Delek US Reports Strong Q4 2025 Earnings

Highlights include increased free cash flow, SRE monetization, and operational improvements.

Published on Mar. 2, 2026

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Delek US (NYSE:DK) executives highlighted a 'transformational year' in 2025, pointing to stronger free cash flow initiatives, steps to increase the economic separation between Delek and Delek Logistics Partners (DKL), and fourth-quarter results that benefited from small refinery exemption (SRE) developments and operational improvements. The company reported net income of $78 million, or $1.26 per share, and adjusted net income of $143 million, or $2.31 per share, for Q4 2025.

Why it matters

Delek's strong Q4 performance and initiatives to improve free cash flow and operational efficiency demonstrate the company's ability to navigate industry challenges and position itself for long-term success. The monetization of SRE-related renewable identification numbers (RINs) also highlights Delek's proactive approach to managing its financing structure.

The details

Delek increased its Enterprise Optimization Plan (EOP) target, raising its expectation for EOP-related cash flow improvement to at least $200 million annually on a run-rate basis. The company also pursued a proactive strategy to monetize 2023 and 2024 RINs granted after the EPA cleared a backlog of pending 2019–2024 SRE petitions, raising approximately $360 million during Q4 2025 and using the proceeds to reduce its Inventory Intermediation Agreement, which management said improves free cash flow generation 'on top of EOP' by at least $40 million per year.

  • For the fourth quarter of 2025, Delek reported net income of $78 million, or $1.26 per share.
  • For full-year 2025, Delek's adjusted EBITDA excluding SREs was approximately $763 million.
  • Delek initially launched EOP targeting an $80 million to $120 million run-rate cash flow improvement starting in the second half of 2025.
  • Near the end of Q4 2025, Delek used RIN monetization proceeds and available cash to pay down approximately $380 million under the IAA and associated inventory financing.
  • Delek expects to complete the remaining monetization of 2023 and 2024 RINs in the first half of 2026, 'most likely in Q1.'

The players

Delek US

An independent downstream energy company engaged in the refining, logistics, and marketing of petroleum products. Headquartered in Brentwood, Tennessee, the company operates a network of inland refineries, storage terminals and pipelines, and convenience store locations.

Delek Logistics Partners (DKL)

A subsidiary of Delek US that operates the logistics and marketing segments of Delek's business.

Avigal Soreq

CEO of Delek US.

Mark Hobbs

CFO of Delek US.

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What they’re saying

“We must not let individuals continue to damage private property in San Francisco.”

— Robert Jenkins, San Francisco resident (San Francisco Chronicle)

“Fifty years is such an accomplishment in San Francisco, especially with the way the city has changed over the years.”

— Gordon Edgar, grocery employee (Instagram)

The takeaway

Delek's strong Q4 performance and initiatives to improve free cash flow and operational efficiency demonstrate the company's ability to navigate industry challenges and position itself for long-term success. The monetization of SRE-related RINs also highlights Delek's proactive approach to managing its financing structure.