Calumet (CLMT) Financials

Calumet’s second-quarter 2026 results show a meaningful sequential improvement in operating performance, but the company remains financially stressed. Revenue increased to $1.45 billion from $1.03 billion in Q1 2026 and $1.03 billion in Q2 2025. However, the company still reported a $95.9 million net loss, or $1.09 per diluted share.

The latest quarter was substantially better than Q1 2026, when Calumet posted a $317.0 million net loss and a $171.3 million operating loss. Still, results remain far below Q3 2025, when the company reported $313.4 million of net income and $322.9 million of operating income. The supplied data therefore points to a volatile earnings profile rather than a consistent recovery.

• Revenue rebounded sharply: Q2 2026 revenue rose approximately 41% from Q2 2025 and 40% from Q1 2026, suggesting improved sales volumes, pricing, product mix or a combination of these factors.
• Gross profitability improved sequentially: Calumet generated $18.3 million of gross profit in Q2 2026, compared with an $87.5 million gross loss in Q1. The gross margin improved to roughly 1.3% from negative 8.5%.
• Operating losses narrowed: The $40.0 million operating loss in Q2 2026 was substantially better than the $171.3 million loss in Q1 2026. Selling, general and administrative expense also declined to $52.9 million from $78.3 million.
• Net losses improved sequentially: The Q2 net loss of $95.9 million was less than one-third of Q1’s $317.0 million loss. Diluted loss per share improved to $1.09 from $3.64.
• Working-capital balances increased: Accounts receivable rose to $417.0 million and inventories increased to $421.0 million at June 30, 2026. These balances could support higher sales, although they also require significant cash investment.
• Debt refinancing activity was significant: During Q1 2026, Calumet repaid approximately $999.9 million of debt and issued $1.096 billion of new debt. Net financing cash flow was positive $73.4 million, indicating active liability management but not meaningful deleveraging.
• Capital spending remains ongoing: Q1 2026 capital expenditures were $13.2 million, down from $17.6 million in Q1 2025 and $20.0 million in Q1 2024. Lower spending may conserve cash, but it could also limit investment in operating capacity.
• Operating cash flow remained negative: Calumet used $86.2 million in operating cash during Q1 2026, compared with outflows of $29.3 million in Q1 2025 and $94.0 million in Q1 2024. The company is not yet consistently converting operations into cash.
• Leverage remains extremely high: Q2 2026 short- and long-term debt totaled approximately $2.26 billion, while total liabilities reached $3.69 billion against $2.80 billion of assets. Debt was lower than in Q1 2026 but higher than the approximately $2.06 billion reported in Q3 2024.
• Shareholders’ equity remains deeply negative: Total common equity was negative $1.14 billion at June 30, 2026, worsening from negative $695.3 million in Q3 2025. Retained earnings were negative $1.99 billion, reflecting the cumulative impact of prior losses.

Liquidity is also a concern. Cash and equivalents declined to $109.8 million at the end of Q2 2026 from $138.6 million at the end of Q1, while total current liabilities increased to $1.22 billion. Based on the reported figures, current assets covered less than one dollar of current liabilities, even before considering the quality and liquidity of inventory and receivables.

Investor takeaway: Calumet’s improved Q2 operating results are an encouraging development, particularly after the severe Q1 loss. However, the company still faces negative operating cash flow, high interest costs of $52.0 million in Q2, substantial leverage and deeply negative equity. Investors should view the latest improvement as an early sign of stabilization rather than confirmation of a durable turnaround.