Delek Logistics 2025 Q3 Earnings Record EBITDA and 35.3% Net Income Growth

Delek Logistics (DKL) delivered strong results in Q3 2025, with revenue and net income surpassing expectations. The company raised full-year EBITDA guidance to $500–$520 million, reflecting confidence in operational momentum and strategic acquisitions.

Revenue

The company’s total revenue surged 22.1% year-over-year to $261.28 million, driven by robust performance across its core segments. Gathering and processing operations saw record crude gathering volumes in the Delaware system, while wholesale marketing and terminalling contributed significantly to the top-line growth. Storage and transportation services also benefited from expanded infrastructure, and pipeline joint ventures added incremental revenue.

Earnings/Net Income

Earnings per share (EPS) increased 19.7% to $0.85, outpacing the prior-year $0.71, while net income jumped 35.3% to $45.56 million from $33.67 million. The 13-year consecutive profitability streak underscores the company’s operational resilience. The EPS growth aligns with management’s focus on cost optimization and capacity expansion, making it a positive indicator for long-term value creation.

Post-Earnings Price Action Review

Following the earnings release, Delek Logistics’ stock edged up 1.52% in the latest trading day, 0.25% over the week, but declined 0.73% month-to-date. The mixed short-term performance reflects cautious investor sentiment amid high leverage and sector volatility. Analysts remain divided, with a “hold” recommendation score and a median 12-month price target of $46. The

CEO Commentary

Avigal Soreq emphasized a record $136 million in adjusted EBITDA, driven by sour gas handling advancements and the Libby 2 plant commissioning. The 51st consecutive distribution increase to $1.12 per unit highlights financial discipline. Soreq also highlighted strategic acquisitions and Permian Basin expansion as catalysts for sustained growth.

Guidance

Full-year adjusted EBITDA guidance was raised to $500–$520 million, with Q3 2025 adjusted EBITDA at $136 million. Capital expenditures of $50 million, including $44 million for Libby 2 and gathering systems, are expected to strengthen DCF coverage to 1.24x. The $1.12/unit distribution reflects confidence in leveraging growth projects.

Additional News

Delek Logistics completed the acquisition of Gravity Water Midstream and H2O Midstream, enhancing water disposal and recycling capabilities in the Permian Basin. The company also announced a 51st consecutive quarterly distribution increase to $1.12 per unit, reinforcing its commitment to unitholder returns. However, challenges persist, including delays in Delaware Basin SWD permits and evolving competition in the water segment.