Delek US revealed in its latest earnings report a net loss of $172 million for the first quarter of 2025, or $2.78 per share.
During the quarter, the company launched its Enterprise Optimization Plan (EOP), which it expects to deliver a minimum of $120 million in run-rate cash flow improvement in the second half of 2025. The company also closed on its acquisition Gravity Water Midstream in January.
“We showed incremental progress in achieving our Sum of the Parts goals and improving the overall profitability of the company, despite continued challenging market conditions,” said Avigal Soreq, president and CEO of Delek US. “We are excited about the progress we are making with our EOP and expect to deliver cash flow improvements of at least $120 million by (the second half of 2025).”
Soreq also noted new inter-company agreements between Delek and Delek Logistics Partners (DKL) to increase consolidated financial availability by around $250 million.
“Looking ahead, we will continue to execute on our priorities of running safe and reliable operations, making further progress on midstream deconsolidation, improving cash flow generation by at least $120 million, and delivering shareholder value while maintaining our financial strength and flexibility,” Soreq concluded.
New Ownership
2025 marks the first full year that Delek US will be operated by OXXO parent company FEMSA, after being acquired by the brand in August 2024.
The $385 million acquisition made waves in the c-store space, and also began FEMSA’s entrance into the U.S. market.
“For FEMSA, this market offers high strategic fit, and presents an opportunity to build a platform that, over time, has the potential to achieve scale and create shareholder value,” FEMSA noted in a statement at the time of the transaction. “The Delek stores have the right set of attributes to be FEMSA’s first step on this journey, in terms of size, geographical footprint and possibilities for extensive experimentation, testing and fine-tuning of the company’s convenience value proposition.”
Delek operates 249 corporate stores, mostly in the southwestern U.S., including locations in Texas and New Mexico. Delek operates company stores under the DK brand.
FEMSA is one of the largest conglomerates in Mexico with operations in over 17 countries. Through FEMSA’s Proximity & Health Division, it operates OXXO, which has over 22,800 stores in five countries, including Mexico, Colombia, Chile, Peru and Brazil.
“At FEMSA, we have a long-held ambition to enter the U.S. convenience and mobility industry, and this transaction represents the ideal way for us to take our first step in this compelling market,” said José Antonio Fernández Garza-Lagüera at the time, CEO of FEMSA’s retail operations. “We have been building and expanding our retail operation in Mexico for over 45 years, eventually reaching ten other countries in South America and Europe, and a store base of more than 30,000 locations. As we welcome our new DK colleagues into the FEMSA family, we are excited to embark on this new and important journey together.”
