Calumet Specialty Products Partners

Calumet expects to reach a sustainable aviation fuel run rate of over 120 million gallons by spring 2027 while projecting its restricted group leverage ratio will surpass 3x next quarter. The company reported $175 million of adjusted EBITDA with tax attributes in the second quarter, up from $50.1 million in the first quarter, and drove over $90 million of cash flow from operations. Management highlighted accelerated deleveraging actions including calling $100 million of notes and repurchasing a sale-leaseback for $115 million, and outlined a staged SAF ramp targeting 80 million to 100 million gallons by year-end before reaching the spring 2027 target. The renewables expansion is described as a novel, capital-efficient project that saves hundreds of millions of dollars compared to a mega project, while the company plans to capture over $50 million of EBITDA at its CMR segment before reconfiguration.

Calumet shares jumped more than 4% on Wednesday after the company announced it is redeeming all $100 million of its 9.75% senior notes due 2028. Two wholly owned subsidiaries will redeem the notes at a price of slightly over 102.4% of par value. The move is part of a broader strategy to reduce debt, following a reduction in borrowings under its revolving credit facility in the second quarter. CFO David Lunin said the company is well positioned to continue accelerating deleveraging while investing in growth opportunities. Calumet still carries significant leverage, with long-term debt of just under $2.3 billion against nearly $2.8 billion in assets as of its most recent quarter.

The global aliphatic hydrocarbon solvents and thinners market is forecasted to surge to USD 6.81 billion by 2032, climbing from USD 5.26 billion in 2026 with a projected CAGR of 4.4%. Growth is propelled by heightened consumption in key sectors such as coatings, adhesives, and industrial maintenance, with the mineral spirits segment estimated to hold the largest share by type and the paints and coatings segment leading by application. Asia Pacific is estimated to hold the largest market share, driven by strong demand from paints and coatings amid massive construction activities in manufacturing powerhouses such as China, India, and Japan. Key players include ExxonMobil Corporation, Shell, Phillips 66, SK Geocentric, and Calumet.