Delek US Holdings (DK)
NYSE:DK
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Delek US Holdings
(NYSE:DK)
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Rating:62Neutral
Price Target:
$50.00
▲(11.98% Upside)
Action:ReiteratedDate:03/02/26
The score is held back primarily by weak and volatile underlying financial performance (thin/negative profitability and leverage/ROE concerns), partially offset by strong technical momentum and a notably positive earnings-call setup (higher optimization targets, balance-sheet interest savings, and solid DKL guidance). Valuation is mixed given a moderate dividend but negative P/E tied to weak earnings.
Positive Factors
Strong midstream (DKL) performance
Delek's logistics arm delivered record EBITDA and guided to a similar range, with management expecting pro‑forma third‑party EBITDA >80%. A structurally stronger midstream business provides steadier fee-based cash flows, lowers consolidated earnings volatility and supports distributions.
Negative Factors
Thin, volatile profitability
Refining margins remain narrow and earnings remain volatile across cycles. Small swings in crack spreads or throughput can flip results, making mid‑term profit predictability weak and limiting confidence that current cash flows will persist absent structural margin improvement.
Read all positive and negative factors
Positive Factors
Negative Factors
Strong midstream (DKL) performance
Delek's logistics arm delivered record EBITDA and guided to a similar range, with management expecting pro‑forma third‑party EBITDA >80%. A structurally stronger midstream business provides steadier fee-based cash flows, lowers consolidated earnings volatility and supports distributions.
Read all positive factors
Delek US Holdings (DK) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$2.67B
Dividend Yield3.42%
Average Volume (3M)1.63M
Price to Earnings (P/E)5.7
Beta (1Y)1.07
Revenue Growth-22.37%
EPS Growth-27.22%
CountryUS
Employees1,987
SectorEnergy
Sector Strength52
IndustryOil & Gas Refining & Marketing
Share Statistics
EPS (TTM)2.31
Shares Outstanding59,808,422
10 Day Avg. Volume1,517,436
30 Day Avg. Volume1,631,337
Financial Highlights & Ratios
PEG Ratio0.83
Price to Book (P/B)6.28
Price to Sales (P/S)0.17
P/FCF Ratio81.84
Enterprise Value/Market Cap2.02
Enterprise Value/Revenue0.50
Enterprise Value/Gross Profit7.62
Enterprise Value/Ebitda6.90
Forecast
1Y Price Target
$44.50Price Target Upside-0.34% Downside
Rating ConsensusHold
Number of Analyst Covering10
EPS Forecast (FY)2.4
Revenue Forecast (FY)$10.19B
Delek US Holdings Business Overview & Revenue Model
Company Description
Delek US Holdings, Inc. engages in the integrated downstream energy business in the United States. The company operates through three segments: Refining, Logistics, and Retail. The Refining segment processes crude oil and other feedstock for the m...
How the Company Makes Money
Delek US makes money primarily through two interconnected businesses: (1) refining and associated product marketing, and (2) midstream/logistics services.
1) Refining and product sales (downstream):
- Core revenue driver: Delek purchases crude oi...
Delek US Holdings Earnings Call Summary
Earnings Call Date:Feb 27, 2026
(Q4-2025)
| % Change Since: |
Next Earnings Date:May 12, 2026
Earnings Call Sentiment Positive
The call presented a materially positive operational and financial progress story: EOP targets were more than doubled, meaningful RIN monetization and IIA paydown materially improved liquidity and will reduce annual interest costs, DKL delivered a record year and provided solid 2026 guidance with >80% third-party EBITDA expected, and management executed buybacks and dividends. Lowlights included a seasonal decline in refining EBITDA (-$91M), an asphalt loss, ongoing supply-line volatility, near-term throughput impact from a planned turnaround, and regulatory uncertainty around RIN/SRE recognition. On balance, the highlights — particularly the doubled EOP target, RIN monetization/IIA reduction, and strong DKL performance/guidance — significantly outweigh the lowlights.Positive Updates
Enterprise Optimization Plan (EOP) Upsized
EOP target raised to at least $200 million annual run rate (previously $80–$120 million), representing a +150% increase versus the prior low-end ($80M) and +66.7% versus the prior high-end ($120M). EOP contributed approximately $50 million to Q4 P&L and management expects continued run-rate improvements and additional upside over time.
Negative Updates
Refining Segment Sequential Decline
Refining adjusted EBITDA declined by $91 million quarter-over-quarter, primarily due to seasonality, reducing segment contribution to consolidated results in Q4.
Read all updates
Q4-2025 Updates
Positive
Negative
Enterprise Optimization Plan (EOP) Upsized
EOP target raised to at least $200 million annual run rate (previously $80–$120 million), representing a +150% increase versus the prior low-end ($80M) and +66.7% versus the prior high-end ($120M). EOP contributed approximately $50 million to Q4 P&L and management expects continued run-rate improvements and additional upside over time.
Read all positive updates
Company Guidance
Management raised its Enterprise Optimization Plan (EOP) target to at least $200M of annual run rate (up from an initial $80–120M), said EOP contributed roughly $50M to Q4 P&L, and that monetization of 2023–24 RINs (≈$360M realized) funded paydown of ≈$380M of the inventory intermediation agreement (IIA), which will reduce annual interest expense by at least $40M and boost free cash flow; Q4 results included net income $78M ($1.26/sh), adjusted net income $143M ($2.31/sh), adjusted EBITDA ≈$375M (excluding SREs: adj. EBITDA ≈$226M and adj. EPS $0.44), and FY‑2025 excluding SREs adj. EBITDA ≈$763M; DKL reported record 2025 adj. EBITDA ≈$536M and provided 2026 EBITDA guidance of $520–560M with pro‑forma third‑party EBITDA expected to exceed 80%; Q1‑2026 operating guidance: Tyler 70–74k bpd, El Dorado 66–71k bpd, Big Spring (turnaround) 22–28k bpd, Krotz Springs 82–86k bpd, system 240–259k bpd; Q1 expense guidance: OpEx $210–220M, G&A $47–52M, D&A $100–110M, net interest $75–85M; Q4 cash flow from operations $503M (adjusted ex SREs/WC $119M, a $211M YoY improvement); Q4 capex was $82M at Delek stand‑alone and $31M at DKL, and financing included $20M buybacks, ~$15M dividends and ~$22M DKL unit distributions.Delek US Holdings Financial Statement Overview
Summary
Income Statement
44
Neutral
Balance Sheet
38
Negative
Cash Flow
57
Neutral
| Breakdown | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 10.72B | 11.85B | 16.92B | 19.80B | 10.65B |
| Gross Profit | 568.30M | -67.90M | 1.04B | 736.50M | 225.50M |
| EBITDA | 782.00M | -18.50M | 664.00M | 792.60M | 264.00M |
| Net Income | -22.80M | -560.40M | 19.80M | 257.10M | -128.30M |
Balance Sheet | |||||
| Total Assets | 6.85B | 6.67B | 7.17B | 8.19B | 6.81B |
| Cash, Cash Equivalents and Short-Term Investments | 625.80M | 735.60M | 821.80M | 841.30M | 856.50M |
| Total Debt | 3.35B | 2.86B | 2.74B | 3.23B | 2.42B |
| Total Liabilities | 6.30B | 6.09B | 6.21B | 7.12B | 5.80B |
| Stockholders Equity | 286.50M | 312.80M | 845.50M | 943.60M | 894.20M |
Cash Flow | |||||
| Free Cash Flow | 22.00M | -497.40M | 616.80M | 139.50M | 148.20M |
| Operating Cash Flow | 551.50M | -66.80M | 1.01B | 425.30M | 371.40M |
| Investing Cash Flow | -713.60M | -241.50M | -408.00M | -931.60M | -178.40M |
| Financing Cash Flow | 52.30M | 221.70M | -624.70M | 491.10M | -124.00M |
Delek US Holdings Technical Analysis
Positive
44.65
Price Trends
38.34
Positive
35.90
Positive
32.00
Positive
Market Momentum
1.88
Positive
56.56
Neutral
43.97
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For DK, the sentiment is Positive. The current price of 44.65 is above the 20-day moving average (MA) of 44.03, above the 50-day MA of 38.34, and above the 200-day MA of 32.00, indicating a bullish trend. The MACD of 1.88 indicates Positive momentum. The RSI at 56.56 is Neutral, neither overbought nor oversold. The STOCH value of 43.97 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for DK.
Delek US Holdings Peers Comparison
UnderperformOutperform
Sector (65)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
78 Outperform | $3.17B | 4.84 | 28.59% | ― | -10.11% | -7.00% | |
68 Neutral | $13.58B | 13.57 | 7.27% | 6.88% | -5.18% | -33.14% | |
65 Neutral | $15.17B | 7.61 | 4.09% | 5.20% | 3.87% | -62.32% | |
62 Neutral | $2.67B | 5.68 | -14.06% | 3.42% | -22.37% | -27.22% | |
62 Neutral | $10.96B | 14.84 | 6.25% | 4.26% | -9.55% | 27.65% | |
57 Neutral | $5.40B | -19.51 | -3.05% | 4.14% | -15.35% | -81.94% | |
47 Neutral | $3.32B | 94.69 | 4.13% | 10.50% | -7.21% | 135.72% |
* Energy Sector Average
DK
Delek US Holdings
44.65
33.58
303.20%
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Delek US Holdings Corporate Events
Business Operations and StrategyStock BuybackDividendsFinancial Disclosures
Delek US Swings to Q4 Profit, Boosts Cash Returns
Positive
Feb 27, 2026
Delek US Holdings reported a sharp turnaround in its fourth quarter 2025 results, released on February 27, 2026, posting net income of $78.3 million, adjusted net income of $143.0 million and adjusted EBITDA of $374.8 million, compared with steep ...
Business Operations and StrategyDividends
Delek US Declares Quarterly Dividend, Signals Ongoing Payouts
Positive
Feb 19, 2026
On February 18, 2026, Delek US Holdings, Inc. announced that its board had approved a quarterly dividend of $0.255 per share. The dividend is scheduled to be paid on March 9, 2026, to shareholders of record as of March 2, 2026, reflecting the comp...
Business Operations and StrategyFinancial Disclosures
Delek US Unveils 2026 Outlook and Optimization Plan
Positive
Jan 13, 2026
Effective January 12, 2026, Delek US senior management began using a new investor presentation to update current and prospective shareholders on its financial outlook, free cash flow profile and capital allocation priorities. The materials highlig...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.