Delek Swings to Profit in Q3, But 9-Month Loss Persists

Ticker: DK · Form: 10-Q · Filed: Nov 7, 2025 · CIK: 1694426

Sentiment: mixed

Topics: Refining, Midstream, Energy Sector, Quarterly Earnings, Debt Management, Capital Expenditures, Acquisitions

Related Tickers: DK, DKL, VLO, MPC

TL;DR

**DK's Q3 profit is a welcome surprise, but the year-to-date loss and rising debt mean it's still a speculative play for aggressive traders.**

AI Summary

Delek US Holdings, Inc. (DK) reported a significant turnaround in the third quarter of 2025, achieving a net income of $194.8 million, a substantial improvement from a net loss of $67.5 million in the same period of 2024. This positive shift was primarily driven by a strong operating income of $295.7 million for the quarter, contrasting sharply with an operating loss of $121.9 million in Q3 2024. Despite this quarterly strength, the nine-month period ending September 30, 2025, still shows a net loss of $53.8 million, though this is an improvement from the $118.8 million net loss in the prior year. Revenue for the quarter decreased to $2,887.0 million from $3,042.4 million year-over-year, and for the nine-month period, it fell to $8,293.5 million from $9,478.5 million. Key business changes include the completion of the Gravity Acquisition by Delek Logistics on January 2, 2025, expanding water disposal and recycling operations in the Permian Basin and Bakken. The company also saw a decrease in cash and cash equivalents by $104.7 million for the nine months ended September 30, 2025, ending with $630.9 million. Risks include increased interest expense, which rose to $93.1 million for the quarter from $78.8 million, and a significant increase in purchases of property, plant and equipment to $409.5 million from $237.2 million, indicating substantial capital expenditures.

Why It Matters

Delek's return to profitability in Q3 2025, with a net income of $194.8 million, signals a potential turning point for investors after a challenging period. This performance, despite a revenue decline, suggests improved operational efficiency and margin management, which could attract new capital. For employees, a profitable quarter may alleviate job security concerns and potentially lead to better compensation prospects. Customers could benefit from a more stable and competitive Delek, especially with strategic acquisitions like Gravity Water enhancing its midstream capabilities. In the broader market, Delek's improved financial health could strengthen its competitive position against rivals like Valero and Marathon Petroleum, particularly in the refining and logistics sectors, influencing regional fuel and energy prices.

Risk Assessment

Risk Level: medium — The company reported a net loss of $53.8 million for the nine months ended September 30, 2025, despite a profitable Q3. Long-term debt increased significantly to $3,167.8 million from $2,755.7 million at December 31, 2024, and interest expense rose to $263.1 million for the nine-month period from $244.1 million, indicating higher financial leverage and debt servicing costs.

Analyst Insight

Investors should closely monitor Delek's ability to sustain its Q3 profitability and reduce its overall nine-month loss. Given the increased long-term debt and capital expenditures, a cautious approach is warranted; consider holding existing positions but deferring new investments until a clear trend of sustained profitability and debt reduction emerges.

Financial Highlights

debt To Equity
7.03
revenue
$2,887.0M
operating Margin
10.25%
total Assets
$7,080.9M
total Debt
$3,177.3M
net Income
$194.8M
eps
$2.93
gross Margin
13.4%
cash Position
$630.9M
revenue Growth
-5.1%

Revenue Breakdown

SegmentRevenueGrowth
Total Net Revenues$2,887.0M-5.1%
Total Net Revenues (YTD)$8,293.5M-12.5%

Key Numbers

Key Players & Entities

FAQ

What were Delek US Holdings' net revenues for the third quarter of 2025?

Delek US Holdings reported net revenues of $2,887.0 million for the three months ended September 30, 2025, which is a decrease from $3,042.4 million in the same period of 2024.

Did Delek US Holdings achieve a net profit or loss in Q3 2025?

Delek US Holdings achieved a net income of $194.8 million for the three months ended September 30, 2025, a significant improvement from a net loss of $67.5 million in Q3 2024.

How has Delek's long-term debt changed as of September 30, 2025?

Delek's long-term debt, net of current portion, increased to $3,167.8 million at September 30, 2025, from $2,755.7 million at December 31, 2024.

What was the impact of discontinued operations on Delek's Q3 2025 results?

Delek reported a loss from discontinued operations, net of tax, of $0.3 million for the three months ended September 30, 2025, compared to an income of $67.3 million in Q3 2024, following the sale of its retail stores.

What strategic acquisitions did Delek Logistics complete in 2025?

On January 2, 2025, Delek Logistics completed the acquisition of 100% of the limited liability company interests in Gravity Water Intermediate Holdings LLC, expanding its water disposal and recycling operations in the Permian Basin and Bakken.

What are the key risks highlighted in Delek's 10-Q filing?

Key risks include a significant increase in long-term debt to $3,167.8 million and rising interest expense to $263.1 million for the nine months ended September 30, 2025, indicating higher financial leverage and debt servicing costs.

How much cash and cash equivalents did Delek US Holdings have at the end of Q3 2025?

Delek US Holdings had $630.9 million in cash and cash equivalents at September 30, 2025, a decrease of $104.7 million from the beginning of the nine-month period.

What was Delek's basic income (loss) per share from continuing operations in Q3 2025?

Delek's basic income per share from continuing operations was $2.96 for the three months ended September 30, 2025, a substantial improvement from a loss of $2.25 per share in Q3 2024.

What is the significance of Delek Logistics being a variable interest entity (VIE)?

As the indirect owner of the general partner of Delek Logistics, Delek US Holdings has the ability to direct its activities and is considered the primary beneficiary, meaning Delek's operating results will reflect Delek Logistics' losses to the extent of its ownership interest.

How much did Delek US Holdings spend on property, plant and equipment in the first nine months of 2025?

Delek US Holdings spent $409.5 million on purchases of property, plant and equipment for the nine months ended September 30, 2025, an increase from $237.2 million in the same period of 2024.

Risk Factors

Industry Context

Delek US Holdings operates in the highly competitive downstream energy sector, primarily refining and marketing of petroleum products, and also has midstream operations. The industry is subject to significant cyclicality driven by crude oil prices, refining margins, and demand for refined products. Recent trends include a focus on operational efficiency, strategic acquisitions to expand capabilities (like Delek Logistics' Gravity Acquisition), and navigating evolving environmental regulations.

Regulatory Implications

Delek US Holdings is subject to various environmental, health, and safety regulations from federal, state, and local agencies. Compliance with these regulations, particularly concerning emissions and operational safety, requires ongoing investment and can lead to significant liabilities if not met. Changes in environmental policy, such as those related to climate change, could also impact future operations and capital allocation.

What Investors Should Do

  1. Monitor refining margins and crack spreads
  2. Analyze debt levels and interest coverage
  3. Evaluate capital expenditure plans
  4. Assess the impact of the Gravity Acquisition

Key Dates

Glossary

Operating income (loss)
Profitability from a company's core business operations before accounting for interest, taxes, and other non-operating items. (Key indicator of the performance of Delek's refining and marketing segments, showing a significant recovery in Q3 2025.)
Equity method investments
Investments in other companies where the investor has significant influence but not control, typically accounting for 20-50% ownership. (Represents Delek's stake in joint ventures or affiliated companies, contributing to overall financial results.)
Non-controlling interests
The portion of equity in a subsidiary that is not attributable to the parent company, often arising from acquisitions where less than 100% of the subsidiary is owned. (Reflects the ownership stake of others in Delek's consolidated subsidiaries, impacting net income attributable to Delek.)
Treasury stock
Shares of a company's own stock that it has repurchased from the open market. (Reduces total stockholders' equity and can be used for stock options, acquisitions, or to return capital to shareholders.)
Accumulated other comprehensive loss
A component of equity that includes unrealized gains and losses on certain investments, foreign currency translations, and pension adjustments. (Reflects cumulative unrealized gains or losses that have not yet been recognized in net income.)

Year-Over-Year Comparison

Compared to the prior year's filing (presumably for the period ending September 30, 2024), Delek US Holdings shows a dramatic improvement in quarterly performance, with Q3 2025 net income at $194.8 million versus a $67.5 million loss. However, year-to-date results still show a net loss of $53.8 million, though improved from a $118.8 million loss. Revenue has declined both quarterly and year-to-date. Key financial shifts include a significant increase in long-term debt and capital expenditures, alongside a decrease in cash and cash equivalents, while common shares outstanding have decreased due to repurchases.

Filing Stats: 4,870 words · 19 min read · ~16 pages · Grade level 7.4 · Accepted 2025-11-07 13:08:49

Key Financial Figures

Filing Documents

FINANCIAL INFORMATION

PART I. FINANCIAL INFORMATION

Financial Statements (unaudited)

Item 1. Financial Statements (unaudited) 3 Condensed Consolidated Balance Sheets 3 Condensed Consolidated Statements of Income 4 Condensed Consolidated Statements of Comprehensive Income 5 Condensed Consolidated Statements of Changes in Stockholders' Equity 6 Condensed Consolidated Statements of Cash Flows 8 Notes to Condensed Consolidated Financial Statements 9

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 37

Quantitative and Qualitative Disclosures about Market Risk

Item 3. Quantitative and Qualitative Disclosures about Market Risk 71

Controls and Procedures

Item 4. Controls and Procedures 73

OTHER INFORMATION

PART II. OTHER INFORMATION

Legal Proceedings

Item 1. Legal Proceedings 74

Risk Factors

Item 1A. Risk Factors 74

Unregistered Sales of Equity Securities and Use of Proceeds

Item 2. Unregistered Sales of Equity Securities and Use of Proceeds 75

Other Information

Item 5. Other Information 75

Exhibits

Item 6. Exhibits 76

Signatures

Signatures 77 2 |

Financial Statements

Financial Statements

- FINANCIAL INFORMATION

Part I - FINANCIAL INFORMATION

FINANCIAL STATEMENTS

ITEM 1. FINANCIAL STATEMENTS Delek US Holdings, Inc. Condensed Consolidated Balance Sheets (unaudited) (In millions, except share and per share data) September 30, 2025 December 31, 2024 ASSETS Current assets: Cash and cash equivalents $ 630.9 $ 735.6 Accounts receivable, net 667.2 617.6 Inventories, net of inventory valuation reserves 769.3 893.2 Other current assets 278.4 85.5 Total current assets 2,345.8 2,331.9 Property, plant and equipment: Property, plant and equipment 5,458.8 4,948.4 Less: accumulated depreciation ( 2,227.7 ) ( 2,008.4 ) Property, plant and equipment, net 3,231.1 2,940.0 Operating lease right-of-use assets 74.5 92.2 Goodwill 475.3 475.3 Other intangibles, net 409.3 321.6 Equity method investments 419.6 392.9 Other non-current assets 125.3 111.9 Total assets $ 7,080.9 $ 6,665.8 LIABILITIES AND STOCKHOLDERS' EQUITY Current liabilities: Accounts payable $ 1,755.2 $ 1,813.8 Current portion of long-term debt 9.5 9.5 Current portion of operating lease liabilities 30.2 43.2 Accrued expenses and other current liabilities 920.3 649.5 Total current liabilities 2,715.2 2,516.0 Non-current liabilities: Long-term debt, net of current portion 3,167.8 2,755.7 Obligation under Inventory Intermediation Agreement 331.2 408.7 Environmental liabilities, net of current portion 31.3 33.3 Asset retirement obligations 33.0 24.7 Deferred tax liabilities 213.9 214.8 Operating lease liabilities, net of current portion 47.0 54.8 Other non-current liabilities 96.7 82.6 Total non-current liabilities 3,920.9 3,574.6 Stockholders' equity: Preferred stock, $ 0.01 par value, 10,000,000 shares authorized, no shares issued and outstanding — — Common stock, $ 0.01 par value, 110,000,000 shares authorized, 77,567,217 shares and 80,127,994 shares issued at September 30, 2025 and December 31, 2024, respectively 0.8 0.8 Additional paid-in capital 1,241.5 1,215.9 Accumulated other comprehensive loss ( 4.2 ) ( 4.1 ) Treasury stock

Financial Statements

Financial Statements Delek US Holdings, Inc. Condensed Consolidated Statements of Income (unaudited) (In millions, except share and per share data) Three Months Ended September 30, Nine Months Ended September 30, 2025 2024 2025 2024 Net revenues $ 2,887.0 $ 3,042.4 $ 8,293.5 $ 9,478.5 Cost of sales: Cost of materials and other 2,165.7 2,788.7 6,980.2 8,547.1 Operating expenses (excluding depreciation and amortization presented below) 227.8 181.4 648.7 580.3 Depreciation and amortization 95.8 92.5 278.4 259.6 Total cost of sales 2,489.3 3,062.6 7,907.3 9,387.0 Operating expenses related to wholesale business (excluding depreciation and amortization presented below) 3.5 3.7 7.0 5.7 General and administrative expenses 76.8 70.4 214.9 191.6 Depreciation and amortization 5.5 5.6 18.3 18.6 Asset impairment 16.3 9.2 16.3 31.3 Other operating (income) expense net ( 0.1 ) 12.8 ( 6.7 ) ( 67.6 ) Total operating costs and expenses 2,591.3 3,164.3 8,157.1 9,566.6 Operating income (loss) 295.7 ( 121.9 ) 136.4 ( 88.1 ) Interest expense, net 93.1 78.8 263.1 244.1 Income from equity method investments ( 31.2 ) ( 25.1 ) ( 66.7 ) ( 77.4 ) Other (income) expense, net ( 1.2 ) ( 0.5 ) 3.4 ( 1.1 ) Total non-operating expense, net 60.7 53.2 199.8 165.6 Income (loss) from continuing operations before income tax expense (benefit) 235.0 ( 175.1 ) ( 63.4 ) ( 253.7 ) Income tax expense (benefit) 39.9 ( 40.3 ) ( 11.0 ) ( 56.7 ) Income (loss) from continuing operations, net of tax 195.1 ( 134.8 ) ( 52.4 ) ( 197.0 ) Discontinued operations: (Loss) income from discontinued operations, including gain on sale of discontinued operations ( 0.4 ) 95.4 ( 1.8 ) 107.8 Income tax (benefit) expense ( 0.1 ) 28.1 ( 0.4 ) 29.6 (Loss) income from discontinued operations, net of tax ( 0.3 ) 67.3 ( 1.4 ) 78.2 Net income (loss) 194.8 ( 67.5 ) ( 53.8 ) ( 118.8 ) Net income attributed to non-controlling interests 16.8 9.3 47.3 27.8 Net income (loss) attributable to Delek $ 178.0

Financial Statements

Financial Statements Delek US Holdings, Inc. Condensed Consolidated Statements of Comprehensive Income (Loss) (unaudited) (In millions) Three Months Ended September 30, Nine Months Ended September 30, 2025 2024 2025 2024 Net income (loss) $ 194.8 $ ( 67.5 ) $ ( 53.8 ) $ ( 118.8 ) Comprehensive income (loss) $ 194.8 $ ( 67.5 ) $ ( 53.8 ) $ ( 118.8 ) Comprehensive income attributable to non-controlling interest 16.8 9.3 47.3 27.8 Comprehensive income (loss) attributable to Delek $ 178.0 $ ( 76.8 ) $ ( 101.1 ) $ ( 146.6 ) See accompanying notes to the condensed consolidated financial statements 5 |

Financial Statements

Financial Statements Delek US Holdings, Inc. Condensed Consolidated Statements of Changes in Stockholders' Equity (unaudited) (In millions, except share and per share data) Three Months Ended September 30, 2025 Common Stock Additional Paid-in Capital Accumulated Other Comprehensive Loss Retained Earnings Treasury Stock Non-Controlling Interest in Subsidiaries Total Stockholders' Equity Redeemable Non-Controlling Interest Shares Amount Shares Amount Balance at June 30, 2025 78,002,696 $ 0.8 $ 1,243.3 $ ( 4.2 ) $ ( 519.8 ) ( 17,575,527 ) $ ( 694.1 ) $ 268.9 $ 294.9 $ — Net income — — — — 178.0 — — 16.8 194.8 — Common stock dividends ($ 0.255 per share) — — — — ( 15.3 ) — — — ( 15.3 ) — Distributions to non-controlling interests — — — — — — — ( 21.9 ) ( 21.9 ) — Equity-based compensation expense — — 7.4 — — — — 0.6 8.0 — Issuance of stock for non-controlling interest repurchase, net of tax — — — — — — — — — — Sale of Delek Logistic common limited partner units, net — — — — — — — — — — Repurchase of common stock ( 559,933 ) — ( 9.0 ) — ( 6.0 ) — — — ( 15.0 ) — Taxes paid due to the net settlement of equity-based compensation — — ( 0.9 ) — — — — ( 0.4 ) ( 1.3 ) — Exercise of equity-based awards 82,161 — — — — — — — — — Other 42,293 — 0.7 — — — — ( 0.1 ) 0.6 — Balance at September 30, 2025 77,567,217 $ 0.8 $ 1,241.5 $ ( 4.2 ) $ ( 363.1 ) ( 17,575,527 ) $ ( 694.1 ) $ 263.9 $ 444.8 $ — Three Months Ended September 30, 2024 Common Stock Additional Paid-in Capital Accumulated Other Comprehensive Loss Retained Earnings Treasury Stock Non-Controlling Interest in Subsidiaries Total Stockholders' Equity Redeemable Non-Controlling Interest Shares Amount Shares Amount Balance at June 30, 2024 82,085,570 $ 0.8 $ 1,175.8 $ ( 4.8 ) $ 328.1 ( 17,575,527 ) $ ( 694.1 ) $ 177.0 $ 982.8 $ — Net (loss) income — — — — ( 76.8 ) — — 9.3 ( 67.5 ) — Common stock dividends ($ 0.255 per share) — — — — ( 16.4 ) — — — ( 16.4 ) — Distributions to non-controlling

Financial Statements

Financial Statements Delek US Holdings, Inc. Condensed Consolidated Statements of Changes in Stockholders' Equity (unaudited) (In millions, except share and per share data) Nine Months Ended September 30, 2025 Common Stock Additional Paid-in Capital Accumulated Other Comprehensive Loss Retained Earnings Treasury Shares Non-Controlling Interest in Subsidiaries Total Stockholders' Equity Redeemable Non-controlling Interest Shares Amount Shares Amount Balance at December 31, 2024 80,127,994 $ 0.8 $ 1,215.9 $ ( 4.1 ) $ ( 205.7 ) ( 17,575,527 ) $ ( 694.1 ) $ 262.4 $ 575.2 $ — Net (loss) income — — — — ( 101.1 ) — — 47.3 ( 53.8 ) — Common stock dividends ($ 0.765 per share) — — — — ( 46.7 ) — — — ( 46.7 ) — Distributions to non-controlling interests — — — — — — — ( 65.2 ) ( 65.2 ) — Equity-based compensation expense — — 21.1 — — — — 1.5 22.6 — Equity attributable to issuance of Delek Logistics common units for the Gravity Acquisition, net of tax — — 55.4 — — — — 20.9 76.3 — Repurchase of common stock ( 3,254,403 ) — ( 50.5 ) — ( 8.9 ) — — — ( 59.4 ) — Taxes paid due to the net settlement of equity-based compensation — — ( 4.5 ) — — — — ( 1.1 ) ( 5.6 ) — Exercise of equity-based awards 558,645 — — — — — — — — — Other 134,981 — 4.1 ( 0.1 ) ( 0.7 ) — — ( 1.9 ) 1.4 — Balance at September 30, 2025 77,567,217 $ 0.8 $ 1,241.5 $ ( 4.2 ) $ ( 363.1 ) ( 17,575,527 ) $ ( 694.1 ) $ 263.9 $ 444.8 $ — Nine Months Ended September 30, 2024 Common Stock Additional Paid-in Capital Accumulated Other Comprehensive Loss Retained Earnings Treasury Stock Non-Controlling Interest in Subsidiaries Total Stockholders' Equity Redeemable Non-Controlling Interest Shares Amount Shares Amount Balance at December 31, 2023 81,539,871 $ 0.8 $ 1,113.6 $ ( 4.8 ) $ 430.0 ( 17,575,527 ) $ ( 694.1 ) $ 114.2 $ 959.7 $ — Net (loss) income — — — — ( 146.6 ) — — 27.8 ( 118.8 ) — Common stock dividends ($ 0.750 per share) — — — — ( 48.1 ) — — — ( 48.1 ) — Equity-based compensation e

Financial Statements

Financial Statements Delek US Holdings, Inc. Condensed Consolidated Statements of Cash Flows (unaudited) (In millions) Nine Months Ended September 30, 2025 2024 Cash flows from operating activities: Net loss $ ( 53.8 ) $ ( 118.8 ) Adjustments to reconcile net loss to net cash (used in) provided by operating activities: Depreciation and amortization 296.7 278.2 Non-cash lease expense 31.9 23.7 Deferred income taxes ( 13.7 ) ( 56.8 ) Asset impairment 16.3 31.3 Income from equity method investments ( 66.7 ) ( 77.4 ) Dividends from equity method investments 27.9 43.9 Non-cash lower of cost or market/net realizable value adjustment 39.2 ( 10.5 ) Loss on extinguishment of debt — 3.6 Small refinery exemption benefit ( 280.8 ) — Equity-based and non-cash compensation expense 65.6 25.1 Loss (income) from discontinued operations 1.4 ( 78.2 ) Other 13.7 1.6 Changes in assets and liabilities: Accounts receivable ( 39.6 ) 233.6 Inventories and other current assets 58.7 70.3 Fair value of derivatives ( 15.2 ) 3.0 Accounts payable and other current liabilities 44.9 ( 177.9 ) Obligation under Inventory Intermediation Agreements ( 77.5 ) ( 18.7 ) Non-current assets and liabilities, net ( 14.6 ) ( 97.1 ) Cash provided by operating activities - continuing operations 34.4 78.9 Cash (used in) provided by operating activities - discontinued operations ( 1.4 ) 17.8 Net cash provided by operating activities 33.0 96.7 Cash flows from investing activities: Business combination, net of cash acquired ( 181.2 ) ( 159.5 ) Equity method investment contributions — ( 18.6 ) Distributions from equity method investments 12.1 4.1 Purchases of property, plant and equipment ( 409.5 ) ( 237.2 ) Purchases of intangible assets ( 9.0 ) ( 1.6 ) Proceeds from sale of property, plant and equipment 5.1 10.6 Insurance and settlement proceeds 10.3 15.5 Other ( 8.8 ) ( 0.7 ) Cash used in investing activities - continuing operations ( 581.0 ) ( 387.4 ) Cash provid

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