Delek Logistics Partners, LP (DKL) released its fourth‑quarter 2025 earnings on February 27, 2026, reporting adjusted earnings per share of $0.88 and revenue of $255.8 million. Both figures fell short of consensus estimates of $1.13 EPS and $286.5 million revenue, marking a miss of 22.1 % on earnings and $30.7 million on sales.
The quarter’s revenue decline was driven by a modest contraction in the Wholesale Marketing and Terminalling segment, offset by a 12 % increase in the Gathering and Processing segment, which benefited from the acquisition of Gravity Water Midstream and the launch of the Libby 2 gas plant. Despite the revenue miss, adjusted EBITDA reached a record $142.3 million, up from $114.3 million in Q4 2024, reflecting strong operational leverage and cost discipline across the portfolio.
Management highlighted that the 2025 year was a pivotal one, noting the successful economic separation from its sponsor and the completion of key acquisitions. President Avigal Soreq said, "Delek Logistics delivered another record year, driven by strong execution across our crude, gas, and water businesses and the continued dedication of our team." He added that the 2026 EBITDA guidance of $520 million to $560 million includes a $10 million negative impact from Winter Storm Fern in the first quarter.
The guidance signals confidence in continued growth, with third‑party EBITDA contributions expected to exceed 80 % of total EBITDA. However, the EPS and revenue misses underscore the company’s sensitivity to market pricing and demand fluctuations, prompting investors to focus on short‑term performance despite the year‑over‑year gains in EBITDA and revenue.
Overall, the earnings release illustrates a company that is expanding its asset base and improving profitability, yet still faces headwinds from pricing pressure and market volatility. The guidance and management commentary suggest a cautious but optimistic outlook for 2026, while the miss on key metrics highlights the importance of maintaining earnings momentum to satisfy analyst expectations.
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