Business Context and Reporting Period
Company: Calumet, Inc. (CLMT)
Filing Type: Form 10-K (Annual Report)
Period Ended: December 31, 2025
Overview: Calumet manufactures, formulates, and markets specialty branded products and renewable fuels across North America. Operations are managed through four segments: Specialty Products and Solutions, Performance Brands, Montana/Renewables, and Corporate. The company completed a conversion from a limited partnership to a C-Corporation in July 2024.
Key Financial Metrics (Year Ended Dec 31, 2025)
| Metric | 2025 | 2024 |
|---|---|---|
| Consolidated Sales | $4,137.1 million | $4,189.4 million |
| Gross Profit | $245.7 million | $230.8 million |
| Net Income (Loss) | $(33.8) million | $(222.0) million |
| Adjusted EBITDA | $211.2 million | $229.3 million |
| Adjusted EBITDA with Tax Attributes | $293.3 million | $229.3 million |
| Operating Cash Flow | $108.9 million | $(46.4) million |
| Total Debt (Outstanding) | ~$2.23 billion | ~$2.10 billion |
| Total Liquidity | $447.6 million | $178.2 million |
Note: Adjusted EBITDA with Tax Attributes includes the notional value of Clean Fuel Production Tax Credits (CFPCs).
Material Changes vs. Prior Period
- Net Loss Improvement: Net loss narrowed significantly from $222.0 million in 2024 to $33.8 million in 2025, driven by a $114.1 million gain on Renewable Identification Numbers (RINs) due to Small Refinery Exemptions (SRE) received from the EPA, and a $55.8 million gain on the sale of the industrial portion of the Royal Purple business.
- Segment Performance:
- Specialty Products and Solutions: Adjusted EBITDA increased to $291.8 million (from $222.5 million) due to stronger commodity margins and improved operational reliability.
- Montana/Renewables: Adjusted EBITDA was negative $50.8 million (compared to positive $22.3 million in 2024). However, Adjusted EBITDA with Tax Attributes improved to $31.3 million, aided by operational cost reductions and tax credit monetization.
- Performance Brands: Adjusted EBITDA declined to $47.9 million (from $57.4 million) primarily due to the divestiture of the Royal Purple Industrial business.
- Liquidity: Total liquidity increased to $447.6 million, supported by $242.5 million in revolver availability and $125.1 million in unrestricted cash.
Guidance, Outlook, and Risks
- Capital Expenditures: Forecasted total capital expenditures for 2026 are approximately $130.0 million to $160.0 million, primarily for maintenance, reliability, and the MaxSAF expansion project.
- Outlook: Management expects the current margin environment for specialty and fuel-based products to continue into Q1 2026. Strong demand for renewable fuels is anticipated due to federal policy focus and corporate decarbonization targets.
- Key Risks:
- RFS Compliance: Significant exposure to the cost and availability of RINs. While SREs were granted for 2019-2024, the 2025 petition remains pending. Failure to secure exemptions could materially increase costs.
- Regulatory Changes: The "One Big Beautiful Bill Act" (OBBBA) eliminated the special clean fuel production credit rate for Sustainable Aviation Fuel (SAF) produced after Dec 31, 2025, and imposed feedstock sourcing limitations.
- Debt Covenants: The company maintains a springing financial covenant on its revolving credit facility. While compliant as of year-end, a decline in borrowing base availability could trigger stricter leverage requirements.
- Internal Controls: A material weakness regarding cash flow classification identified in 2025 was remediated by year-end.
Investor Verification Checklist
- SRE Status: Verify the final status of the 2025 Small Refinery Exemption petition with the EPA, as this directly impacts RIN liability and future margins.
- CFPC Monetization: Confirm the actual realized value of Clean Fuel Production Tax Credits sold in the secondary market versus their notional value, as this drives the "Adjusted EBITDA with Tax Attributes" metric.
- Debt Structure: Review the terms of the new $405 million 9.75% Senior Notes due 2031 issued in January 2026 and the redemption of the 2026 and 2027 notes.
- MaxSAF Project: Monitor the progress and budget adherence of the MaxSAF expansion project, expected to deliver 120-150 million gallons of annualized SAF production by Q2 2026.
- Inventory Financing: Assess the terms and risks associated with the J. Aron Supply and Offtake Agreement, which secures inventory financing but introduces counterparty and refinancing risks.