Delek US Holdings recently reported that its refining adjusted EBITDA surged nearly fivefold to $566.2 million in Q2 2026 from $114.8 million a year earlier as substantially stronger refining margins and a 136% increase in benchmark crack spreads transformed the economics of its downstream operations.
The nearly $451.4 million year-over-year increase in refining adjusted EBITDA reflected a significantly more constructive margin environment. Delek said its benchmark crack spreads increased an average of 136% compared with the prior-year quarter.
The stronger refining environment coincided with improved operations following completion of the Big Spring refinery turnaround during Q1. Management said Big Spring operated well during Q2 and continued performing well into Q3.
Delek has no additional planned refinery turnarounds during the remainder of 2026, giving the company an opportunity to keep its full refining system operating during a period of stronger industry margins.
Management believes Delek’s high distillate yield, access to advantaged crude supplies, improved Big Spring performance, greater system reliability and ongoing initiatives under its Enterprise Optimization Plan position the company to capture more of the favorable refining environment.
Refining was the primary driver of Delek’s overall Q2 earnings improvement. Consolidated adjusted EBITDA reached $638.7 million compared with $177.9 million a year earlier.
Adjusted net income was $343.9 million, or $5.48 per share, compared with an adjusted net loss of $33.1 million, or $0.56 per share, in Q2 2025.
However, the consolidated adjusted results included a significant renewable volume obligation adjustment associated with expected small refinery exemptions. Excluding the RVO impact, Delek’s adjusted EBITDA would have been $490.1 million rather than $638.7 million, a difference of $148.6 million.
Adjusted EPS excluding the RVO adjustment would have been $3.64 rather than the reported adjusted figure of $5.48 per share.
Even with that adjustment removed, Delek’s results reflect a substantial improvement in underlying profitability compared with the prior-year period.
The refining segment also absorbed $157.3 million of negative inventory adjustments during Q2 compared with a positive $41.9 million inventory adjustment a year earlier. The unfavorable swing makes the improvement in refining margins and operating performance particularly notable.
Delek’s Tyler refinery illustrates the change in refining economics. Tyler generated a refining production margin of $165.1 million compared with $67.4 million in Q2 2025.
Production margin per barrel of throughput at Tyler increased to $23.30 from $9.95 a year earlier, more than doubling as stronger crack spreads flowed through the refinery.
Delek Logistics also delivered its strongest quarter to date, generating $143.5 million of adjusted EBITDA compared with $127.4 million in the prior-year quarter. DKL continues to target full-year adjusted EBITDA of $520 million to $560 million.
Management has also emphasized the increasing economic separation between Delek US and Delek Logistics as it evaluates ways to unlock the standalone value of the two businesses.
Delek entered the second half with $628.6 million of consolidated cash and approximately $3.19 billion of long-term debt. However, most of the consolidated debt resides at Delek Logistics.
Excluding Delek Logistics, Delek US held $614.9 million of cash against $817 million of long-term debt at June 30, resulting in a standalone net debt position of approximately $202.1 million.
The Q2 results therefore reflect several favorable developments occurring simultaneously: dramatically stronger crack spreads, improved refinery reliability following the Big Spring turnaround, substantially higher refining profitability and a relatively modest standalone net debt position at the parent company.
At the same time, the $148.6 million difference between reported adjusted EBITDA and the figure excluding the RVO adjustment provides important context around the headline earnings result.
With no additional planned refinery turnarounds during 2026 and its full system operating, management believes Delek is positioned to continue benefiting from the stronger margin environment through the remainder of the year.
KEY QUOTES:
“Our second quarter results demonstrate the tangible progress we are making in strengthening Delek’s free cash flow profile. Following the successful completion of the Big Spring refinery turnaround in the first quarter, Big Spring ran well during the second quarter and is continuing this trend as we move through the third quarter. We have no more planned turnarounds for the remainder of the year.”
“With our full system online, we are well positioned to capture the benefits of a more constructive margin environment, supported by our peer-leading distillate yield, enhanced reliability, and the ongoing improvements from our Enterprise Optimization Plan.”
“As we enter the second half of the year, we remain focused on disciplined execution, operational reliability, and advancing the initiatives we believe can unlock meaningful value for our shareholders.”
Avigal Soreq, President and CEO of Delek US
