Delek US Holdings (NYSE: DK) reported second-quarter 2026 net revenue of $4.087 billion, up 47.8% from $2.765 billion, while diluted EPS swung to $2.71 from a loss of $1.76. Higher refining margins drove the return to profitability, and quarterly operating cash flow increased to $262.9 million despite unfavorable working-capital changes.
Core Earnings Results
The results, released August 5 for the quarter ended June 30, showed revenue growth outpacing the increase in cost of sales. That produced operating income of $302.4 million, compared with a $33.5 million operating loss a year earlier.
Delek US also reported adjusted net income of $343.9 million, or $5.48 per share. However, the Renewable Volume Obligation, or RVO, adjustment had a material positive effect on these non-GAAP figures.
| Metric | Q2 2026 | Q2 2025 | Year-over-year change |
|---|---|---|---|
| Net revenue | $4,087.0 million | $2,764.6 million | +47.8% |
| Operating income (loss) | $302.4 million | $(33.5) million | Swing of $335.9 million |
| Operating margin | About 7.4% | About (1.2)% | About +8.6 percentage points |
| Net income (loss) attributable to Delek | $169.5 million | $(106.4) million | Swing of $275.9 million |
| Diluted EPS | $2.71 | $(1.76) | Swing of $4.47 per share |
| Adjusted EPS | $5.48 | $(0.56) | Swing of $6.04 per share |
| Adjusted EBITDA | $638.7 million | $177.9 million | +259.0% |
| Net operating cash flow | $262.9 million | $51.4 million | +$211.5 million |
Adjusted EPS and adjusted EBITDA are non-GAAP measures. The operating margins above are calculated from the reported revenue and operating income figures.
Refining Drove the Earnings Recovery
Refining generated nearly all of the year-over-year increase in segment adjusted EBITDA, while logistics delivered a smaller but steady gain and its best quarter to date.
| Segment | Q2 2026 adjusted EBITDA | Q2 2025 adjusted EBITDA | Disclosed driver |
|---|---|---|---|
| Refining | $566.2 million | $114.8 million | Higher refining margins and crack spreads |
| Logistics | $143.5 million | $127.4 million | Higher wholesale margins and sales-type lease interest income |
Delek US said its benchmark crack spreads increased by an average of 136% from the prior-year quarter. Refining results nevertheless absorbed a negative $157.3 million inventory adjustment, compared with a positive $41.9 million adjustment in Q2 2025.
The Big Spring refinery also operated well following its first-quarter turnaround. Management said there are no additional planned turnarounds for the remainder of the year, leaving the full refining system available to participate in the current margin environment. It also pointed to Delek’s distillate yield, access to advantaged crude and improving refinery reliability as supporting factors.
Logistics adjusted EBITDA rose 12.6% to a record $143.5 million. The increase came from higher wholesale margins and additional interest income associated with sales-type leases, providing a more stable contribution alongside the more volatile refining business.
Profitability, Cash Flow and Balance Sheet
Quarterly operating cash flow improved even though working-capital changes used $137.9 million of cash, reversing a $51.3 million benefit in the prior-year quarter. Net investing cash outflow was $176.2 million, while financing activities used $82.2 million. Delek US finished the quarter with $628.6 million of cash, up $4.5 million from the beginning of the period.
The company recorded $10.9 million of restructuring costs during the quarter, including $6.4 million in general and administrative expenses and $4.5 million in operating expenses. Total G&A expense nevertheless declined to $56.7 million from $76.6 million.
Consolidated long-term debt was $3.190 billion, resulting in net debt of $2.561 billion. These figures include Delek Logistics, which had $2.373 billion of debt and $13.7 million of cash. Excluding DKL, Delek US had $614.9 million of cash, $817.0 million of long-term debt and a $202.1 million net debt position.
Management said refinancing transactions extended maturities and reduced interest expense on portions of the capital structure. Reported consolidated net interest expense for the quarter was still $100.1 million, up from $85.9 million a year earlier.
Delek US purchased $20.0 million of its common stock and paid $15.6 million in dividends during the quarter. The board also approved a regular quarterly dividend of $0.255 per share.
The RVO Adjustment Amplified, but Did Not Create, the Recovery
The RVO adjustment materially increased Delek US’s headline non-GAAP results. Excluding its effect, adjusted EPS would have been $3.64 rather than $5.48, while adjusted EBITDA would have been $490.1 million rather than $638.7 million. The adjustment therefore contributed about $1.84 per share and $148.6 million of adjusted EBITDA.
Even after excluding the RVO effect, current-quarter adjusted EBITDA remained substantially above the prior-year reported figure of $177.9 million. This indicates that stronger refining economics were the main foundation of the recovery, although the release did not provide a prior-year ex-RVO figure for a fully comparable calculation.
Investors should also distinguish the favorable RVO effect from the negative refining inventory adjustment. Together, these items show why the durability of market-driven refining margins is more informative than the headline adjusted EBITDA figure alone.
Performance Guidance
The release’s quantitative outlook was limited to Delek Logistics. Management said DKL remains positioned to meet its annual EBITDA guidance range.
| Metric | Latest guidance | Management’s assessment |
|---|---|---|
| Delek Logistics annual EBITDA | $520 million-$560 million | Positioned to meet the range |
Management Commentary
CEO Avigal Soreq emphasized improved free cash flow, refinery reliability and disciplined execution. With the full refining system online and no additional planned turnarounds, management expects Delek to be positioned to capture higher refining margins during the second half of the year.
The company also said its Enterprise Optimization Plan is progressing, although it did not quantify additional expected benefits in the release. At DKL, management remains focused on third-party cash flows, asset optimization and increasing the economic separation between the parent and logistics partnership.
Risks Investors Need to Watch
- Refining margin sensitivity: The earnings improvement depended heavily on benchmark crack spreads rising 136%. A reversal in refining margins would directly pressure the segment that generated most of the quarter’s EBITDA growth.
- RVO and inventory volatility: The RVO adjustment added about $148.6 million to adjusted EBITDA, while refining absorbed a $157.3 million negative inventory adjustment. Changes in regulatory treatment, fuel obligations or inventory values can create substantial quarterly volatility.
- Refinery reliability: Better Big Spring performance and the absence of additional planned turnarounds support the second-half setup. Unplanned outages or operational disruptions could prevent Delek from capturing favorable margins.
- Debt and interest costs: Consolidated net debt remained $2.561 billion, including DKL, while quarterly net interest expense increased to $100.1 million. The parent’s ex-DKL leverage is considerably lower, but consolidated financing costs remain material.
- Working-capital requirements: Working-capital changes used $137.9 million of quarterly cash, and inventory increased to $999.3 million from $726.0 million at the end of 2025. Further working-capital expansion could absorb part of the cash generated by operations.
Summary
Delek US returned to quarterly profitability as higher crack spreads lifted refining margins, while logistics produced record adjusted EBITDA and operating cash flow improved. The key follow-up questions are whether refining margins remain supportive, whether the refineries sustain their improved reliability and how earnings look after separating the RVO benefit and other volatile adjustments.
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