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Mar 31
Delek US Q1 2025 Earnings Report
Reported First Quarter 2025 Results
Key Takeaways
Delek US Holdings reported a net loss of $172.7 million for the first quarter of 2025, with an adjusted net loss of $144.4 million. This was primarily driven by lower refining crack spreads compared to the prior year, although the logistics segment saw increased Adjusted EBITDA due to recent acquisitions. The company is focusing on its Enterprise Optimization Plan to improve cash flow.
Reported a net loss of $172.7 million, or $(2.78) per share.
Adjusted net loss was $144.4 million, or $(2.32) per share.
Adjusted EBITDA was $26.5 million, down significantly from $158.7 million in the prior-year quarter.
The Logistics segment showed improved performance due to recent acquisitions, partially offsetting the decline in the Refining segment.
Delek US
Delek US
Delek US Revenue by Segment
Revenue by Segment
Refining Revenue
CapyFin.comLogistics Revenue
CapyFin.comCorporate, Other and Eliminations Revenue
CapyFin.com Forward Guidance
Delek US is aiming to achieve at least $120 million in run-rate cash flow improvement in the second half of 2025 through its Enterprise Optimization Plan. They are also focused on completing midstream deconsolidation and maintaining financial strength.
Positive Outlook
- Enterprise Optimization Plan expected to deliver at least $120 million in run-rate cash flow improvement in 2H'25.
- New intercompany agreements increase consolidated financial availability by approximately $250 million.
- Intercompany agreements are an incremental step towards completing midstream deconsolidation.
- DKL's new Libby 2 plant is starting commissioning, expanding processing capacity for producer customers.
- DKL is on track to deliver full year Adjusted EBITDA guidance of $480 to $520 million.
Challenges Ahead
- Refining segment performance was significantly impacted by lower crack spreads.
- Continued challenging market conditions are noted.
- Net loss was substantial for the quarter.
- Operating income was a loss for the quarter.
- Gross profit was a loss for the quarter.
Revenue & Expenses
Visualization of income flow from segment revenue to net income