Calumet Reports Preliminary Financial Results for Q4 2024

Calumet's Preliminary Financial Results for Q4 2024

Calumet, Inc. (NASDAQ: CLMT) has released its preliminary selected financial results for the fourth quarter ended December 31, 2024. The report indicates projected losses between $54 million and $24 million, while Adjusted EBITDA is estimated to fall between $45 million and $60 million.

According to Todd Borgmann, CEO of Calumet, the company is making significant strides in its operations. This success is highlighted by the recent closing of a Department of Energy (DOE) loan and the company's operational milestones reached across its businesses. In the specialties division, Calumet recorded impressive production in Q4, following record volumes from the previous quarter.

Key achievements include the Montana Renewables project, which successfully underwent a planned turnaround in November 2024, achieving a 50 million gallon annualized SAF run rate while meeting a year-end operational cost target of just $0.70 per gallon. Additionally, the net loss and Adjusted EBITDA figures have benefitted from approximately $20 million in business interruption insurance claims related to a previously reported issue with a steam drum crack in the Montana Renewables division.

Calumet emphasizes a strong focus on reducing debt as it moves into 2025. The newly closed DOE loan, along with cash flow from earnings and anticipated capital raises, will facilitate paying down all of its 2026 notes. The company aims to continue this trajectory by de-leveraging its balance sheet and minimizing financing costs.

However, Calumet also notes that seasonal impacts will likely affect its fuel and asphalt businesses, which could continue into the first quarter of 2025. The company is planning capital expenditures ranging from $50 million to $70 million in the specialties segment and an additional $10 million to $20 million in maintenance for Montana Renewables before launching its MaxSAF project, which is expected to require funding between $40 million and $60 million in 2025.

These estimates are based on the most current data available, but Calumet warns that actual results may vary significantly from these projections as the financial reporting process has not been fully completed, and independent accounting reviews are still pending. Investors are advised to be cautious when interpreting these preliminary figures, as they are not replacements for comprehensive interim financial statements prepared in accordance with U.S. GAAP.

Calumet specializes in manufacturing, formulating, and marketing a range of specialty branded products and renewable fuels, serving numerous consumer and industrial markets. Headquartered in Indianapolis, Indiana, Calumet operates twelve facilities across North America.

In summary, while Calumet's financial outlook shows challenges ahead, the company remains committed to its strategic initiatives and operational achievements, aiming for improved financial stability and performance in 2025.