Calumet Inc is a producer of specialty products, including base oils, specialty oils, solvents, esters, and waxes, as well as a variety of fuel and fuel-related products, including asphalt and heavy fuel oils. The company manufactures, formulates, and markets a variety of specialty branded products to customers in various consumer-facing and industrial markets.
Performance Overview
Calumet Inc (CLMT, Financial) reported a net loss of $39.1 million for the second quarter of 2024, compared to a net loss of $22.3 million in the same period last year. The company's revenue for the quarter was $1,133.7 million, up from $1,017.8 million in Q2 2023. Despite the increase in revenue, the company missed analyst estimates, which projected an earnings per share (EPS) of -0.46 and revenue of $1,181.51 million.
Segment Performance
Calumet Inc (CLMT, Financial) operates through three main segments: Specialty Products and Solutions (SPS), Performance Brands (PB), and Montana/Renewables (MR).
- Specialty Products and Solutions (SPS): The SPS segment reported an Adjusted EBITDA of $65.8 million, up from $61.0 million in Q2 2023. This increase was primarily due to higher volumes, despite facing commodity headwinds.
- Performance Brands (PB): The PB segment reported an Adjusted EBITDA of $14.1 million, compared to $12.2 million in the same quarter last year, benefiting from a 30% growth in year-over-year volumes.
- Montana/Renewables (MR): The MR segment reported an Adjusted EBITDA of $7.6 million, down from $13.0 million in Q2 2023. The decline was attributed to lower results from the specialty asphalt refinery plant as commodity spreads tightened.
Financial Metrics
Key financial metrics from the earnings report include:
| Metric | Q2 2024 | Q2 2023 |
|---|---|---|
| Net Loss | $(39.1) million | $(22.3) million |
| Revenue | $1,133.7 million | $1,017.8 million |
| Adjusted EBITDA | $66.8 million | $68.1 million |
| Gross Profit | $63.8 million | $71.5 million |
Commentary
"Calumet benefited from a strong operational quarter as we continue to demonstrate the strength of our specialties and renewables businesses," said Todd Borgmann, CEO. "As planned, Montana Renewables produced at full rates throughout the quarter, achieving record levels of throughput, pretreater utilization, SAF production, and Adjusted EBITDA all while continuing to decrease costs towards our $.70 per gallon year-end target."
Balance Sheet and Cash Flow
Calumet Inc (CLMT, Financial) reported total assets of $2,670.9 million as of June 30, 2024, compared to $2,751.3 million at the end of 2023. The company's total liabilities stood at $2,991.7 million, slightly down from $2,996.0 million at the end of 2023. The company also reported cash and cash equivalents of $7.0 million, down from $7.9 million at the end of 2023.
Analysis
Calumet Inc (CLMT, Financial)'s performance in Q2 2024 highlights both achievements and challenges. The increase in revenue and operational improvements in the SPS and PB segments are positive indicators. However, the net loss and the decline in Adjusted EBITDA for the MR segment underscore the challenges posed by commodity price fluctuations and tightening spreads. The company's ongoing efforts to optimize costs and enhance production efficiency will be crucial in navigating these challenges and driving future growth.
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Explore the complete 8-K earnings release (here) from Calumet Inc for further details.
