Calumet (CLMT) Q2 2025 earnings summary

Executive summary

• Reported a net loss of $147.9 million for Q2 2025, with Adjusted EBITDA with Tax Attributes of $76.5 million, driven by cost discipline, margin expansion in specialties, and operational improvements despite a full month turnaround at Shreveport.

• Achieved $42 million in year-over-year operating cost reductions in H1 2025, with Montana Renewables operating costs at $0.43 per gallon and record operational performance.

• Specialty business delivered strong results, with three consecutive quarters of sales volumes above 20,000 bpd and resilient margins due to product and market diversification.

• Montana Renewables is on track for 120–150 million gallons of annualized SAF production by Q2 2026, supported by regulatory tailwinds and the MaxSAF 150 project.

• Enhanced capital structure by calling $230 million of 2026 Senior Notes and executing asset sales, including the Royal Purple Industrial divestiture.

Financial highlights

• Q2 2025 Adjusted EBITDA with Tax Attributes reached $76.5 million, up from $74.8 million in Q2 2024, while Adjusted EBITDA was $55.1 million, down from $74.8 million.

• Specialty Products and Solutions Adjusted EBITDA was $66.8 million, Performance Brands $13.5 million, and Montana/Renewables $16.3 million (with tax attributes).

• Sales declined 9.4% year-over-year to $1,026.6 million in Q2 2025, with gross profit turning to a loss of $43.6 million due to higher RINs expenses.

• Company-wide operating costs reduced by $42 million in H1 2025, despite a $7 million increase in natural gas and electricity costs.

• Liquidity as of June 30, 2025, was $379.2 million, including $110.6 million in unrestricted cash and $188.6 million in available credit.

Outlook and guidance

• Montana Renewables remains on track to achieve 120–150 million gallons of annualized SAF production by Q2 2026, with the MaxSAF 150 project progressing and $20–$30 million in capex.

• Strong free cash flow anticipated in the second half of 2025, with $50–$60 million projected in the restricted group and additional working capital unwind of ~$30 million in Q3.

• Regulatory developments, including EPA RVO proposal and 45Z extension, are expected to support renewables growth and margin recovery.

• No further turnarounds planned for the rest of the year; plants running at full rates.

• Management expects strong demand and favorable margin environment for specialty and fuel products to continue into Q3 2025.