Calumet (CLMT) Q2 2024 earnings summary

Executive summary

• Achieved $66.8 million Adjusted EBITDA in Q2 2024, with record production and volumes in Specialties and Renewables, despite a softening commodity environment and margin pressures.

• Completed conversion from MLP to C-Corp in July 2024, issuing new shares and warrants, with over 99% unitholder approval, enabling broader institutional investment and index inclusion.

• Montana Renewables delivered operational records, producing 7 million gallons of SAF and $7.1 million Adjusted EBITDA (100% basis), with full production despite trough industry margins.

• Net loss for Q2 2024 was $39.1 million, compared to $22.3 million loss in Q2 2023, as gross margins declined.

• Sales increased 11.4% year-over-year to $1,133.7 million in Q2 2024, driven by higher volumes across all segments.

Financial highlights

• Q2 2024 Adjusted EBITDA: $66.8 million, up from $21.6 million in Q1 2024, but slightly down from $68.1 million in Q2 2023.

• Net loss for Q2 2024 was $39.1 million, compared to $41.6 million in Q1 2024 and $22.3 million in Q2 2023.

• Q2 2024 sales: $1,133.7 million (+11.4% YoY); gross profit: $63.8 million (-10.8% YoY).

• Performance Brands sales grew to $96.1 million, up 12% year-over-year, with Adjusted EBITDA of $14.1 million (+16% YoY).

• Cash from operating activities was $66.5 million in Q2 2024, compared to cash use of $25.9 million in Q2 2023.

Outlook and guidance

• DOE loan for MaxSAF project is in final stages, expected to fund future expansion and refinance project debt.

• Cost improvements in Renewables on track to reach ~$0.70/gallon by year-end.

• Anticipate increased institutional and index-driven demand for shares following C-Corp conversion.

• Management expects continued strong operational performance, focusing on cost reduction and execution of strategic plans.

• Capital expenditures forecasted at $110–$140 million for 2024, focused on growth and sustainability projects.