Calumet Reports Substantial Q1 Net Loss Driven by Higher RINs Costs and Derivative Losses

summarizeSummary

Calumet, Inc. reported a significantly wider net loss of $317.0 million for Q1 2026, primarily due to increased RINs obligations, derivative losses, and higher equity compensation, alongside a notable increase in cash used from operations.

check_boxKey Events

• Substantial Net Loss Reported

  The company reported a net loss of $317.0 million for Q1 2026, significantly wider than the $162.0 million loss in Q1 2025.

• Increased Cash Used in Operations

  Net cash used in operating activities increased to $86.2 million in Q1 2026, up from $29.3 million in Q1 2025, indicating higher cash burn.

• RINs Obligation and Derivative Losses Impact Results

  The net loss was heavily impacted by $147.4 million in non-cash RINs related expenses and a $102.7 million unrealized loss on derivative instruments.

• Debt Refinancing and Maturity Extension

  Calumet issued $405.0 million in 9.75% Senior Notes due 2031 to redeem existing 2026 and 2027 notes, and an additional $150.0 million in 2031 notes to repay revolving credit, extending debt maturities.

auto_awesomeAnalysis

Calumet, Inc. reported a significant net loss of $317.0 million for Q1 2026, a substantial increase from the $162.0 million loss in Q1 2025. This deterioration was primarily driven by a sharp rise in non-cash RINs related expenses to $147.4 million, a $102.7 million unrealized loss on derivatives, and a $37.9 million non-cash equity-based compensation expense. Operating cash flow also worsened, with the company using $86.2 million in Q1 2026 compared to $29.3 million in Q1 2025, and overall liquidity decreased. The company faced operational challenges, including a temporary suspension at its Shreveport facility due to feedstock contamination, resulting in an estimated loss of 750,000 barrels of production, though operations resumed in early April. Despite these negatives, Calumet successfully refinanced $405.0 million in senior notes and issued an additional $150.0 million in 9.75% Senior Notes due 2031, extending debt maturities. The Montana Renewables segment saw positive regulatory developments with the EPA's RVO final rule, expected to improve biobased diesel margins, and completed its MaxSAF 150 expansion, positioning it for higher-priced sustainable aviation fuel production. Investors should monitor the ongoing impact of RINs costs and the company's ability to translate positive developments in its renewables segment into improved profitability and cash flow.