Calumet Inc reported a challenging but progressing Q4 2024, delivering revenue of $949.5 million and an EBITDA of $61.0 million, while posting a net loss of $40.7 million and an EPS of -$0.47. The quarter underscored material leverage reduction and strategic progress across the Specialty Products and Montana Renewables segments. A foundational driver of value creation is the U.S. Department of Energy (DOE) loan closing in early 2025, which materially reduces annual cash debt service by roughly one-third for the next four years and enables a debt deleveraging trajectory that culminates in Montana Renewables monetization as market clarity improves. The company also completed the accretive sale of Royal Purple Industrial for approximately $110 million, which is expected to support near-term debt reduction and supply-chain optimization within the broader Specialty portfolio.
Montana Renewables delivered a meaningful turnaround in 2024, reducing on-site costs to about $0.70 per gallon (fully loaded with SG&A and insurance overhead) and achieving an on-site operating cost target of roughly $0.40 per gallon at scale. The business generated positive EBITDA in Q4 and full-year results, reinforcing a path to sustained cash generation as SAF capacity expands. Management outlined a conservative 2025 capex plan of $60–$90 million for the company, with MaxSAF expansion capex of $40–$60 million (about 45% funded by Montana Renewables’ operating cash flow and 55% funded by the DOE loan). Taken together, these actions position Calumet to deleverage meaningfully while capturing upside from SAF and renewable diesel dynamics.