Delek US (NYSE:DK) Releases Quarterly Earnings Results, Beats Expectations By $0.68 EPS

Key Points

• Earnings beat: Delek US reported Q1 EPS of $0.08 versus a consensus loss of ($0.60) and revenue of $2.65B (vs. $2.36B est.), sparking a notable share-price rise.
• Operational and cash‑flow upside: Management completed a major spring turnaround with the refinery back at full capacity and raised the Enterprise Optimization Plan target to at least $220M annual run‑rate after ~ $60M of Q1 contribution, which could materially boost free cash flow.
• Material regulatory risk: Exposure to RINs/SREs is significant — management cites ~ $750M potential 2026 RVO exposure (at ~$1.50 RIN), and excluding SRE benefits Q1 adjusted results would have been substantially weaker, making EPA SRE timing a key near‑term risk.

Delek US (NYSE:DK - Get Free Report) issued its quarterly earnings results on Wednesday. The oil and gas company reported $0.08 earnings per share for the quarter, beating analysts' consensus estimates of ($0.60) by $0.68, FiscalAI reports. The business had revenue of $2.65 billion for the quarter, compared to the consensus estimate of $2.36 billion. Delek US had a negative return on equity of 13.55% and a negative net margin of 0.21%.Delek US's revenue for the quarter was up .4% compared to the same quarter last year. During the same quarter in the previous year, the company posted ($2.32) earnings per share.

Here are the key takeaways from Delek US's conference call:

• Big Spring turnaround completed safely, on budget and on time; the refinery is back at full capacity and management expects improved reliability, optimized crude slate, higher yields and octane/blending capability with no further major turnarounds planned, positioning the system to capture seasonal crack strength.
• Management raised the Enterprise Optimization Plan (EOP) target to at least $220 million annual run‑rate, reported ~$60 million of EOP contribution in Q1, and said further EOP actions could drive another step‑change in free cash flow.
• Delek Logistics (DKL) reaffirmed 2026 EBITDA guidance of $520–$560 million, expects third‑party EBITDA to exceed 80% pro forma, completed its first acid gas injection well to support Delaware Basin growth, and reiterated steps to unlock DKL value (including potential deconsolidation options).
• Regulatory risk from RINs / Small Refinery Exemptions (SREs) remains material — excluding SREs Q1 adjusted EBITDA and EPS were weaker (approx. $129M and a $0.98 loss per share), and management warns a large 2026 RVO exposure (they cite ~$750M at a ~$1.50 blended RIN assumption) makes EPA SRE timing/decisions a key near‑term risk to results and fuel affordability.
• Reported Q1 cash flow from operations of ~$461 million, adjusted EBITDA of ~$212 million and adjusted net income of ~$5 million; Q2 throughput guidance implies a system range of ~293,000–313,000 bpd and management provided operating expense, G&A, D&A and net interest ranges for the quarter.

Delek US Stock Performance

Shares of NYSE DK traded up $5.68 during trading hours on Wednesday, hitting $46.72. 1,916,943 shares of the company's stock were exchanged, compared to its average volume of 1,523,284. The company's 50-day moving average price is $41.21 and its 200-day moving average price is $36.55. Delek US has a 1-year low of $12.80 and a 1-year high of $48.32. The stock has a market capitalization of $2.79 billion, a price-to-earnings ratio of -133.50, a PEG ratio of 0.57 and a beta of 0.68. The company has a debt-to-equity ratio of 5.89, a current ratio of 0.82 and a quick ratio of 0.53.

Delek US Dividend Announcement

The firm also recently disclosed a quarterly dividend, which will be paid on Friday, May 8th. Investors of record on Friday, May 1st will be given a dividend of $0.255 per share. This represents a $1.02 annualized dividend and a dividend yield of 2.2%. The ex-dividend date of this dividend is Friday, May 1st. Delek US's payout ratio is currently -291.43%.

Analyst Upgrades and Downgrades

A number of analysts recently issued reports on DK shares. TD Cowen reduced their price objective on Delek US from $60.00 to $44.00 and set a "hold" rating for the company in a research report on Monday. UBS Group boosted their price target on Delek US from $42.00 to $48.00 and gave the company a "neutral" rating in a research note on Friday, April 10th. Piper Sandler cut their price objective on shares of Delek US from $47.00 to $40.00 and set a "neutral" rating on the stock in a research report on Thursday, January 8th. Scotiabank upgraded shares of Delek US to a "hold" rating in a report on Friday, March 27th. Finally, Morgan Stanley boosted their price target on Delek US from $38.00 to $40.00 and gave the stock an "equal weight" rating in a research report on Friday, April 24th. Five analysts have rated the stock with a Buy rating, eight have assigned a Hold rating and one has given a Sell rating to the company's stock. Based on data from MarketBeat.com, the company currently has a consensus rating of "Hold" and a consensus target price of $44.15.

Key Headlines Impacting Delek US

Here are the key news stories impacting Delek US this week:

• Positive Sentiment: Q1 results beat expectations: DK reported EPS of $0.08 vs. a consensus loss of ($0.60) and revenue of $2.65B vs. $2.36B est., showing sequential improvement and helping drive investor optimism. Business Wire Release
• Positive Sentiment: Management tone: CEO Avigal Soreq highlighted “momentum” and execution of an Enterprise Optimization Plan and other value-creation initiatives on the call — signaling improved cash flow focus and operational discipline. Earnings Call Transcript
• Positive Sentiment: Near-term analyst lift: Zacks raised its Q3 2026 EPS estimate (to $0.36), a short-term estimate boost that can support sentiment and near-term expectations for earnings power.
• Neutral Sentiment: Market materials available: The company published a slide deck and press materials alongside the release (useful for modeling cash flow and refinery/marketing detail). MarketBeat Earnings Summary & Materials
• Neutral Sentiment: Valuation commentary: Recent write-ups have re-examined DK’s valuation after the run-up; these are informational but not new company guidance. Yahoo Finance
• Neutral Sentiment: Scotiabank model divergence: Scotiabank projects higher FY2026–27 EPS (and models upside vs. consensus) but maintains a "Hold," reflecting mixed conviction despite bullish numbers.
• Negative Sentiment: Price target cut: TD Cowen trimmed its target from $60 to $44 and keeps a "Hold," which may cap upside from bullish headlines and temper momentum. Benzinga / TickerReport
• Negative Sentiment: Longer-term estimate pullbacks: Zacks lowered FY2028 EPS expectations, signaling some analyst caution about sustainable earnings beyond the near term.

Insider Buying and Selling

In other news, EVP Joseph Israel sold 38,000 shares of the company's stock in a transaction that occurred on Wednesday, March 4th. The stock was sold at an average price of $40.65, for a total transaction of $1,544,700.00. Following the completion of the transaction, the executive vice president directly owned 55,623 shares in the company, valued at $2,261,074.95. The trade was a 40.59% decrease in their ownership of the stock. The sale was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through the SEC website. Also, EVP Denise Clark Mcwatters sold 11,988 shares of the company's stock in a transaction that occurred on Friday, March 13th. The shares were sold at an average price of $41.33, for a total value of $495,464.04. Following the completion of the transaction, the executive vice president directly owned 74,196 shares of the company's stock, valued at approximately $3,066,520.68. This trade represents a 13.91% decrease in their position. The disclosure for this sale is available in the SEC filing. Over the last quarter, insiders sold 172,095 shares of company stock worth $7,257,409. 3.56% of the stock is currently owned by company insiders.

Hedge Funds Weigh In On Delek US

Hedge funds have recently made changes to their positions in the business. Caitong International Asset Management Co. Ltd boosted its holdings in Delek US by 95.6% during the fourth quarter. Caitong International Asset Management Co. Ltd now owns 884 shares of the oil and gas company's stock valued at $26,000 after purchasing an additional 432 shares in the last quarter. Brown Brothers Harriman & Co. bought a new position in shares of Delek US during the 3rd quarter worth approximately $27,000. Focus Partners Wealth acquired a new stake in Delek US in the 3rd quarter valued at $44,000. Aster Capital Management DIFC Ltd grew its position in Delek US by 23.2% in the fourth quarter. Aster Capital Management DIFC Ltd now owns 2,259 shares of the oil and gas company's stock valued at $67,000 after acquiring an additional 425 shares during the period. Finally, Kestra Advisory Services LLC bought a new stake in Delek US in the fourth quarter valued at $79,000. Institutional investors and hedge funds own 97.01% of the company's stock.

About Delek US

Delek US Holdings, Inc NYSE: DK is 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 US focuses on converting crude oil into a variety of finished products, including gasoline, diesel, jet fuel, asphalt and renewable fuels, serving wholesale and retail customers across the United States.

In its refining segment, Delek US owns and operates four inland refineries located in Texas and Arkansas.

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