Calumet, Inc. /DE Segments Disclosure
18. Segments and Related Information
Segment Reporting
The Company determines its reportable segments based on how the business is managed internally for the products sold to customers, including how results are reviewed and resources are allocated. This is consistent with how our chief
operating decision maker (“CODM”), who is our Chief Executive Officer, allocates resources and makes decisions. The Company’s operations are managed by the CODM using the following reportable segments:
| ● | Specialty Products and Solutions. The Specialty Products and Solutions segment consists of our customer-focused solutions and formulations businesses, covering multiple specialty product lines, anchored by our unique integrated complex in Northwest Louisiana. In this segment, we manufacture and market a wide variety of solvents, waxes, customized lubricating oils, white oils, petrolatums, gels, esters, and other products. Our specialty products are sold to domestic and international customers who purchase them primarily as raw material components for consumer-facing and industrial products. |
| ● | Montana/Renewables. The Montana/Renewables segment is composed of our Montana specialty asphalt facility and our Montana Renewables facility. At our Montana Renewables facility, we process a variety of geographically advantaged renewable feedstocks into renewable diesel, sustainable aviation fuel, and renewable naphtha that are distributed into renewable markets in the western half of North America. At our Montana specialty asphalt facility, we process Canadian crude oil into conventional gasoline, diesel, jet fuel and specialty grades of asphalt, with production sized to serve local markets. |
| ● | Performance Brands. The Performance Brands segment includes our fast-growing portfolio of high-quality, high-performing brands. In this segment, we blend, package, and market high performance products through our Royal Purple, Bel-Ray, and TruFuel brands. |
| ● | Corporate. The Corporate segment includes enterprise-level activities that incur shared costs and support the Company’s operations, including treasury, capital structure and liquidity management, executive leadership, legal, accounting, tax, information technology, and governance functions, as well as merger and acquisition-related expenses, capital markets transactions, and other corporate activities that are not directly attributable to the operating segments. |
During the first quarter of 2025, the CODM changed the definition and calculation of Adjusted EBITDA to exclude RINs incurrence expense (see item (k) below). The Company’s RINs incurrence expense is calculated by multiplying the RINs obligation in the period incurred (based on actual results) by the spot price on the day the RINs obligation is incurred for each accounting period. The resulting non-cash incurrence expenses are included in cost of sales in the statement of operations. The Company believes that this revised definition and calculation better reflects the performance of the Company’s business segments including cash flows because it excludes these non-cash fluctuations. Adjusted EBITDA has been revised for all periods presented to consistently reflect this change. For all periods presented in the Company’s consolidated balance sheets and consolidated results of operations, we did not purchase any RINs.
The accounting policies of the reporting segments are the same as those described in the summary of significant accounting policies as disclosed in Note 2 — “Summary of Significant Accounting Policies,” except that the disaggregated financial results for the reporting segments have been prepared using a management approach, which is consistent with the basis and manner in which management internally disaggregates financial information for the purposes of assisting internal operating decisions. The Company accounts for inter-segment sales and transfers using market-based transfer pricing. The Company will periodically refine its expense allocation methodology for its segment reporting as more specific information becomes available and the industry or market changes. The CODM uses Adjusted EBITDA (a non-GAAP financial measure) to evaluate performance and allocate resources to each segment, primarily through periodic budgeting and segment performance reviews. The Company defines Adjusted EBITDA for any period as EBITDA adjusted for (a) impairment; (b) unrealized gains and losses from mark-to-market accounting for hedging activities; (c) realized gains and losses under derivative instruments excluded from the determination of net income (loss); (d) non-cash equity-based compensation expense and other non-cash items (excluding items such as accruals of cash expenses in a future period or amortization of a prepaid cash expense) that were deducted in computing net income (loss); (e) debt refinancing fees, extinguishment costs, premiums and penalties; (f) any net gain or loss realized in connection with an asset sale that was deducted in computing net income (loss); (g) amortization of turnaround costs; (h) LCM inventory adjustments; (i) the impact of liquidation of inventory layers calculated using the LIFO method; (j) RINs mark-to-market adjustments; (k) RINs incurrence expense; and (l) all extraordinary, unusual or non-recurring items of gain or loss, or revenue or expense.
Reportable segment information is as follows (in millions):
| Specialty | | | | | ||||||||||
Products and | Performance | Montana/ | |||||||||||||
Year Ended December 31, 2025 | Solutions | Brands | Renewables | Corporate | Total | ||||||||||
Sales: | | | | | | ||||||||||
External customers | $ | 2,633.0 | $ | 311.0 | $ | 1,193.1 | $ | — | $ | 4,137.1 | |||||
Inter-segment sales |
| 19.4 | 0.5 |
| — |
| — |
| 19.9 | ||||||
Total sales | $ | 2,652.4 | $ | 311.5 | $ | 1,193.1 | $ | — | $ | 4,157.0 | |||||
Inter-segment sales eliminations | (19.9) | ||||||||||||||
Sales | $ | 4,137.1 | |||||||||||||
Cost of sales | $ | 2,367.3 | $ | 232.8 | $ | 1,291.3 | $ | — | $ | 3,891.4 | |||||
Adjusted EBITDA | $ | 291.8 | $ | 47.9 | $ | (50.8) | $ | (77.7) | $ | 211.2 | |||||
Reconciling items to net loss: |
| |
| |
| |
| |
| | |||||
Depreciation and amortization |
| 74.2 |
| 5.5 |
| 109.5 |
| 0.7 |
| 189.9 | |||||
LCM / LIFO loss |
| 17.4 |
| 0.8 |
| 1.7 |
| — |
| 19.9 | |||||
Loss on impairment and disposal of assets |
| 1.3 |
| — |
| — |
| — |
| 1.3 | |||||
(Gain) on sale of business |
| — |
| (58.1) |
| — |
| 2.3 |
| (55.8) | |||||
Interest expense |
| 23.2 |
| 0.1 |
| 63.8 |
| 128.7 |
| 215.8 | |||||
Debt extinguishment costs |
| (0.2) |
| — |
| 47.5 |
| 0.1 |
| 47.4 | |||||
Unrealized gain on derivatives |
| (24.0) |
| — |
| — |
| — |
| (24.0) | |||||
RINs incurrence gain |
| (137.9) |
| — |
| (94.1) |
| — |
| (232.0) | |||||
RINs mark-to-market loss |
| 108.6 |
| — |
| 47.4 |
| — |
| 156.0 | |||||
Other (1) |
|
| |
| |
| |
| (8.1) | ||||||
Equity-based compensation and other items |
|
| |
| |
| |
| 14.4 | ||||||
Income tax benefit (2) |
|
| |
| |
| |
| (92.6) | ||||||
Noncontrolling interest adjustments |
|
| |
| |
| |
| 12.8 | ||||||
Net loss |
| |
| |
| | $ | (33.8) | |||||||
Capital expenditures | $ | 54.5 | $ | 0.5 | $ | 20.9 | $ | 0.8 | $ | 76.7 | |||||
PP&E, net | $ | 320.5 | $ | 29.0 | $ | 997.1 | $ | 6.4 | $ | 1,353.0 | |||||
| Specialty | | | | | ||||||||||
Products and | Performance | Montana/ |
| ||||||||||||
Year Ended December 31, 2024 | Solutions (3) | Brands (4) | Renewables (5) | Corporate | Total | ||||||||||
Sales: | | | | | | ||||||||||
External customers | $ | 2,789.3 | $ | 335.2 | $ | 1,064.9 | $ | — | $ | 4,189.4 | |||||
Inter-segment sales |
| 23.3 |
| 0.4 |
| — |
| — |
| 23.7 | |||||
Total sales | $ | 2,812.6 | $ | 335.6 | $ | 1,064.9 | $ | — | $ | 4,213.1 | |||||
Inter-segment sales eliminations | (23.7) | ||||||||||||||
Sales | $ | 4,189.4 | |||||||||||||
Cost of sales | $ | 2,600.3 | $ | 239.9 | $ | 1,118.4 | $ | — | $ | 3,958.6 | |||||
Adjusted EBITDA | $ | 222.5 | $ | 57.4 | $ | 22.3 | $ | (72.9) | $ | 229.3 | |||||
Reconciling items to net loss: |
| |
| |
| |
| |
| | |||||
Depreciation and amortization |
| 70.6 |
| 8.7 |
| 106.8 |
| 0.9 |
| 187.0 | |||||
LCM / LIFO loss |
| 0.2 |
| 0.6 |
| 11.5 |
| — |
| 12.3 | |||||
Loss on impairment and disposal of assets |
| 0.9 |
| — |
| 1.1 |
| — |
| 2.0 | |||||
Interest expense |
| 22.7 |
| 0.1 |
| 70.4 |
| 143.5 |
| 236.7 | |||||
Debt extinguishment costs |
| 0.1 |
| — |
| — |
| 0.3 |
| 0.4 | |||||
Unrealized gain on derivatives |
| (47.1) |
| — |
| — |
| — |
| (47.1) | |||||
RINs incurrence expense |
| 28.9 |
| — |
| 5.6 |
| — |
| 34.5 | |||||
RINs mark-to-market gain |
| (45.0) |
| — |
| (21.4) |
| — |
| (66.4) | |||||
Other |
|
| |
| |
| |
| 75.5 | ||||||
Equity-based compensation and other items |
|
| |
| |
| |
| 19.7 | ||||||
Income tax expense |
|
| |
| |
| |
| 0.8 | ||||||
Noncontrolling interest adjustments |
|
| |
| |
| |
| (4.1) | ||||||
Net loss |
| |
| |
| | $ | (222.0) | |||||||
Capital expenditures | $ | 49.5 | $ | 0.7 | $ | 43.3 | $ | 3.8 | $ | 97.3 | |||||
PP&E, net | $ | 351.6 | $ | 31.4 | $ | 1,051.0 | $ | 4.8 | $ | 1,438.8 | |||||
| Specialty | | | | | ||||||||||
Products and | Performance | Montana/ |
| ||||||||||||
Year Ended December 31, 2023 | Solutions (3) | Brands (4) | Renewables (6) | Corporate | Total | ||||||||||
Sales: | | | | | | ||||||||||
External customers | $ | 2,876.9 | $ | 310.3 | $ | 993.8 | $ | — | $ | 4,181.0 | |||||
Inter-segment sales |
| 17.2 |
| 0.3 |
| — |
| — |
| 17.5 | |||||
Total sales | $ | 2,894.1 | $ | 310.6 | $ | 993.8 | $ | — | $ | 4,198.5 | |||||
Inter-segment sales eliminations | (17.5) | ||||||||||||||
Sales | $ | 4,181.0 | |||||||||||||
Cost of sales | $ | 2,474.7 | $ | 228.2 | $ | 1,026.4 | $ | — | $ | 3,729.3 | |||||
Adjusted EBITDA | $ | 322.9 | $ | 47.9 | $ | 52.5 | $ | (68.8) | $ | 354.5 | |||||
Reconciling items to net income: |
| |
| |
| |
| |
| | |||||
Depreciation and amortization |
| 76.8 |
| 9.9 |
| 95.2 |
| 1.1 |
| 183.0 | |||||
LCM / LIFO (gain) loss |
| (2.1) |
| 2.0 |
| 35.7 |
| — |
| 35.6 | |||||
Loss on impairment and disposal of assets |
| — |
| — |
| 3.5 |
| — |
| 3.5 | |||||
Interest expense |
| 27.9 |
| 0.1 |
| 65.4 |
| 128.3 |
| 221.7 | |||||
Debt extinguishment costs | — | — | 0.4 | 5.5 | 5.9 | ||||||||||
Unrealized (gain) loss on derivatives |
| (28.4) |
| — |
| (4.6) |
| — |
| (33.0) | |||||
RINs incurrence expense |
| 71.7 |
| — |
| 22.3 |
| — |
| 94.0 | |||||
RINs mark-to-market gain |
| (201.1) |
| — |
| (89.1) |
| — |
| (290.2) | |||||
Other |
|
| |
| |
| |
| 60.9 | ||||||
Equity-based compensation and other items |
|
| |
| |
| |
| 20.2 | ||||||
Income tax expense |
|
| |
| |
| |
| 1.6 | ||||||
Noncontrolling interest adjustments | 3.2 | ||||||||||||||
Net income |
| |
| |
| | $ | 48.1 | |||||||
Capital expenditures | $ | 82.2 | $ | 2.3 | $ | 234.6 | $ | 0.6 | $ | 319.7 | |||||
PP&E, net | $ | 373.0 | $ | 33.4 | $ | 1,097.9 | $ | 2.0 | $ | 1,506.3 | |||||
| (1) | For the year ended December 31, 2025, Adjusted EBITDA for the Montana/Renewables segment excluded an $11.7 million non-cash gain resulting from the release of a previously recorded liability. |
| (2) | For the year ended December 31, 2025, income tax benefit primarily represents the income tax benefit generated by Montana/Renewables. |
| (3) | For the years ended December 31, 2024 and 2023, Adjusted EBITDA for the Specialty Products and Solutions segment included a $6.2 million and $9.5 million gain recorded in cost of sales in the consolidated statements of operations, respectively, for proceeds received under the Company’s property damage insurance policy. |
| (4) | For the years ended December 31, 2024 and 2023, Adjusted EBITDA for the Performance Brands segment included a $5.8 million and $8.2 million gain recorded in cost of sales in the consolidated statements of operations, respectively, for proceeds received under the Company’s business interruption insurance policy. |
| (5) | For the year ended December 31, 2024, Adjusted EBITDA for the Montana/Renewables segment included a $19.6 million gain recorded in cost of sales in the consolidated statements of operations for proceeds received under the Company’s property damage insurance policy. |
| (6) | For the year ended December 31, 2023, Adjusted EBITDA for the Montana/Renewables segment excluded a $50.6 million charge to cost of sales in the consolidated statements of operations for losses under firm purchase commitments. |
Other Segment Expenses primarily consisted of selling, general and administrative, and taxes other than income taxes, all of which are included in operating costs and expenses in the consolidated statements of operations.
Geographic Information
International sales accounted for less than ten percent of consolidated sales in each of the years ended December 31, 2025, 2024, and 2023, respectively.
Product Information
The Company offers specialty, fuels, renewable fuels and packaged products primarily in categories consisting of lubricating oils, solvents, waxes, gasoline, diesel, jet fuel, asphalt, heavy fuel oils, renewable fuels, high-performance branded specialty products, and other specialty and fuels products. The following table sets forth the major product category sales for each segment (dollars in millions):
| Year Ended December 31, |
| ||||||||||||||
2025 | 2024 | 2023 |
| |||||||||||||
Specialty Products and Solutions: | | | | | | | | | | | | | ||||
Lubricating oils | $ | 752.0 |
| 18.2 | % | $ | 788.6 |
| 18.8 | % | $ | 763.8 |
| 18.3 | % | |
Solvents |
| 401.6 |
| 9.7 | % |
| 407.3 |
| 9.7 | % |
| 398.5 |
| 9.5 | % | |
Waxes |
| 152.4 |
| 3.7 | % |
| 156.3 |
| 3.7 | % |
| 163.9 |
| 3.9 | % | |
Fuels, asphalt and other by-products |
| 1,327.0 |
| 32.1 | % |
| 1,437.1 |
| 34.4 | % |
| 1,550.7 |
| 37.1 | % | |
Total | $ | 2,633.0 |
| 63.7 | % | $ | 2,789.3 |
| 66.6 | % | $ | 2,876.9 |
| 68.8 | % | |
Montana/Renewables: |
| |
| |
| |
| |
| |
| | ||||
Gasoline | $ | 128.1 |
| 3.1 | % | $ | 140.8 |
| 3.4 | % | $ | 167.2 |
| 4.0 | % | |
Diesel |
| 102.6 |
| 2.5 | % |
| 114.6 |
| 2.7 | % |
| 144.8 |
| 3.5 | % | |
Jet fuel |
| 19.6 |
| 0.5 | % |
| 18.2 |
| 0.4 | % |
| 20.5 |
| 0.5 | % | |
Asphalt, heavy fuel oils and other |
| 159.0 |
| 3.8 | % |
| 159.6 |
| 3.8 | % |
| 148.1 |
| 3.5 | % | |
Renewable fuels |
| 783.8 | 18.9 | % | 631.7 | 15.1 | % | 513.2 | 12.3 | % | ||||||
Total | $ | 1,193.1 |
| 28.8 | % | $ | 1,064.9 |
| 25.4 | % | $ | 993.8 |
| 23.8 | % | |
Performance Brands: | $ | 311.0 |
| 7.5 | % | $ | 335.2 |
| 8.0 | % | $ | 310.3 |
| 7.4 | % | |
Consolidated sales | $ | 4,137.1 |
| 100.0 | % | $ | 4,189.4 |
| 100.0 | % | $ | 4,181.0 |
| 100.0 | % | |
Major Customers
During the years ended December 31, 2025, 2024, and 2023 the Company had no customer that represented 10% or greater of consolidated sales.
Major Suppliers
During the year ended December 31, 2025, the Company had four counterparties that supplied approximately 87.8% of its crude oil supply. During the year ended December 31, 2024, the Company had three counterparties that supplied approximately 83.6% of its crude oil supply. During the year ended December 31, 2023, the Company had two counterparties that supplied approximately 90.2% of its crude oil supply.
Historical Timeline
| Fiscal Year | Filed | |
|---|---|---|
| 2025 | Feb 27, 2026 | Showing above |
| 2024 | Mar 3, 2025 | |
About Segments Disclosures
Segment disclosures break a company into its reportable operating units, revealing revenue, profit, and asset allocation that consolidated financial statements obscure. Under ASC 280, segments must match how the chief operating decision maker views the business, providing a window into internal management structure and resource allocation priorities.
Key signals: compare segment margins to identify which units drive profitability and which destroy value. Watch for changes in the number of reportable segments — segment aggregation or disaggregation often coincides with strategic shifts or attempts to obscure declining performance. Intersegment elimination patterns reveal internal pricing practices. The reconciliation between segment totals and consolidated figures exposes corporate overhead allocation and unallocated items. Geographic revenue concentration highlights regulatory and currency exposure. Compare segment-level capital expenditure against segment revenue to assess where management is investing for future growth versus harvesting existing assets.