Chemtrade Logistics Income Fund (CHE-UN) Q4 2024 earnings summary

Executive summary

• Achieved the second-highest annual Adjusted EBITDA in company history for 2024, reflecting strong operational execution, strategic investments in water chemicals and ultrapure acid, and robust safety performance.

• Returned significant capital to unitholders via increased monthly distributions and a Normal Course Issuer Bid (NCIB), repurchasing 5.1M units in 2024 and 2.7M units in early 2025.

• Maintained a top quartile safety record among North American chemical companies and further optimized organizational structure.

Financial highlights

• Full-year 2024 revenue was $1,787.0M (CAD 1.79B), down 3% year-over-year; Q4 revenue was $446.5M, up 5.8% year-over-year.

• Full-year Adjusted EBITDA was $470.8M, down 6% year-over-year; Q4 Adjusted EBITDA was $108.6M, up 28–31% year-over-year.

• Distributable cash after maintenance capex for 2024 was $213.1M, down 24.7% year-over-year.

• Water chemicals and chlor-alkali/ultrapure acid were key growth drivers.

Outlook and guidance

• 2025 Adjusted EBITDA guidance reaffirmed at $430M–$460M, with the midpoint representing the third-highest annual result.

• 2025 payout ratio expected at ~48% at guidance midpoint; leverage expected near 2x.

• Maintenance capex for 2025 guided at $100M–$120M; growth capex at $40M–$60M, focused on water chemicals and ultrapure acid.

• Augusta, Georgia water chemical line to contribute $3–5M annual EBITDA, with some in H2 2025; Cairo, Ohio ultrapure acid expansion to begin merchant sales in 2025.