Chemtrade Logistics Income Fund (CHE-UN) Q2 2026 earnings summary

Executive summary

• Q2 2026 revenue rose 16.5% year-over-year to $578.7 million, driven by acquisitions and higher prices in key segments, while net earnings surged to $42.9 million, a 342.5% increase year-over-year.

• Adjusted EBITDA declined 7.8% to $127.3 million, impacted by lower chlor-alkali prices, sodium chlorate volumes, and a $7.0 million maintenance turnaround at the North Vancouver plant.

• Distributable cash after maintenance capex dropped 40.7% to $42.4 million, or $0.38 per unit.

• Cash flows from operating activities grew 8% year-over-year to $91.9 million, aided by reduced working capital needs.

• Adjusted EBITDA is used as a key non-IFRS metric, excluding non-cash items like unrealized FX gains/losses.

Financial highlights

• Revenue: $578.7 million (+16.5% year-over-year); Net earnings: $42.9 million (+342.5% year-over-year); Adjusted EBITDA: $127.3 million (-7.8% year-over-year).

• Distributable cash after maintenance capex per unit was $0.38, down from $0.63 year-over-year.

• Net debt at June 30, 2026 was $1.25 billion, with a Net debt to LTM Adjusted EBITDA ratio of 2.55x.

• Maintenance capital expenditures for Q2 2026 were $42.8 million, up from $26.8 million in Q2 2025.

• Growth capital expenditures for Q2 2026 were $11.4 million.

Outlook and guidance

• 2026 Adjusted EBITDA guidance reaffirmed at $485–$525 million, with flat year-over-year expectations and a stronger H2 required to offset a CAD 15–20 million H1 decline.

• Midpoint guidance implies year-end net debt to LTM Adjusted EBITDA near 2.5x and payout ratio around 40%.

• Maintenance capex timing differs from 2025, with less than half expected in H2 2026.

• Vision 2030 targets mid-cycle annual Adjusted EBITDA of $550–$600 million by 2030.

• Water segment outlook for 2027 remains strong, with UltraPure ramping up supply to two chip fabs in H2 2026.