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Delek Q2 Loss Narrower Than Expected, Revenues Miss Estimates
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Key Takeaways
Refining EBITDA surged to $113.6M on stronger crack spreads, beating profit expectations.
Capital spending totaled $164M in Q2, with full-year 2025 capex forecast at $405M.
DK repurchased $13M in shares in Q2 and an additional $7.5M after the quarter ended.
Delek US Holdings, Inc. (DK - Free Report) reported a second-quarter 2025 adjusted net loss of 56 cents per share, narrower than both the Zacks Consensus Estimate and the year-ago quarter’s loss of 92 cents, due to lower year-over-year operating costs.
Net revenues fell 16.4% year over year to $2.8 billion, reflecting lower revenues from two segments (excluding intercompany fees and revenues). The figure also missed the Zacks Consensus Estimate by $117 million.
The diversified downstream energy company’s adjusted EBITDA loss was $170.2 million in contrast to the $107.5 million profit in the year-ago period.
On July 30, 2025, DK’s board of directors approved the regular quarterly dividend of 25.5 cents per share. The dividend will be paid on Aug. 18 to its shareholders of record as of Aug. 11, 2025.
In the second quarter of 2025, DK advanced its key priorities under the Enterprise Optimization Plan (“EOP”) and Sum-of-the-Parts strategy (“SOTP”). The EOP outperformed expectations, generating approximately $30 million in cash flow improvements during the quarter.
DK’s subsidiary Delek Logistics Partners (DKL - Free Report) brought the new Libby 2 gas processing facility online, enhancing processing capacity for producer customers in Lea County, NM. DKL completed a $700 million debt issuance, set to mature in June 2033. The transaction supports DKL’s ongoing growth strategy aimed at enhancing financial self-sufficiency and aligns with Delek’s SOTP plan.
During the same period, DK repurchased about $13 million of its common shares and completed an additional $7.5 million in buybacks following quarter-end.
Delek US Holdings, Inc. Price, Consensus and EPS Surprise
Refining: The refining segment reported an adjusted EBITDA profit of $113.6 million, a notable increase from the $42.1 million profit recorded in the prior-year quarter. Additionally, the reported figure beat our profit estimate of $92.6 million. This significant year-over-year profit growth was driven by higher refining crack spreads. Delek’s benchmark crack spreads rose an average of 11.4% in the second quarter of 2025 compared with the prior-year levels.
Logistics: This unit represents Delek’s majority interest in DKL, a publicly traded master limited partnership, that owns, operates, develops and acquires pipelines and other midstream assets.
In the second quarter, the segment registered an adjusted EBITDA of $120.2 million compared with $100.6 million in the year-ago quarter. This increase was driven by the impact of the W2W dropdown, incremental contributions from the H2O Midstream acquisition on Sept. 11, 2024, and the Gravity acquisition on Jan. 2, 2025, as well as higher wholesale margins. However, the figure missed our estimate of $137.1 million.
DK’s Financials
Total operating expenses in the second quarter decreased about 15.3% year over year to $2.8 billion. Delek spent $164 million on capital programs in the same time frame.
As of June 30, 2025, the company had cash and cash equivalents worth $615.5 million and long-term debt of $3.1 billion, with a debt-to-total capital ratio of about 91.3.
Delek's consolidated balance sheet for the same period included DKL, which held $1.4 million in cash and $2.2 billion in long-term debt. Excluding DKL, Delek reported $614.1 million in cash and $889.3 million in long-term debt, yielding a net debt of $275.2 million.
DK’s Q3 and 2025 Guidance
The integrated downstream energy company anticipates operating expenses in the range of $210 million to $225 million, while general and administrative expenses are expected to fall between $52 million and $57 million in the third quarter of 2025. Furthermore, the company anticipates depreciation and amortization expenses to be in the range of $100 million to $110 million. Net interest expense is predicted to be between $85 million and $95 million in the third quarter.
Operationally, the company expects total crude throughput to be between 291,000 barrels per day (bpd) and 306,000 bpd, with total throughput anticipated in the range of 302,000-317,000 bpd in the third quarter of 2025. Looking at individual facilities, the Tyler refinery in Texas is expected to process between 73,000 bpd and 77,000 bpd, the El Dorado refinery in Arkansas between 79,000 bpd and 83,000 bpd, the Big Spring refinery in Texas between 69,000 bpd and 72,000 bpd, and the Krotz Springs refinery in Louisiana between 81,000 bpd and 85,000 bpd.
The company anticipates increasing its guidance on the EOP to a range of $130 million to $170 million on a run-rate cash flow improvement basis, starting in the second half of 2025. This is an increase from the original target of $80 million to $120 million.
The company expects DKL to deliver its full-year 2025 adjusted EBITDA guidance of $480 million to $520 million. DK anticipates optimizing capital efficiency with lower capital expenditures (capex) in the second half of 2025. For 2025, the company expects total capital expenditures of $405 million, comprising $141 million for Refining, $235 million for Logistics and $29 million for Corporate and Other.
While we have discussed DK’s second-quarter results in detail, let us take a look at two other key reports in this space.
San Antonio, TX-based oil and gas refining and marketing service provider, Valero Energy Corporation (VLO - Free Report) , reported second-quarter 2025 adjusted earnings of $2.28 per share, which beat the Zacks Consensus Estimate of $1.73. However, the bottom line declined from the year-ago quarter’s level of $2.71. The better-than-expected quarterly results can be attributed to an increase in refining margins per barrel of throughput and lower total cost of sales. The positives were partially offset by a decline in refining throughput volumes and renewable diesel sales volumes.
The company had cash and cash equivalents of $4.5 billion at the end of the second quarter. As of June 30, 2025, it had a total debt of $8.4 billion and finance-lease obligations of $2.3 billion.
Houston, TX-based oil and gas equipment and services provider, Halliburton Company (HAL - Free Report) , reported second-quarter 2025 adjusted net income of 55 cents per share, which was in line with the Zacks Consensus Estimate but below the year-ago quarter’s profit of 80 cents (adjusted). The numbers reflect softer activity in the North American region, partly offset by international growth.
As of June 30, 2025, the company had approximately $2 billion in cash/cash equivalents and $7.2 billion in long-term debt, representing a debt-to-capitalization ratio of 40.4. Halliburton reported second-quarter capital expenditure of $354 million, up from our projection of $338.2 million.
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Delek Q2 Loss Narrower Than Expected, Revenues Miss Estimates
Key Takeaways
Delek US Holdings, Inc. (DK - Free Report) reported a second-quarter 2025 adjusted net loss of 56 cents per share, narrower than both the Zacks Consensus Estimate and the year-ago quarter’s loss of 92 cents, due to lower year-over-year operating costs.
Net revenues fell 16.4% year over year to $2.8 billion, reflecting lower revenues from two segments (excluding intercompany fees and revenues). The figure also missed the Zacks Consensus Estimate by $117 million.
The diversified downstream energy company’s adjusted EBITDA loss was $170.2 million in contrast to the $107.5 million profit in the year-ago period.
On July 30, 2025, DK’s board of directors approved the regular quarterly dividend of 25.5 cents per share. The dividend will be paid on Aug. 18 to its shareholders of record as of Aug. 11, 2025.
In the second quarter of 2025, DK advanced its key priorities under the Enterprise Optimization Plan (“EOP”) and Sum-of-the-Parts strategy (“SOTP”). The EOP outperformed expectations, generating approximately $30 million in cash flow improvements during the quarter.
DK’s subsidiary Delek Logistics Partners (DKL - Free Report) brought the new Libby 2 gas processing facility online, enhancing processing capacity for producer customers in Lea County, NM. DKL completed a $700 million debt issuance, set to mature in June 2033. The transaction supports DKL’s ongoing growth strategy aimed at enhancing financial self-sufficiency and aligns with Delek’s SOTP plan.
During the same period, DK repurchased about $13 million of its common shares and completed an additional $7.5 million in buybacks following quarter-end.
Delek US Holdings, Inc. Price, Consensus and EPS Surprise
Delek US Holdings, Inc. price-consensus-eps-surprise-chart | Delek US Holdings, Inc. Quote
DK’s Segmental Performances
Refining: The refining segment reported an adjusted EBITDA profit of $113.6 million, a notable increase from the $42.1 million profit recorded in the prior-year quarter. Additionally, the reported figure beat our profit estimate of $92.6 million. This significant year-over-year profit growth was driven by higher refining crack spreads. Delek’s benchmark crack spreads rose an average of 11.4% in the second quarter of 2025 compared with the prior-year levels.
Logistics: This unit represents Delek’s majority interest in DKL, a publicly traded master limited partnership, that owns, operates, develops and acquires pipelines and other midstream assets.
In the second quarter, the segment registered an adjusted EBITDA of $120.2 million compared with $100.6 million in the year-ago quarter. This increase was driven by the impact of the W2W dropdown, incremental contributions from the H2O Midstream acquisition on Sept. 11, 2024, and the Gravity acquisition on Jan. 2, 2025, as well as higher wholesale margins. However, the figure missed our estimate of $137.1 million.
DK’s Financials
Total operating expenses in the second quarter decreased about 15.3% year over year to $2.8 billion. Delek spent $164 million on capital programs in the same time frame.
As of June 30, 2025, the company had cash and cash equivalents worth $615.5 million and long-term debt of $3.1 billion, with a debt-to-total capital ratio of about 91.3.
Delek's consolidated balance sheet for the same period included DKL, which held $1.4 million in cash and $2.2 billion in long-term debt. Excluding DKL, Delek reported $614.1 million in cash and $889.3 million in long-term debt, yielding a net debt of $275.2 million.
DK’s Q3 and 2025 Guidance
The integrated downstream energy company anticipates operating expenses in the range of $210 million to $225 million, while general and administrative expenses are expected to fall between $52 million and $57 million in the third quarter of 2025. Furthermore, the company anticipates depreciation and amortization expenses to be in the range of $100 million to $110 million. Net interest expense is predicted to be between $85 million and $95 million in the third quarter.
Operationally, the company expects total crude throughput to be between 291,000 barrels per day (bpd) and 306,000 bpd, with total throughput anticipated in the range of 302,000-317,000 bpd in the third quarter of 2025. Looking at individual facilities, the Tyler refinery in Texas is expected to process between 73,000 bpd and 77,000 bpd, the El Dorado refinery in Arkansas between 79,000 bpd and 83,000 bpd, the Big Spring refinery in Texas between 69,000 bpd and 72,000 bpd, and the Krotz Springs refinery in Louisiana between 81,000 bpd and 85,000 bpd.
The company anticipates increasing its guidance on the EOP to a range of $130 million to $170 million on a run-rate cash flow improvement basis, starting in the second half of 2025. This is an increase from the original target of $80 million to $120 million.
The company expects DKL to deliver its full-year 2025 adjusted EBITDA guidance of $480 million to $520 million. DK anticipates optimizing capital efficiency with lower capital expenditures (capex) in the second half of 2025. For 2025, the company expects total capital expenditures of $405 million, comprising $141 million for Refining, $235 million for Logistics and $29 million for Corporate and Other.
DK currently carries a Zacks Rank #3 (Hold) and DKL has a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Important Energy Earnings at a Glance
While we have discussed DK’s second-quarter results in detail, let us take a look at two other key reports in this space.
San Antonio, TX-based oil and gas refining and marketing service provider, Valero Energy Corporation (VLO - Free Report) , reported second-quarter 2025 adjusted earnings of $2.28 per share, which beat the Zacks Consensus Estimate of $1.73. However, the bottom line declined from the year-ago quarter’s level of $2.71. The better-than-expected quarterly results can be attributed to an increase in refining margins per barrel of throughput and lower total cost of sales. The positives were partially offset by a decline in refining throughput volumes and renewable diesel sales volumes.
The company had cash and cash equivalents of $4.5 billion at the end of the second quarter. As of June 30, 2025, it had a total debt of $8.4 billion and finance-lease obligations of $2.3 billion.
Houston, TX-based oil and gas equipment and services provider, Halliburton Company (HAL - Free Report) , reported second-quarter 2025 adjusted net income of 55 cents per share, which was in line with the Zacks Consensus Estimate but below the year-ago quarter’s profit of 80 cents (adjusted). The numbers reflect softer activity in the North American region, partly offset by international growth.
As of June 30, 2025, the company had approximately $2 billion in cash/cash equivalents and $7.2 billion in long-term debt, representing a debt-to-capitalization ratio of 40.4. Halliburton reported second-quarter capital expenditure of $354 million, up from our projection of $338.2 million.