Calumet Inc reported QQ2 2024 revenue of $1.1337 billion, up 11.4% year over year and 12.7% quarter over quarter, underscoring ongoing top-line momentum in an improving demand backdrop. However, the quarter highlighted a pronounced divergence between revenue growth and profitability: gross profit of $63.8 million yields a gross margin of 5.63%, and operating income was a modest $6.2 million (operating margin ≈ 0.55%), while net income was negative at $-38.3 million. The substantial interest expense of $56.8 million and other non-operating headwinds drove the bottom line into negative territory, resulting in an EPS of $-0.48 (YoY EPS change: -77.8%), despite EBITDA of $64.1 million and a positive operating cash flow of $66.5 million.
From a balance-sheet perspective, Calumet remains highly leveraged with total debt of $2.1337 billion and net debt of $2.1267 billion. The company reports negative equity of $-566.1 million, a current ratio of 0.652, and an interest-coverage ratio of 0.109x, signaling elevated liquidity and coverage risks. Notably, free cash flow (FCF) was healthy at $51.5 million, supported by working capital improvements of $51.6 million and non-cash items such as depreciation and amortization of $45.9 million. Capital expenditures were modest at $15 million for the period.
The QQ2 2024 results point to a bifurcated narrative: demand-driven revenue growth and resilient cash generation on the one hand, and a fragile profitability and balance-sheet sustainability on the other. The outlook hinges on the ability to deleverage, improve operating margins, and advance renewable/alternative-feedstock initiatives (e.g., MontanaRenewables) to diversify earnings and reduce reliance on volatile upstream economics. Absent clearer forward guidance, investors should monitor debt maturities, refinancing opportunities, and any management commentary on cost structure optimization and strategic monetization of the Renewable & Specialty segments.