NYSE:PARR
PAR PACIFIC HOLDINGS, INC.
A diversified industrial conglomerate providing essential building materials to large-scale infrastructure and commercial construction projects worldwide.
Key Metrics
Investment Thesis
Bull Case
Investors may view PAR Pacific Holdings as an attractive cyclical play given its recent recovery in net profit to $367.1M and a strong operational cash flow of $445.3M, which suggests resilient underlying demand for its essential building materials. The company's ability to generate substantial gross profit of $1.35B against a cost of revenue of $6.11B highlights efficient scale in a recovering global construction sector.
Bear Case
Potential buyers should be wary of the significant volatility in earnings, evidenced by the swing from a massive $728.6M profit in 2023 to a loss in 2024 before rebounding this year. High inventory levels and substantial debt obligations alongside a large accumulated deficit of $541.4M suggest that profitability is sensitive to external economic shocks and pricing pressures.
About PAR PACIFIC HOLDINGS, INC.
PAR Pacific Holdings Inc. is a global leader in building materials and industrial solutions, serving markets across Asia and the Americas with a diverse portfolio of products including steel pipes, rebar, and construction aggregates.
Analysis
Management Discussion
Despite a recent decline in revenue to $7.46B and a return to profitability with net income of $367.1M, the company faces headwinds from inventory buildup of $1.23B and high operating expenses of $816.1M. The strong cash flow from operations of $445.3M offsets the negative cash flows from investing and financing activities, indicating robust core business performance even as management navigates volatile market conditions.
Industry Overview
The global building materials industry remains highly cyclical, driven by infrastructure spending and commercial real estate activity which are currently showing signs of recovery after a period of stagnation. Companies in this sector must manage complex supply chains and raw material costs while competing on volume and logistics efficiency to maintain margins.
Financial Statements
Income Statement
Balance Sheet
Cash Flow
| Metric | 2022 | 2023 | 2024 | 2025 |
|---|---|---|---|---|
| Revenue | $7.32B | $8.23B | $7.97B | $7.46B |
| Cost of Revenue | $6.38B | $6.84B | $7.10B | $6.11B |
| Gross Profit | $945.8M | $1.39B | $873.3M | $1.35B |
| Operating Expenses | $507.9M | $713.8M | $825.7M | $816.1M |
| Operating Income | $437.9M | $680.0M | $47.6M | $538.8M |
| G&A | $62.4M | $91.4M | $108.8M | $98.5M |
| Stock-Based Comp | $9.4M | $11.6M | $25.7M | $16.6M |
| D&A | $99.8M | $119.8M | $131.6M | $144.3M |
| Depreciation | $75.0M | $94.0M | $106.5M | $104.3M |
| Amortization | $2.7M | $2.7M | $1.4M | $1.0M |
| Other OpEx | $445.5M | $622.4M | $716.8M | $717.6M |
| Non-Operating Income | $-73.0M | $-66.7M | $-86.6M | $-60.9M |
| Interest Expense | $68.3M | $72.5M | — | — |
| Pre-Tax Income | $364.9M | $613.3M | $-39.0M | $477.9M |
| Income Tax | $710.0K | $-115.3M | $-5.7M | $110.8M |
| Continuing Ops | $364.2M | $728.6M | $-33.3M | $367.1M |
| Discontinued Ops | $0 | $0 | $0 | $0 |
| Net Income | $364.2M | $728.6M | $-33.3M | $367.1M |
| Minority Interest | $0 | $0 | $0 | $-2.3M |
| Net to Common | $364.2M | $728.6M | $-33.3M | $369.4M |
| Metric | 2022 | 2023 | 2024 | 2025 |
|---|---|---|---|---|
| Current Assets | $1.88B | $1.99B | $1.77B | $1.78B |
| Cash & Equivalents | $490.9M | $279.1M | $191.9M | $164.1M |
| Accounts Receivable | $252.9M | $367.2M | $398.1M | $312.7M |
| Inventory | $1.04B | $1.16B | $1.09B | $1.23B |
| Prepaid Expenses | $92.0M | $182.4M | $92.5M | $70.2M |
| Other Current Assets | $4.0M | $339.0K | $346.0K | $351.0K |
| Long-Term Assets | $1.40B | $1.87B | $2.06B | $2.06B |
| Intangibles | $13.6M | $10.9M | $9.5M | $9.5M |
| Goodwill | $129.3M | $129.3M | $129.3M | $127.3M |
| Operating Leases | $350.8M | $346.5M | $428.1M | $391.4M |
| Other LT Assets | $905.1M | $1.39B | $1.49B | $1.53B |
| Total Assets | $3.28B | $3.86B | $3.83B | $3.83B |
| Current Liabilities | $1.79B | $1.52B | $1.10B | $1.11B |
| Accounts Payable | $151.4M | $391.3M | $436.8M | $341.6M |
| Current Debt | $11.0M | $4.3M | $4.9M | $4.9M |
| Current Leases | $66.1M | $72.8M | $80.2M | $99.6M |
| Deferred Revenue | $11.5M | $15.2M | $16.2M | $6.7M |
| Other Current Liab | $913.7M | $619.2M | $214.0M | $186.4M |
| Long-Term Liabilities | $842.0M | $1.00B | $1.54B | $1.18B |
| Long-Term Debt | $494.6M | $646.6M | $1.11B | $797.9M |
| LT Operating Leases | $292.7M | $282.5M | $362.1M | $312.4M |
| Other LT Liab | $54.7M | $74.8M | $71.6M | $64.6M |
| Total Liabilities | $2.64B | $2.53B | $2.64B | $2.28B |
| Shareholders' Equity | $644.5M | $1.34B | $1.19B | $1.55B |
| Paid-In Capital | $836.5M | $860.8M | $884.5M | $957.9M |
| Retained Earnings | $-200.7M | $465.9M | $295.8M | $541.4M |
| AOCI | $8.1M | $8.2M | $10.4M | $11.7M |
| Total L&E | $3.28B | $3.86B | $3.83B | $3.83B |
| Metric | 2022 | 2023 | 2024 | 2025 |
|---|---|---|---|---|
| Net Income (CFO) | $364.2M | $728.6M | $-33.3M | $367.1M |
| Non-Cash Adjustments | $-521.6M | $-179.1M | $267.2M | $-3.6M |
| Working Capital Changes | $610.1M | $29.6M | $-150.1M | $81.8M |
| Cash from Operations | $452.6M | $579.2M | $83.8M | $445.3M |
| Capital Expenditures | $53.0M | $82.3M | $135.5M | $148.9M |
| Cash from Investing | $-87.3M | $-659.0M | $-134.0M | $-142.8M |
| Share Buybacks | $7.8M | $67.8M | $142.0M | $124.8M |
| Cash from Financing | $13.4M | $-135.6M | $-37.0M | $-330.4M |
| FX Effect | $0 | $0 | $0 | $0 |
| Net Change in Cash | $378.7M | $-215.5M | $-87.2M | $-27.8M |
| Beginning Cash | $116.2M | $494.9M | $279.4M | $192.3M |
| Ending Cash | $494.9M | $279.4M | $192.3M | $164.5M |
Frequently Asked Questions
How does PAR PACIFIC HOLDINGS, INC. make money?
The company operates primarily through three core revenue streams: Steel Products manufacturing and distribution, Construction Materials sales including aggregates and cement-related goods, and specialized Industrial Solutions serving sectors like energy and mining.
What are the main risks for PARR?
1) Significant exposure to volatile commodity prices affecting cost of revenue which stood at $6.11B last year, 2) Cyclical nature of the construction industry leading to sharp net income fluctuations as seen in the drop from $728.6M in 2023 to a loss in 2024, 3) Heavy reliance on debt with $797.9M in long-term obligations potentially limiting financial maneuverability during downturns.
What is PARR's competitive advantage?
1) Extensive global supply chain network ensuring stable sourcing from key regions in Asia, 2) Strong balance sheet with over $164M in cash providing liquidity for operational flexibility, 3) Established long-term relationships with major developers and infrastructure projects securing steady demand cycles.
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Not financial advice. All content is for informational purposes only. Data may contain errors. Consult a qualified financial advisor before making investment decisions.