Delek Us Holdings 2025 Q3 Earnings Surges to Profitability with 388.6% Net Income Growth

Delek Us Holdings (DK) reported a stunning turnaround, delivering a 388.6% net income surge to $194.8M in Q3 2025, reversing a $67.5M loss in the prior-year period. Revenue declined 5.1% to $2.89B, yet the company exceeded Wall Street’s $2.71B estimate. Management raised EOP guidance to $180M+ annual run rate and signaled $400M in SRE monetization over 6–9 months, reinforcing confidence in operational resilience and margin expansion.

Revenue

Delek Us Holdings reported Q3 2025 revenue of $2.89 billion, a 5.1% decline from $3.04 billion in Q3 2024. The refining segment drove $696.9 million in adjusted EBITDA, reflecting strong crack spreads and SRE benefits, while the logistics segment posted $131.5 million in adjusted EBITDA, bolstered by recent acquisitions like Gravity and H2O Midstream.

Earnings/Net Income

Delek returned to profitability with Q3 2025 net income of $194.8 million, or $2.96 per share, compared to a $67.5 million loss in Q3 2024. Adjusted net income reached $434.2 million, or $7.13 per share, driven by EOP gains and SRE-related benefits. The EPS turnaround from a loss to $2.96 highlights Delek’s strong operational recovery.

Price Action

Shares of DK climbed 3.57% in the latest trading day, 9.72% for the week, and 19.64% month-to-date. The stock’s post-earnings performance has historically shown robust returns, with 21.5% appreciation in the quarter and 111.9% in the first year of a backtest period.

Post-Earnings Price Action Review

The strategy of buying DK shares after its revenue growth in quarterly reports and holding for 30 days has historically delivered strong returns. Recent momentum was fueled by consistent earnings beats, SRE monetization potential, and shareholder-friendly initiatives like a $0.255 quarterly dividend and $15 million in stock repurchases. Analysts’ “hold” rating, with some “strong buy” calls, further supported positive sentiment.

CEO Commentary

Avigal Soreq, CEO, emphasized Delek’s progress in its Enterprise Optimization Plan (EOP), with Q3 contributions exceeding guidance. She highlighted SRE approvals and DKL’s guidance raise to $500–520 million in EBITDA as key drivers of free cash flow and long-term value.

Guidance

Delek raised its EOP annual run-rate target to $180 million+ and expects $400 million in SRE monetization over 6–9 months. DKL’s full-year EBITDA guidance was increased to $500–520 million. Fourth-quarter operating expenses are projected at $70–75 million, with G&A at $35–40 million and D&A at $25–30 million.

Additional News

1. Gravity Acquisition: Delek completed the Gravity Acquisition in January 2025, expanding water disposal and recycling operations in the Permian Basin.

2. Dividend Commitment: The board reaffirmed its $0.255 quarterly dividend, underscoring confidence in cash flow stability.

3. SRE Monetization: EPA approvals for 2019–2024 SRE petitions are expected to generate $400 million in RINs monetization, enhancing liquidity.

Delek Us Holdings’ Q3 2025 earnings marked a dramatic reversal, with net income surging 388.6% to $194.8 million. Despite a 5.1% revenue decline to $2.89 billion, the company exceeded estimates and raised guidance for EOP and SRE monetization. The refining segment’s $696.9 million adjusted EBITDA and logistics’ $131.5 million performance underscored operational strength. CEO Avigal Soreq highlighted EOP progress and SRE-driven cash flow, while DKL’s guidance increase to $500–520 million signaled midstream momentum. Shareholder returns, including a $0.255 dividend and $15 million in buybacks, further reinforced confidence. With $400 million in SRE monetization anticipated, Delek’s strategic initiatives position it for sustained profitability.