Calumet, Inc. 10-Q Summary: Q2 2026
Business Context and Reporting Period
This report covers the quarterly period ended June 30, 2026. Calumet, Inc. operates three reportable segments: Specialty Products and Solutions, Montana/Renewables, and Performance Brands. The company manufactures specialty branded products and renewable fuels across twelve North American facilities. Notable operational updates include the successful completion of the MaxSAF® 150 expansion at the Montana Renewables facility and the full exercise of 2 million warrants issued during the 2024 corporate conversion.
Key Financial Metrics
| Metric | Q2 2026 (3 Months) | Q2 2025 (3 Months) | YTD 2026 (6 Months) | YTD 2025 (6 Months) |
|---|---|---|---|---|
| Sales | $1,445.1 million | $1,026.6 million | $2,474.9 million | $2,020.5 million |
| Gross Profit (Loss) | $18.3 million | $(43.6) million | $(69.1) million | $(125.0) million |
| Net Loss | $(95.9) million | $(147.9) million | $(412.9) million | $(309.9) million |
| Adjusted EBITDA | $159.3 million | $55.1 million | $186.9 million | $93.2 million |
| Adjusted EBITDA w/ Tax Attributes | $175.2 million | $76.5 million | $225.3 million | $131.5 million |
| Operating Cash Flow | $92.3 million (Q2 only) | $(1.8) million (Q2 only) | $6.1 million (YTD) | $(31.1) million (YTD) |
| Total Liquidity | $581.6 million (as of June 30, 2026) | |||
| Debt (Total) | $2,258.7 million (as of June 30, 2026) |
Material Changes vs. Prior Period
- Revenue Growth: Sales increased 40.8% in Q2 2026 compared to Q2 2025, driven primarily by higher sales prices in the Specialty Products and Solutions segment due to global conflicts impacting supply chains and improved production volumes.
- Profitability Improvement: Net loss narrowed significantly from $147.9 million in Q2 2025 to $95.9 million in Q2 2026. Adjusted EBITDA more than doubled to $159.3 million.
- Segment Performance:
- Specialty Products and Solutions: Adjusted EBITDA surged to $161.7 million (from $66.8 million) due to expanded margins and volume recovery.
- Montana/Renewables: Adjusted EBITDA improved to $10.7 million (from a loss of $5.1 million) despite a 41.8% volume decline caused by the MaxSAF® 150 expansion turnaround. Margins improved significantly post-turnaround.
- Performance Brands: Adjusted EBITDA declined to $6.3 million (from $13.5 million) due to margin compression from elevated Group III base oil costs.
- Non-GAAP Adjustments: Net loss was heavily impacted by non-cash items, including $163.6 million in RINs-related expenses and a $9.0 million unrealized gain on derivatives in Q2 2026.
Guidance, Outlook, and Risks
- Outlook: Management expects the current margin environment to remain volatile but above historical levels in the near term due to global feedstock disruptions (Middle East conflicts). The MaxSAF® 150 expansion is expected to support improved margins by shifting the product mix toward Sustainable Aviation Fuel (SAF).
- Capital Expenditures: Forecasted total capital expenditures for 2026 are $130.0 million to $160.0 million, primarily for maintenance and the MaxSAF® project.
- Regulatory Risks (RINs): The company faces significant exposure to Renewable Identification Number (RIN) costs. In Q2 2026, RINs expense was $155.3 million. The EPA has set record-high renewable fuel volume obligations for 2026 and 2027. While the company has received some Small Refinery Exemptions (SREs), future denials or price volatility could materially impact liquidity.
- Debt Management: The company redeemed $100.0 million of 2028 Mirror Notes in July 2026 (subsequent event) and terminated the Montana terminal asset financing arrangement. Total liquidity remains strong at $581.6 million.
Investor Verification Checklist
- RINs Liability: Verify the current status of Small Refinery Exemption (SRE) petitions for 2025 and the impact of the EPA's 2026/2027 volume mandates on future cash flows.
- Derivative Exposure: Review the $64.9 million in derivative liabilities and the impact of crack spread swap settlements on future earnings volatility.
- Montana/Renewables Utilization: Confirm that production volumes at the Montana facility have fully returned to planned levels following the MaxSAF® 150 turnaround.
- Debt Covenants: Monitor compliance with the Fixed Charge Coverage Ratio covenant under the revolving credit facility, which is springing based on availability levels.
- Tax Credit Monetization: Assess the sustainability of Clean Fuel Production Credit (CFPC) sales and their contribution to the "Adjusted EBITDA with Tax Attributes" metric.