Delek US Q4 Profit and Revenue Surpass Projections, Adjusted EBITDA Rises Year Over Year

Delek US Holdings Surpasses Q4 2025 Expectations

Delek US Holdings, Inc. (DK) posted adjusted earnings of $0.44 per share for the fourth quarter of 2025, outperforming the anticipated loss of $0.25 per share according to Zacks Consensus. This result also marks a significant turnaround from the previous year's adjusted loss of $2.54, driven by improved performance across both business segments and a 12.2% reduction in overall expenses.

The company’s net revenue climbed 2.3% year-over-year, reaching $2.4 billion and exceeding consensus projections by 6.3%. This outperformance was largely attributed to the refining division, which surpassed expectations by $259 million.

Financial Highlights

Delek US reported an adjusted EBITDA of $374.8 million for the quarter, a remarkable improvement from a $15.2 million loss in the same period last year and well above the estimated $125.6 million.

On February 18, 2026, the board authorized a regular quarterly dividend of $0.255 per share, scheduled for payment on March 9, 2026, to shareholders on record as of March 2.

Performance by Segment

Refining

The refining segment achieved an adjusted EBITDA of $314.1 million, a substantial increase from the $68.7 million loss reported a year earlier and well ahead of the projected $139.4 million. This growth was fueled by favorable small refinery exemptions and a significant rise in refining margins, with benchmark crack spreads averaging 66% higher than the previous year.

Logistics

This division, representing Delek US’s majority stake in Delek Logistics Partners (DKL), focuses on pipeline and midstream asset operations and acquisitions. In the fourth quarter, logistics delivered an adjusted EBITDA of $141.9 million, up from $114.3 million a year ago. The increase was supported by the W2W dropdown, contributions from the H2O Midstream acquisition (completed September 2024), the Gravity acquisition (January 2025), and stronger wholesale margins. However, this result was slightly below the estimated $116.8 million.

Financial Position

Total expenses for the quarter fell by 12.2% year-over-year to $2.2 billion. Delek US invested $80.5 million in capital projects during this period.

As of December 31, 2025, the company reported $625.8 million in cash and cash equivalents, with long-term debt totaling $3.2 billion and a debt-to-capital ratio of approximately 85.5%.

The consolidated balance sheet, including DKL, showed $10.9 million in cash and $2.3 billion in long-term debt. Excluding DKL, Delek US held $614.9 million in cash and $888.7 million in long-term debt, resulting in net debt of $273.8 million.

Outlook for Q1 and Full Year 2026

Delek US anticipates stable operations in the first quarter of 2026, with consistent refinery utilization and continued focus on cost management. Projected operating expenses are between $210 million and $220 million, general and administrative costs are expected to range from $47 million to $52 million, depreciation and amortization are forecasted at $100 million to $110 million, and net interest expenses are estimated at $75 million to $85 million.

Crude throughput for Q1 2026 is expected to be between 212,000 and 247,000 barrels per day (bpd), with total system throughput ranging from 240,000 to 259,000 bpd. By refinery, throughput projections are: Tyler (70,000–74,000 bpd), El Dorado (66,000–71,000 bpd), Big Spring (22,000–28,000 bpd), and Krotz Springs (82,000–86,000 bpd).

For the full year 2026, Delek US plans to allocate approximately $495 million in capital expenditures: $222 million for refining (mainly for maintenance and compliance), $255 million for logistics (focused on growth initiatives), and $18 million for corporate and other uses. This balanced investment strategy aims to enhance operational reliability, strengthen infrastructure, and drive sustainable value.

Currently, DK holds a Zacks Rank #3 (Hold).

Other Noteworthy Energy Earnings

In addition to Delek US, several other energy companies reported notable fourth-quarter results:

• Valero Energy Corporation (VLO): Reported adjusted earnings of $3.82 per share, surpassing the consensus estimate of $3.22 and significantly higher than last year’s $0.64. The strong results were driven by improved refining margins, increased ethanol output, and lower costs. At quarter-end, Valero held $4.7 billion in cash and $8.3 billion in debt, with $2.4 billion in finance leases.
• Baker Hughes Company (BKR): Delivered adjusted earnings of $0.78 per share, beating the expected $0.67 and improving from $0.70 a year ago, thanks to robust performance in its Industrial & Energy Technology segment. The company reported $321 million in capital expenditures and $3.7 billion in cash, with $5.4 billion in long-term debt and a 24.3% debt-to-capitalization ratio.
• Halliburton Company (HAL): Achieved adjusted net income of $0.69 per share, exceeding the consensus estimate of $0.54. The result reflects effective cost management, though it was slightly below the prior year’s $0.70 due to weaker North American activity. Halliburton’s capital spending was $337 million, below projections, and it ended the quarter with $2.2 billion in cash and $7.2 billion in long-term debt, for a debt-to-capitalization ratio of 40.5%.

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