Calumet (CLMT) Q2 2026 earnings summary

Executive summary

• Achieved $175.2 million in Adjusted EBITDA with Tax Attributes in Q2 2026, more than doubling year-over-year, despite planned turnarounds and non-cash RINS and derivative losses.

• Net loss narrowed to $95.9 million from $147.9 million in Q2 2025, reflecting improved margins and operational performance.

• Accelerated deleveraging with $100 million notes called and $115 million sale-leaseback retired in July, reducing high-interest debt.

• Completed three major turnarounds on time and on budget, supporting near-record production volumes.

• Specialty margins remained strong amid global base oil shortages and dynamic market conditions.

Financial highlights

• Sales rose 40.8% year-over-year to $1,445.1 million in Q2 2026, with gross profit turning positive at $18.3 million from a loss of $43.6 million.

• Specialty Products and Solutions Adjusted EBITDA reached $161.7 million, up from $66.8 million year-over-year.

• Montana/Renewables Adjusted EBITDA with Tax Attributes increased to $26.6 million from $16.3 million, despite significant downtime for expansion.

• Performance Brands Adjusted EBITDA declined to $6.3 million from $13.5 million, reflecting margin compression from higher input costs.

• Generated over $90 million in cash flow from operations during the quarter, while building $70 million in working capital.

Outlook and guidance

• Management expects continued and accelerated deleveraging, with leverage ratio projected to fall below 3x next quarter.

• Montana Renewables expansion progressing, targeting 80-100 million gallons SAF by year-end 2026, over 120 million gallons by spring 2027, and 200 million gallons by end of 2028.

• Anticipate strong third quarter with no scheduled turnarounds and full contribution from Montana Renewables.

• Growth CapEx pipeline for specialties expected to be deployed in 2027 and 2028, with majority of $50 million in projects staged for those years.

• Management expects continued strong performance in the second half of 2026 and into 2027, supported by favorable regulatory changes and tight global refined product markets.