Calumet Specialty Products Partners LP (CLMT) stock surged 10.20% in pre-market trading on Friday, following the release of its impressive third-quarter financial results that significantly exceeded analyst expectations.
The company reported a net income of $313.4 million for Q3 2025, translating to earnings per share (EPS) of $3.61. This marks a dramatic turnaround from the $1.18 loss per share in the same quarter last year and substantially outperformed the FactSet consensus estimate of a $0.35 loss per share. Revenue for the quarter came in at $1.078 billion, also surpassing the analyst forecast of $1.052 billion.
Several factors contributed to Calumet's strong performance. The company's cost reduction initiatives resulted in $61 million in operating cost savings year-over-year. Additionally, the Specialty Products & Solutions segment achieved record production levels and strong margins. Calumet's Montana Renewables project is progressing well, with sustainable aviation fuel (SAF) production on track to reach 120-150 million gallons annually by Q2 2026. The company also noted that approximately 100 million gallons of SAF are already fully committed or in advanced contracting stages, indicating strong demand for this product.
While Calumet announced a restatement of its Q1 and Q2 2025 financial statements due to a cash flow classification error, the company emphasized that this adjustment has no impact on revenue, net income, cash, or adjusted EBITDA. This reassurance, combined with the strong Q3 results, appears to have bolstered investor confidence, driving the significant pre-market stock price increase.
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