HF Sinclair (NYSE:DINO) used its fourth-quarter 2025 earnings call to outline full-year results, segment performance, and capital allocation priorities, while also addressing two governance-related developments disclosed earlier in the day.
Leadership and disclosure-process review
Acting Chief Executive Officer Franklin Myers said Chief Executive Officer and President Tim Go, who is also a board member, requested a voluntary leave of absence. The board accepted the request and elected Myers as temporary CEO and president.
During the Q&A, management repeatedly declined to provide additional details on the management change or disclosure review beyond what had been released publicly. Myers said the company would provide updates if and when it has additional information that it can share.
Full-year and fourth-quarter performance highlights
EVP of Commercial Steve Ledbetter said HF Sinclair delivered “solid” full-year 2025 adjusted EBITDA of $2.3 billion and fourth-quarter adjusted EBITDA of $564 million. Ledbetter said refining results in the quarter reflected seasonal weakness, with margins strongest early in the quarter when throughput was lowest, followed by a significant weakening toward quarter-end in core markets in the Rockies, Mid-Con, and Southwest.
Ledbetter said refining earnings were negatively affected by the Puget Sound refinery turnaround and an unplanned event at the Artesia refinery. He pointed to positive contributions from midstream, lubricants, and marketing as evidence of portfolio diversification.
CFO Atanas Atanasov reported a fourth-quarter net loss attributable to shareholders of $28 million, or negative $0.16 per diluted share. He said special items collectively decreased net income by $249 million. Excluding those items, Atanasov said adjusted net income was $221 million, or $1.20 per diluted share, versus an adjusted net loss of $191 million, or negative $1.02 per diluted share, in the fourth quarter of 2024.
Refining, RIN waivers, and margin outlook
Atanasov said fourth-quarter refining segment adjusted EBITDA was $403 million, excluding a lower-of-cost-or-market (LCM) inventory valuation adjustment charge of $313 million and certain other adjustments. That compared with refining adjusted EBITDA of negative $169 million in the fourth quarter of 2024. He attributed the improvement primarily to higher adjusted refinery gross margins in the West and Mid-Con regions, partially offset by the Puget Sound turnaround and the unplanned Artesia event. Fourth-quarter crude oil charge averaged 556,000 barrels per day, compared with 562,000 barrels per day a year earlier.
Management highlighted the impact of small refinery RIN waivers granted by the EPA. Ledbetter said the waivers increased adjusted refining gross margin by $313 million in the fourth quarter, including $43 million related to waivers granted in the third quarter but recognized in the fourth quarter. Atanasov later said the total EBITDA impact from the waivers was $313 million for the fourth quarter and $485 million for the full year. On cash flow, he said the full-year cash flow impact was “just under $300 million, a little over $280 million.” Management said it intends to continue participating in the program but did not provide guidance on future benefits, noting the outcome is outside the company’s control.
On the quarter’s margin dynamics excluding the waiver benefit, Ledbetter told analysts the crack environment was strong in the first half of the quarter but fell sharply later: he described a drop beginning in the second half, “coming off around 15%,” followed by another decline in December of “48%-50%.” He said planned and unplanned maintenance occurred in the first half when margins were stronger, while post-maintenance inventory liquidation occurred in a weaker environment.
Looking ahead, Ledbetter said the company is “bullish on margins in refining in 2026.” In response to questions about the Mid-Con outlook, he said the company expects tightness to return over the cycle and characterized current softness as tied to temporary factors, including Winter Storm Fern affecting demand and inventories. He said diesel demand has been strong and jet demand appears durable, and he expects Mid-Con to be softer early in the year but to normalize heading into driving season.
Segment updates and strategic initiatives
Ledbetter said the company made progress across three priorities: reliability, integration, and shareholder returns. He said HF Sinclair completed major refining turnarounds at Tulsa, Parco, and Puget Sound in 2025 and set annual records for throughput (652,000 barrels per day) and operating expense per throughput barrel ($7.67). He also said overall refining operating costs were down $87 million year-over-year.
Among organic projects, Ledbetter discussed a vacuum furnace project at the El Dorado refinery intended to improve reliability, upgrade yield through gas oil recovery, and increase heavy crude processing capability by about 10,000 barrels per day. He said the estimated capital cost is about $55 million, with $37 million spent in 2025, and an expected annual EBITDA uplift of $25 million to $30 million. The project is expected to be completed during the fourth-quarter El Dorado turnaround in 2026.
In marketing, Ledbetter said the segment delivered record annual EBITDA of $103 million in 2025, a 37% increase over the prior record, and that the company grew its supplied branded footprint by a net of 117 sites. He said HF Sinclair expects to grow branded sites by about 10% annually. During the call, HF Sinclair announced the formation of Green Trail Fuels, LLC, a joint venture with UPOP Holdings in which HF Sinclair will hold a 50% non-operating economic interest. Ledbetter said the JV will include more than 30 retail sites across Colorado and New Mexico and that HF Sinclair will supply fuel from nearby refineries. Asked about expected investment and earnings contribution, Atanasov declined to provide specific figures but said the JV is funded through an “efficient use of capital” and results in an “attractive multiple” that competes with other corporate projects.
In lubricants and specialties, Ledbetter said 2025 EBITDA was $261 million, reflecting lower sales volumes and a turnaround at the Mississauga facility. For the fourth quarter, Atanasov reported segment adjusted EBITDA of $43 million, down from $70 million a year earlier, driven by lower finished and specialty sales volumes, lower base oil margins, and higher operating costs. SVP Matt Joyce added that fourth quarter is typically seasonal, with customer destocking, and said results were also pressured by higher operational expenses, energy and feedstock costs, and feedstock quality challenges at Mississauga, as well as weather-related supply chain impacts on the St. Lawrence Seaway. Joyce said process oils tied to the rubber and tire industry were running about 10% below what the company had anticipated, while finished lubricants remained healthy with new volumes at “nice margins.”
In midstream, Ledbetter said the company delivered record annual adjusted EBITDA of $459 million, while Atanasov reported fourth-quarter adjusted EBITDA of $114 million, flat year-over-year. Management reiterated that it is evaluating a multi-phase plan to expand its refined products pipeline network in the western U.S., with a targeted final investment decision for phase one by mid-2026.
Capital allocation, balance sheet, and guidance
Ledbetter said HF Sinclair returned $230 million to shareholders in the fourth quarter through dividends and share repurchases and more than $724 million during 2025. He also said that since the Sinclair acquisition in March 2022, the company has returned over $4.7 billion to shareholders and reduced its share count by more than 64 million shares.
The board declared a regular quarterly dividend of $0.50 per share, payable March 12, 2026, to holders of record on March 2, 2026.
Atanasov said fourth-quarter net cash provided by operations was $8 million, which included $122 million of turnaround spend, and capital expenditures were $131 million in the quarter. As of Dec. 31, 2025, he said total liquidity was about $3 billion, including $978 million of cash and a $2 billion undrawn unsecured credit facility. He said the company had $2.8 billion of debt outstanding, with a debt-to-cap ratio of 23% and net debt-to-cap ratio of 15%.
For 2026, Atanasov guided to about $650 million of sustaining capital (including turnarounds and catalyst), down $125 million from 2025, and about $125 million of growth capital investments. For the first quarter of 2026, he said the company expects to run 585,000 to 615,000 barrels per day of crude oil in refining, reflecting turnarounds at Puget Sound and Woods Cross.
About HF Sinclair (NYSE:DINO)
HF Sinclair Corporation is a diversified energy manufacturing company engaged in the refining, marketing, and transportation of petroleum products across the United States. The company operates a network of refineries and processing facilities that convert crude oil and other feedstocks into fuels and specialty products. Its integrated model encompasses upstream supply agreements, midstream logistics, and downstream marketing channels, positioning HF Sinclair as a key supplier of refined products to wholesale and retail markets.
The company’s core product slate includes gasoline, diesel, jet fuel, and renewable fuels such as renewable diesel and biodiesel.
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