Par Pacific Holdings, Inc. Reports Strong 2025 Financial Results and Announces New Share Repurchase Authorization

Key Highlights from Fourth Quarter and Full-Year 2025 Earnings

• Net Income for 2025: \$369.4 million, or \$7.16 per diluted share, compared to a net loss of \$(33.3) million, or \$(0.59) per diluted share, in 2024.
• Fourth Quarter Net Income: \$77.7 million, or \$1.53 per diluted share.
• Adjusted Net Income: \$390.1 million for the full year (\$7.56 per diluted share) and \$59.5 million for Q4 (\$1.17 per diluted share).
• Adjusted EBITDA: \$633.5 million for 2025; \$113.1 million for Q4.
• Share Repurchases: 6.5 million shares repurchased in 2025 (0.7 million in Q4), reducing shares outstanding by 10%. Repurchase average price was approximately \$19 per share in 2025. In Q4 alone, \$27.8 million of stock was repurchased at an average price of \$38.49 per share.
• New Share Repurchase Authorization: In February 2026, the Board authorized management to repurchase up to \$250 million of common stock, replacing the previous authorization. There is no specified end date for this program.
• Strong Liquidity Position: \$164.1 million in cash, \$639.8 million gross term debt, and total liquidity of \$914.6 million as of December 31, 2025. Net term debt stood at \$475.7 million.
• Refining Segment Performance: Operating income of \$487.0 million in 2025, including a significant Small Refinery Exemption (SRE) impact of \$199.5 million (compared to \$17.4 million in 2024). Adjusted Gross Margin for Refining reached \$1.0 billion, up from \$618.3 million in 2024.
• Strategic Initiatives: Completion of the Montana refinery turnaround, progress towards startup of the Hawaii renewable fuel project, and continued focus on shareholder returns through buybacks.

Details and Analysis

Financial Performance and Turnaround

Par Pacific Holdings, Inc. delivered a standout year in 2025, marked by a dramatic turnaround from the prior year’s losses to robust profitability. The company reported a net income attributable to stockholders of \$369.4 million for 2025, or \$7.16 per diluted share. This is a significant reversal from a net loss of \$(33.3) million, or \$(0.59) per diluted share, in 2024. The fourth quarter alone contributed \$77.7 million (\$1.53 per diluted share) to net income.

Adjusted net income, which excludes certain non-operating and non-cash items, was even higher at \$390.1 million for the year and \$59.5 million for Q4, reflecting the underlying strength of the company’s core operations. Adjusted EBITDA, another key metric, was \$633.5 million in 2025, compared to just \$113.1 million in Q4, demonstrating both annual and quarterly momentum.

The Refining segment drove much of this outperformance, generating \$487.0 million in operating income in 2025, buoyed by a \$199.5 million contribution from Small Refinery Exemption (SRE) credits. The company’s Adjusted Gross Margin for the Refining segment reached \$1.0 billion, a significant jump from the prior year.

President and CEO Will Monteleone highlighted the company’s progress on strategic initiatives, including the successful Montana refinery turnaround, advances in the Hawaii renewable fuels project, and a focus on capital returns to shareholders.

Shareholder Returns and New Buyback Authorization

One of the most shareholder-friendly moves in this report is the aggressive share buyback activity. In 2025, Par Pacific repurchased 6.5 million shares, reducing its shares outstanding by 10%. The average repurchase price was approximately \$19 per share, with Q4 buybacks accounting for 0.7 million shares at a much higher average price of \$38.49 per share. This demonstrates both the company’s strong free cash flow and management’s conviction in the value of its stock.

Importantly, in February 2026, the Board of Directors replaced the prior share buyback program with a new authorization for up to \$250 million of common stock repurchases, with no specified end date. This move may be seen as a strong signal of confidence in the company’s future prospects and could provide ongoing support for the share price.

Liquidity and Balance Sheet

Par Pacific finished 2025 with a robust liquidity position: \$164.1 million in cash, \$639.8 million in gross term debt, and total available liquidity of \$914.6 million. Net term debt was \$475.7 million, reflecting prudent balance sheet management. Total debt (including current portion) stood at \$802.9 million, while stockholders’ equity increased to \$1.51 billion from \$1.19 billion a year earlier.

Other Noteworthy Items

• Strategic Projects: The company completed key maintenance and development projects, including the Montana turnaround and progress on the Hawaii renewables joint venture, which is expected to bring commercial and environmental benefits.
• Segment Performance: The Refining segment was the primary driver of profit, but the company also reports on Logistics and Retail, as well as its investment in Laramie Energy, LLC.
• Non-GAAP Measures: Management emphasizes the use of Adjusted Gross Margin, Adjusted Net Income, and Adjusted EBITDA to better reflect underlying operating performance, especially given volatility in commodity prices and certain non-cash accounting adjustments.
• Forward-Looking Statements: The company cautions that its outlook is subject to risks including geopolitical events (Russia-Ukraine war, Middle East instability), commodity price volatility, regulatory changes, and operational risks at its refineries.

Potential Share Price Catalysts

• Return to Robust Profitability: The swing from a net loss in 2024 to a \$369.4 million profit in 2025 is likely to be viewed very positively by investors and analysts.
• New Share Repurchase Program: The authorization of up to \$250 million in buybacks with no end date indicates management’s expectation of continued strong cash flows and commitment to shareholder value.
• Reduction in Shares Outstanding: A 10% reduction in the share count in one year is significant and should enhance per-share metrics going forward.
• Strong Liquidity and Balance Sheet: Healthy cash reserves and prudent debt management position Par Pacific for further growth or additional shareholder returns.
• Refining Segment Outperformance: The impact of SRE credits and expanded gross margins suggest favorable regulatory and market conditions, at least in the near term.
• Progress on Renewables and Strategic Projects: Advancements in renewable fuel production in Hawaii and operational improvements may support future growth and ESG credentials.

Conclusion

Par Pacific Holdings, Inc.’s 2025 results reflect a remarkable turnaround and a company firing on all cylinders. With strong profits, aggressive share repurchases, a new \$250 million buyback program, and strategic project execution, Par Pacific is positioned for further investor attention. The combination of improved financials, capital returns, and operational momentum is likely to be viewed as highly price sensitive and supportive of the company’s share value.

Disclaimer: The information provided in this article is for informational purposes only and does not constitute financial advice or a recommendation to buy or sell any securities. Investors should conduct their own research and consult with their financial advisors before making any investment decisions. Forward-looking statements in this article are subject to risks and uncertainties that could cause actual results to differ materially.

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