Methanex (MX) investor relations material

Executive summary

• Q2 2026 delivered record North American production and strong financial results, with an average realized price of $529/ton and sales of 2.2 million tons, generating adjusted EBITDA of $577 million and adjusted net income of $300 million, including a $12 million restructuring accrual for Trinidad and Tobago operations.

• Net income attributable to shareholders was $198 million, a significant turnaround from a $14 million loss in Q1 2026.

• Strong cash flows enabled full repayment of the $290 million Term Loan A facility, ending the quarter with over $380 million in cash.

• The Middle East conflict significantly disrupted methanol supply chains, causing volatile and elevated global methanol prices.

• Indefinite idling of the Titan plant in Trinidad and Tobago led to a $115 million non-cash asset impairment charge and $12 million restructuring accrual.

Financial highlights

• Revenue for Q2 2026 was $1,395 million, up from $974 million in Q1 2026.

• Adjusted EBITDA rose sequentially from Q1 2026, driven by higher realized prices and robust North American production.

• Average realized price per tonne increased to $529 from $351 sequentially.

• Cash flows from operating activities totaled $439 million; adjusted free cash flow was $298 million.

• Shipping and logistics costs increased, reducing EBITDA by $18 million in Q2, with ongoing headwinds expected in Q3.

Outlook and guidance

• Q3 average realized price is guided at $460-$485/ton, with earnings expected to remain strong but lower than Q2 due to pricing.

• 2026 production forecast is approximately 9.0 million tonnes of methanol and 0.3 million tonnes of ammonia, subject to operational variables.

• Priorities for 2026 include safe operations, OCI integration, and achieving leverage targets of 2-2.5x adjusted debt to EBITDA at mid-cycle pricing.

• Majority of free cash flow will be directed to cash build and debt reduction, with potential for modest share repurchases as leverage targets are met.

• Actual production may vary due to gas availability, turnarounds, and unplanned outages.