Chemtrade Logistics Income Fund (CHE-UN) Q3 2025 earnings summary

Executive summary

• Achieved record quarterly Adjusted EBITDA of $151.2 million in Q3 2025, up 10.2% year-over-year, with double-digit revenue and distributable cash growth, driven by operational excellence, higher selling prices, and volumes in key products.

• Both Sulphur & Water Chemicals (SWC) and Electrochemicals (EC) segments contributed to strong results, with a weaker Canadian dollar positively impacting revenue and Adjusted EBITDA.

• Net earnings declined 29.5% year-over-year to $42.4 million due to higher corporate costs, one-time items, and debenture fair value changes.

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

Financial highlights

• Q3 2025 revenue was $532.8 million, up 12.4% year-over-year; Adjusted EBITDA reached $151.2 million, up 10.2%.

• Distributable cash after maintenance capex was $77.8 million, up 18% year-over-year; per-unit distributable cash rose 24.4% to $0.69.

• Net debt at quarter-end was $941.1 million, with net debt to LTM Adjusted EBITDA stable at 1.8x and liquidity of $484 million.

• Cash flow from operating activities for Q3 2025 was $155.5 million, up 8.5% year-over-year.

• Payout ratio for Q3 2025 was 25%, and 32% on a trailing 12-month basis.

Outlook and guidance

• Raised full-year 2025 Adjusted EBITDA guidance to above $503 million, surpassing 2023's $502.6 million, with favorable market conditions and resilience despite global trade tensions.

• Implied 2025 payout ratio expected at ~37% or less.

• Guidance assumes strong MECU netbacks, stable sodium chlorate volumes, and favorable FX rates; excludes Polytec acquisition earnings due to regulatory delays.

• 2026 outlook includes a North Vancouver turnaround, normalization in merchant acid, continued chlorine weakness, and growth from Polytec, Thatcher, and organic projects.

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