U.S. specialty products producer Calumet reported record earnings in the third-quarter of this year. Adjusted earning before interest, tax and amortization hit U.S.$347.2 million, supported by exceptionally strong margins in its specialty products and solutions business, as constrained global paraffinic base oil supply lifted prices.
The company achieved base oil sales of 12,719 barrels per day on average in the first nine months of the year, up 8.6% over the same period in 2025, it reported.
Net income reached $273.3 million, equivalent to $2.91 per basic share, compared with analyst consensus estimates of $1.63 per share. Revenue increased 56% year over year to $1.68 billion. Adjusted EBITDA with tax attributes almost quadrupled from $92.5 million in the third quarter of 2025.
The SPS segment generated $248.1 million in adjusted EBITDA, compared with $80.2 million a year earlier. Segment margins increased to 23.2% from 11.8%, while adjusted gross profit reached $48.04 per barrel. Calumet attributed the improvement to a global shortage of specialty products, supply-chain disruptions and commercial performance. Specialty product margins exceeded $108 per barrel during the quarter.
Calumet said it had retired approximately $265 million of debt since July, reducing consolidated net leverage to around 3.0 times from 4.9 times at the end of 2025. The company also finalized a revised financing arrangement for its MaxSAF project, securing approximately $137 million in benefits under an amended U.S. Department of Energy loan guarantee while substantially reducing planned capital expenditure.
Management expects specialty product demand to remain strong into the fourth quarter, although planned maintenance at Shreveport and work at Montana Renewables will affect production. It also cautioned that current specialty margins reflect unusually tight market conditions and are unlikely to represent a permanent earnings level as global base oil supply recovers.