Delek Logistics 2025 Q2 Earnings Solid Net Income Growth Amid Revenue Decline

Delek Logistics (DKL) reported its fiscal 2025 Q2 earnings on Aug 07th, 2025. Despite a 6.9% drop in total revenue to $246.35 million compared to $264.63 million in the prior year, the company delivered a 8.6% year-over-year increase in net income. Management reaffirmed full-year 2025 Adjusted EBITDA guidance and highlighted strong execution, including new infrastructure projects and enhanced liquidity.

Delek Logistics's total revenue declined by 6.9% to $246.35 million in 2025 Q2 from $264.63 million in 2024 Q2. The decline was driven by lower performances across the majority of its segments. Gathering and Processing contributed $117.77 million, while Wholesale marketing and terminalling generated $104.61 million. Storage and transportation brought in $23.97 million, completing the revenue composition for the quarter.

The company's net income surged by 8.6% to $44.57 million in 2025 Q2, translating to an EPS of $0.83, a 4.6% decline from the prior year. This performance underscores the company’s resilience and operational efficiency, particularly amid challenging market conditions.

The stock price of Delek Logistics has edged down 2.23% during the latest trading day, with a 4.09% drop during the most recent full trading week. However, it has edged up 0.34% month-to-date.

The strategy of buying DKL when earnings beat and holding for 30 days yielded a 21.95% return, though it underperformed the benchmark by 63.41%. While the approach offered a low-risk profile with a Sharpe ratio of 0.12, the low excess return and high volatility suggest caution in its application.

Avigal Soreq, President of Delek Logistics' general partner, highlighted the company’s strong execution in Q2 2025, including the completion of the Libby 2 gas processing plant and several crude and water gathering projects. He emphasized DKL’s strategic positioning in the Midland and Delaware basins and the 50th consecutive distribution increase. Soreq expressed confidence in the full-year Adjusted EBITDA guidance of $480mm to $520mm, driven by expanded processing capacity and ongoing growth initiatives.

Delek Logistics reaffirmed its full-year 2025 Adjusted EBITDA guidance of $480 million to $520 million, citing robust execution and growth drivers such as expanded processing capacity, ongoing crude and water gathering projects, and a favorable position in key basins. The company also highlighted its enhanced liquidity of over $1 billion, supporting its growth initiatives and distribution sustainability.

Additional News
Delek Logistics announced the successful completion of the Libby 2 gas processing plant, adding crucial capacity in Lea County, New Mexico. This project is part of its ongoing expansion efforts to meet growing producer demand. Additionally, the company executed a $700 million debt offering maturing in June 2033, which improved DKL’s total liquidity to over $1 billion. This move is aimed at reinforcing DKL’s growth initiatives as an independent company. Avigal Soreq emphasized the importance of prudent liquidity and leverage management, with ongoing progress on adding AGI and sour gas treating capabilities at the Libby Complex. These developments position Delek Logistics for continued growth and operational strength.