• DKL achieved record adjusted EBITDA and announced 2026 guidance of $520–$560M, emphasizing its premier position in the Permian Basin and growing third-party cash flows.

Financial highlights

• Q4 2025 adjusted net income was $143M ($2.31/share); adjusted EBITDA reached $374.8M; net income was $78.3M ($1.26/share).

• Excluding SREs, Q4 adjusted EBITDA was $225.5M and adjusted EPS was $0.44; full-year 2025 adjusted EBITDA (excluding SREs) was $763M.

• Cash flow from operations in Q4 was $503.8M, with $119M after adjusting for working capital and SREs, up $211M year-over-year.

• Q4 2025 net revenues were $2.43B, cost of sales was $2.20B, and operating income was $164.6M.

• Year-end 2025 consolidated net debt was $2.61B, with a cash balance of $625.8M.

Outlook and guidance

• Q1 2026 throughput guidance: Tyler 70,000–74,000 bpd, El Dorado 66,000–71,000 bpd, Big Spring 22,000–28,000 bpd (due to turnaround), Krotz Springs 82,000–86,000 bpd; system throughput target 212,000–259,000 bpd.

• Q1 2026 operating expenses expected at $210–$220M, G&A at $47–$52M, D&A at $100–$110M, and net interest expense at $75–$85M.

• DKL 2026 adjusted EBITDA guidance is $520–$560M, with third-party EBITDA expected to exceed 80% and a $10M impact from Winter Storm Fern.

• Focus remains on operational excellence, cost optimization, and disciplined capital allocation.