0002013745-26-000016
SEC filingQ1 2026 revenue grew modestly 3.6% to $1.0B amid feedstock volume dynamics, but refining pressures drove gross losses wider to -$87.5M, operating losses to -$171.3M, and net loss to -$317M as margins compressed.
Calumet, Inc. reported Q1 2026 results reflecting revenue resilience at $1.0 billion, up 3.6% from $993.9 million in the prior year quarter. This growth stems from the company's focus on feedstock volumes run at its facilities, which directly supports meeting customer demands as noted in the filing. However, these dynamics did not translate to profitability, with gross profit expanding negatively to -$87.5 million from -$81.4 million—a 7.5% worsening—yielding a -8.5% gross margin. The broader loss reflects cost pressures outpacing revenue gains in the refining operations, where product volumes and related transfers under agreements like the Step-Out Inventory Sales Agreement play a key role.
Operating income plunged to -$171.3 million, a stark 251.7% deterioration from -$48.7 million, with operating margin at -16.6%. This escalation underscores heightened challenges in core operations, compounded by the need to manage feedstock and product volumes at included locations. Net income followed suit, reaching -$317.0 million versus -$162.0 million last year, driving diluted EPS to -$3.64 from -$1.87—a 94.7% decline. These results highlight how operational volume dependencies exposed the business to amplified losses when margins compressed.
Cash flow from operations deteriorated to a use of -$86.2 million from -$29.3 million, signaling weaker generation from ongoing activities amid the net loss environment. Capital expenditures moderated to $13.2 million from $17.6 million, contributing to free cash flow of -$99.4 million. This cash profile reflects disciplined spending while navigating liquidity tied to inventory and feedstock management protocols outlined in management discussion, including volume determinations at company expense.
Overall, the quarter illustrates Calumet's reliance on feedstock and product volume handling to drive topline, yet vulnerability to cost dynamics in refining. Investors should note the absence of material adverse effects from fiduciary or legal matters per filing disclosures, but persistent loss expansion raises questions on path to breakeven amid these operational signals.