Revenue surged 56.2% year-over-year to $384.8M in 2026Q2, but gross margin compressed to 17.2% from 25.3% a year earlier, and diluted EPS fell 34.9% to $0.54, indicating negative operating leverage.
Delek Logistics Partners, LP (DKL) annual income statement — 15-year revenue, gross profit & net income history
| Metric | TTM | Dec'25 | Dec'24 | Dec'23 | Dec'22 | Dec'21 | Dec'20 | Dec'19 | Dec'18 | Dec'17 | Dec'16 | Dec'15 | Dec'14 | Dec'13 | Dec'12 | Dec'11 |
|---|
| Sales/Revenue | 1.31B | 1.01B | 940.64M | 1.02B | 1.04B | 700.9M | 563.42M | 583.99M | 657.61M | 538.08M | 448.06M | 589.67M | 841.25M | 907.43M | 1.02B | 744.08M |
| Revenue Growth % | 35.46% | 7.73% | -7.82% | -1.54% | 47.87% | 24.4% | -3.52% | -11.19% | 22.22% | 20.09% | -24.02% | -29.91% | -7.29% | -11.26% | 37.43% | - |
| Cost of Goods Sold | 1.1B | 801.65M | 696.89M | 740.69M | 789.79M | 486.66M | 356.68M | 432.71M | 509.09M | 416.16M | 339.36M | 481.23M | 736.01M | 841.67M | 982.8M | 713.45M |
| COGS % of Revenue | - | 79.11% | 74.09% | 72.59% | 76.2% | 69.43% | 63.31% | 74.09% | 77.42% | 77.34% | 75.74% | 81.61% | 87.49% | 92.75% | 96.11% | 95.88% |
| Gross Profit | 215.28M | 211.67M | 243.75M | 279.72M | 246.62M | 214.24M | 206.74M | 151.28M | 148.52M | 121.91M | 108.7M | 108.44M | 105.25M | 65.76M | 39.79M | 30.63M |
| Gross Margin % | 16.43% | 20.89% | 25.91% | 27.41% | 23.8% | 30.57% | 36.69% | 25.91% | 22.58% | 22.66% | 24.26% | 18.39% | 12.51% | 7.25% | 3.89% | 4.12% |
| Gross Profit Growth % | - | -13.16% | -12.86% | 13.42% | 15.11% | 3.63% | 36.66% | 1.86% | 21.82% | 12.15% | 0.24% | 3.04% | 60.04% | 65.27% | 29.89% | - |
| Operating Expenses | 23.26M | 29.13M | 40.92M | 40.77M | 36.94M | 23.74M | 26.95M | 25.47M | 21.87M | 33.75M | 31.07M | 31.08M | 25.32M | 19.29M | 17.06M | 10.61M |
| OpEx % of Revenue | - | 2.87% | 4.35% | 4% | 3.56% | 3.39% | 4.78% | 4.36% | 3.33% | 6.27% | 6.93% | 5.27% | 3.01% | 2.13% | 1.67% | 1.43% |
| Selling, General & Admin | 19.72M | 28.64M | 35.94M | 24.77M | 34.18M | 21.46M | 22.59M | 20.82M | 17.17M | 11.84M | 10.26M | 56.31M | 50.08M | 6.86M | 8.39M | 5.79M |
| SG&A % of Revenue | - | 2.83% | 3.82% | 2.43% | 3.3% | 3.06% | 4.01% | 3.56% | 2.61% | 2.2% | 2.29% | 9.55% | 5.95% | 0.76% | 0.82% | 0.78% |
| Research & Development | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| R&D % of Revenue | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - |
| Other Operating Expenses | 3.07M | 489K | 4.98M | 16M | 2.75M | 2.28M | 4.36M | 4.66M | -8K | 1K | 20.81M | 19.69M | 14.71M | 12.44M | 8.68M | 10.61M |
| Operating Income | 192.02M | 182.54M | 202.83M | 238.95M | 209.68M | 190.5M | 179.79M | 125.81M | 125.76M | 88.18M | 77.65M | 77.26M | 79.84M | 46.3M | 22.72M | 20.02M |
| Operating Margin % | 14.65% | 18.01% | 21.56% | 23.42% | 20.23% | 27.18% | 31.91% | 21.54% | 19.12% | 16.39% | 17.33% | 13.1% | 9.49% | 5.1% | 2.22% | 2.69% |
| Operating Income Growth % | - | -10% | -15.12% | 13.96% | 10.07% | 5.96% | 42.91% | 0.04% | 42.62% | 13.56% | 0.5% | -3.23% | 72.43% | 103.83% | 13.47% | - |
| EBITDA | 340.4M | 310.76M | 303.41M | 338.54M | 279.88M | 240.48M | 229.24M | 159.72M | 157.76M | 110.09M | 98.46M | 96.95M | 94.55M | 58.74M | 31.39M | 24.84M |
| EBITDA Margin % | 25.98% | 30.67% | 32.26% | 33.18% | 27% | 34.31% | 40.69% | 27.35% | 23.99% | 20.46% | 21.98% | 16.44% | 11.24% | 6.47% | 3.07% | 3.34% |
| EBITDA Growth % | 14.04% | 2.42% | -10.38% | 20.96% | 16.38% | 4.91% | 43.52% | 1.25% | 43.3% | 11.81% | 1.56% | 2.55% | 60.96% | 87.12% | 26.37% | - |
| D&A (Non-Cash Add-back) | 148.39M | 128.22M | 100.58M | 99.59M | 70.2M | 49.98M | 49.44M | 33.91M | 32M | 21.91M | 20.81M | 19.69M | 14.71M | 12.44M | 8.68M | 4.82M |
| EBIT | 324.03M | 356.21M | 294.12M | 270.69M | 241.74M | 215.2M | 202.35M | 145.04M | 125.76M | 93.13M | 76.47M | 76.67M | 78.85M | 38.73M | 22.72M | 20.02M |
| Net Interest Income | -101.8M | -66.78M | -103.17M | -143.24M | -82.3M | -50.22M | -42.87M | -47.33M | -41.26M | -23.94M | -13.59M | -10.66M | -8.66M | -4.57M | -2.68M | -2.01M |
| Interest Income | 117.76M | 112.52M | 47.79M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Interest Expense | 219.56M | 179.3M | 150.96M | 143.24M | 82.3M | 50.22M | 42.87M | 47.33M | 41.26M | 23.94M | 13.59M | 10.66M | 8.66M | 4.57M | 2.68M | 2.01M |
| Other Income/Expense | -35.96M | -5.63M | -59.66M | -111.51M | -50.25M | -25.53M | -20.31M | -28.1M | -35.04M | -18.99M | -14.77M | -11.25M | -7.66M | -4.57M | -2.68M | -609K |
| Pretax Income | 156.06M | 176.92M | 143.16M | 127.44M | 159.43M | 164.97M | 159.48M | 97.72M | 90.72M | 69.19M | 62.88M | 66.02M | 71.19M | 41.73M | 20.04M | 18.01M |
| Pretax Margin % | 11.91% | 17.46% | 15.22% | 12.49% | 15.38% | 23.54% | 28.31% | 16.73% | 13.79% | 12.86% | 14.04% | 11.2% | 8.46% | 4.6% | 1.96% | 2.42% |
| Income Tax | 126K | 458K | 479K | 1.21M | 382K | 153K | 223K | 967K | 534K | -222K | 81K | -195K | 132K | 757K | -14.02M | 5.36M |
| Effective Tax Rate % | 0.08% | 0.26% | 0.33% | 0.95% | 0.24% | 0.09% | 0.14% | 0.99% | 0.59% | -0.32% | 0.13% | -0.3% | 0.19% | 1.81% | -70% | 29.78% |
| Net Income | 155.93M | 176.46M | 142.69M | 126.24M | 159.05M | 164.82M | 159.26M | 96.75M | 90.18M | 69.41M | 62.8M | 66.85M | 72M | 47.83M | 8.41M | 12.65M |
| Net Margin % | 11.9% | 17.41% | 15.17% | 12.37% | 15.35% | 23.52% | 28.27% | 16.57% | 13.71% | 12.9% | 14.02% | 11.34% | 8.56% | 5.27% | 0.82% | 1.7% |
| Net Income Growth % | -5.19% | 23.67% | 13.03% | -20.63% | -3.5% | 3.5% | 64.61% | 7.28% | 29.93% | 10.52% | -6.05% | -7.15% | 50.53% | 468.73% | -33.5% | - |
| Net Income (Continuing) | 155.93M | 176.46M | 142.69M | 126.24M | 159.05M | 164.82M | 159.26M | 96.75M | 90.18M | 69.41M | 62.8M | 66.21M | 72M | 47.83M | 34.06M | 12.65M |
| Discontinued Operations | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Minority Interest | 0 | 0 | 0 | 0 | 0 | 0 | 0 | -5.04M | -6.49M | -6.4M | -6.22M | -7.19M | -7.08M | -4.5M | -49K | 0 |
| EPS (Diluted) | 2.80 | 3.30 | 2.99 | 2.89 | 3.66 | 3.79 | 4.18 | 2.61 | 3.70 | 2.09 | 2.07 | 2.52 | 2.85 | 1.93 | 0.34 | 0.53 |
| EPS Growth % | -7.12% | 10.37% | 3.46% | -21.04% | -3.43% | -9.33% | 60.15% | -29.46% | 77.03% | 0.97% | -17.86% | -11.58% | 47.67% | 467.65% | -35.85% | - |
| EPS (Basic) | - | 3.30 | 2.99 | 2.90 | 3.66 | 3.79 | 4.18 | 2.61 | 3.70 | 2.09 | 2.08 | 2.55 | 2.88 | 1.95 | 0.34 | 0.53 |
| Diluted Shares Outstanding | 55.68M | 53.55M | 47.48M | 43.61M | 43.51M | 43.46M | 33.6M | 24.42M | 24.4M | 24.38M | 24.36M | 24.36M | 24.3M | 24.15M | 24M | 24M |
| Basic Shares Outstanding | 55.6M | 53.5M | 47.45M | 43.58M | 43.49M | 43.45M | 33.59M | 24.41M | 24.39M | 24.35M | 24.29M | 24.24M | 24.17M | 24.02M | 24M | 24M |
| Dividend Payout Ratio | - | 134.95% | 143.46% | 142.61% | 107.57% | 98.12% | 68.57% | 84.77% | 191.76% | 98.64% | 96.52% | 171.45% | 194.05% | 269.44% | 1385.67% | - |
Quick answers to the most common questions about buying DKL stock.
For fiscal year 2025, Delek Logistics Partners, LP (DKL) reported total revenue of $1.01B. This represents a 36.2% increase compared to $744.1M in 2011.
Delek Logistics Partners, LP (DKL) is profitable, generating $176.5M in net income for the fiscal year ending 2025 with a net profit margin of 17.4%.
Delek Logistics Partners, LP (DKL) reported an operating income of $182.5M, resulting in an operating profit margin of 18.0%. This margin reflects the operational efficiency of the business before interest and taxes.
Delek Logistics Partners, LP (DKL) generated $211.7M in gross profit for the year, representing a gross profit margin of 20.9%. This demonstrates the company's core pricing power and production efficiency.
Key Metrics
Top Statement Risk
Extreme leverage and EPS volatility
Metrics are mathematically derived from official filings.
Revenue Acceleration Driven by Wholesale
Revenue surged 56.2% year-over-year in 2026Q2 to $384.8M, per the latest quarterly report, marking a sharp acceleration from prior quarters, likely fueled by wholesale marketing volumes.
The 56.2% growth in 2026Q2 is a significant jump from the 19.0% in 2026Q1 and the low-single-digit to mid-teen growth seen in 2025. This suggests a step-change in wholesale marketing activity, which can be volatile and low-margin. Investors should assess whether this growth is sustainable or a one-time spike, especially given the gross margin compression in the same quarter.
Gross Margin Compression Amid Volume Surge
Gross margin fell to 17.2% in 2026Q2 from 25.3% a year earlier, as reported in the income statement, indicating that the revenue surge came at the expense of profitability.
The 810 basis point year-over-year decline in gross margin suggests that the incremental revenue in 2026Q2 was predominantly from lower-margin wholesale product sales, which carry thinner spreads. This trend is consistent with the wholesale segment's nature but raises questions about the quality of earnings. If this mix shift persists, it could pressure overall profitability despite top-line growth.
Operating Leverage Inverted by Cost Pressures
Operating income grew only 16.0% in 2026Q2 despite 56.2% revenue growth, per the latest financials, indicating negative operating leverage as costs rose disproportionately.
The 40 percentage point gap between revenue growth and operating income growth in 2026Q2 suggests that variable costs, particularly COGS, consumed the incremental revenue. SG&A remained low at $3.3M, but the gross margin compression overwhelmed any fixed-cost efficiencies. This implies that the business model's operating leverage is highly sensitive to product margins, not just volume.
EPS Miss Clouds Earnings Quality
Diluted EPS of $0.54 in 2026Q2 missed consensus by a wide margin, as per the earnings report, despite revenue growth, raising concerns about the reliability of reported earnings.
The 34.9% year-over-year decline in EPS, coupled with a net margin drop to 7.5% from 18.1% in 2025Q2, suggests that non-operating items or higher costs are weighing on bottom-line results. The extreme ROE of 847.5% reflects a very thin equity base, amplifying the impact of any earnings fluctuation. Investors should monitor distributable cash flow, which may be more stable than net income, to assess distribution coverage.
COGS Dominates Cost Structure
COGS accounted for 82.8% of revenue in 2026Q2, as per the income statement, underscoring the wholesale segment's heavy influence on the cost structure.
The high COGS ratio is typical for a midstream company with significant product marketing activities, but it also means that gross margin is highly sensitive to commodity price spreads. SG&A remained low at $3.3M, indicating disciplined overhead control. However, the volatility in COGS as a percentage of revenue (ranging from 71.6% in 2024Q1 to 82.8% in 2026Q2) highlights the cyclicality of the wholesale business.
Leverage and EPS Miss Pose Risks
With debt-to-equity at 389.2x and a significant EPS miss in 2026Q2, as reported in the latest financials, the partnership's financial stability is under scrutiny.
The extreme leverage ratio, while possibly distorted by a thin equity base, indicates that the partnership is highly levered relative to its equity. The EPS miss of $0.54 versus $1.16 consensus suggests that reported earnings may be volatile and not fully reflective of cash-generating ability. If distributable cash flow does not track EPS, the distribution could be at risk. Investors should closely monitor coverage ratios and any refinancing needs.