Calumet 2025 Q2 Earnings Sharp Loss Widening, Revenue Declines

Calumet (CLMT) reported its fiscal 2025 Q2 earnings on Aug 08th, 2025, with disappointing results that significantly missed expectations. The company posted a net loss of $-147.90 million, or $1.70 per share, compared to a $-39.10 million loss, or $0.48 per share, in the same period a year ago. The loss widened by 278.3%, underscoring ongoing challenges. Revenue also fell by 9.4% to $1.03 billion, marking a significant decline from $1.13 billion in 2024 Q2.

Revenue
Calumet's total revenue declined in Q2 2025 to $1.03 billion, representing a 9.4% drop compared to $1.13 billion in Q2 2024. The decline reflects broader sector pressures and operational challenges. While the company did not break out specific segment revenue figures, the overall revenue trend highlights the need for continued cost discipline and diversification.

Earnings/Net Income
Calumet's losses widened sharply in Q2 2025, with the company reporting a net loss of $-147.90 million, or $1.70 per share, compared to a $-39.10 million loss, or $0.48 per share, in Q2 2024. The net loss increased by 278.3%, underscoring a challenging period for the company. This widening loss highlights the urgent need for strategic adjustments and cost management to restore profitability.

Price Action
The stock price of Calumet has edged up 0.70% during the latest trading day, has dropped 7.35% during the most recent full trading week, and has tumbled 9.85% month-to-date, reflecting the market's reaction to the earnings report.

Post-Earnings Price Action Review
The strategy of buying Calumet (CLMT) shares after their revenue raised quarter-over-quarter on the financial report release date and holding for 30 days resulted in a 4.50% return. However, this underperformed the benchmark by 42.60%, with a maximum drawdown of 61.72% and a Sharpe ratio of 0.02, indicating significant volatility and risk. Investors remain cautious amid the company's deepening losses and uncertain regulatory environment.

CEO Commentary
Louis Todd Borgmann, CEO, highlighted Calumet's Q2 2025 adjusted EBITDA of $76.5 million, driven by operational execution, cost discipline, and specialty product diversification. He noted resilience in specialty margins, with sales volumes exceeding 20,000 barrels per day for the third quarter, and emphasized the commercial success of TruFuel and integrated strategies in industrial lubricants. On the cost front, the CEO noted $42 million in operating cost reductions YTD despite higher energy costs. For Montana/Renewables, he stressed the segment’s competitive positioning amid low industry margins, enabled by feedstock flexibility, low costs, and MaxSAF expansion plans. Strategic regulatory developments, including the One Big Beautiful Bill Act and RVO updates, were viewed as supportive for long-term growth. The CEO remained optimistic about margin recovery and the potential for SAF to enhance profitability, while acknowledging near-term regulatory uncertainties.

Guidance
Calumet expects $50 million to $60 million in cash flow from the restricted group in H2 2025, with $35 million of working capital unwind already factored in. The company plans to leverage liquidity, revolver availability, and strategic actions to address remaining 2026 debt maturities. Montana/Renewables is on track for a $120 million to $150 million annual SAF production capacity by mid-2026 at a $20 million to $30 million capital cost. The CEO anticipates continued cost reductions and operational efficiency gains, while regulatory clarity on RVO and SREs is viewed as critical to margin normalization.

Additional News
Recent news in Nigeria includes the arrest of a suspected ritualist in Akwa Ibom for allegedly providing charms to armed robbers. The Akwa Ibom State Police Command apprehended Cletus Bassey, highlighting ongoing efforts to curb criminal activities supported by occult practices. Additionally, Nigeria’s foreign direct investment (FDI) has dropped by 70% in three months, raising concerns about economic stability. Another notable development is the rebranding of 9mobile to T2, marking a strategic shift in the telecommunications sector. These events reflect broader trends in Nigeria's business and political landscape as the country continues to navigate economic challenges and social issues.