PBF Finance Swings to Q3 Profit Amidst Insurance Gains, Debt Rises

TL;DR

**PBF's Q3 profit is a mirage built on insurance payouts; the underlying nine-month loss and surging debt signal deeper operational struggles.**

AI Summary

PBF Finance Corp 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 posted a net loss of $536.2 million, widening from 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 fell to $22,164.3 million for the nine months, down from $25,735.8 million. A key business change was a substantial gain on insurance recoveries, net, of $250.0 million in Q3 2025 and $439.0 million for the nine months, likely related to the Martinez Refinery Fire on February 1, 2025. Long-term debt increased significantly to $2,394.3 million as of September 30, 2025, from $1,457.3 million at December 31, 2024, driven by proceeds from 9.875% Senior Notes and revolver borrowings. Cash and cash equivalents decreased to $445.2 million from $515.2 million over the nine-month period. The strategic outlook is influenced by the ongoing recovery and rebuilding efforts at the Martinez refinery and the effectiveness of the Refining Business Improvement (RBI) initiative.

Why It Matters

This filing reveals PBF Finance Corp's volatile financial performance, with a Q3 2025 profit driven by significant insurance recoveries, masking a deeper nine-month loss. For investors, the substantial increase in long-term debt to $2,394.3 million raises concerns about leverage and future interest expenses, which already increased to $145.4 million for the nine months. Employees at the Martinez refinery face ongoing uncertainty regarding the full restart and operational stability following the February 1, 2025 fire. Customers and the broader market could see supply chain disruptions or price volatility depending on the pace of the Martinez refinery's recovery and PBF's overall refining capacity, especially given competitive pressures in the North American refining sector.

Risk Assessment

Risk Level: high — The risk level is high due to the significant net loss of $536.2 million for the nine months ended September 30, 2025, and a substantial increase in long-term debt to $2,394.3 million from $1,457.3 million. Furthermore, the filing explicitly mentions the 'Martinez Refinery Fire' on February 1, 2025, and the associated 'risk and uncertainties' regarding its full restart, permitting, and rebuilding, which poses a material operational and financial risk.

Analyst Insight

Investors should exercise extreme caution and thoroughly scrutinize the source of PBF's Q3 profitability, which is heavily reliant on insurance recoveries. Consider the long-term debt increase of over $900 million and the ongoing operational risks at the Martinez refinery. Await further clarity on the refinery's full restart and the sustainability of earnings before making any investment decisions.

Financial Highlights

debt To Equity

1.52

revenue

$22,164.3M

operating Margin

-1.8%

total Assets

$11,683.2M

total Debt

$2,394.3M

net Income

$(536.2)M

eps

N/A

gross Margin

N/A

cash Position

$445.2M

revenue Growth

-13.9%

Key Numbers

• $102.7M — Net income attributable to PBF Holding Company LLC (for the three months ended September 30, 2025, compared to a net loss of $427.6 million in 2024)
• $(536.2)M — Net loss attributable to PBF Holding Company LLC (for the nine months ended September 30, 2025, widening from a net loss of $452.0 million in 2024)
• $7,641.6M — Revenues (for the three months ended September 30, 2025, down from $8,372.8 million in 2024)
• $22,164.3M — Revenues (for the nine months ended September 30, 2025, down from $25,735.8 million in 2024)
• $250.0M — Gain on insurance recoveries, net (for the three months ended September 30, 2025, contributing to Q3 profitability)
• $439.0M — Gain on insurance recoveries, net (for the nine months ended September 30, 2025)
• $2,394.3M — Long-term debt (as of September 30, 2025, a significant increase from $1,457.3 million at December 31, 2024)
• $445.2M — Cash and cash equivalents (as of September 30, 2025, down from $515.2 million at December 31, 2024)
• $145.4M — Interest expense (for the nine months ended September 30, 2025, up from $47.9 million in 2024)
• $788.5M — Proceeds from 2030 9.875% Senior Notes (contributing to the increase in long-term debt during the nine months ended September 30, 2025)

Key Players & Entities

• PBF Finance Corp (company) — registrant filing the 10-Q
• PBF Holding Company LLC (company) — parent company for PBF LLC's refinery operating subsidiaries
• PBF Energy Inc. (company) — sole managing member of PBF LLC, owning approximately 99.3% of economic interests
• Martinez refinery (company) — site of a fire on February 1, 2025, impacting operations
• SEC (regulator) — United States Securities and Exchange Commission
• Delaware (company) — state of incorporation for PBF Holding Company LLC and PBF Finance Corporation
• PBF Energy Company LLC (company) — wholly-owned subsidiary of PBF Energy Inc.
• PBF Logistics LP (company) — affiliate of PBF Holding

FAQ

Risk Factors

• Martinez Refinery Fire Impact [high — operational]: The Martinez refinery experienced a fire on February 1, 2025, leading to significant operational disruptions. While insurance recoveries of $250.0 million in Q3 2025 and $439.0 million for the nine months provided a substantial boost to net income, the ongoing recovery and rebuilding efforts are critical to future operational stability and financial performance.
• Increased Debt Load [high — financial]: Long-term debt has increased significantly to $2,394.3 million as of September 30, 2025, up from $1,457.3 million at December 31, 2024. This increase is primarily due to $788.5 million in proceeds from 9.875% Senior Notes and revolver borrowings, which will lead to higher interest expenses, as evidenced by the jump from $47.9 million in the prior year to $145.4 million for the nine months ended September 30, 2025.
• Revenue Decline [medium — market]: Revenues have decreased year-over-year, with Q3 2025 revenues at $7,641.6 million compared to $8,372.8 million in Q3 2024, and nine-month revenues at $22,164.3 million versus $25,735.8 million in the prior year. This trend indicates potential challenges in market demand or pricing for PBF's products.
• Decreasing Cash Position [medium — financial]: Cash and cash equivalents have declined to $445.2 million as of September 30, 2025, from $515.2 million at December 31, 2024. This reduction, coupled with increased debt, warrants close monitoring of liquidity and working capital management.
• Refining Business Improvement (RBI) Initiative Effectiveness [medium — operational]: The company's strategic outlook is heavily influenced by the effectiveness of its Refining Business Improvement (RBI) initiative. Successful implementation is crucial for offsetting operational challenges and improving profitability in the long term.

Industry Context

The refining industry is capital-intensive and subject to volatile commodity prices and demand fluctuations. PBF Finance Corp operates within this challenging environment, facing competition from integrated oil companies and independent refiners. The industry is also increasingly influenced by environmental regulations and the transition towards lower-carbon energy sources.

Regulatory Implications

PBF Finance Corp faces regulatory scrutiny related to environmental compliance, safety standards, and emissions. The Martinez refinery fire highlights operational risks that can trigger investigations and potential penalties. Compliance with evolving environmental regulations is crucial for maintaining operational licenses and avoiding significant fines.

What Investors Should Do

1. Monitor the progress and cost of the Martinez refinery rebuilding efforts.
2. Analyze the impact of increased debt on future profitability and cash flow.
3. Evaluate the effectiveness of the Refining Business Improvement (RBI) initiative.
4. Assess the sustainability of Q3 2025's net income in light of one-time insurance recoveries.

Key Dates

• 2025-02-01: Martinez Refinery Fire — Caused significant operational disruption and led to substantial insurance recoveries, impacting financial results for 2025.
• 2025-09-30: End of Q3 2025 / Nine Months Reporting Period — Period for which the 10-Q financial statements are reported, showing a net income of $102.7M for Q3 but a widening net loss of $536.2M for the nine months.
• 2024-12-31: End of Fiscal Year 2024 — Baseline for comparison of financial position, with long-term debt at $1,457.3M and cash at $515.2M.

Glossary

Gain on insurance recoveries, net

Monetary compensation received from insurance policies related to specific events, net of any related costs. (A significant $250.0M gain in Q3 2025 and $439.0M for the nine months positively impacted net income, largely due to the Martinez refinery fire.)

Refining Business Improvement (RBI) initiative

A strategic program aimed at enhancing the efficiency and profitability of the company's refining operations. (The success of this initiative is a key factor in PBF Finance Corp's future strategic outlook and operational performance.)

9.875% Senior Notes

A specific series of debt instruments issued by the company with a fixed interest rate of 9.875% per annum. (Proceeds from these notes, amounting to $788.5M, contributed significantly to the increase in long-term debt.)

Revolver borrowings

Funds drawn from a revolving credit facility, which is a type of loan that a business can draw down and repay as needed. (These borrowings also contributed to the substantial increase in long-term debt.)

Year-Over-Year Comparison

Compared to the prior year, PBF Finance Corp experienced a significant revenue decline, with nine-month revenues falling from $25,735.8 million to $22,164.3 million. While Q3 2025 showed a net income of $102.7 million versus a loss of $427.7 million, this was largely due to substantial insurance recoveries ($250.0M in Q3). The nine-month period still resulted in a wider net loss of $536.2 million compared to $452.1 million in the prior year. A key change is the substantial increase in long-term debt, rising from $1,457.3 million at the end of 2024 to $2,394.3 million by September 30, 2025, alongside a decrease in cash reserves.

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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View this 10-Q filing on SEC EDGAR