Delek Holdings: 2Q26 Preview: Model Update

Research evidence excerpt

Delek Holdings: 2Q26 Preview: Model Update

Arun Jayaram AC North America Equity Research

(1-212) 622-8541 13 July 2026 J P M O R G A N

arun.jayaram@jpmchase.com

Price Performance Summary Investment Thesis and Valuation

Investment Thesis

We maintain our Neutral rating. Delek has shown tangible

operational and cost structure improvements in recent quarters

through its refinery reliability projects and cost savings

programs, while more internal work is underway on cost and at

El Dorado in particular. On the company’s SOTP unlock efforts,

we think the most important moving pieces thus far have been 1)

the sale of Retail for $385mm at the DK level, or a ~9.5x mid-

cycle multiple; 2) the acquisition of H2O at the DKL level for

$230mm, or ~5x EBITDA; and 3) the build of the gas plant at the

YTD 1m 3m 12m DKL level for ~$160-165mm, or a ~4x EBITDA multiple. The

Abs 95.6% 22.8% 41.2% 118.4% potential impact of de-consolidation could positively unlock

Rel 76.6% 22.5% 30.6% 87.1%

value, should it be successfully executed. That said, we continue

Company Data our approach of only modeling and valuing the factors we

Shares O/S (mn) 62 currently know, as it remains difficult to predict the form and

52-week range ($) 58.59-19.81 valuation impact of a DKL deconsolidation today.

Market cap ($ mn) 3,603.34

Exchange rate 1.00 Valuation

Free float (%) 97.3%

3M ADV (mn) 1.25 Our Dec-26 PT is based on a SOTP valuation. We value the

3M ADV ($ mn) 56.7 refining business at ~4x EV/2026E EBITDA, similar to refining

Volatility (90 Day) 60 peers. We value DK’s DKL holding at the current market value

Index RUSSELL 2000

BBG ANR (Buy | Hold | Sell) 6|6|1 less a liquidity discount.

Key Metrics (FYE Dec)

Performance Drivers$ in millions FY25A FY26E FY27E

Financial Estimates

Revenue 10,723 11,819 11,881