Calumet’s adjusted EBITDA more than triples, yet net income slips (NASDAQ: CLMT)

What happened

Calumet, Inc. (NASDAQ: CLMT) reported third-quarter Adjusted EBITDA with Tax Attributes of $347.2 million, up $254.7 million from $92.5 million a year earlier.

That measure counts the value of federal clean fuel production credits as well as operating earnings. Adjusted EBITDA without the credits was $322.0 million, against $69.6 million in the third quarter of 2025. Sales rose to $1.68 billion from $1.08 billion.

Net income moved the other way. It was $273.3 million, or $2.91 a basic share, compared with $313.4 million, or $3.61, a year earlier. Calumet said two non-cash items hit it hard: an unrealized derivatives loss of $113.8 million and non-cash RINs related items of $176.7 million. RINs are renewable identification numbers.

Key numbers

Metric	Latest	Change	Source
Adjusted EBITDA with Tax Attributes, Q3	$347.2 million	from $92.5 million, +$254.7 million	Calculated from SEC 8-K Exhibit 99.1
Net income, Q3	$273.3 million	from $313.4 million, -12.8%	Calculated from SEC 8-K Exhibit 99.1
Basic earnings per common share, Q3	$2.91	from $3.61, -$0.70	Calculated from SEC 8-K Exhibit 99.1
Specialty Products and Solutions Adjusted EBITDA, Q3	$248.1 million	from $80.2 million, +$167.9 million	Calculated from SEC 8-K Exhibit 99.1
Montana Renewables Adjusted EBITDA with Tax Attributes, Q3	$110.6 million	from $17.1 million, +$93.5 million	Calculated from SEC 8-K Exhibit 99.1
Net income (loss), nine months	-$139.6 million	from $3.5 million, -$143.1 million	Calculated from SEC 8-K Exhibit 99.1

Read more: Calumet (CLMT) company research

Where the earnings came from

The Specialty Products and Solutions segment did most of the work. Its Adjusted EBITDA was $248.1 million, compared with $80.2 million a year earlier. Its margin widened to 23.2% from 11.8%. Calumet credited a constructive market, a global shortage in specialty products, and strong production and commercial execution.

Montana Renewables reported segment Adjusted EBITDA with Tax Attributes of $110.6 million, up from $17.1 million. Calumet said this mainly reflected a strong renewables margin. Its headline figure was narrower: $80.4 million, or $1.86 per gallon, for Montana Renewables, LLC before adjusting for the roughly 13.2% noncontrolling interest. Calumet called it record earnings in the first full quarter of operations since SET2.

Performance Brands went the other way. Its Adjusted EBITDA fell to $9.1 million from $13.2 million. Calumet said margins were squeezed by a normal price lag as it raised prices to match rising feedstock costs. The result included $7.0 million from a business interruption insurance claim.

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Where the debt reduction stands

Calumet said it has retired approximately $265 million of debt since July. On July 15, it redeemed all $100.0 million of its 9.75% Senior Notes due 2028 that were issued in January 2025, at 102.438% of principal plus accrued interest. On July 31, Calumet Montana repaid and ended its Montana terminal asset financing for $15.5 million in cash.

On Oct. 25, the issuers redeemed $150 million of the 9.75% Senior Notes due 2028 that were issued in June 2023, again at 102.438% of principal. That came after quarter end, so it is not in the Sept. 30 balance sheet.

Interest expense fell to $50.8 million from $53.6 million a year earlier. Cash was $225.2 million on Sept. 30, up from $125.1 million at Dec. 31, 2025. Nine-month operating cash flow was $224.6 million, against $7.6 million used in the same period of 2025.

Why it matters

OptimistFi has argued that Calumet's equity works only if specialty-products pricing and renewable-fuels execution turn volatile refining assets into repeatable cash flow before the balance sheet forces dilution. This quarter supports that view. Both profit engines improved together, and high-cost notes are being retired. The word that matters is repeatable.

The filing points to conditions that may not last. It credits a global shortage in specialty products and lasting industry supply chain disruptions. Nine-month results are still a net loss of $139.6 million, against net income of $3.5 million a year earlier.

Adjusted figures also leave out costs. Non-cash equity-based compensation was $38.0 million in the quarter, up from $5.9 million, and Adjusted EBITDA adds it back. General and administrative expense was $70.1 million, against $31.4 million.

The balance sheet remains heavy. Long-term debt less the current portion was $2.15 billion on Sept. 30, up from $2.08 billion at Dec. 31, 2025. Stockholders' equity was a deficit of $870.7 million.

What's next

Calumet's next report covers fourth-quarter 2026. The test is whether Specialty Products and Solutions and Montana Renewables hold their third-quarter earnings and whether debt keeps falling after the Oct. 25 redemption. A slide in either segment would weaken the case.

Calumet also says it is advancing its MaxSAF expansion. The goal is approximately 200 million gallons of annual SAF production and 17,000 barrels per day of total product sales by year-end 2028. The filing calls this a forward-looking expectation.

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