INDIANAPOLIS – Calumet, Inc. (NASDAQ: CLMT ), a producer and marketer of specialty brand products and renewable fuels, with a current market cap of $1.89 billion, announced preliminary financial results for the fourth quarter of 2024. The company expects to report a net loss in the range of 54 to $24 million and adjusted EBITDA between $45 million and $60 million for the quarter ended December 31, 2024. According to InvestingPro according to the data, the company faces profitability challenges with a trailing twelve month gross profit margin of just 5.33%.
CEO Todd Borgmann highlighted strategic progress, citing the closing of the Department of Energy loan and operational milestones in the company’s specialty business and Montana Renewables. Borgmann highlighted exceptional production in the specialty sector, 50 million gallons per year of sustainable aviation fuel (SAF) at Montana Renewables and operational goals met. InvestingPro analysis reveals that while the company is operating with a significant debt burden of USD 2.18 billion, its stock has shown strong momentum with a 35% gain over the past six months.
An overhaul of the Great Falls facility in November, completed in December, contributed to the company’s performance, with an approximately $20 million impact on insurance proceeds related to a steam drum burst incident. Seasonal effects on fuel and asphalt operations were mentioned, which are expected to continue in the first quarter of 2025.
Calumet anticipates 2025 capital expenditures of $50 million to $70 million for specialty work and $10 million to $20 million for maintenance at Montana Renewables, excluding the MaxSAF project, which is expected to cost $40 million to $60 million. With a current ratio of 0.63, InvestingPro determines that a company’s short-term liabilities exceed its liquid assets, making these capital expenditure plans particularly important for investors to monitor. For detailed analysis and 8 additional key insights on Calumet, investors can access the comprehensive Pro Research Report available on InvestingPro.
The company’s financial information has been prepared based on current information and has not been fully finalized or audited by independent accountants, indicating that actual results could differ materially from these preliminary estimates. Investors are cautioned not to place undue reliance on this preliminary financial information.
Calumet, headquartered in Indianapolis, operates twelve facilities across North America and serves a variety of consumer and industrial markets. The company’s forward-looking statements in the press release are subject to risks and uncertainties that could cause actual results to differ materially from expectations.
This article is based on a press release and is intended to provide readers with a factual summary of the company’s preliminary financial results for the fourth quarter of 2024.
In other recent news, A Calumet specialty Products (NASDAQ: ) Partners received a $1.44 billion loan from the Department of Energy to expand its renewable fuel production capacity. The loan is expected to significantly strengthen Calumet’s financial position and enable the production of approximately 300 million gallons of sustainable aviation fuel (SAF) and 30 million gallons of renewable diesel (RD). Calumet should receive the first tranche of $782 million in January 2025.
HC Wainwright and TD Cowen maintained a Buy rating on Calumet stock, citing a stronger balance sheet and potential margin increases due to a constrained renewable fuel supply environment beginning in 2025. Additionally, Calumet announced a significant $150 million equity investment in Montana Renewables Limited from its own balance sheets.
In its third quarter 2024 earnings report, Calumet reported strong performance and strategic advancements, including record production volumes in its specialty products segment. The company also highlighted its growing role in the sustainable jet fuel market, with plans to significantly increase production capacity by 2026. As part of these recent developments, Calumet is focusing on reducing leverage and capitalizing on organic growth opportunities.
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