Methanex (MX) Q2 2026 earnings summary

Executive summary

• Achieved Q2 average realized price of $529/ton and produced sales of 2.2 million tons, generating adjusted EBITDA of $577 million and adjusted net income of $300 million, including a $12 million restructuring accrual for Trinidad and Tobago operations.

• Net income attributable to shareholders was $198 million, a significant turnaround from a $14 million loss in Q1 2026.

• Strong cash flows enabled repayment of the remaining $290 million on Term Loan A, ending with over $380 million in cash.

• Middle East conflict significantly disrupted methanol supply chains, causing volatile and elevated global methanol prices.

• Indefinite idling of the Titan plant in Trinidad and Tobago due to inability to secure a viable gas contract, resulting in a $115 million non-cash after-tax asset impairment.

Financial highlights

• Revenue for Q2 2026 was $1,395 million, up from $974 million in Q1 2026.

• Adjusted EBITDA of $577 million in Q2, up from Q1, driven by higher realized prices and strong North American production.

• Adjusted net income reached $300 million for the quarter.

• Cash flows from operating activities totaled $439 million; adjusted free cash flow was $298 million.

• Quarterly dividend of $0.185 per share paid, totaling $14 million.

Outlook and guidance

• Expect Q3 earnings to remain strong but lower than Q2 due to anticipated lower realized prices ($460-$485/ton for July-August).

• 2026 equity production guidance maintained at approximately 9 million tons, with potential quarterly variation.

• Actual production may vary due to gas availability, turnarounds, and unplanned outages.

• Priorities include safe operations, OCI integration, and achieving leverage targets (2-2.5x adjusted debt/EBITDA at mid-cycle pricing).

• Majority of free cash flow to be directed toward cash build and debt reduction, with potential for modest share repurchases as leverage targets are approached.