Calumet (NASDAQ: CLMT) experienced a nearly 11% drop in its stock price on Friday as traders responded to its latest quarterly report. While the company reported a 9% year-over-year increase in revenue, reaching just under $1.04 billion, the results were not enough to avoid a net loss. The oil products firm still showed a GAAP-based loss for the fourth quarter despite improvements over the prior year.
Calumet’s net loss for the quarter stood at $37 million. This translates to $0.43 per share. It is a slight improvement from the $40.7 million loss in the same period in 2024. The loss per share was far worse than the $0.22 forecast by analysts. Though the company beat the expected revenue of $1.02 billion, the disappointing earnings figure caused a wave of selling among investors.
Among the company’s three divisions, two saw a decline in their EBITDA figures. The Montana/Renewables segment, in particular, turned from a $12.4 million profit to a $5.4 million loss, a sharp reversal in performance. The performance brands division also underperformed, with EBITDA dropping from $16.3 million to $5.4 million.
The only positive takeaway from the report was the specialty products and solutions division. Its adjusted EBITDA jumped to $88.5 million from $51.9 million, marking a significant gain. Still, this strong performance in one unit wasn’t enough to change the overall negative sentiment surrounding the company.
In his comments, Calumet CEO Todd Borgmann labeled 2025 as a "defining year" for the company. He highlighted the implementation of approximately $100 million in cost reductions. He also mentioned improvements in the balance sheet. He claims these will "position the company for its next phase of growth."
Despite these efforts, skepticism remains. A market analyst expressed concern. He stated, 'I think every stock should be given a chance to turn things around. But aside from the decent revenue increase, I'm not seeing enough evidence of improvement with Calumet just yet.' The mixed message from management and the weak earnings results have left many investors hesitant.
For those considering whether to invest in Calumet at this moment, the analyst added, 'I'd sit on the sidelines with this stock until we get indications that it's heading onto a firmer growth path.'