Calumet, Inc. Q4 FY2025 earnings call

• 2025 was a defining year where Calumet achieved strategic milestones like demonstrating specialties' durable free cash flow, Montana Renewables' financial resilience, DOE loan closure, and balance sheet deleveraging. - Reduced restricted debt, improved net recourse leverage, and made operational improvements like cost reduction, increased production, and reliability gains. - Specialty business had record production, strong margins, and benefited from commercial excellence. Montana Renewables improved operational reliability, cost competitiveness, and has upcoming expansion plans.

Specialty Products and Solutions Segment: Quarter - $88.5 million, Full Year - $291.8 million. Revenue contribution: Reflects commercial excellence, favorable product mix, cost reduction, and production growth. Performance Brand Segment: Quarter - $5.4 million, Full Year - $47.9 million. Adjusting for divestiture, it's third consecutive year of growth. Montana Renewables Segment: Fourth Quarter - Negative $5.4 million, Full Year - Positive $31.3 million. Adjusted EBITDA with tax attributes nearly break-even for full year, with cost reduction efforts and upcoming expansion.

• In specialties, expect cost discipline and commercial leadership to be durable, with opportunity for earnings growth through reliability gains. - Montana Renewables aims to execute MaxSaf 150 safely, on time, and on budget, continue improving cost levels, and leverage early mover advantage in SAF. - Planned capital expenditures for 2026: Total cap ex 115 million to 145 million, with heavy turnaround year including maintenance at multiple sites but expecting increased production due to reliability improvements.

• Regulatory uncertainties in the biofuels industry could impact results. - Market volatility in renewable fuel margins and RINs market could affect financial performance. - Turnaround execution risks, including potential issues during maintenance that could impact operational performance.

Q: Talk about macro setup and operational gating items at MaxSaf.

A: Regulatory uncertainty is part of the landscape, but Calumet is a low-cost provider. MaxSaf project adds durability, and with RVO improvement, creates a good dynamic.

Q: Views on RINs market and demand step-up.

A: Industry running at variable margin, waiting for RBO. Ghost capacity available but will ramp up thoughtfully.

Q: Fourth quarter Montana renewables margins.

A: Capture more than 100% of renewable diesel index margin, looking forward to RBO restoration.

Q: Capacity ramp up at MaxSaf and operational savings.

A: Expect incremental cost improvement, ramping up volume to reach 120 - 150 million gallons annually.

Q: Specialty margin strength and performance brand.

A: Specialty margin strong due to commercial excellence, production reliability; performance brand offset Royal Purple Industrial sale impact.

Q: SAF contracts structure.

A: Contracts intentionally diversified, some including scope 1 and 3 emissions certificates, confident in $1 - $2 per gallon premium