Calumet, Inc.’s Fourth Quarter 2024 Financial Results and Strategic Moves
Calumet, Inc. (Calumet or the Company), a leading independent petroleum products marketing and logistics company, reported its financial results for the fourth quarter and full year ended December 31, 2024. The company reported a net loss of $40.7 million, or $0.47 per share, for the fourth quarter of 2024, compared to a net loss of $48.0 million, or $0.59 per share, in the same period in 2023. For the full year 2024, the net loss was $222.0 million, or $2.67 per share, compared to a net income of $48.1 million, or $0.59 per share, in 2023.
Despite the net loss, Calumet reported an Adjusted EBITDA of $56.6 million for the fourth quarter of 2024, which was an improvement from $39.7 million in the same period in 2023. For the full year 2024, the Adjusted EBITDA was $260.5 million, up from $194.8 million in 2023.
Montana Renewables and Specialty Products and Solutions
Calumet’s Montana Renewables business, which focuses on renewable fuels and power generation, received initial funds from the U.S. Department of Energy (DOE) loan in February 2025. This funding will support the continued expansion of Calumet’s renewable fuels business. In addition, the Specialty Products and Solutions segment, which includes the Performance Brands business, posted record sales volume and cost improvement in 2024.
Strategic Moves
CEO Todd Borgmann stated, “The past twelve months of strategic activity at Calumet has fundamentally reset the company’s foundation.” One of the significant moves was the successful conversion to a C-Corporation in May 2024. This conversion was expected to improve Calumet’s access to capital markets and provide more flexibility in its business operations.
Another strategic move was the announcement of the sale of Calumet’s Royal Purple® industrial business for $110 million. This sale was part of the company’s efforts to focus on its core business and delever its balance sheet. The proceeds from the sale will be used to pay down debt.
Impact on Consumers and the World
The financial results and strategic moves by Calumet, Inc. could have a significant impact on consumers and the world in various ways:
- Consumers: The record sales volume and cost improvement in the Specialty Products and Solutions segment could lead to better products and services for consumers. In addition, the sale of the Royal Purple® industrial business could result in more focus on the core business, potentially leading to improved customer service and product offerings.
- Industry: The renewable fuels business, which is a part of Montana Renewables, could benefit from the initial funding received from the DOE loan. This could lead to increased production and availability of renewable fuels, potentially reducing the dependence on fossil fuels and contributing to a more sustainable energy future.
- Economy: The sale of the Royal Purple® industrial business could help Calumet delever its balance sheet and improve its financial position. This could lead to increased investor confidence and potentially higher stock prices, benefiting shareholders. In addition, the proceeds from the sale could be used to invest in growth opportunities, potentially creating new jobs and contributing to economic growth.
Conclusion
Calumet, Inc.’s financial results for the fourth quarter and full year ended December 31, 2024, showed a net loss for the period but also highlighted significant strategic moves, including the successful conversion to a C-Corporation, the sale of the Royal Purple® industrial business, and the initial funding for Montana Renewables from the DOE loan. These moves are expected to position the company to succeed against its top priority of deleveraging the balance sheet and growing cash flows. The impact of these moves on consumers, the industry, and the economy is significant and could lead to improved products and services, increased production of renewable fuels, and potential economic growth.
Calumet, Inc. continues to focus on its core business and position itself for long-term success. With a renewed focus on its Specialty Products and Solutions segment and a growing renewable fuels business, the company is well-positioned to meet the evolving needs of its customers and contribute to a more sustainable energy future.
