Calumet (CLMT) Q4 2025 Earnings Call Transcript

Motley Fool Transcribing, The Motley Fool

Fri, February 27, 2026 astatine 9:28 AM CST 31 min read

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Feb. 27, 2026 astatine 9 a.m. ET

• Chief Executive Officer — Todd Borgmann

• Chief Financial Officer — David A. Lunin

• Executive Vice President, Corporate Development — Bruce Fleming

• President, Specialties — Scott Obermeier

• Vice President, Investor Relations — John Kompa

Todd Borgmann: Thanks, John. Good morning, and invited to Calumet’s 4th fourth 2025 net call. 2025 is simply a defining, high-impact twelvemonth present astatine Calumet. We began the twelvemonth with a credible program and ample imaginable amidst heavy marketplace uncertainty. Throughout the year, hazard was aggressively managed and execution of our strategy turned Calumet’s imaginable to actualized results. We opened the twelvemonth with a mandate to show captious strategical objectives. First, we needed to show that our Specialties concern would consistently make durable escaped currency travel amidst ample marketplace uncertainty. Second, Montana Renewables needed to beryllium stand-alone fiscal resilience and a structural advantage. Third, we needed to person the transformative DOE indebtedness astatine Montana Renewables.

And last, execute worldly deleveraging of the equilibrium sheet. As we bespeak connected 2025 today, I judge Calumet achieved each of these strategical milestones. Over the people of the year, we reduced fiscal risk, expanded our structural net power, and repositioned Calumet for semipermanent worth creation. Let maine locomotion you done immoderate of the highlights, and we volition commencement with the equilibrium sheet. We ended 2024 with restricted radical leverage lasting supra 8x. We faced near-term maturities and elevated currency involvement costs. Montana Renewables was awaiting DOE backing and the wide equity markets were hesitant to prosecute with cardinal worth plays similar ours. Today, that representation is precise different.

For afloat twelvemonth 2025, we delivered $293 cardinal of adjusted EBITDA with taxation attributes, astir a 30% summation twelvemonth implicit year. We reduced restricted indebtedness by much than $220 million. Net recourse leverage improved from 8.2x to 4.9x. We eliminated our 2026 and 2027 indebtedness maturities, and Montana Renewables successfully closed its DOE loan, removing astir $80 cardinal of yearly currency indebtedness work portion besides improving its enactment presumption successful this industry. The result was a cardinal displacement successful fiscal durability. This result was driven by structural improvements. Across the system, we dramatically reduced costs and drove accrued reliability. Fixed costs were down implicit $40 million.

Water attraction costs astatine Montana Renewables were down implicit $20 million, arsenic were our crude proscription costs successful the Specialty business, greatly enhancing provender flexibility and our quality to dial successful circumstantial specialty products for our customers. And arsenic a effect of improved reliability and less repairs, superior spending was besides reduced by astir $20 million. At the aforesaid time, our ops squad accrued accumulation by astir 1.3 cardinal barrels connected the year. Results similar this travel from an full enactment moving towards a communal goal.