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Sep 30, 2025
Delek US Q3 2025 Earnings Report
Delek US Holdings reported strong third quarter 2025 results, driven by significant benefits from Small Refinery Exemptions and improved refining margins.
Key Takeaways
Delek US Holdings delivered a robust third quarter in 2025, reporting a net income of $178.0 million and an adjusted net income of $434.2 million. The company's performance was significantly boosted by a $280.8 million benefit from Small Refinery Exemptions (SREs) and a 46.8% increase in benchmark crack spreads, leading to a substantial rise in refining segment adjusted EBITDA. The logistics segment also showed strong growth due to recent acquisitions and increased wholesale margins.
Net income reached $178.0 million, or $2.93 per diluted share, while adjusted net income was $434.2 million, or $7.13 per adjusted diluted share.
The company recognized a $280.8 million benefit from Small Refinery Exemptions (SREs) and an additional $160.2 million related to a 50% reduction in RVO for the first nine months, significantly impacting adjusted EBITDA and net income.
Adjusted EBITDA for the quarter was $759.6 million, with the refining segment contributing $696.9 million, a substantial increase from the prior year.
Delek Logistics (DKL) raised its full-year adjusted EBITDA guidance to $500 - $520 million, reflecting strong execution and strategic acquisitions.
Revenue by Segment
Forward Guidance
Delek US Holdings anticipates continued strong performance, driven by the Enterprise Optimization Plan and monetization of historical SRE grants, while Delek Logistics is expected to finish the year at the high end of its adjusted EBITDA guidance.
Positive Outlook
- Expects approximately $400 million in proceeds from the monetization of historical SRE grants over the next six to nine months.
- Increased annual run-rate cash flow improvements guidance from the Enterprise Optimization Plan (EOP) to at least $180 million, exceeding previous guidance.
- Recognized approximately $60 million of improvements from the EOP in Q3 2025.
- Delek Logistics (DKL) is projected to finish the year in the top half of its full-year adjusted EBITDA guidance, with a new expected range of $500 - $520 million.
- DKL continues to strengthen its position in the Permian basin through a new processing plant and ongoing AGI initiatives.
Challenges Ahead
- No specific negative forward guidance points were explicitly stated in the provided text.
- Ongoing litigation regarding expired RINs from SRE grants could introduce uncertainty.
Revenue & Expenses
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Historical Earnings Impact
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Avg. Return Before/After Earnings
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