PBF Holding Swings to Q3 Profit Amid Martinez Fire Insurance Payouts

TL;DR

**PBF Holding's Q3 profit is a mirage, fueled by insurance payouts; the underlying business is still bleeding cash and piling on debt.**

AI Summary

PBF Holding Co LLC reported a net income of $102.7 million for the three months ended September 30, 2025, a significant improvement from a net loss of $427.7 million in the same period of 2024. However, for the nine months ended September 30, 2025, the company recorded a net loss of $536.2 million, compared to a net loss of $452.1 million in the prior year. Revenues decreased to $7,641.6 million for the three months ended September 30, 2025, from $8,372.8 million in 2024, and to $22,164.3 million for the nine months, down from $25,735.8 million. A key business change was the recognition of a $250.0 million gain on insurance recoveries, net, for the three months ended September 30, 2025, and $439.0 million for the nine months, largely related to the Martinez Refinery Fire on February 1, 2025. Long-term debt increased substantially to $2,394.3 million as of September 30, 2025, from $1,457.3 million at December 31, 2024, partly due to proceeds from 2030 9.875% Senior Notes and revolver borrowings. The company also saw a net cash outflow from operating activities of $575.9 million for the nine months ended September 30, 2025, a reversal from a $255.5 million inflow in the prior year.

Why It Matters

PBF Holding's return to profitability in Q3 2025, driven by substantial insurance recoveries from the Martinez Refinery Fire, offers a glimmer of hope for investors after a challenging year. However, the overall nine-month net loss and significant increase in long-term debt highlight ongoing financial pressures and operational hurdles, particularly in a competitive refining landscape. Employees at the Martinez refinery face uncertainty regarding the full restart and throughput, while customers may experience supply chain adjustments. The broader market will watch how PBF navigates these challenges, especially given the volatility in commodity prices and increasing regulatory scrutiny on environmental impacts, which could affect the entire refining sector.

Risk Assessment

Risk Level: high — The company reported a net loss of $536.2 million for the nine months ended September 30, 2025, and a net cash outflow from operating activities of $575.9 million, indicating significant operational challenges. Long-term debt increased by $937.0 million to $2,394.3 million, raising concerns about financial leverage. The ongoing risks associated with the Martinez Refinery Fire, including the timing of its full restart and potential governmental investigations, further contribute to a high-risk profile.

Analyst Insight

Investors should exercise extreme caution and thoroughly evaluate PBF Holding's long-term debt and cash flow generation capabilities beyond the one-time insurance recoveries. Consider waiting for clearer signs of sustained operational profitability and reduced debt before making any investment decisions.

Financial Highlights

debt To Equity

1.52

revenue

$22,164.3M

operating Margin

-1.76%

total Assets

$11,683.2M

total Debt

$2,394.3M

net Income

-$536.2M

eps

N/A

gross Margin

N/A

cash Position

$445.2M

revenue Growth

-13.9%

Key Numbers

• $102.7M — Net Income (for Q3 2025, a significant turnaround from a $427.7M net loss in Q3 2024)
• $536.2M — Net Loss (for the nine months ended September 30, 2025, worsening from a $452.1M net loss in the prior year)
• $7.64B — Revenues (for Q3 2025, down from $8.37B in Q3 2024)
• $22.16B — Revenues (for the nine months ended September 30, 2025, down from $25.74B in the prior year)
• $439.0M — Gain on Insurance Recoveries (for the nine months ended September 30, 2025, significantly impacting profitability)
• $2.39B — Long-term Debt (as of September 30, 2025, an increase from $1.46B at December 31, 2024)
• $575.9M — Net Cash Used in Operating Activities (for the nine months ended September 30, 2025, a reversal from $255.5M provided in the prior year)
• $445.2M — Cash and Cash Equivalents (as of September 30, 2025, down from $515.2M at the beginning of the period)

Key Players & Entities

• PBF Holding Company LLC (company) — registrant and parent company for refinery operating subsidiaries
• PBF Finance Corporation (company) — wholly-owned subsidiary of PBF Holding
• PBF Energy Inc. (company) — sole managing member of PBF LLC and owner of ~99.3% economic interest
• Martinez refinery (company) — site of a fire on February 1, 2025
• $102.7 million (dollar_amount) — net income for three months ended September 30, 2025
• $427.7 million (dollar_amount) — net loss for three months ended September 30, 2024
• $536.2 million (dollar_amount) — net loss for nine months ended September 30, 2025
• $452.1 million (dollar_amount) — net loss for nine months ended September 30, 2024
• $250.0 million (dollar_amount) — gain on insurance recoveries for three months ended September 30, 2025
• $439.0 million (dollar_amount) — gain on insurance recoveries for nine months ended September 30, 2025

FAQ

Risk Factors

• Martinez Refinery Fire Impact [high — operational]: The Martinez Refinery Fire on February 1, 2025, significantly impacted operations and financial results. While the company recognized a $250.0 million gain on insurance recoveries in Q3 2025 and $439.0 million for the nine months, the event itself likely caused operational disruptions and potential future costs not fully captured by insurance.
• Increased Long-Term Debt [high — financial]: Long-term debt surged to $2,394.3 million as of September 30, 2025, from $1,457.3 million at December 31, 2024. This increase, driven by proceeds from new Senior Notes and revolver borrowings, raises financial leverage and interest expense, potentially impacting future profitability and financial flexibility.
• Negative Operating Cash Flow [high — financial]: The company experienced a net cash outflow from operating activities of $575.9 million for the nine months ended September 30, 2025. This is a significant reversal from a $255.5 million inflow in the prior year, indicating potential challenges in generating cash from core operations.
• Declining Revenues [medium — market]: Revenues decreased to $7,641.6 million for Q3 2025 and $22,164.3 million for the nine months, down from $8,372.8 million and $25,735.8 million in the respective prior-year periods. This downward trend suggests potential weakness in demand or pricing within the company's markets.
• Inventory Build-up [medium — operational]: Inventories increased to $2,742.6 million as of September 30, 2025, from $2,595.3 million at December 31, 2024. While some inventory build-up can be strategic, a significant increase may indicate slower sales or potential obsolescence risks.

Industry Context

The refining industry is capital-intensive and subject to volatile commodity prices and demand fluctuations. PBF Holding Co LLC operates within this environment, facing competition from other major refiners. Recent events like refinery fires can cause significant localized impacts, while broader economic trends influence fuel demand and product margins.

Regulatory Implications

As a major energy company, PBF Holding Co LLC is subject to extensive environmental, safety, and financial regulations. Compliance with these regulations is critical and can involve significant costs. Unexpected events like the Martinez refinery fire can trigger regulatory scrutiny and potential fines or operational mandates.

What Investors Should Do

1. Monitor operating cash flow trends closely.
2. Analyze the sustainability of Q3 profitability.
3. Evaluate the impact of increased debt.
4. Assess the recovery and operational status of the Martinez Refinery.

Key Dates

• 2025-02-01: Martinez Refinery Fire — This event caused significant operational disruption and led to substantial insurance recoveries ($439.0 million for the nine months ended Sep 30, 2025), impacting both expenses and reported income.
• 2025-09-30: End of Q3 and Nine Months Reporting Period — Key financial results for the period are reported, including a net income of $102.7 million for Q3 2025, but a net loss of $536.2 million for the nine months. Significant increase in long-term debt to $2,394.3 million and negative operating cash flow of $575.9 million for the nine months were also noted.

Glossary

Gain on insurance recoveries, net

Monetary amounts received from insurance claims, net of any related expenses, due to specific events like property damage. (This item significantly boosted net income for the nine months ended September 30, 2025, by $439.0 million, largely due to the Martinez Refinery Fire.)

Operating lease liabilities

Obligations arising from agreements to lease assets, where the company has the right to use an asset for a period but does not own it. (These liabilities are categorized into current and long-term portions, impacting the company's balance sheet and cash flow.)

Noncontrolling interest

The portion of equity in a subsidiary that is not attributable to the parent company. (Represents a small portion of the total equity, indicating that PBF Holding Co LLC consolidates entities where it doesn't own 100%.)

Accumulated other comprehensive income (loss)

The cumulative amount of gains and losses that have not been reported in net income, such as unrealized gains or losses on certain investments. (This line item reflects adjustments to equity that bypass the income statement, showing a small net loss of ($11.8) million as of September 30, 2025.)

Year-Over-Year Comparison

Compared to the prior year, PBF Holding Co LLC has seen a significant shift in profitability, moving from a net loss of $427.7 million in Q3 2024 to a net income of $102.7 million in Q3 2025, largely due to insurance recoveries. However, the nine-month period still shows a widening net loss ($536.2 million in 2025 vs. $452.1 million in 2024). Revenues have declined in both periods, and operating cash flow has reversed from a positive inflow to a substantial outflow. Long-term debt has also increased significantly, indicating a more leveraged financial position.

Filing Documents

• pbf-20250930.htm (10-Q) — 1271KB
• a221listofguarantorsubsidi.htm (EX-22.1) — 9KB
• q32025exhibit311-holdings.htm (EX-31.1) — 8KB
• q32025exhibit312-holdings.htm (EX-31.2) — 8KB
• q32025exhibit321-holdings.htm (EX-32.1) — 6KB
• q32025exhibit322-holdings.htm (EX-32.2) — 6KB
• 0001566011-25-000016.txt ( ) — 5374KB
• pbf-20250930.xsd (EX-101.SCH) — 36KB
• pbf-20250930_cal.xml (EX-101.CAL) — 69KB
• pbf-20250930_def.xml (EX-101.DEF) — 221KB
• pbf-20250930_lab.xml (EX-101.LAB) — 413KB
• pbf-20250930_pre.xml (EX-101.PRE) — 296KB
• pbf-20250930_htm.xml (XML) — 692KB

– FINANCIAL INFORMATION

PART I – FINANCIAL INFORMATION

Financial Statements (Unaudited)

ITEM 1. Financial Statements (Unaudited) Condensed Consolidated Balance Sheets as of September 30, 2025 and December 31, 2024 6 Condensed Consolidated Statements of Operations for the three and n ine months ended September 30, 2025 and 2024 7 Condensed Consolidated Statements of Comprehensive Income (Loss) for the three and nine months ended Se ptember 30, 2025 and 2024 8 Condensed Consolidated Statements of Changes in Equity for the three and n ine months ended September 30, 2025 and 2024 9 Condensed Consolidated Statements of Cash Flows for the nine months ended Sept ember 30, 2025 and 2024 11 Notes to Condensed Consolidated Financial Statements 13

Management's Discussion and Analysis of Financial Condition and Results of Operations

ITEM 2. Management's Discussion and Analysis of Financial Condition and Results of Operations 29

Quantitative and Qualitative Disclosures about Market Risk

ITEM 3. Quantitative and Qualitative Disclosures about Market Risk 52

Controls and Procedures

ITEM 4. Controls and Procedures 54

– OTHER INFORMATION

PART II – OTHER INFORMATION

Legal Proceedings

ITEM 1. Legal Proceedings 55

Exhibits

ITEM 6. Exhibits 61

SIGNATURES

SIGNATURES 62 EXPLANATORY NOTE This combined Quarterly Report on Form 10-Q for the quarter ended September 30, 2025 (this "Form 10-Q") is filed by PBF Holding Company LLC ("PBF Holding") and PBF Finance Corporation ("PBF Finance"). PBF Holding is a wholly-owned subsidiary of PBF Energy Company LLC ("PBF LLC") and is the parent company for PBF LLC's refinery operating subsidiaries. PBF Finance is a wholly-owned subsidiary of PBF Holding. PBF Holding is an indirect subsidiary of PBF Energy Inc. ("PBF Energy"), which is the sole managing member of, and owner of an equity interest representing approximately 99.3% of the outstanding economic interests in PBF LLC as of September 30, 2025. PBF Energy operates and controls all of the business and affairs and consolidates the financial results of PBF LLC and its subsidiaries. PBF Logistics GP LLC ("PBFX GP") is a wholly-owned subsidiary of PBF LLC and the general partner of PBF Logistics LP ("PBFX"), which is an affiliate of PBF Holding. PBF Holding, together with its consolidated subsidiaries, owns and operates oil refineries and related facilities in North America. 2 CAUTIONARY NOTE REGARDING FORWARD-LOOKING STATEMENTS This combined Quarterly Report on Form 10-Q contains certain "forward-looking statements" of expected future developments that involve risks and uncertainties. You can identify forward-looking statements because they contain words such as "believes," "expects," "may," "should," "seeks," "approximately," "intends," "plans," "estimates," "anticipates" or similar expressions that relate to our strategy, plans, or intentions. All statements we make relating to our estimated and projected earnings, margins, costs, expenditures, cash flows, growth rates and financial results or to our strategies, objectives, intentions, resources, and expectations regarding future industry trends are forward-looking statements. In addition, we, through our senior management, from time to time make forward-looking public s

– FINANCIAL INFORMATION

PART I – FINANCIAL INFORMATION

Financial Statements

Item 1. Financial Statements PBF HOLDING COMPANY LLC CONDENSED CONSOLIDATED BALANCE SHEETS (unaudited, in millions) September 30, 2025 December 31, 2024 ASSETS Current assets: Cash and cash equivalents $ 445.2 $ 515.2 Accounts receivable 1,320.3 1,141.0 Accounts receivable - affiliate 57.7 25.0 Inventories 2,742.6 2,595.3 Prepaid and other current assets 190.8 156.4 Total current assets 4,756.6 4,432.9 Property, plant and equipment (net of accumulated depreciation of $ 1,990.6 and $ 1,821.7 , respectively) 4,482.1 4,267.3 Lease right of use assets - third party 769.7 843.5 Lease right of use assets - affiliate 237.4 320.9 Deferred charges and other assets, net 1,437.4 1,367.2 Total assets $ 11,683.2 $ 11,231.8 LIABILITIES AND EQUITY Current liabilities: Accounts payable $ 817.2 $ 727.1 Accounts payable - affiliate 65.2 87.4 Accrued expenses 2,432.1 2,465.3 Current operating lease liabilities - third party 173.7 187.6 Current operating lease liabilities - affiliate 108.4 113.6 Deferred revenue 28.1 43.3 Total current liabilities 3,624.7 3,624.3 Long-term debt 2,394.3 1,457.3 Deferred tax liabilities 18.8 18.8 Long-term operating lease liabilities - third party 565.4 620.4 Long-term operating lease liabilities - affiliate 127.5 207.0 Long-term financing lease liabilities - third party 26.8 35.4 Other long-term liabilities 268.2 276.7 Total liabilities 7,025.7 6,239.9 Commitments and contingencies (Note 6) Equity: PBF Holding Company LLC equity Member's equity 3,975.4 3,570.2 Retained earnings 681.2 1,422.3 Accumulated other comprehensive income (loss) ( 11.8 ) ( 13.3 ) Total PBF Holding Company LLC equity 4,644.8 4,979.2 Noncontrolling interest 12.7 12.7 Total equity 4,657.5 4,991.9 Total liabilities and equity $ 11,683.2 $ 11,231.8 See notes to condensed consolidated financial statements. 6 PBF HOLDING COMPANY LLC CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (unaudited, in millions) Three Months Ended

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