Calumet, Inc.

What they do

Calumet manufactures, formulates, and markets specialty branded products and renewable fuels. It operates through three reportable segments: Specialty Products and Solutions (solvents, waxes, lubricating oils, white oils, petrolatums, gels, esters), Performance Brands (Royal Purple, Bel-Ray, TruFuel), and Montana/Renewables (renewable diesel, sustainable aviation fuel, and specialty asphalt from two Great Falls, Montana facilities).

Revenue drivers

• Specialty Products and Solutions — Core segment selling solvents, waxes, lubricating oils and other specialty products; Q2 2026 Adjusted EBITDA of $161.7M, up from $66.8M a year ago.
• Performance Brands — Blends, packages, and markets high-performance products under Royal Purple, Bel-Ray, and TruFuel; Q2 2026 Adjusted EBITDA of $6.3M, down from $13.5M in Q2 2025.
• Montana/Renewables — Produces renewable diesel, sustainable aviation fuel, renewable hydrogen, and other renewables; Q2 2026 Adjusted EBITDA with Tax Attributes of $26.6M, up from $16.3M year-over-year.

Recent performance

Q2 2026 net loss was $(95.9)M (basic EPS $(1.09)), driven by non-cash RINs expense of $163.6M and derivative gains. Adjusted EBITDA with Tax Attributes was $175.2M, compared to $76.5M in Q2 2025. Specialty Products and Solutions delivered record Adjusted EBITDA of $161.7M. Revenue for Q2 2026 was $1.45B versus $1.08B in Q1 2026. Six-month net loss was $(412.9)M, with Adjusted EBITDA with Tax Attributes of $225.3M.

Strategy

Management is focused on debt reduction, having retired $115M of debt in July 2026, including redemption of the 9.75% Senior Notes and early termination of a Montana terminal asset financing. The company completed the first phase of the MaxSAF 150 expansion at Montana Renewables, which is expected to capture robust renewable margins. It is also evaluating a faster, highly capital-efficient next stage expansion. The company aims to simultaneously accelerate deleveraging and advance growth strategies across both specialties and renewables.

Risks

• Commodity price and margin volatility — Specialty product margins and renewable fuel margins can be adversely affected by macroeconomic factors, supply-demand dynamics, and government regulations.
• RFS compliance costs — The company faces significant non-cash RINs expenses (e.g., $163.6M in Q2 2026) and potential litigation over small refinery exemption petitions.
• High leverage and negative equity — As of June 30, 2026, long-term debt was $2.23B, total liabilities $3.69B, and shareholder equity was negative $1.14B.
• Operational hazards and disruptions — Operations are exposed to terrorism, cyberattacks, system failures, and supply chain disruptions that could reduce production or delay deliveries.

Outlook

Management expects the MaxSAF 150 expansion to contribute robust renewable margins in coming quarters. They anticipate continued use of cash from operations to reduce debt. The EPA's 2026-2027 RVOs, which set record renewable fuel volumes, are expected to support the biofuels industry. The company also expects to maintain strong operational execution in a favorable specialty products margin environment.