DK — Delek US Holdings, Inc.

Summary of Delek US Q4 2025 Earnings Call

1. Key Financial Results and Metrics

• Net Income: $78 million, or $1.26 per share.
• Adjusted Net Income: $143 million, or $2.31 per share.
• Adjusted EBITDA: Approximately $375 million; excluding SREs, adjusted EBITDA was $226 million.
• Full Year 2025 Adjusted EBITDA: Approximately $763 million (excluding SREs).
• Cash Flow from Operations: $503 million; adjusted for working capital and SREs, cash flow was $119 million, up $211 million year-over-year.
• Capital Expenditures: $117 million in Q4, with $82 million at Delek and $31 million at DKL.

2. Strategic Updates and Business Highlights

• Enterprise Optimization Plan (EOP): Significant progress with an increased target of at least $200 million in annual cash flow improvement, up from an initial target of $80 million to $120 million.
• Delek Logistics (DKL): Achieved record adjusted EBITDA of approximately $536 million in 2025, with 2026 EBITDA guidance set between $520 million and $560 million.
• Refinery Operations: Strong operational performance across four refineries; a planned turnaround at Big Spring is on track to enhance reliability and cost structure.
• Shareholder Returns: Paid $15 million in dividends and repurchased $20 million of shares, maintaining a disciplined capital allocation strategy.

3. Forward Guidance and Outlook

• Q1 2026 Throughput Guidance: Expected throughput of 240,000 to 259,000 barrels per day across refineries, with operating expenses projected between $210 million and $220 million.
• Continued Focus on EOP: Management expressed confidence in further cash flow improvements and operational efficiencies.

4. Bad News, Challenges, or Points of Concern

• Refining Segment Decline: Adjusted EBITDA in the refining segment declined by $91 million in Q4, primarily due to seasonal factors.
• Regulatory Risks: Ongoing concerns regarding the future value of Renewable Identification Numbers (RINs) and potential legislative changes affecting SREs (Small Refinery Exemptions).
• Volatility in Supply and Marketing: Questions raised about the sustainability of recent strong performance in the supply and marketing segment, with some volatility expected.

5. Notable Q&A Insights

• SREs and Future Cash Flow: Management confirmed that they successfully monetized a significant portion of RINs earlier than expected, contributing to cash flow improvements. However, concerns about the future value of RINs remain.
• EOP Impact: The EOP is seen as a cultural shift within the organization, driving long-term cash flow improvements and operational efficiency.
• DKL Consolidation: Discussions around the ongoing economic separation between DK and DKL, with management emphasizing the importance of reflecting the true value of their midstream business in the market.
• Market Conditions: Management highlighted the importance of external market conditions and infrastructure developments that could impact future performance, particularly in the supply and marketing segment.

Overall, Delek US demonstrated strong financial performance in Q4 2025, with significant advancements in operational efficiency and strategic initiatives, although challenges in refining performance and regulatory uncertainties remain key areas of focus.