Calumet Specialty Products Partners LP (CLMT) shares are soaring 5.05% in intraday trading on Friday, despite reporting a wider-than-expected loss for the first quarter of 2025. The stock's rally appears to be driven by better-than-anticipated sales figures and progress in the company's cost reduction initiatives.

The specialty hydrocarbon producer reported Q1 sales of $993.9 million, significantly surpassing analysts' expectations of $891.4 million. Additionally, Calumet's adjusted EBITDA came in at $56.3 million, outperforming the consensus estimate of $43.5 million. These positive metrics seem to have overshadowed the company's reported loss of $2.59 per share, which was considerably wider than the expected loss of $0.57 per share.

Investors appear to be particularly encouraged by Calumet's progress in its cost reduction plan. The company announced that it is on track with a $22 million year-over-year reduction in operating costs, demonstrating management's commitment to improving operational efficiency. This focus on cost management, combined with the strong top-line performance, seems to have bolstered investor confidence in Calumet's long-term prospects, driving the stock's impressive intraday surge despite the challenging bottom-line results.