Calumet (NASDAQ:CLMT) Releases Earnings Results, Misses Expectations By $1.16 EPS

Key Points

• Calumet reported a significant EPS miss: quarterly earnings were a loss of $1.09 per share versus the $0.07 consensus estimate, although revenue rose 40.8% year over year to $1.45 billion, exceeding expectations.
• Underlying operating performance improved: adjusted EBITDA reached $175 million, led by Specialty Products and Solutions, while Montana Renewables is expected to contribute more as SAF production scales.
• Shares fell 5.7% after the results to $39.48, while analysts maintained a consensus “Hold” rating with a $37.75 target price; Performance Brands remained a weak spot due to rising input costs and a $7 million LIFO headwind.

Calumet (NASDAQ:CLMT - Get Free Report) released its quarterly earnings results on Friday. The oil and gas company reported ($1.09) earnings per share for the quarter, missing the consensus estimate of $0.07 by ($1.16), FiscalAI reports. The business had revenue of $1.45 billion for the quarter, compared to analysts' expectations of $1.12 billion. The firm's revenue for the quarter was up 40.8% on a year-over-year basis. During the same quarter in the prior year, the company posted ($1.70) earnings per share.

Here are the key takeaways from Calumet's conference call:

• Adjusted EBITDA reached $175 million in Q2, supported by strong performance across Specialties and Montana Renewables, while cash flow from operations exceeded $90 million despite a $70 million working-capital build.
• Calumet’s restricted-group leverage ratio fell below 4x, with management expecting it to surpass 3x next quarter after calling $100 million of notes and repurchasing $115 million of truck-rack sale-leaseback debt.
• Specialty Products and Solutions generated $161.7 million of Adjusted EBITDA, more than double the prior year, benefiting from pricing actions, record production, elevated fuel margins, and structurally tight global base-oil markets.
• Montana Renewables is expected to contribute materially more in the second half after completing the first MaxSAF 150 phase; management targets an 80–100 million gallon SAF run rate by year-end, 120–150 million by spring 2027, and up to 200 million by 2028 through a lower-cost reactor reconfiguration.
• Performance Brands’ Adjusted EBITDA declined to $6.3 million as rapidly rising input costs outpaced pricing actions and created a $7 million LIFO-related headwind, although management characterized the weakness as timing-related and expects recovery as pricing catches up.

Calumet Trading Down 5.7%

Shares of NASDAQ:CLMT traded down $2.40 on Friday, reaching $39.48. 2,260,759 shares of the company's stock were exchanged, compared to its average volume of 1,211,422. The company has a fifty day moving average of $37.98 and a 200-day moving average of $32.63. Calumet has a twelve month low of $12.94 and a twelve month high of $45.20. The company has a market capitalization of $3.44 billion, a price-to-earnings ratio of -18.28 and a beta of 0.71.

Insider Buying and Selling

In other Calumet news, Director Daniel J. Sajkowski sold 4,240 shares of the firm's stock in a transaction on Wednesday, July 1st. The stock was sold at an average price of $36.16, for a total transaction of $153,318.40. Following the transaction, the director owned 77,718 shares in the company, valued at $2,810,282.88. This trade represents a 5.17% decrease in their position. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available at the SEC website. Also, major shareholder Group Heritage sold 626,998 shares of the firm's stock in a transaction on Friday, May 15th. The stock was sold at an average price of $32.54, for a total value of $20,402,514.92. Following the transaction, the insider owned 12,980,211 shares in the company, valued at approximately $422,376,065.94. This trade represents a 4.61% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. 3.15% of the stock is currently owned by insiders.

Institutional Inflows and Outflows

A number of hedge funds and other institutional investors have recently bought and sold shares of CLMT. Intech Investment Management LLC raised its holdings in shares of Calumet by 10.3% during the 4th quarter. Intech Investment Management LLC now owns 21,957 shares of the oil and gas company's stock worth $436,000 after buying an additional 2,047 shares in the last quarter. HighTower Advisors LLC acquired a new stake in Calumet in the fourth quarter valued at about $398,000. CIBC Bancorp USA Inc. acquired a new stake in Calumet in the third quarter valued at about $353,000. Voleon Capital Management LP bought a new position in Calumet in the third quarter valued at about $385,000. Finally, Brooklyn Investment Group grew its position in Calumet by 2,710.8% in the third quarter. Brooklyn Investment Group now owns 19,591 shares of the oil and gas company's stock valued at $358,000 after acquiring an additional 18,894 shares during the last quarter. Institutional investors and hedge funds own 34.41% of the company's stock.

Analyst Ratings Changes

Several equities analysts have recently commented on CLMT shares. TD Cowen reaffirmed a "hold" rating on shares of Calumet in a research report on Wednesday, June 3rd. The Goldman Sachs Group upped their price objective on Calumet from $36.00 to $40.00 and gave the company a "neutral" rating in a report on Thursday, July 30th. Finally, Weiss Ratings upgraded Calumet from a "sell (e+)" rating to a "sell (d-)" rating in a research report on Monday, May 11th. One investment analyst has rated the stock with a Buy rating, four have assigned a Hold rating and one has assigned a Sell rating to the company. According to data from MarketBeat, the company has an average rating of "Hold" and a consensus target price of $37.75.

Calumet Company Profile

Calumet Specialty Products Partners, L.P. NASDAQ: CLMT is an independent provider of high-value, essential product solutions derived from both petroleum and renewable feedstocks. The company operates an integrated network of manufacturing plants, blending terminals and storage facilities across North America, delivering customized products and technical services to industrial, automotive, consumer and agricultural end markets. By leveraging its scale and technical expertise, Calumet tailors supply chain and formulation solutions to meet stringent regulatory and performance requirements.

Calumet's product portfolio includes specialty lubricants and base oils for high-performance applications; process oils and waxes for food-grade, cosmetic and packaging uses; industrial solvents and cleaning solutions; and fuel additives designed to optimize engine performance and emissions.

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