Delek US Holdings reported a turnaround in its third‑quarter 2025 results, posting net income attributable to the company of $178 million—up from a $76.8 million loss in the same quarter a year earlier. Adjusted net income rose to $434.2 million and adjusted EBITDA reached $759.6 million, underscoring a significant improvement in operating performance.
The company’s refining unit delivered an adjusted EBITDA of $696.9 million, a dramatic jump from $10.2 million in Q3 2024. The surge is largely attributable to a $280.8 million benefit from Small Refinery Exemptions (SREs) granted by the EPA, higher crack spreads, and a favorable mix of product sales. The logistics arm generated $131.5 million in adjusted EBITDA, up from $106.1 million a year earlier, driven by stronger wholesale margins and the contribution of recent midstream acquisitions.
Total revenue for the quarter was $2.89 billion, beating the consensus estimate of $2.71 billion by $180 million (6.6%). The revenue gain was led by robust demand in the refining and logistics segments, offsetting a modest decline in legacy product sales. The company’s GAAP earnings per share were $2.93, while the adjusted EPS reached $7.13—an increase of $6.85 over the consensus estimate of $0.28. The large EPS beat reflects the combined impact of the SRE benefit, improved crack spreads, and disciplined cost management.
Management raised its guidance for the Enterprise Optimization Plan (EOP) to at least $180 million in annual run‑rate cash‑flow improvements, up from the previous $130‑$170 million range. Delek Logistics is expected to finish the year in the upper half of its full‑year adjusted EBITDA guidance of $500‑$520 million. No change was made to the full‑year revenue outlook, but the company’s confidence in sustaining profitability is evident from the updated EOP guidance.
The company maintained its regular quarterly dividend of $0.255 per share, payable on November 17 2025 to shareholders of record on November 10 2025. The dividend was approved on October 29 2025.
On September 30 2025, Delek reported a cash balance of $630.9 million and net debt of $2.546 billion, with total long‑term debt of $3.177 billion. The liquidity position remains robust, supporting continued investment in the Sum‑of‑the‑Parts strategy and the Enterprise Optimization Plan.
CEO Avigal Soreq highlighted the company’s progress on its Sum‑of‑the‑Parts strategy, noting that “our EOP efforts are exceeding previous guidance and that clarity on SREs significantly improves free‑cash‑flow generation.” She emphasized a focus on maximizing the value of third‑party businesses at Delek Logistics and on driving long‑term profitability.
Analysts noted the strong earnings beat and the sizable SRE benefit as key drivers of the positive market reaction, underscoring confidence in the company’s operational turnaround and strategic execution.
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