Calumet Specialty Products (CLMT) Q3 2026 Earnings Report

The call was strongly positive, driven by record adjusted EBITDA, exceptional Specialty Products and Solutions margins, record Montana Renewables performance, substantial debt reduction, lower leverage, successful completion of the Shreveport turnaround, and a substantially less capital-intensive MaxSAF expansion. The principal challenges were Performance Brands' EBITDA decline from higher input costs and pricing lag, catalyst damage and reduced Montana Renewables rates, temporary turnaround and tie-in downtime, and the possibility that current specialty margins will gradually moderate as global capacity and inventories are restored.

Management expects Montana Renewables to reach an 80 million annual gallon SAF run rate by year end, 120 million plus by spring, 120 to 150 million by the end of 2027, and ultimately, to 200 million gallons in 2028, while increasing throughput to 17 thousand barrels a day throughout the project. Specialty sales volumes of 20 thousand barrels a day are viewed as a floor, and after the Shreveport turnaround production is expected to move from the mid forties of thousands barrels a day to the fifties of thousands barrels a day making its own feedstock. Specialty margins are expected to remain pretty similar here for the foreseeable future; the company is not calling for $150 million of SPS to be the new norm forever, does not see a decline in the near future, and said what it did here is pretty reasonable to look at going forward, excluding the Shreveport turnaround and seasonality. The Shreveport turnaround and Montana Renewables and CMR tie in are each expected to take a little bit less than a month, while CMR is expected to generate positive EBITDA going forward, though not as much as it was operating at a full refinery. Calumet plans to continue using cash generated across all businesses to reduce the remaining $175 million of 2028 notes and the 2029 notes callable at par in January of 27.