The massive EPS miss (-41.8%) will likely pressure the stock in the near term, despite the strong revenue beat and reaffirmed guidance. The market will focus on the declining net income and rising leverage (4.23x). Monitor the Q3 2026 earnings call for commentary on margin trends and the trajectory of the Wholesale segment, which saw a 46% decline in Adjusted EBITDA.
Price Chart
Executive Summary
Delek Logistics Partners reported Q2 2026 net income of $28.9M ($0.54 per unit), a sharp decline from $44.6M ($0.83 per unit) in Q2 2025, missing the consensus EPS estimate of $0.93 by 41.8%. Revenue surged 56% YoY to $384.8M, well above the $295.4M consensus, driven by the DPG dropdown and higher third-party volumes. Adjusted EBITDA rose 12.6% to $143.5M, and the company reaffirmed its 2026 EBITDA guidance of $520M-$560M. The massive EPS miss overshadows the revenue beat, making this a bearish report for the common units despite strong operational momentum in the Gathering & Processing segment.
Key Financial Metrics
Key Facts
- Net income fell to $28.9M ($0.54/unit) from $44.6M ($0.83/unit) YoY, a 35% decline.
- EPS of $0.54 missed the $0.93 consensus by 41.8% (a strong miss).
- Revenue rose 56% to $384.8M, beating the $295.4M consensus by 30.2%.
- Adjusted EBITDA increased 12.6% to $143.5M from $127.4M YoY.
- 2026 EBITDA guidance reaffirmed at $520M-$560M.
- Distributable cash flow, as adjusted, rose to $80.5M from $72.5M YoY, with a 1.33x coverage ratio.
- Leverage increased to 4.23x from 4.05x in Q1 2026, with total debt at ~$2.4B.
- Quarterly distribution raised 1.8% to $1.135/unit, the 54th consecutive quarterly increase.
Financial Impact
EPS miss of -41.8% vs consensus ($0.54 actual vs $0.93 estimate) is a strong miss; revenue beat of +30.2% ($384.8M actual vs $295.4M estimate) is a strong beat. The conflicting signals create a mixed picture, but the EPS miss is the dominant factor for common unit holders.
Risk Factors
- EPS miss of 41.8% signals potential margin compression or cost overruns that could persist.
- Leverage increased to 4.23x, reducing financial flexibility and increasing refinancing risk.
- Wholesale Marketing & Terminalling segment Adjusted EBITDA fell 46% YoY due to the East Texas agreement termination and lower margins.
- Interest expense surged 68% YoY to $70.1M, pressuring net income.
Market Snapshot
Investment Themes
Documents Analyzed
This report is based on 6 SEC documents filed with EDGAR.
| Document | Accession Number |
|---|---|
| 8-K Filing (Primary) | 0001628280-26-052893 |
| Document: dkl-20260805.htm | 0001628280-26-052893 |
| Document: 0001628280-26-052893-index-headers.html | 0001628280-26-052893 |
| Document: 0001628280-26-052893-index.html | 0001628280-26-052893 |
| Document: 0001628280-26-052893.txt | 0001628280-26-052893 |
| 8-K Data (Synthetic) | 0001628280-26-052893 |
Filters
| Type | Now | ||||
|---|---|---|---|---|---|
Aug 18, 2026 6w ago | Insider Cluster | $53.74 $56.26 | ▲ +4.69% | ▲ +6.44% | $54.93 (+2.21%) |
Aug 14, 2026 7w ago | 8-K | $54.01 $56.49 | ▼ −4.59% | ▼ −6.58% | $54.93 (−1.70%) |
Aug 13, 2026 7w ago | 8-K | $52.30 $56.90 | ▼ −8.80% | ▼ −10.54% | $54.93 (−5.03%) |
Aug 5, 2026 8w ago | 8-K | $57.11 $55.46 | ▲ +2.89% | ▲ +2.29% | $54.93 (+3.82%) |
May 14, 2026 20w ago | 8-K | $51.70 $49.52 | ▼ −4.22% | ▼ −6.34% | $54.93 (+6.25%) |
May 4, 2026 21w ago | 8-K | $51.16 $51.13 | ▼ −0.06% | ▼ −5.70% | $54.93 (+7.37%) |
Apr 29, 2026 22w ago | 8-K | $51.95 $50.61 | ▼ −2.58% | ▼ −8.63% | $54.93 (+5.74%) |
Feb 27, 2026 31w ago | 8-K | $50.84 $53.12 | ▲ +4.48% | ▲ +12.04% | $54.93 (+8.04%) |
US Market Status
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