Chemtrade Logistics Income Fund (CHE-UN) Q2 2025 earnings summary

Executive summary

• Q2 2025 delivered double-digit year-over-year growth in revenue, Adjusted EBITDA, and distributable cash, led by strong segment performance and operational execution.

• Announced the acquisition of Polytec, a water treatment solutions provider, for US$150 million, expected to close in Q4 2025, supporting Vision 2030 growth targets.

• 2025 Adjusted EBITDA guidance raised to $475–$500 million, positioning the year as one of the top two in company history.

• Vision 2030 targets mid-cycle Adjusted EBITDA of $550–$600 million by 2030, with 5–10% annual growth from business improvements, organic projects, and strategic acquisitions.

• Strategic focus on organic growth, disciplined capital allocation, and maintaining a strong balance sheet.

Financial highlights

• Q2 2025 revenue was $496.7 million, up 10.8% year-over-year; Adjusted EBITDA rose 19.9% to $138.0 million.

• Distributable cash after maintenance capex increased 49.6% year-over-year to $71.5 million; per unit distributable cash up 54.2% to $0.63.

• Net debt at quarter-end was $982.8 million, with net debt to LTM Adjusted EBITDA at 2.0x and $700 million in available liquidity.

• Q2 payout ratio was 27%; trailing 12 months: 33%.

• Cash flows from operating activities were $83.4 million, down 18.4% year-over-year due to higher working capital and tax payments.

Outlook and guidance

• 2025 Adjusted EBITDA guidance raised to $475–$500 million, up from prior $430–$460 million, excluding Polytec earnings.

• Implied 2025 payout ratio of approximately 38–40%.

• Vision 2030 targets 5–10% annual growth in Adjusted EBITDA and distributable cash, aiming for $550–$600 million mid-cycle Adjusted EBITDA by 2030.

• Organic growth investments of $40–$60 million planned for 2025, focused on water chemicals and ultrapure acid capacity.

• Polytec acquisition not expected to materially impact 2025 EBITDA due to closing timing.