Gross margins have trended downward from 29.3% in 2023Q4 to 15.4% in 2026Q1, reflecting a shift toward lower-margin wholesale marketing activities.
| 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 | 1.06B | 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 % | 13.04% | 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 | 856.68M | 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 | 204.18M | 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 % | 19.25% | 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 | 28.72M | 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 | 24.05M | 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 | 2.19M | 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 | 175.45M | 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 % | 16.54% | 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 | 309.81M | 310.76M | 303.41M | 338.54M | 279.88M | 240.48M | 222.74M | 159.72M | 158.12M | 110.38M | 98.73M | 96.95M | 94.55M | 58.74M | 31.39M | 24.84M |
| EBITDA Margin % | 29.2% | 30.67% | 32.26% | 33.18% | 27% | 34.31% | 39.53% | 27.35% | 24.04% | 20.51% | 22.03% | 16.44% | 11.24% | 6.47% | 3.07% | 3.34% |
| EBITDA Growth % | 8.37% | 2.42% | -10.38% | 20.96% | 16.38% | 7.97% | 39.45% | 1.02% | 43.24% | 11.8% | 1.83% | 2.55% | 60.96% | 87.12% | 26.37% | - |
| D&A (Non-Cash Add-back) | 134.35M | 128.22M | 100.58M | 99.59M | 70.2M | 49.98M | 42.94M | 33.91M | 32.36M | 22.21M | 21.08M | 19.69M | 14.71M | 12.44M | 8.68M | 4.82M |
| EBIT | 315.91M | 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 | 24.64M | -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 | 214.42M | 112.52M | 47.79M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Interest Expense | 189.79M | 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 | -5.4M | -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 | 170.05M | 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 % | 16.03% | 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 | 276K | 458K | 479K | 1.21M | 382K | 153K | 223K | 967K | 534K | -222K | 81K | -195K | 132K | 757K | -14.02M | 5.36M |
| Effective Tax Rate % | 0.16% | 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 | 169.78M | 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 % | 16% | 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 % | 13.89% | 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) | 169.78M | 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) | 3.17 | 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 % | 5.69% | 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 | 53.6M | 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 | 53.51M | 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% | - |
Parent refinery utilization dependency
According to the provided financial data, DKL's revenue growth has exhibited significant quarterly fluctuations, ranging from a 22.4% decline in 2024Q3 to a 21.9% increase in 2025Q4, suggesting that the partnership's top-line performance remains highly sensitive to transactional wholesale marketing volumes rather than purely stable fee-based pipeline throughput.
The inconsistency in revenue growth appears to stem from the Wholesale Marketing segment, which introduces commodity price exposure that can mask the underlying stability of the core midstream assets. Investors should monitor whether the recent expansion into third-party gathering in the Permian Basin can eventually smooth these revenue swings by diversifying the customer base away from the parent company.
As reported in the income statement history, DKL's gross margin has trended downward from a peak of 29.3% in 2023Q4 to 15.4% in 2026Q1, indicating that the cost of goods sold is consuming an increasing share of revenue, likely due to the lower-margin nature of wholesale marketing activities.
This margin compression suggests that the partnership's product mix may be shifting toward higher-volume, lower-margin wholesale transactions. The decline in profitability metrics warrants further investigation into whether this is a deliberate strategic pivot or a reflection of rising operational costs within the terminal and marketing business units.
Based on the quarterly figures, DKL's operating margin has fluctuated between 13.4% and 25.9%, demonstrating that while the business maintains a high-fixed-cost structure, its ability to scale operating income relative to gross profit is frequently interrupted by volatility in SG&A expenses and variable operational costs.
The sharp spike in SG&A during 2024Q3 to $15.7M highlights the potential for overhead to erode operating income during periods of lower gross profit generation. The lack of consistent operating leverage suggests that management's expense discipline may be reactive rather than structural, necessitating a closer look at the fixed versus variable components of their operating cost base.
Financial statements reveal that while DKL has maintained positive net income, the 17.8% year-over-year decline in EPS during 2026Q1, coupled with the ongoing margin contraction, raises questions regarding the long-term sustainability of current distribution levels if the parent company's refining economics face a prolonged downturn.
Short-term earnings volatility may be masking a more concerning trend of declining profitability per unit, which could eventually pressure the partnership's ability to fund both distributions and necessary maintenance capital expenditures. Investors should be wary of the reliance on deficiency payments from the parent, as these represent contractual support rather than organic operational growth.
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.