Calumet Q2 2026 Earnings: Specialty Strength Lifts Adjusted EBITDA

Calumet (NASDAQ: CLMT) reported Q2 2026 sales of $1.445 billion, up 40.8% from $1.027 billion a year earlier, while its basic and diluted loss per share narrowed to $1.09 from $1.70. The GAAP net loss improved to $95.9 million, and adjusted EBITDA rose to $159.3 million as Specialty Products and Solutions benefited from favorable margins and operational execution, although $163.6 million of noncash RIN-related expense kept reported earnings negative.

Core Financial Results

Sales growth was accompanied by a return to positive gross profit and a narrower operating loss. Specialty Products and Solutions accounted for most of the improvement, supported by a global shortage of specialty products, higher production, and commercial execution.

The difference between GAAP earnings and adjusted results remained substantial. Calumet reported negative EBITDA of $30.3 million before adjustments, compared with adjusted EBITDA of $159.3 million.

Adjusted EBITDA with Tax Attributes includes the notional value of federal clean fuel production tax credits, after applicable discounts on credits sold. It is a non-GAAP measure and does not represent the same economics as reported net income or operating cash flow.

Business and Segment Performance

Segment results were sharply divided. Specialty Products and Solutions generated nearly all consolidated adjusted EBITDA, Montana/Renewables improved after its planned turnaround, and Performance Brands earned less despite favorable product volumes.

Specialty Products and Solutions

Specialty Products and Solutions sales increased to $1.013 billion from $627.9 million. Its adjusted EBITDA margin expanded to 16.0% from 10.6%, while segment production rose to 62,903 barrels per day from 55,704 barrels per day.

Management attributed the result to a constructive market created by a global shortage of specialty products, combined with strong production and commercial execution. Adjusted gross profit per barrel increased to $32.25 from $13.81, showing that both output and unit economics contributed to the segment’s earnings growth.

Performance Brands

Performance Brands adjusted EBITDA fell to $6.3 million even as the segment recorded strong volumes and record quarterly TruFuel sales. Feedstock costs rose immediately, while customer price increases followed with a normal delay, compressing margins during the quarter. The segment also absorbed a $7.3 million LIFO impact.

Adjusted gross profit per barrel declined to $81.42 from $140.25. This pricing-cost mismatch explains why stronger sales activity did not translate into higher segment profit.

Montana/Renewables

Montana/Renewables completed a planned turnaround and the first phase of its MaxSAF 150 expansion after operations were interrupted from March through April and restarted in early May. Renewable fuel production consequently declined to 7,011 barrels per day from 12,044 barrels per day.

Despite the lower production volume, regular adjusted EBITDA turned positive, and adjusted EBITDA with Tax Attributes increased to $26.6 million. The improvement reflected the restart of operations into a favorable renewable-margin environment, along with $15.9 million of tax attributes.

Noncash RIN Charges Mask the Operating Improvement

The central issue in Calumet’s quarter was the gap between its GAAP loss and adjusted operating performance. The $95.9 million net loss included $163.6 million of noncash RIN-related expense, consisting of $48.0 million of RIN incurrence expense and $115.6 million of RIN mark-to-market expense. An unrealized derivative gain of $9.0 million provided a partial offset.

Starting from negative EBITDA of $30.3 million, Calumet’s reconciliation also adjusted for turnaround-cost amortization, LCM and LIFO effects, equity compensation, and other items to reach adjusted EBITDA of $159.3 million. Another $15.9 million of clean fuel tax attributes brought the company’s adjusted EBITDA with Tax Attributes to $175.2 million.

These adjustments help explain underlying operations, but they should not be treated as cash flow. RIN obligations and the eventual realization or sale of clean fuel tax credits can have different timing and liquidity effects than the non-GAAP earnings measures suggest.

Cash Flow, Balance Sheet, and Debt Reduction

Calumet provided cash-flow data for the six months ended June 30 rather than for Q2 alone. First-half operating cash flow improved to $6.1 million from an outflow of $31.1 million a year earlier, while capital expenditures increased to $51.5 million from $31.2 million.

Cash and cash equivalents were $109.8 million at June 30, down from $125.1 million at the end of 2025. Accounts receivable increased to $417.0 million from $232.5 million, and inventory rose to $421.0 million from $385.2 million, limiting the conversion of adjusted earnings into operating cash.

Current RIN obligations increased to $480.2 million from $169.3 million at year-end. Total current and long-term debt was $2.259 billion at June 30, before debt reductions completed after the quarter.

In July, Calumet redeemed $100 million of 9.75% senior notes due 2028 and repaid $15.5 million under the Montana terminal asset-financing arrangement. These actions reduced debt after the reporting date and therefore are not reflected in the June 30 balance sheet.

Recent Insider Transactions

The supplied insider-transaction data identifies one recent transaction with a stated sale amount. The transaction is presented without drawing conclusions about the director’s view of the company.

Risks Investors Should Watch

• RIN-related liabilities: The current RIN obligation rose to $480.2 million, while RIN-related expense created a large gap between reported and adjusted results. Settlement requirements could affect liquidity and future earnings.
• Dependence on favorable specialty margins: Specialty Products and Solutions drove nearly all consolidated adjusted EBITDA. A reversal in the specialty-product shortage or weaker margins would have an outsized effect on companywide profitability.
• Feedstock costs and pricing delays: Performance Brands demonstrated that higher volumes may not protect earnings when input costs rise faster than customer pricing.
• Cash conversion and working capital: First-half operating cash flow was only $6.1 million despite higher adjusted EBITDA, with the increase in accounts receivable absorbing cash.
• Leverage and interest expense: Calumet recorded $52.0 million of quarterly interest expense. July’s debt retirement reduced the burden, but debt service remains material relative to reported earnings and cash flow.

Summary

Calumet’s Q2 2026 operating improvement was concentrated in Specialty Products and Solutions, where better margins and higher production drove a major increase in adjusted EBITDA. Montana/Renewables also returned to positive adjusted EBITDA after its turnaround, while Performance Brands faced a cost-and-pricing mismatch. Investors’ next focus should be whether favorable specialty and renewable margins persist, whether working-capital conversion improves, and whether continued debt reduction can offset the company’s RIN obligations and interest burden.