HF Sinclair(DINO) - 2025 Q2 - Quarterly Results

Financial Highlights & CEO Commentary HF Sinclair reported strong Q2 2025 financial results, with net income rising to $208 million and $145 million returned to shareholders Q2 2025 vs Q2 2024 Key Financial Metrics | Metric | Q2 2025 (Millions $) | Q2 2024 (Millions $) | | :--- | :--- | :--- | | Net Income (attributable to stockholders) | 208 | 152 | | Diluted EPS ($) | 1.10 | 0.79 | | Adjusted Net Income (attributable to stockholders) | 322 | 150 | | Adjusted Diluted EPS ($) | 1.70 | 0.78 | | EBITDA | 516 | 408 | | Adjusted EBITDA | 665 | 406 | - Returned $145 million to stockholders in Q2 2025, consisting of $95 million in dividends and $50 million in share repurchases[3][6][9] - Announced a regular quarterly dividend of $0.50 per share, payable on September 4, 2025[6][10] - CEO Tim Go emphasized strong progress on key priorities: improving reliability, optimization, and integration, leading to sequential improvements over the last three quarters[3] Consolidated Financial Performance Consolidated Q2 2025 revenue decreased 14% but income from operations rose 40%, while H1 2025 revenues and net income declined, with cash increasing to $874 million Q2 2025 Financial Results (Quarterly) Q2 2025 sales and other revenues decreased 14% to $6.78 billion, yet net income rose 37% to $208 million due to lower material costs Consolidated Statement of Operations (Three Months Ended June 30) | (In millions, except per share data) | 2025 ($) | 2024 ($) | Change (%) | | :--- | :--- | :--- | :--- | | Sales and other revenues | 6,784 | 7,846 | (14)% | | Cost of materials and other | 5,440 | 6,751 | (19)% | | Income from operations | 275 | 197 | 40% | | Net income attributable to HF Sinclair stockholders | 208 | 152 | 37% | | Diluted EPS | 1.10 | 0.79 | 39% | H1 2025 Financial Results (Six-Months) H1 2025 sales and other revenues decreased 12% to $13.15 billion, with net income declining 56% to $204 million Consolidated Statement of Operations (Six Months Ended June 30) | (In millions, except per share data) | 2025 ($) | 2024 ($) | Change (%) | | :--- | :--- | :--- | :--- | | Sales and other revenues | 13,154 | 14,873 | (12)% | | Income from operations | 356 | 609 | (42)% | | Net income attributable to HF Sinclair stockholders | 204 | 466 | (56)% | | Diluted EPS | 1.07 | 2.38 | (55)% | Balance Sheet as of June 30, 2025 As of June 30, 2025, cash and cash equivalents increased to $874 million, with total debt stable at $2.68 billion and equity at $9.35 billion Balance Sheet Highlights (in millions) | Metric | June 30, 2025 ($) | December 31, 2024 ($) | | :--- | :--- | :--- | | Cash and cash equivalents | 874 | 800 | | Total assets | 16,843 | 16,643 | | Total debt | 2,677 | 2,638 | | Total equity | 9,348 | 9,346 | Segment Performance Analysis Q2 2025 segment performance was mixed, with Refining, Marketing, and Midstream showing improved results, while Lubricants & Specialties declined and Renewables reduced its loss Refining Refining segment income surged to $166 million in Q2 2025, driven by a 46% increase in adjusted gross margin to $16.50 per barrel, despite slightly lower throughput Refining Segment Performance (Q2 2025 vs Q2 2024) | Metric | Q2 2025 | Q2 2024 | | :--- | :--- | :--- | | Income before interest and income taxes (Millions $) | 166 | 65 | | Adjusted EBITDA (Millions $) | 476 | 187 | | Adjusted refinery gross margin/barrel ($/barrel) | 16.50 | 11.33 | | Crude oil charge (BPD) | 615,930 | 634,730 | Renewables Renewables segment reported a reduced pre-tax loss of $4 million in Q2 2025, with sales volumes at 55 million gallons, and began recognizing Producer's Tax Credit benefits Renewables Segment Performance (Q2 2025 vs Q2 2024) | Metric | Q2 2025 | Q2 2024 | | :--- | :--- | :--- | | Loss before interest and income taxes (Millions $) | (4) | (15) | | Adjusted EBITDA (Millions $) | (2) | 2 | | Total sales volumes (Million Gallons) | 55 | 64 | - The company began to partially recognize benefits from the Producer's Tax Credit in Q2 2025 and expects to capture additional value in Q3 2025[4] Marketing Marketing segment income doubled to $18 million in Q2 2025, with EBITDA reaching $25 million, driven by higher margins despite lower branded fuel sales volumes Marketing Segment Performance (Q2 2025 vs Q2 2024) | Metric | Q2 2025 | Q2 2024 | | :--- | :--- | :--- | | Income before interest and income taxes (Millions $) | 18 | 9 | | EBITDA (Millions $) | 25 | 15 | | Branded fuel sales volumes (Million Gallons) | 337 | 357 | Lubricants & Specialties Lubricants & Specialties segment income significantly declined to $33 million in Q2 2025, with EBITDA at $55 million, due to lower margins and reduced sales volumes Lubricants & Specialties Segment Performance (Q2 2025 vs Q2 2024) | Metric | Q2 2025 | Q2 2024 | | :--- | :--- | :--- | | Income before interest and income taxes (Millions $) | 33 | 74 | | EBITDA (Millions $) | 55 | 97 | | Sales of produced refined products (BPD) | 31,963 | 34,915 | Midstream Midstream segment delivered stable Q2 2025 results, with income at $98 million and Adjusted EBITDA at $112 million, driven by higher pipeline revenues Midstream Segment Performance (Q2 2025 vs Q2 2024) | Metric | Q2 2025 | Q2 2024 | | :--- | :--- | :--- | | Income before interest and income taxes (Millions $) | 98 | 97 | | Adjusted EBITDA (Millions $) | 112 | 110 | Shareholder Returns and Capital Management HF Sinclair returned $145 million to shareholders in Q2 2025 via dividends and buybacks, declared a $0.50 per share dividend, and generated $587 million in operating cash - Returned a total of $145 million to stockholders during the second quarter[3][6] - Announced and paid a regular dividend of $0.50 per share, totaling $95 million[9][10] - Spent $50 million on share repurchases in Q2 2025[9] - Net cash provided by operations totaled $587 million for the second quarter[9] Non-GAAP Financial Measures & Reconciliations The company uses non-GAAP measures like Adjusted EBITDA ($665 million) and Adjusted Net Income ($322 million) to show core operating performance, with detailed reconciliations provided EBITDA and Adjusted EBITDA Reconciliation Consolidated Adjusted EBITDA for Q2 2025 was $665 million, up from $406 million, primarily adjusted for a $148 million lower of cost or market inventory valuation charge Consolidated EBITDA and Adjusted EBITDA Reconciliation (Q2, in millions) | Metric | 2025 | 2024 | | :--- | :--- | :--- | | Net income attributable to HF Sinclair stockholders (Millions $) | 208 | 152 | | EBITDA (Millions $) | 516 | 408 | | Lower of cost or market inventory valuation adjustments (Millions $) | 148 | (3) | | Adjusted EBITDA (Millions $) | 665 | 406 | Adjusted Net Income Reconciliation Q2 2025 Adjusted Net Income was $322 million ($1.70 per diluted share), primarily adjusted for a $148 million pre-tax lower of cost or market inventory valuation charge Adjusted Net Income Reconciliation (Q2, in millions) | Metric | 2025 | 2024 | | :--- | :--- | :--- | | Net income attributable to HF Sinclair stockholders (GAAP, Millions $) | 208 | 152 | | Total adjustments, net of tax (Millions $) | 114 | (2) | | Adjusted net income attributable to HF Sinclair stockholders (Non-GAAP, Millions $) | 322 | 150 | Segment-Specific Margin Reconciliations The company provides segment-specific non-GAAP margin reconciliations, with Q2 2025 Adjusted Refinery Gross Margin at $16.50/barrel and Adjusted Marketing Gross Margin at $0.10/gallon - Adjusted refinery gross margin for Q2 2025 was $16.50 per produced barrel sold, a significant increase from $11.33 in Q2 2024[59] - Adjusted renewables gross margin for Q2 2025 was $0.36 per produced gallon sold, compared to $0.44 in Q2 2024[62] - Adjusted marketing gross margin for Q2 2025 was $0.10 per gallon sold, up from $0.06 in Q2 2024[65]