Calumet, Inc. /DE
For the period ended Jun 30, 2025. Filed Aug 8, 2025.
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A company's report for each of its first three quarters. The financial statements are not audited. It shows how the business has moved since the last annual report, and what management says changed.
Jun 30, 2025 · Filed Aug 8, 2025
CLMT$39.64-8.6%Stored close · as of Nov 6, 2026
What changed in Management’s Discussion and Analysis?
Read the current filingPrevious report: 10-Q
Period ended 2025-03-31; filed 2025-05-12.
0001558370-25-007428
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of OperationsCurrent report: 10-Q
Period ended 2025-06-30; filed 2025-08-08.
0001558370-25-010921
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of OperationsThe baseline is this issuer’s latest earlier reporting period of the same form that was filed before the current report. A previous 10-Q is a different quarter, not a year-over-year comparison. Amendments are excluded.
Compared 122 previous paragraphs and 143 current paragraphs.
72 unchanged; 35 reworded; 30 added; 9 removed; 6 previous and 6 current paragraphs rearranged.
Tables are not compared: 45 previous and 61 current tables excluded. Dates, whitespace, punctuation and numbering changes are ignored; changes to financial figures remain significant.
A changed paragraph is not evidence that risk increased or decreased. An unchanged paragraph does not establish that risk stayed the same.
Added paragraphs (30)
Current report
One Big Beautiful Bill Act
Current report
On July 4, 2025, the United States Congress passed budget reconciliation bill H.R. 1 referred to as the One Big Beautiful Bill Act (the “OBBB”). The OBBB contains several changes to corporate taxation. While we are still assessing the impacts of the OBBB, the provisions that impact us the most are the following:
Current report
We are evaluating the effects of the legislation on our financial position, results of operations or liquidity in the future; however, we do not expect that the OBBB will have a material impact on our financial position, results of operations and
Current report
liquidity in 2025. As the legislation was signed into law after the close of our second quarter, the impacts are not included in our results of operations for the three and six months ended June 30, 2025.
Current report
Sale and Leaseback Transaction
Current report
On July 25, 2025, Calumet Shreveport Refining, LLC (“Calumet Shreveport”), a subsidiary of the Company, entered into a Property Schedule No. 2 (“Property Schedule No. 2”) with Stonebriar, which supplements the Master Lease Agreement, dated as of February 12, 2021 (together with Property Schedule No. 2, the “Lease Agreement”), among Calumet Shreveport and Stonebriar. The Lease Agreement relates to a sale and leaseback transaction (the “Sale and Leaseback Transaction”) whereby Calumet Shreveport sold and leased back certain of its property comprising the Shreveport refinery fuels terminal, truck rack and related piping and equipment for consideration of approximately $120 million. The assets sold and leased back do not include any fuels or specialty production inventory. The Lease Agreement has a seven-year term and requires Calumet Shreveport to make monthly rental payments of approximately $1.8 million, which represents a cost of capital of approximately 10.75% per year. The Lease Agreement provides that, subject to certain conditions, Calumet Shreveport may terminate the lease and repurchase the leased assets after a term of six years for consideration of approximately $42 million. Concurrently with Calumet Shreveport’s entry into the Lease Agreement, the Company reaffirmed a Continuing Guaranty in favor of Stonebriar, pursuant to which the Company guarantees to Stonebriar the performance of Calumet Shreveport’s obligations under the Lease Agreement.
Current report
Concurrently with the entry into the Lease Agreement, Calumet Shreveport and Stonebriar terminated Property Schedule No. 1, dated as of February 12, 2021 (“Property Schedule No. 1”), among Calumet Shreveport and Stonebriar. The Company applied approximately $40 million of the proceeds of the Sale and Leaseback Transaction to pay all of Calumet Shreveport’s outstanding obligations under Property Schedule No. 1.
Current report
11.00% Senior Notes due 2026
Current report
On May 24, 2025, Calumet Specialty Products Partners, L.P. and Calumet Finance Corp. (collectively, the “Issuers”) partially redeemed $150.0 million aggregate principal amount of the outstanding 11.00% Senior Notes due 2026 (the “2026 Notes”) at a redemption price of par, plus accrued and unpaid interest to, but not including, the redemption date.
Current report
On July 28, 2025, the Issuers delivered a notice of partial redemption for $80.0 million aggregate principal amount of the outstanding 2026 Notes at a redemption price of par, plus accrued and unpaid interest to, but not including, the redemption date. The redemption date for the 2026 Notes provided in the notice of partial redemption is August 12, 2025.
Current report
Second Quarter 2025 Update
Current report
Results of Operations for the Three and Six Months Ended June 30, 2025 and 2024
Current report
The components of the $118.3 million decrease in Specialty Products and Solutions segment sales for the three months ended June 30, 2025, as compared to the three months ended June 30, 2024, were as follows:
Current report
The components of the $26.6 million increase in Montana/Renewables segment sales for the three months ended June 30, 2025, as compared to the three months ended June 30, 2024, were as follows:
Current report
The components of the $15.4 million decrease in Performance Brands segment sales for the three months ended June 30, 2025, as compared to the three months ended June 30, 2024, were as follows:
Current report
Performance Brands segment sales decreased primarily due to lower sales volumes as a result of the divestiture of the Royal Purple Industrial business.
Current report
The components of the $54.0 million decrease in Specialty Products and Solutions segment gross profit for the three months ended June 30, 2025, as compared to the three months ended June 30, 2024, were as follows:
Current report
The decrease in Specialty Products and Solutions segment gross profit for the three months ended June 30, 2025 as compared to the same period in 2024, was primarily due to the impact of RINs prices. The mark-to-market impact of RINs prices resulted in a RINs expense of $55.4 million in the current period, as compared to an expense of $8.4 million in the prior year period. The favorable margin impact was the result of higher fuels and specialties margins during the current quarter. This impact was partially offset by lower production volumes as a result of the major turnaround conducted at our Shreveport facility. Refer to Note 2 — “Summary of Significant Accounting Policies” under Part I, Item 1 “Financial Statements — Notes to Unaudited Condensed Consolidated Financial Statements” for additional information related to our accounting for RINs.
Current report
The components of the $50.4 million decrease in Montana/Renewables segment gross profit for the three months ended June 30, 2025, as compared to the three months ended June 30, 2024, were as follows:
Current report
The components of the $3.0 million decrease in Performance Brands segment gross profit for the three months ended June 30, 2025, as compared to the three months ended June 30, 2024, were as follows:
Current report
The components of the $149.8 million decrease in Specialty Products and Solutions segment sales for the six months ended June 30, 2025, as compared to the six months ended June 30, 2024, were as follows:
Current report
Specialty Products and Solutions segment sales decreased period over period, primarily due to the lower commodity price environment in the current year period. While market demand remained strong in the current year period, sales were unfavorably impacted by lower volumes as a result of the planned turnaround that was conducted at our Shreveport facility in the current year period, coupled with the supply chain disruptions caused by a rail provider’s operational issues that delayed shipments.
Current report
The components of the $43.8 million increase in Montana/Renewables segment sales for the six months ended June 30, 2025, as compared to the six months ended June 30, 2024, were as follows:
Current report
Montana/Renewables segment sales increased primarily due to higher production volumes at our Montana Renewables facility during the current quarter compared to the prior period. This impact was coupled with the favorable volumes impact at our Montana specialty asphalt facility as a result of the reduction of feedstock and intermediates inventories in the current period. These impacts were partially offset by lower fuels prices.
Current report
The components of the $13.0 million decrease in Performance Brands segment sales for the six months ended June 30, 2025, as compared to the six months ended June 30, 2024, were as follows:
Current report
Performance Brands segment sales decreased primarily due to lower sales volumes as a result of the divestiture of the Royal Purple Industrial business.
Current report
Gross Profit. Gross profit decreased $267.3 million, or 187.8%, to a gross loss of $125.0 million in the six months ended June 30, 2025, from gross profit of $142.3 million in the same period in 2024. Gross profit for our business segments were as follows:
Current report
The components of the $173.3 million decrease in Specialty Products and Solutions segment gross profit for the six months ended June 30, 2025, as compared to the six months ended June 30, 2024, were as follows:
Current report
The components of the $90.9 million decrease in Montana/Renewables segment gross profit for the six months ended June 30, 2025, as compared to the six months ended June 30, 2024, were as follows:
Current report
The components of the $3.1 million decrease in Performance Brands segment gross profit for the six months ended June 30, 2025, as compared to the six months ended June 30, 2024, were as follows:
Removed paragraphs (9)
Previous report
First Quarter 2025 Update
Previous report
The components of the $31.5 million decrease in Specialty Products and Solutions segment sales for the three months ended March 31, 2025, as compared to the three months ended March 31, 2024, were as follows:
Previous report
The components of the $17.2 million increase in Montana/Renewables segment sales for the three months ended March 31, 2025, as compared to the three months ended March 31, 2024, were as follows:
Previous report
The components of the $2.4 million increase in Performance Brands segment sales for the three months ended March 31, 2025, as compared to the three months ended March 31, 2024, were as follows:
Previous report
Performance Brands segment sales increased primarily due to increases in sales volumes as a result of strong market demand and a continued focus on growing our presence in certain industrial markets, partially offset by the decrease in sales price.
Previous report
The components of the $119.3 million decrease in Specialty Products and Solutions segment gross profit for the three months ended March 31, 2025, as compared to the three months ended March 31, 2024, were as follows:
Previous report
The components of the $40.5 million decrease in Montana/Renewables segment gross profit for the three months ended March 31, 2025, as compared to the three months ended March 31, 2024, were as follows:
Previous report
The components of the $0.1 million decrease in Performance Brands segment gross profit for the three months ended March 31, 2025, as compared to the three months ended March 31, 2024, were as follows:
Previous report
General and administrative. General and administrative expenses decreased $11.2 million, or 48.1%, to $12.1 million in the three months ended March 31, 2025 from $23.3 million in the same period in 2024. The decrease was due primarily to a $13.6 million decrease in equity-based compensation related expenses, partially offset by a $1.8 million increase in professional services fees. The increase in professional services fees were primarily related to IT infrastructure support services.
Reworded paragraphs (35)
Previous wording
The historical unaudited condensed consolidated financial statements included in this Quarterly Report reflect all of the assets, liabilities and results of operations of Calumet, Inc. (“Calumet,” the “Company,” “we,” “our,” or “us”). The following discussion analyzes the financial condition and results of operations of the Company for the three months ended March 31, 2025. Stockholders should read the following discussion and analysis of our financial condition and results of operations in conjunction with our 2024 Annual Report and our historical unaudited condensed consolidated financial statements and notes included elsewhere in this Quarterly Report.
Current wording
The historical unaudited condensed consolidated financial statements included in this Quarterly Report reflect all of the assets, liabilities and results of operations of Calumet, Inc. (“Calumet,” the “Company,” “we,” “our,” or “us”). The following discussion analyzes the financial condition and results of operations of the Company for the three and six months ended June 30, 2025. Stockholders should read the following discussion and analysis of our financial condition and results of operations in conjunction with our 2024 Annual Report and our historical unaudited condensed consolidated financial statements and notes included elsewhere in this Quarterly Report.
Previous wording
On January 16, 2025, the Partnership and Calumet Finance Corp. (collectively, the “Issuers”) issued $100.0 million aggregate principal amount of a new series of the Issuers’ 9.75% Senior Notes due 2028 (the “2028 Mirror Issuance Notes”) in a private placement conducted pursuant to Rule 144A and Regulation S under the Securities Act. The 2028 Mirror Issuance Notes were issued at 98% of par for net proceeds of approximately $96.0 million, after deducting the initial purchasers’ discount and estimated offering expenses. The Company intends to use the net proceeds from the offering of the Notes to redeem a portion of the Issuers’ outstanding 2026 Notes on or before May 24, 2025.
Current wording
On January 16, 2025, the Issuers issued $100.0 million aggregate principal amount of a new series of the Issuers’ 9.75% Senior Notes due 2028 (the “2028 Mirror Issuance Notes”) in a private placement conducted pursuant to Rule 144A and Regulation S under the Securities Act. The 2028 Mirror Issuance Notes were issued at 98% of par for net proceeds of approximately $96.0 million, after deducting the initial purchasers’ discount and estimated offering expenses. The Company used the net proceeds from the offering of the Notes to redeem a portion of the Issuers’ outstanding 2026 Notes on May 24, 2025.
Previous wording
On January 10, 2025, MRL and the DOE, as guarantor and loan servicer, executed the DOE Loan for a $1.44 billion guaranteed loan facility to fund the construction and expansion of the renewable fuels facility owned by MRL. The loan guarantee is structured in two tranches, with the first tranche of approximately $781.8 million disbursed on February 18, 2025 (the “Funding Date”) to fund eligible expenses previously incurred by MRL. MRL has the ability to draw additional tranches of up to $658.0 million through a delayed draw construction facility from the beginning of construction in 2025 through the anticipated completion of the MaxSAFTM project in 2028, which includes a series of discrete, modular projects to enhance MRL’s SAF capacity. Under the MaxSAFTM project, we are planning to increase SAF capacity to approximately 150 million gallons per year within two years and approximately 300 million gallons at the completion of the project. The second tranche under the DOE Loan is subject to the achievement of certain milestone conditions. As a result, we can provide no assurance on the funding of the second tranche under the DOE Loan. Borrowings under the DOE
Current wording
On January 10, 2025, MRL and the DOE, as guarantor and loan servicer, executed the DOE Loan for a $1.44 billion guaranteed loan facility to fund the construction and expansion of the renewable fuels facility owned by MRL. The loan guarantee is structured in two tranches, with the first tranche of approximately $781.8 million disbursed on February 18, 2025 (the “Funding Date”) to fund eligible expenses previously incurred by MRL. MRL has the ability to draw additional tranches of up to $658.0 million through a delayed draw construction facility from the beginning of construction in 2025 through the anticipated completion of the MaxSAFTM project in 2028, which includes a series of discrete, modular projects to enhance MRL’s SAF capacity. Under the MaxSAFTM project, we are planning to increase SAF capacity to approximately 150 million gallons per year within two years and approximately 300 million gallons at the completion of the project. The second tranche under the DOE Loan is subject to the achievement of certain milestone conditions. As a result, we can provide no assurance on the funding of the second tranche under the DOE Loan. Borrowings under the DOE Loan are obligations of our unrestricted subsidiaries MRL and MRHL solely, and are non-recourse to the Company and its restricted subsidiaries.
Previous wording
Separately, the Company received $40.0 million of cash from Stonebriar on the Funding Date in satisfaction of the remaining conditions associated with the the Montana Refinery Asset Financing Arrangement.
Current wording
Separately, the Company received $40.0 million of cash from Stonebriar on the Funding Date in satisfaction of the remaining conditions associated with the Montana Refinery Asset Financing Arrangement.
Previous wording
During the first quarter of 2025, our business benefited from improvement in commodity margins relative to the fourth quarter and continued strength in specialty margins. Demand for our products remains strong across the enterprise. Following the turnaround that was completed in the fourth quarter, the Montana Renewables facility increased production throughout the quarter and returned to expected throughput. Our Montana Renewables business continued to achieve its operational cost target of $0.70 per gallon. Additionally, we continue to benefit from enhanced operational performance following the capital investments we have made over the past few years on projects designed to improve asset reliability. We continue to monitor the potential of tariffs across our business, but expect minimal impact given our U.S. based production footprint.
Current wording
During the second quarter of 2025, our business benefited from improvement in commodity margins relative to the first quarter and continued strength in specialty margins. Demand for our products remains strong across the enterprise. Our Montana Renewables facility achieved a quarterly production record during the second quarter of 2025. The facility continued to outperform its operational cost target of $0.70 per gallon. Additionally, we continue to benefit from enhanced operational performance following the capital investments we have made over the past few years on projects designed to improve asset reliability. We continue to monitor the potential of tariffs across our business, but expect minimal impact given our U.S. based production footprint.
Previous wording
In our Specialties Products and Solutions and Performance Brands segments, we continue to benefit from an attractive specialty product margin environment. As anticipated, first quarter results reflected typical seasonal impacts to the fuel and asphalt business. Demand for our products in these businesses remained strong in comparison to historical averages and we continue to leverage the benefits of our fully integrated specialty business in this market. As expected, margins continue to normalize relative to the record highs experienced in the second half of 2022 and early 2023. We expect the current margin environment for both specialty products and fuel based products to continue into the second quarter of 2025. We expect to commence a planned turnaround at our Shreveport facility in the second quarter. Further, we believe low unemployment and stabilizing raw material and packaging costs point to a continuation of healthy demand for the majority of our products. While the risk of recession and inflation continue to be monitored, our plants and the industry are expected to operate at high rates to meet market demand.
Current wording
In our Specialties Products and Solutions and Performance Brands segments, we continue to benefit from an attractive specialty product margin environment. Compared to the first quarter, our fuels and asphalt business benefitted from improved commodity margins related to the beginning of the driving season. Demand for our products in these businesses remained strong in comparison to historical averages and we continue to leverage the benefits of our fully integrated specialty business in this market. We expect the current margin environment for both specialty products and fuel based products to continue into the third quarter of 2025. Also, during the current quarter, our Shreveport facility successfully completed a major planned turnaround, on time and on budget. The facility is now fully operational, and we anticipate strong and consistent production throughout the remainder of 2025. Further, we believe low unemployment and stabilizing raw material and packaging costs point to a continuation of healthy demand for the majority of our products. While the risk of recession and inflation continue to be monitored, our plants and the industry are expected to operate at high rates to meet market demand.
Previous wording
In our Montana/Renewables segment, we continue to see strong demand for our renewable fuel products. We maintain our outlook of strong demand for renewable fuel products, including those we produce at our Montana Renewables facility. We believe demand for renewable fuel products will only continue to grow as a result of the increased focus on domestic fuel production, the rapid expansion of corporate decarbonization targets and the benefits thereto for the aviation industry, strategic alignment with the agricultural industry as renewable fuels represent a key end market, broad sustainability initiatives, and governmental mandates and incentives that have been passed or announced by national, state, and provincial jurisdictions across the globe. In light of the global decarbonization initiatives, forecasts of future renewable fuel availability still fall short of the necessary emissions reductions that would be required to reach established decarbonization and/or net-zero goals, as adequate supply does not exist yet. For example, in 2024, our Montana Renewables facility was one of the only facilities in North America capable of SAF production at scale. We believe that our advantage as a first-mover in the renewable fuels market positions us as a key producer for potential offtake partners to help them reach their announced targets.
Current wording
In our Montana/Renewables segment, we maintain our outlook of strong demand for renewable fuel products, including those we produce. We believe long-term demand for renewable fuel products will continue to grow as a result of the increased Federal policy focus on domestic fuel production, expansion of both voluntary and mandatory corporate decarbonization targets, particularly the global aviation industry, strategic alignment with the agricultural industry as a source of renewable feedstocks, broad sustainability initiatives, and Federal, State, Provincial and local governmental mandates and incentives that have been passed or announced in North America and globally. In aviation, forecasted SAF
Previous wording
Our Montana specialty asphalt facility continues to be impacted by WCS inflationary pressure, but remains strategically advantaged due to its local access to cost-advantaged Canadian conventional crude oil, while producing additional fuels and refined products for delivery into the regional market. Due to its strategic location and logistical capabilities, we believe that our Montana specialty asphalt facility is well-positioned to continue to serve long-standing customers in the regional market.
Current wording
Our Montana specialty asphalt facility continues to be favorably impacted as a result of our strategic location and timely export of wholesale volumes, as well as the beginning of the retail asphalt and paving season. These improvements were offset by inflated WCS prices in comparison to historical averages. The facility remains strategically advantaged due to its local access to cost-advantaged Canadian conventional crude oil, while producing additional fuels and refined products for delivery into the regional market. Due to its strategic location and logistical capabilities, we believe that our Montana specialty asphalt facility is well-positioned to continue to serve long-standing customers in the regional market.
Previous wording
We reported a net loss of $162.0 million in the first quarter 2025 versus a net loss of $41.6 million in the first quarter 2024. We reported Adjusted EBITDA (as defined in Note 12 — “Segments and Related Information” under Part I, Item 1 “Financial Statements — Notes to Unaudited Condensed Consolidated Financial Statements”) of $38.1 million in the first quarter 2025 versus $28.1 million in the first quarter 2024. We used cash from operating activities of $113.5 million in the first quarter 2025 versus using cash from operating activities of $94.0 million in the first quarter of 2024.
Current wording
We reported a net loss of $147.9 million in the second quarter 2025 versus a net loss of $39.1 million in the second quarter 2024. We reported Adjusted EBITDA (as defined in Note 12 — “Segments and Related Information” under Part I, Item 1 “Financial Statements — Notes to Unaudited Condensed Consolidated Financial Statements”) of $55.1 million in the second quarter 2025 versus $74.8 million in the second quarter 2024. We generated cash from operating activities of $2.6 million in the second quarter 2025 versus generating cash from operating activities of $66.5 million in the second quarter of 2024.
Previous wording
Please read Item 2 “Management’s Discussion and Analysis of Financial Condition and Results of Operations — Non-GAAP Financial Measures” for a reconciliation of EBITDA, Adjusted EBITDA, and Adjusted EBITDA with Tax
Current wording
Please read Item 2 “Management’s Discussion and Analysis of Financial Condition and Results of Operations — Non-GAAP Financial Measures” for a reconciliation of EBITDA, Adjusted EBITDA, and Adjusted EBITDA with Tax Attributes to Net income (loss), our most directly comparable financial performance measure calculated and presented in accordance with U.S. generally accepted accounting principles (“GAAP”).
Previous wording
Specialty Products and Solutions segment Adjusted EBITDA was $56.3 million in the first quarter 2025 versus $47.2 million in the first quarter 2024. Compared to the first quarter of 2024, Specialty Products and Solutions first quarter 2025 segment Adjusted EBITDA was favorably impacted by higher production volumes as a result of improved operational performance. This impact was partially offset by lower commodity margins in comparison to the prior year.
Current wording
Specialty Products and Solutions segment Adjusted EBITDA was $66.8 million in the second quarter 2025 versus $72.7 million in the second quarter 2024. Compared to the second quarter of 2024, Specialty Products and Solutions second quarter 2025 segment Adjusted EBITDA was favorably impacted by higher fuels and expanded specialties margins. This impact was offset by the absence of a $8.2 million realized gain for the sale of crack spread swaps in the prior year period. Further, the favorable margin impact in the current year period was offset by lower production volumes as a result of the major turnaround completed at our Shreveport facility.
Previous wording
Montana/Renewables segment Adjusted EBITDA with Tax Attributes was $3.3 million in the first quarter 2025 versus a loss of $13.4 million in the first quarter 2024. Montana/Renewables segment Adjusted EBITDA with Tax Attributes was affected by the phase out of the Blender’s Tax Credit (“BTC”) and the introduction of the Section 45Z Clean Fuel Production Tax Credit (“PTC”). While the BTC provided for a static credit of approximately $1.00 per gallon on renewable diesel and SAF sales, the value of the PTC is a variable function of feedstock carbon intensity measures. The estimated value of the PTCs we generated in the first quarter of 2025 was approximately $0.50 per gallon. Our Montana specialty asphalt business was adversely impacted by tightening of the WCS-WTI discount in comparison to the prior year period, which impacted fuels and asphalt margins. The segment as a whole benefitted from continued focus on operating cost efficiency.
Current wording
Montana/Renewables segment Adjusted EBITDA with Tax Attributes was $16.3 million in the second quarter 2025 versus $8.7 million in the second quarter 2024. Our Montana specialty asphalt business was favorably impacted as a result of timely export of wholesale volumes as well as the beginning of the retail asphalt and paving season. The segment as a whole benefitted from continued focus on operating cost efficiency, highlighted by the significant cost reductions for wash water and process materials as a result of improving certain operating unit efficiency at both our Montana Renewables facility and legacy Montana specialty asphalt facility. Montana/Renewables segment Adjusted EBITDA with Tax Attributes was affected by the phase out of the Blender’s Tax Credit (“BTC”) and the introduction of the Section 45Z Clean Fuel Production Tax Credit (“PTC”). While the BTC provided for a static credit of approximately $1.00 per gallon
Previous wording
Performance Brands segment Adjusted EBITDA was $15.8 million in the first quarter 2025 versus $13.4 million in the first quarter 2024. Results in our Performance Brands segment were favorably impacted from the strong volume growth across high performance products, in particular our TruFuel product line and our integrated Bel-Ray and private label industrial businesses. This segment continues to benefit from strong unit margins, reflective of stabilized input costs in our branded and consumer markets and a focus on growing our presence in industrial markets.
Current wording
Performance Brands segment Adjusted EBITDA was $13.5 million in the second quarter 2025 versus $14.1 million in the second quarter 2024. The change primarily reflects the divestiture of the Royal Purple Industrial (“RPI”) business at the end of the first quarter of 2025. As a result, second quarter 2025 results do not include contributions from the RPI business. Results in our Performance Brands segment were favorably impacted from the strong volume growth across high performance products, in particular our TruFuel product line and our integrated Bel-Ray and private label industrial businesses. This segment continues to benefit from strong unit margins, reflective of stabilized input costs in our branded and consumer markets.
Previous wording
Total Corporate costs represented a loss of $20.4 million of Adjusted EBITDA in the first quarter 2025 versus a loss of $19.1 million of Adjusted EBITDA in the first quarter 2024 due to higher labor and benefits related expenses.
Current wording
Total Corporate costs represented a loss of $20.1 million of Adjusted EBITDA in the second quarter 2025 versus a loss of $20.7 million of Adjusted EBITDA in the second quarter 2024.
Previous wording
As of March 31, 2025, we had total liquidity of $542.7 million comprised of $123.4 million of unrestricted cash, $80.0 million of restricted cash and $339.3 million of availability under our credit facilities. As of March 31, 2025, our revolving credit facilities had a $455.6 million borrowing base, $62.5 million in outstanding standby letters of credit and $53.8 million of outstanding borrowings. We believe we will continue to have sufficient liquidity from cash on hand, projected cash flow from operations, borrowing capacity and other means by which to meet our financial commitments, debt service obligations, contingencies, and anticipated capital expenditures for at least the next 12 months. Please read Item 2 “Management’s Discussion and Analysis of Financial Condition and Results of Operations — Liquidity and Capital Resources” for additional information.
Current wording
As of June 30, 2025, we had total liquidity of $379.2 million comprised of $110.6 million of unrestricted cash, $80.0 million of restricted cash and $188.6 million of availability under our credit facilities. As of June 30, 2025, our revolving credit facilities had a $461.4 million borrowing base, $64.4 million in outstanding standby letters of credit and $208.4 million of outstanding borrowings. We believe we will continue to have sufficient liquidity from cash on hand, projected cash flow from operations, borrowing capacity and other means by which to meet our financial commitments, debt service obligations, contingencies, and anticipated capital expenditures for at least the next 12 months. Please read Item 2 “Management’s Discussion and Analysis of Financial Condition and Results of Operations — Liquidity and Capital Resources” for additional information.
Previous wording
During the first quarter 2025, we recorded an accrued expense of $97.4 million for RINs, as compared to a gain of $64.5 million for RINs in the first quarter 2024. Our gross RINs Obligation, which includes RINs that are required to be secured through either our own blending or through the purchase of RINs in the open market, is spread across four compliance categories (D3, D4, D5 and D6). The gross RINs obligations may be satisfied by our own renewables blending, RIN purchases, or receipt of small refinery exemptions.
Current wording
During the second quarter 2025, we recorded an accrued expense of $90.8 million for RINs, as compared to an accrued expense of $20.2 million for RINs in the second quarter 2024. Our gross RINs Obligation, which includes RINs that are required to be secured through either our own blending or through the purchase of RINs in the open market, is spread across four compliance categories (D3, D4, D5 and D6). The gross RINs obligations may be satisfied by our own renewables blending, RIN purchases, or receipt of small refinery exemptions.
Previous wording
eliminating or narrowing the availability of the small refinery exemption under the RFS program, we could be required to purchase additional RINs in the open market, which may materially increase our costs related to RFS compliance and could have a material adverse effect on our results of operations and liquidity.
Current wording
Expenses related to RFS compliance have the potential to remain a significant expense for our two segments containing fuels products. If legal or regulatory changes occur that have the effect of increasing our RINs Obligation or eliminating or narrowing the availability of the small refinery exemption under the RFS program, we could be required to purchase additional RINs in the open market, which may materially increase our costs related to RFS compliance and could have a material adverse effect on our results of operations and liquidity.
Previous wording
includes labor, plant fuel, utilities, contract services, maintenance, transportation, RINs, depreciation and amortization and processing materials. We use gross profit as an indicator of our ability to manage margins in our business over the long-term. The increase or decrease in selling prices typically lags behind the rising or falling costs, respectively, of feedstocks throughout our business. Other than plant fuel, RINs mark-to-market adjustments, and LCM/LIFO adjustments, production related expenses generally remain stable across broad ranges but can fluctuate depending on maintenance activities performed during a specific period.
Current wording
Segment gross profit. Specialty Products and Solutions, Montana/Renewables and Performance Brands products gross profit are important measures of profitability of our segments. We define gross profit as sales less the cost of crude oil and other feedstocks, LCM/LIFO adjustments, and other production-related expenses, the most significant portion of which includes labor, plant fuel, utilities, contract services, maintenance, transportation, RINs, depreciation and amortization and processing materials. We use gross profit as an indicator of our ability to manage margins in our business over the long-term. The increase or decrease in selling prices typically lags behind the rising or falling costs, respectively, of feedstocks throughout our business. Other than plant fuel, RINs mark-to-market adjustments, and LCM/LIFO adjustments, production related expenses generally remain stable across broad ranges but can fluctuate depending on maintenance activities performed during a specific period.
Previous wording
*Sales.*Sales decreased $11.9 million, or 1.2%, to $993.9 million in the three months ended March 31, 2025, from $1,005.8 million in the same period in 2024. Sales for each of our principal product categories in these periods were as follows:
Current wording
*Sales.*Sales decreased $107.1 million, or 9.4%, to $1,026.6 million in the three months ended June 30, 2025, from $1,133.7 million in the same period in 2024. Sales for each of our principal product categories in these periods were as follows:
Previous wording
Specialty Products and Solutions segment sales decreased period over period, primarily driven by a decrease in crude oil prices compared to the prior period. This impact was partially offset by an increase in volumes as a result of strong market demand.
Current wording
Specialty Products and Solutions segment sales decreased period over period, primarily driven by a decrease in crude oil prices compared to the prior period. The volumes impact was the result of the turnaround conducted at our Shreveport facility in the current quarter as well as the supply chain disruptions caused by a rail provider’s operational issues that delayed shipments.
Previous wording
Montana/Renewables segment sales increased primarily due to higher production volumes at our Montana Renewables facility during the quarter compared to the prior period. This impact was supplemented by the favorable impact of higher renewable diesel prices.
Current wording
Montana/Renewables segment sales increased primarily due to higher production volumes at our Montana Renewables facility during the current quarter compared to the prior period. This impact was coupled with the favorable volumes impact at our Montana specialty asphalt facility as a result of the reduction of feedstock and intermediates inventories in the current period. These impacts were partially offset by lower fuels prices.
Previous wording
Gross Profit. Gross profit decreased $159.9 million, or 203.7%, to a gross loss of $81.4 million in the three months ended March 31, 2025, from $78.5 million in the same period in 2024. Gross profit (loss) for our business segments were as follows:
Current wording
Gross Profit. Gross profit decreased $107.4 million, or 168.3%, to a gross loss of $43.6 million in the three months ended June 30, 2025, from gross profit of $63.8 million in the same period in 2024. Gross profit (loss) for our business segments were as follows:
Previous wording
The decrease in Montana/Renewables segment gross profit for the three months ended March 31, 2025, as compared to the same period in 2024, was primarily due to the mark-to-market impact of RINs prices and the regulatory change from BTC to PTC at Montana Renewables. While RINs prices decreased in the current period in comparison to the prior year period, the mark-to-market impact of RINs prices resulted in a RINs mark-to-market expense of $26.1 million in the current period, as compared to a benefit of $23.2 million in the prior year period. The unfavorable impact associated with cost of materials was primarily the result of the regulatory change from BTC to PTC. In the prior year period, Montana Renewables’ cost of materials benefited approximately $1.00 per gallon from the BTC, whereas this benefit is reduced to zero in the current period, as the PTC is accounted for as a deferred tax asset and not recognized in cost of sales. These impacts were partially offset by improved operating costs across the segment. Refer to Note 2 — “Summary of Significant Accounting Policies” under Part I, Item 1 “Financial Statements — Notes to Unaudited Condensed Consolidated Financial Statements” for additional information related to our accounting for RINs.
Current wording
The decrease in Montana/Renewables segment gross profit for the three months ended June 30, 2025, as compared to the same period in 2024, was primarily due to the mark-to-market impact of RINs prices and the regulatory change from BTC to PTC at Montana Renewables. The mark-to-market impact of RINs prices resulted in a RINs mark-to-market expense of $23.7 million in the current period, as compared to an expense of $3.8 million in the prior year period. The unfavorable impact associated with cost of materials was primarily the result of the regulatory change from BTC to PTC. In the prior year period, Montana Renewables’ cost of materials benefited approximately $1.00 per gallon from the BTC, whereas this benefit is reduced to zero in the current period, as the PTC is accounted for as a deferred tax asset and not recognized in cost of sales. Our Montana specialty asphalt business was favorably impacted as a result of timely export of wholesale volumes as well as the beginning of the retail asphalt and paving season. The segment as a whole benefited from continued focus on operating cost efficiency, highlighted by the significant cost reductions for wash water and process materials as a result of improving certain operating unit efficiency at both our Montana Renewables facility and legacy Montana specialty asphalt facility. Refer to Note 2 — “Summary of Significant Accounting Policies” under Part I, Item 1 “Financial Statements — Notes to Unaudited Condensed Consolidated Financial Statements” for additional information related to our accounting for RINs.
Previous wording
Performance Brands segment gross profit for the three months ended March 31, 2025, as compared to the same period in 2024, was essentially flat as a result of strong unit margins, reflective of stabilized input costs in our branded and consumer markets.
Current wording
Performance Brands segment gross profit for the three months ended June 30, 2025, as compared to the same period in 2024, was essentially flat, after adjusting for the divestiture of the RPI business. This reflects strong unit margins, supported by stabilized input costs in our branded and consumer markets.
Previous wording
The decrease in Specialty Products and Solutions segment gross profit for the three months ended March 31, 2025 as compared to the same period in 2024, was primarily due to the impact of RINs prices. While RINs prices decreased in the current period in comparison to the prior year period, the mark-to-market impact of RINs prices resulted in a RINs expense of $60.7 million in the current period, as compared to a benefit of $47.9 million in the prior year period. The unfavorable margin impact was primarily the result of the weakened commodity margin environment for fuels products. Refer to Note 2 — “Summary of Significant Accounting Policies” under Part I, Item 1 “Financial Statements — Notes to Unaudited Condensed Consolidated Financial Statements” for additional information related to our accounting for RINs.
Current wording
The decrease in Specialty Products and Solutions segment gross profit for the six months ended June 30, 2025 as compared to the same period in 2024, was primarily due to the impact of RINs prices. The mark-to-market impact of RINs prices resulted in a RINs expense of $116.1 million in the current period, as compared to a benefit of $39.5 million in the prior year period. The favorable margin impact was primarily the result of the strengthened commodity margin environment for fuels products. Refer to Note 2 — “Summary of Significant Accounting Policies” under Part I, Item 1 “Financial Statements — Notes to Unaudited Condensed Consolidated Financial Statements” for additional information related to our accounting for RINs.
Previous wording
*Gain on sale of business.*There was a $62.2 million gain on sale of business in the three months ended March 31, 2025 for the sale of assets related to the industrial portion of our the Royal Purple® business. There was no gain or loss for the sale of a business recorded in the same period in 2024. Refer to Note 2 — “Summary of Significant Accounting Policies” under Part I, Item 1 “Financial Statements — Notes to Unaudited Condensed Consolidated Financial Statements” for additional information related to the sale of assets related to the industrial portion of the Royal Purple® business.
Current wording
*Gain on sale of business.*There was a $62.2 million gain on sale of business in the six months ended June 30, 2025 for the sale of assets related to the industrial portion of our the Royal Purple® business. There was no gain or loss for the sale of a business recorded in the same period in 2024. Refer to Note 2 — “Summary of Significant Accounting Policies” under Part I, Item 1 “Financial Statements — Notes to Unaudited Condensed Consolidated Financial Statements” for additional information related to the sale of assets related to the industrial portion of the Royal Purple® business.
Previous wording
*Debt extinguishment costs.*There was a $47.6 million expense for debt extinguishment costs in the three months ended March 31, 2025 related to the repurchase of the equipment associated with the MRL Asset Financing Arrangements, repayment of outstanding loans under the MRL Term Loan Credit Agreement and MRL Revolving Credit Agreement and repayment of outstanding obligations under the MRL Supply and Offtake Agreement. Debt extinguishment expense recorded in the same period in 2024 was a de-minimis amount. Refer to Note 8 — “Long-Term Debt” under Part I, Item 1 “Financial Statements — Notes to Unaudited Condensed Consolidated Financial Statements” for additional information.
Current wording
*Debt extinguishment costs.*There was a $47.7 million expense for debt extinguishment costs in the six months ended June 30, 2025 related to the repurchase of the equipment associated with the MRL Asset Financing Arrangements, repayment of outstanding loans under the MRL Term Loan Credit Agreement and MRL Revolving Credit Agreement and repayment of outstanding obligations under the MRL Supply and Offtake Agreement. Debt extinguishment expense recorded in the same period in 2024 was a de-minimis amount. Refer to Note 8 — “Long-Term Debt” under Part I, Item 1 “Financial Statements — Notes to Unaudited Condensed Consolidated Financial Statements” for additional information.
Previous wording
operations support all of our capital expenditures and interest payments. However, we are subject to business and operational risks that could materially adversely affect our cash flows. A material decrease in our cash flow from operations including a significant, sudden decrease in crude oil prices would likely produce a corollary effect on our borrowing capacity under our revolving credit facility and potentially our ability to comply with the covenants under our revolving credit facility. A significant, sudden increase in crude oil prices, if sustained, would likely result in increased working capital requirements which would be funded by borrowings under our revolving credit facility. In addition, our cash flow from operations may be impacted by the timing of settlement of our derivative activities. Gains and losses from derivative instruments that do not qualify as cash flow hedges are recorded in unrealized gain (loss) on derivative instruments until settlement and will impact operating cash flow in the period settled.
Current wording
We believe that we have sufficient liquid assets, cash flow from operations, borrowing capacity and adequate access to capital markets to meet our financial commitments, debt service obligations and anticipated capital expenditures for at least the next 12 months. We continue to seek to lower our operating costs, selling expenses and general and administrative expenses as a means to further improve our cash flow from operations with the objective of having our cash flow from operations support all of our capital expenditures and interest payments. However, we are subject to business and operational risks that could materially adversely affect our cash flows. A material decrease in our cash flow from operations including a significant, sudden decrease in crude oil prices would likely produce a corollary effect on our borrowing capacity under our revolving credit facility and potentially our ability to comply with the covenants under our revolving credit facility. A significant, sudden increase in crude oil prices, if sustained, would likely result in increased working capital requirements which would be funded by borrowings under our revolving credit facility. In addition, our cash flow from operations may be impacted by the timing of settlement of our derivative activities. Gains and losses from derivative instruments that do not qualify as cash flow hedges are recorded in unrealized gain (loss) on derivative instruments until settlement and will impact operating cash flow in the period settled.
Previous wording
Operating Activities. Operating activities used cash of $110.6 million during the three months ended March 31, 2025 compared to using cash of $94.0 million during the same period in 2024. The change was primarily related to cash payments for debt extinguishment costs in the current year period, absent the prior year period. This impact was partially offset by a decrease in the cash required for working capital during the current year period.
Current wording
Operating Activities. Operating activities used cash of $108.0 million during the six months ended June 30, 2025 compared to using cash of $27.5 million during the same period in 2024. The change was primarily related to cash payments for debt extinguishment costs in the current year period, absent the prior year period. This impact was coupled with the impact of an increase in the cash required for working capital during the current year period.
Previous wording
Investing Activities. Investing activities provided cash of $77.8 million during the three months ended March 31, 2025 compared to a use of cash of $20.0 million during the same period in 2024. The change is related to the net proceeds received for the sale of the Royal Purple Industrial business in the current year period. Cash expenditures for additions to property, plant and equipment in the current year period were flat in comparison to the prior year.
Current wording
Investing Activities. Investing activities provided cash of $64.2 million during the six months ended June 30, 2025 compared to a use of cash of $35.0 million during the same period in 2024. The change is related to the net proceeds received for the sale of the Royal Purple Industrial business in the current year period. Cash expenditures for additions to property, plant and equipment in the current year period were flat in comparison to the prior year.
Previous wording
Financing Activities. Financing activities provided cash of $190.3 million in the three months ended March 31, 2025 compared to providing cash of $130.7 million during the same period in 2024. The change is primarily due to the borrowings we received in the current year period from the DOE Loan and 2028 Mirror Issuance Notes, offset by the payments we made in the current year to repay outstanding borrowings under the revolving credit agreement, repurchase the equipment associated with the MRL Asset Financing Arrangements, repay the outstanding loans under the MRL Term Loan Credit Agreement and MRL Revolving Credit Agreement, and repay the outstanding obligations under the MRL Supply and Offtake Agreement. Cash provided by financing activities in the prior year period primarily consisted of borrowings under the revolving credit facility, proceeds from the issuance of the 2029 Secured Notes, which was partially offset by the repayment of the 2024 Secured Notes.
Current wording
Financing Activities. Financing activities provided cash of $188.5 million in the six months ended June 30, 2025 compared to providing cash of $62.4 million during the same period in 2024. The change is primarily due to the borrowings we received in the current year period from the DOE Loan and 2028 Mirror Issuance Notes, offset by the payments we made in the current year to repay outstanding borrowings under the revolving credit agreement, repurchase the equipment associated with the MRL Asset Financing Arrangements, repay the outstanding loans under the MRL Term Loan Credit Agreement and MRL Revolving Credit Agreement, repay the outstanding obligations under the MRL Supply and Offtake Agreement, and partially redeem the 2026 Notes. Cash provided by financing activities in the prior year period primarily consisted of borrowings under the revolving credit facility and proceeds from the issuance of the 2029 Secured Notes, the impacts of which were partially offset by the repayment of the 2024 Secured Notes.
Previous wording
On January 16, 2025, the Issuers issued $100.0 million aggregate principal amount of a new series of the Issuers’ 9.75% Senior Notes due 2028 (the “2028 Mirror Issuance Notes”) in a private placement conducted pursuant to Rule 144A and Regulation S under the Securities Act. The 2028 Mirror Issuance Notes were issued at 98% of par for net proceeds of approximately $96.0 million, after deducting the initial purchasers’ discount and estimated offering expenses. The Company intends to use the net proceeds from the offering of the Notes to redeem a portion of the Issuers’ outstanding 2026 Notes on or before May 24, 2025. Please refer to Note 8 — “Long-Term Debt” in Part I, Item 1 “Financial Statements — Notes to Unaudited Condensed Consolidated Financial Statements” for additional information.
Current wording
On January 16, 2025, the Issuers issued $100.0 million aggregate principal amount of a new series of the Issuers’ 9.75% Senior Notes due 2028 in a private placement conducted pursuant to Rule 144A and Regulation S under the Securities Act. The 2028 Mirror Issuance Notes were issued at 98% of par for net proceeds of approximately $96.0 million, after deducting the initial purchasers’ discount and estimated offering expenses. The Company used the net proceeds from the offering of the Notes to redeem a portion of the Issuers’ outstanding 2026 Notes on May 24, 2025. Please refer to Note 8 — “Long-Term Debt” in Part I, Item 1 “Financial Statements — Notes to Unaudited Condensed Consolidated Financial Statements” for additional information.
Previous wording
The borrowing base on our credit facilities decreased from approximately $563.9 million as of March 31, 2024, to approximately $455.6 million at March 31, 2025. Our borrowing availability increased from approximately $187.9 million at March 31, 2024, to approximately $339.3 million at March 31, 2025. Total liquidity, consisting of unrestricted cash, restricted cash and available funds under our credit facilities, increased from $211.8 million at March 31, 2024 to $542.7 million at March 31, 2025.
Current wording
The borrowing base on our credit facilities decreased from approximately $575.3 million as of June 30, 2024, to approximately $461.4 million at June 30, 2025. Our borrowing availability decreased from approximately $211.5 million at June 30, 2024, to approximately $188.6 million at June 30, 2025. Total liquidity, consisting of unrestricted cash, restricted cash and available funds under our credit facilities, increased from $218.5 million at June 30, 2024 to $379.2 million at June 30, 2025.
Previous wording
As of March 31, 2025, our principal sources of short-term liquidity were (i) $339.3 million of availability under our credit facilities, (ii) an inventory financing agreement related to our Shreveport facility, (iii) $123.4 million of unrestricted cash on hand, and (iv) $80.0 million of restricted cash. Borrowings under our revolving credit facilities can be used for, among other things, working capital, capital expenditures and other lawful partnership purposes including acquisitions. For additional information regarding our revolving credit facilities, see Note 8 — “Long-Term Debt” under Part I, Item 1 “Financial Statements — Notes to Unaudited Condensed Consolidated Financial Statements” in this Quarterly Report.
Current wording
As of June 30, 2025, our principal sources of short-term liquidity were (i) $188.6 million of availability under our credit facilities, (ii) an inventory financing agreement related to our Shreveport facility, (iii) $110.6 million of unrestricted cash on hand, and (iv) $80.0 million of restricted cash. Borrowings under our revolving credit facilities can be used for, among other things, working capital, capital expenditures and other lawful partnership purposes including acquisitions. For additional information regarding our revolving credit facilities, see Note 8 — “Long-Term Debt” under Part I, Item 1 “Financial Statements — Notes to Unaudited Condensed Consolidated Financial Statements” in this Quarterly Report.
Previous wording
From time to time, we issue long-term debt securities referred to as our senior notes. Our outstanding senior notes are unsecured obligations that rank equally with all of our other senior debt obligations to the extent they are unsecured. As of March 31, 2025, we had $354.4 million in 2026 Notes, $325.0 million in 2027 Notes, $325.0 million in 2028 Notes, $100.0 million in 2028 Mirror Issuance Notes, and $200.0 million in 2029 Secured Notes outstanding. In addition, as of March 31, 2025, we had $786.1 million of debt outstanding for the DOE Loan, $40.0 million of other debt outstanding for the Shreveport terminal asset financing arrangement, $27.8 million of other debt outstanding for the Montana terminal asset financing arrangement, and $147.5 million of other debt outstanding for the Montana refinery asset financing arrangement. Borrowings under the DOE Loan are obligations of our unrestricted subsidiaries MRL and MRHL solely, and are non-recourse to the Company and its restricted subsidiaries.
Current wording
From time to time, we issue long-term debt securities referred to as our senior notes. Our outstanding senior notes are unsecured obligations that rank equally with all of our other senior debt obligations to the extent they are unsecured. As of June 30, 2025, we had $204.4 million in 2026 Notes, $325.0 million in 2027 Notes, $325.0 million in 2028 Notes, $100.0 million in 2028 Mirror Issuance Notes, and $200.0 million in 2029 Secured Notes outstanding. In addition, as of June 30, 2025, we had $795.7 million of debt outstanding for the DOE Loan, $37.9 million of other debt outstanding for the Shreveport terminal asset financing arrangement, $27.8 million of other debt outstanding for the Montana terminal asset financing arrangement, and $145.5 million of other debt outstanding for the Montana refinery asset financing arrangement. Borrowings under the DOE Loan are obligations of our unrestricted subsidiaries MRL and MRHL solely, and are non-recourse to the Company and its restricted subsidiaries.
Rearranged current paragraphs (6)
Current report — wording carried from elsewhere
availability falls short of the necessary emissions reductions that would be required to reach established decarbonization and/or net-zero goals, which will drive SAF pricing. We believe that our advantage as a first-mover in the renewable fuels market positions us as a key producer for potential offtake partners to help them reach their announced targets.
Current report — wording carried from elsewhere
on renewable diesel and SAF sales, the value of the PTC is a variable function of feedstock carbon intensity measures. The estimated value of the PTCs we generated in the second quarter of 2025 was approximately $0.50 per gallon.
Current report — wording carried from elsewhere
Changes in Results of Operations for the Six Months Ended June 30, 2025 and 2024
Current report — wording carried from elsewhere
Sales. Sales decreased $119.0 million, or 5.6%, to $2,020.5 million in the six months ended June 30, 2025, from $2,139.5 million in the same period in 2024. Sales for each of our principal product categories in these periods were as follows:
Current report — wording carried from elsewhere
The decrease in Montana/Renewables segment gross profit for the six months ended June 30, 2025, as compared to the same period in 2024, was primarily due to the mark-to-market impact of RINs prices and the regulatory change from BTC to PTC at Montana Renewables. The mark-to-market impact of RINs prices resulted in a RINs mark-to-market expense of $49.8 million in the current period, as compared to a benefit of $19.4 million in the prior year period. The unfavorable impact associated with cost of materials was primarily the result of the regulatory change from BTC to PTC. In the prior year period, Montana Renewables’ cost of materials benefited approximately $1.00 per gallon from the BTC, whereas this benefit is reduced to zero in the current period, as the PTC is accounted for as a deferred tax asset and not recognized in cost of sales. Our Montana specialty asphalt business was favorably impacted as a result of timely export of wholesale volumes as well as the beginning of the retail asphalt and paving season. The segment as a whole benefited from continued focus on operating cost efficiency, highlighted by the significant cost reductions for wash water and process materials as a result of improving certain operating unit efficiency at both our Montana Renewables facility and legacy Montana specialty asphalt facility. Refer to Note 2 — “Summary of Significant Accounting Policies” under Part I, Item 1 “Financial Statements — Notes to Unaudited Condensed Consolidated Financial Statements” for additional information related to our accounting for RINs.
Current report — wording carried from elsewhere
The decrease in Performance Brands segment gross profit for the six months ended June 30, 2025, as compared to the same period in 2024, was primarily due to the divestiture of the Royal Purple Industrial business in the current year period. This segment continues to benefit from strong unit margins, reflective of stabilized input costs in our branded and consumer markets.
Rearranged previous paragraphs (6)
Previous report — wording carried elsewhere
Loan are obligations of our unrestricted subsidiaries MRL and MRHL solely, and are non-recourse to the Company and its restricted subsidiaries.
Previous report — wording carried elsewhere
Attributes to Net income (loss), our most directly comparable financial performance measure calculated and presented in accordance with U.S. generally accepted accounting principles (“GAAP”).
Previous report — wording carried elsewhere
Expenses related to RFS compliance have the potential to remain a significant expense for our two segments containing fuels products. If legal or regulatory changes occur that have the effect of increasing our RINs Obligation or
Previous report — wording carried elsewhere
Segment gross profit. Specialty Products and Solutions, Montana/Renewables and Performance Brands products gross profit are important measures of profitability of our segments. We define gross profit as sales less the cost of crude oil and other feedstocks, LCM/LIFO adjustments, and other production-related expenses, the most significant portion of which
Previous report — wording carried elsewhere
Results of Operations for the Three Months Ended March 31, 2025 and 2024
Previous report — wording carried elsewhere
We believe that we have sufficient liquid assets, cash flow from operations, borrowing capacity and adequate access to capital markets to meet our financial commitments, debt service obligations and anticipated capital expenditures for at least the next 12 months. We continue to seek to lower our operating costs, selling expenses and general and administrative expenses as a means to further improve our cash flow from operations with the objective of having our cash flow from