Calumet (CLMT) Q2 2026 Earnings Call Transcript
Calumet (CLMT) reported Q2 2026 Adjusted EBITDA with Tax Attributes of $175.2 million, driven by Specialty Products and Solutions at $161.7 million. Net loss was $95.9 million, mainly from non-cash RINs expenses of $163.6 million. The company said it repaid $115 million of debt in July, including $100 million note redemption, and discussed SAF expansion and hedges.
How this was made
The 30-second read
Why it matters
Traders can update models for cash flow, leverage trajectory, and SAF run-rate ramp assumptions, while stress-testing downside from RIN volatility and turnaround execution risk.
Market read
The call combines balance-sheet progress (debt redemption and leverage ratio) with a detailed SAF capacity ramp plan, but also flags RINs mark-to-market as a major driver of reported net loss.
What to watch
The SAF ramp depends on reactor reconfiguration downtime and turnaround execution; any delay could push the EBITDA capture timeline and weaken the credibility of the 2027-2028 capacity targets.
Background
This is Calumet’s Q2 2026 earnings call transcript, covering segment Adjusted EBITDA, leverage, and the Montana Renewables SAF expansion plan.
Ticker impact
Calumet reported Q2 2026 Adjusted EBITDA with tax attributes of $175.2M, plus debt reduction of $115M in July and SAF run-rate targets.
Moderate positive bias, with upside contingent on execution of the SAF reactor reconfiguration and continued cash flow to sustain debt paydown.
Key disclosed datapoints include $90M cash flow from operations, $115M July debt reduction (including $100M note redemption), and a stated SAF run-rate ramp to 120-150M gallons by spring 2027 and 200M by 2028. Offsetting negatives include a large net loss driven by non-cash RINs mark-to-market and foregone margin during the MaXTA-150 turnaround.
Market effects
Highlights ongoing structural tightness in specialty products and base oil imbalances, which can influence refining and renewable fuels sentiment.
Montana Renewables execution and turnaround timing can affect regional renewable diesel and SAF supply expectations.
References Middle Eastern capacity outages and European production losses, reinforcing global base oil supply constraints that may support margins.
Counterpoint
Despite strong operating cash flow and debt paydown, the reported net loss is heavily driven by non-cash RINs mark-to-market, so equity risk may remain elevated if RIN economics deteriorate.
Key entities
- companyCalumet, Inc.
Reported Q2 2026 Adjusted EBITDA with tax attributes of $175.2M, $90M cash flow from operations, and $115M debt reduction in July, alongside SAF expansion targets.
- business_segmentMontana Renewables
Discussed MaXTA-150 expansion turnaround impacts and MaxSAF 150 progress, including current SAF run rate and future capacity targets.
- business_segmentSpecialty Products and Solutions segment
Reported $161.7M Adjusted EBITDA driven by specialty product shortages and commercial execution, partially offset by LIFO headwinds in Performance Brands.
- business_segmentPerformance Brands segment
Reported $6.3M Adjusted EBITDA, citing a $7.3M LIFO inventory headwind from input cost spikes before pricing actions.
