Calumet (CLMT) Q2 2024 earnings summary

Executive summary

• Achieved record company-wide production and segment volumes in Q2 2024, with Montana Renewables producing 7 million gallons of SAF and specialty businesses posting five-year highs despite commodity headwinds.

• Completed conversion from MLP to C-corporation in July 2024, now trading on Nasdaq, with over 99% unitholder approval and new common stock and warrants issued.

• Q2 2024 Adjusted EBITDA was $66.8 million, slightly down from $68.1 million year-over-year, while net loss widened to $39.1 million.

• Performance Brands achieved its highest volume quarter in five years, with 30% year-over-year volume growth and strong margin resilience.

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

Financial highlights

• Q2 2024 Adjusted EBITDA: $66.8 million; net loss: $39.1 million; sales: $1,133.7 million (+11.4% YoY); gross profit: $63.8 million (-10.8% YoY).

• Specialty Products and Solutions Adjusted EBITDA rose to $65.8 million (+7.9% YoY), with margin at 8.8%.

• Performance Brands Adjusted EBITDA increased to $14.1 million (+16% YoY), with sales of $96.1 million (+12% YoY) and 30% volume growth.

• Montana Renewables Adjusted EBITDA was $7.6 million (down from $13.0 million YoY), with 12,000 bpd renewable feedstock processed, including 1,700 bpd SAF.

• Cash from operating activities was $66.5 million in Q2 2024; total liquidity at quarter-end was $218.5 million.

Outlook and guidance

• Expect sequential improvement in Montana asphalt business in Q3 and continued normalization of fuel-based product margins through 2024.

• On track to achieve Montana Renewables operating cost target of $0.70 per gallon by year-end.

• DOE loan for MaxSAF expansion is in final approval stages; no significant spend planned until funding is secured.

• Anticipate increased passive index demand and institutional ownership following C-corp conversion.

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