INDIANAPOLIS - Calumet, Inc. (NASDAQ: CLMT), a manufacturer and marketer of specialty branded products and renewable fuels, with a current market capitalization of $1.89 billion, announced preliminary financial results for the fourth quarter of 2024. The company expects to report a net loss ranging from $54 million to $24 million and an Adjusted EBITDA between $45 million and $60 million for the quarter ended December 31, 2024. According to InvestingPro data, the company has been facing profitability challenges with a trailing twelve-month gross profit margin of just 5.33%.
CEO Todd Borgmann highlighted strategic progress, citing the closing of a Department of Energy loan and operational milestones in the company's specialties business and at Montana Renewables. Borgmann noted exceptional production in the specialties sector, a 50 million gallon annualized Sustainable Aviation Fuel (SAF) run rate at Montana Renewables, and operational cost targets met. InvestingPro analysis reveals that while the company operates with a significant debt burden of $2.18 billion, its stock has shown strong momentum with a 35% gain over the past six months.
The Great Falls facility's turnaround in November, completed in December, contributed to the company's performance, with an insurance proceeds impact of approximately $20 million related to a steam drum crack incident. Seasonal effects on the fuel and asphalt business were mentioned, expected to continue into the first quarter of 2025.
Calumet anticipates capital expenditures for 2025 to be $50 million to $70 million in the specialties business and $10 million to $20 million for maintenance at Montana Renewables, excluding the MaxSAF project, which is expected to cost $40 million to $60 million. With a current ratio of 0.63, InvestingPro identifies that the company's short-term obligations exceed its liquid assets, making these capital expenditure plans particularly significant for investors to monitor. For detailed analysis and 8 additional key insights about Calumet, investors can access the comprehensive Pro Research Report available on InvestingPro.
The company's financial data has been prepared based on current information and has not been fully completed nor audited by independent accountants, indicating that actual results could materially differ from these preliminary estimates. Investors are cautioned not to place undue reliance on this preliminary financial data.
Calumet, headquartered in Indianapolis, operates twelve facilities across North America and serves a variety of consumer-facing and industrial markets. The company's forward-looking statements in the release are subject to risks and uncertainties that could cause actual results to differ materially from expectations.
This news article is based on a press release statement and aims to provide readers with a factual summary of the company's preliminary financial results for the fourth quarter of 2024.
In other recent news, Calumet Specialty Products (NASDAQ:CLMT) Partners received a $1.44 billion Department of Energy loan to expand its renewable fuels production capacity. The loan is expected to significantly strengthen Calumet's financial position and enable the production of approximately 300 million gallons of Sustainable Aviation Fuel (SAF) and 30 million gallons of Renewable Diesel (RD). The first tranche of $782 million is slated to be received by Calumet in January 2025.
H.C. Wainwright and TD Cowen maintained a Buy rating on Calumet shares, citing a stronger balance sheet and potential margin enhancements due to a supply-constrained environment for renewable fuels starting in 2025. Additionally, Calumet announced a significant $150 million equity investment into Montana Renewables Limited from its own balance sheet.
In its Q3 2024 earnings call, Calumet reported robust performance and strategic advancements, including record production volumes in its specialty products segment. The company also emphasized its growing role in the sustainable aviation fuel market, with plans to substantially increase production capacity by 2026. As part of these recent developments, Calumet is focusing on deleveraging and capitalizing on organic growth opportunities.
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