Chemtrade Logistics Income Fund (CHE-UN) Q4 2025 earnings summary

Executive summary

• 2025 was a record year, achieving record Adjusted EBITDA of $507.4 million (up 7.8%) and record revenue of $1,997.8 million (up 11.8%), driven by strong operational execution, strategic acquisitions in Water and Ultrapure Acid, and robust results across key segments.

• Expanded Water segment through acquisitions of Polytec and Thatcher Group assets for $180 million, supporting inorganic growth.

• Optimized capital structure and returned $100.8 million to unitholders via distributions and unit repurchases in 2025.

• Net earnings for 2025 increased to $139.4 million, supported by higher Adjusted EBITDA, FX gains, and lower tax/disposal losses.

• Cash flows from operating activities increased 3.8% to $355.1 million; distributable cash after maintenance capex rose 7.0% to $228.0 million ($1.99/unit).

Financial highlights

• Full-year 2025 revenue rose 12% year-over-year to $1,997.8 million; Q4 2025 revenue up 12% to $502.0 million.

• Adjusted EBITDA for 2025 reached $507.4 million, up 8% year-over-year; Q4 Adjusted EBITDA declined 10% to $98.2 million.

• Net earnings for 2025 increased 10% to $139.4 million; Q4 net earnings up 272% to $38.3 million.

• Distributable cash after maintenance capex for 2025 was $228.0 million, up 7% year-over-year; per unit $1.99.

• Net debt at year-end 2025 was $1,180.3 million, with a net debt to Adjusted EBITDA ratio of 2.3x.

Outlook and guidance

• 2026 Adjusted EBITDA guidance set at $485–$525 million, reflecting normalization of acid prices and increased maintenance activity.

• 2026 maintenance capex expected at $120–$150 million; growth capex at $35–$55 million.

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

• Q2 and Q3 2026 are expected to be the strongest quarters, though Q2 will be negatively impacted by the North Vancouver turnaround.

• Caustic soda pricing is expected to recover in the second half of 2026, with fundamentals supporting a positive long-term trend.