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

Executive summary

• Achieved record financial and operational performance in 2025, with Adjusted EBITDA reaching $507.4 million and revenue at $1,997.8 million, driven by strong results in merchant acid, water solutions, and Regen acid, as well as employee contributions and strategic acquisitions.

• 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.

Financial highlights

• 2025 revenue rose 12% year-over-year to $1,997.8 million; Adjusted EBITDA up 8% to $507.4 million; net earnings increased 10% to $139.4 million.

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

• Net debt at year-end 2025 was $1.18 billion, with a net debt to Adjusted EBITDA ratio of 2.3x.

• Maintenance capex for 2025 was $123.5 million; growth capex was $48.2 million.

• Payout ratio for 2025 was 35%, with distributable cash per unit up 11% year-over-year.

Outlook and guidance

• 2026 Adjusted EBITDA guidance is $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.

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

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

• Guidance assumes no major unplanned downtime, labor disruptions, or adverse trade/tariff impacts.