Chemtrade Logistics Income Fund (CHE-UN) Q1 2025 earnings summary

Executive summary

• Q1 2025 delivered strong results with revenue up 11.5% to $466.3 million and Adjusted EBITDA up 9.3% to $120.1 million year-over-year, driven by robust business performance, both operating segments, and favorable FX impacts.

• Net earnings rose 17.0% year-over-year to $49.1 million, and distributable cash after maintenance capital increased 3.7%.

• SWC segment led growth, with revenue up 17.5% to $271.0 million and EBITDA up 15.8% to $59.5 million, offsetting higher input costs through improved pricing and volumes.

• EC segment performance was flat to slightly up, with caustic soda pricing rebounding and sodium chlorate price increases mitigating lower volumes.

• Vision 2030 targets 5–10% annual Adjusted EBITDA growth, aiming for $550–$600 million by 2030 through organic growth, acquisitions, and buybacks.

Financial highlights

• Q1 2025 revenue: $466.3 million (+11.5%); Adjusted EBITDA: $120.1 million (+9.3%); net earnings: $49.1 million (+17.0%).

• Distributable cash after maintenance capex was $62.1 million ($0.53/unit), up 3.6% year-over-year.

• Net debt at quarter-end was $949.8 million; net debt-to-EBITDA at 2.0x.

• Payout ratio for Q1 2025 was 32%; trailing twelve months at 37%.

• Monthly distribution increased by 5% in January 2025 to $0.0575 per unit.

Outlook and guidance

• Adjusted EBITDA guidance for 2025 raised to the high end of $430–$460 million, with an implied payout ratio of approximately 45%.

• Growth capital expenditures for 2025 planned at $40–$60 million, focused on water treatment and ultrapure acid projects.

• Vision 2030 targets $550–$600 million Adjusted EBITDA by 2030, with 5–10% annual growth in key metrics.

• Key assumptions include higher MECU netbacks, stable sodium chlorate volumes, and average USD/CAD FX rate of 1.38.