Company: DK
Filing Date: 2025-08-06
Form Type: 10-Q
Source: 0001694426-25-000112
Chunk: 136

Company: Delek US Holdings, Inc.
Filing Date: 2025-08-06
Form: 10-Q
Item: Part I, Item 2
Chunk 136
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Q2 2025 vs. Q2 2024

Interest expense, net increased by $8.3 million, or 10.7%, to $85.9 million in the second quarter of 2025 compared to $77.6 million in the second quarter of 2024, primarily driven by the following:

•an increase in net average borrowings outstanding (including the obligations under the inventory intermediation agreements which have an associated interest charge) of approximately $517.3 million in the second quarter of 2025 (calculated as a simple average of beginning borrowings/obligations and ending borrowings/obligations for the period) compared to the second quarter of 2024; and

•hedge losses associated with our interest rate swap.

The increase was partially offset by the following:

•a decrease in the average effective interest rate of 126 basis points in the second quarter of 2025 compared to the second quarter of 2024 (where effective interest rate is calculated as interest expense divided by the net average borrowings/obligations outstanding).

YTD 2025 vs. YTD 2024

Interest expense, net was $170.0 million in the six months ended June 30, 2025, compared to $165.3 million for six months ended June 30, 2024, an increase of $4.7 million, or 2.8% primarily due to the following: 

•an increase in net average borrowings outstanding (including the obligations under the inventory intermediation agreement which has an associated interest charge) of approximately $360.9 million during the six months ended June 30, 2025 (calculated as a simple average of beginning borrowings/obligation and ending borrowings/obligation for the period) compared to the six months ended June 30, 2024; and

•hedge losses associated with our interest rate swap.

This increase was partially offset by the following:

•a decrease in the average effective interest rate of 131 basis points during the six months ended June 30, 2025 compared to the six months ended June 30, 2024 (where effective interest rate is calculated as interest expense divided by the net average borrowings/obligations outstanding).

Results from Equity Method Investments

Q2 2025 vs. Q2 2024

We recognized income of $22.2 million from equity method investments during the second quarter of 2025, compared