Chemtrade Logistics Income Fund Concludes 2025 With Record Results
Reiterates 2026 Guidance of Between
Full Year 2025 Highlights
-
Revenue of
$1,997.8 million $210.7 million 11.8% year-over-year. Excluding the impact of foreign exchange and the maintenance turnaround atNorth Vancouver in 2024, revenue for 2025 was$171.0 million -
Adjusted EBITDA(1) of
$507.4 million $36.6 million 7.8% year-over-year. Excluding the impact of foreign exchange and the maintenance turnaround atNorth Vancouver in 2024, Adjusted EBITDA for 2025 was$8.8 million -
Net earnings of
$139.4 million $12.5 million -
Cash flows from operating activities of
$355.1 million $13.0 million 3.8% year-over-year mainly due to higher Adjusted EBITDA partially offset by an increase in working capital. -
Distributable cash after maintenance capital expenditures(1) of
$228.0 million $14.9 million 7.0% year-over-year, reflecting the higher Adjusted EBITDA partially offset by higher maintenance capital expenditures, interest and lease payments. Distributable cash after maintenance capital expenditures per unit(1) increased by10.8% year-over-year to$1.99 -
In January 2025, Chemtrade increased its monthly distribution by approximately
5% to$0.05 75$0.69 0035% . Subsequent to year-end, in January 2026, Chemtrade increased its monthly distribution by approximately4% to$0.06 $0.72 -
Chemtrade remained active on its normal course issuer bid (“NCIB”) during 2025 and returned approximately
$100.8 million -
During 2025, Chemtrade took several steps to strengthen and optimize its balance sheet including reducing convertible debentures by approximately
90% and issuing a new series of unsecured notes with a coupon of5.75% p.a. that mature in 2032. -
Following several years of focusing on organic growth, during 2025, Chemtrade grew its water portfolio via the acquisition of Polytec, Inc. (“Polytec”) and of certain assets of Thatcher Group Inc. (“Thatcher Group”) for a total of
US .$180 million -
Chemtrade reaffirms its record guidance range for 2026 Adjusted EBITDA of
$485.0 million $525.0 million $507.4 million North Vancouver chlor-alkali facility. Chemtrade expects these factors to be partially offset by contributions from organic growth initiatives as well as contributions from the acquisitions of Polytec and the Thatcher Group assets.
Fourth Quarter 2025 Highlights
-
Revenue of
$502.0 million $55.5 million 12.4% year-over-year. Excluding the impact of foreign exchange, revenue was$56.5 million -
Adjusted EBITDA of
$98.2 million $10.4 million 9.6% year-over-year. Excluding the impact of foreign exchange, Adjusted EBITDA for the fourth quarter was$10.0 million -
Net earnings of
$38.3 million $28.0 million -
Cash flows from operating activities of
$85.5 million $1.6 million 1.9% year-over-year, mainly due to a decrease in working capital and lower income taxes paid partially offset by lower Adjusted EBITDA. -
Distributable cash after maintenance capital expenditures of
$16.7 million $22.9 million 57.9% year-over-year, reflecting lower Adjusted EBITDA and higher maintenance capital spending. - Chemtrade remained active on its NCIB purchasing approximately 1.9 million units in the fourth quarter.
- Net Debt to LTM Adjusted EBITDA(2) of 2.3x at the end of the fourth quarter of 2025, continues to highlight Chemtrade’s strong balance sheet.
Scott Rook, President and CEO of Chemtrade, commented on the fourth quarter and full year 2025 unaudited results, “2025 was another year of strong financial and operational performance for Chemtrade, delivering the highest annual Adjusted EBITDA result in our history. While we benefitted from external market conditions, particularly for acid products, it is important to highlight that these record results were enabled by the operational excellence initiatives implemented over the past few years, our commercial discipline, and the dedication of our team. Chemtrade has not been immune to the continued softness in certain EC segment products, but the uniqueness of our business portfolio and our diverse customer base position us well to deliver through the cycle.”
“We remain encouraged by the outlook of our water products where we continue to invest organically and to see multiple opportunities. The integrations of Polytec and Thatcher Group assets are well-underway and progressing in line with our expectations. Although early innings, we are already progressing growth projects and expanding our reach with customers,” continued Mr. Rook. “Ultrapure acid organic initiatives also continue to progress well as we advance through customer qualifications. We remain confident that these investments will, over time, contribute to our results and the achievement of our long-term financial targets.”
“Chemtrade enters 2026 on a strong footing with a clear strategy to generate long-term unitholder value via operational excellence, investments in organic growth supplemented by the 2025 acquisitions, a prudent balance sheet, and using our strong cash flows to return capital to unitholders via distributions and unit buybacks,” concluded Mr. Rook.
Consolidated Financial Summary of Full Year 2025
The Canadian dollar weakened by approximately
Revenue for 2025 was
Adjusted EBITDA for 2025 was
Distributable cash after maintenance capital expenditures for 2025 was
Chemtrade maintained a strong balance sheet during 2025; as of December 31, 2025, Net Debt(3) was
Consolidated Financial Summary of Q4 2025
The Canadian dollar strengthened by approximately
Revenue in the fourth quarter was
Adjusted EBITDA in the fourth quarter was
Distributable cash after maintenance capital expenditures for the fourth quarter of 2025 was
Segmented Financial Summary of Full Year 2025
The SWC segment reported revenue of
Excluding the impact of foreign exchange, SWC revenue in 2025 increased by
The EC segment reported revenue of
Excluding the impact of foreign exchange and the maintenance turnaround at
Corporate costs in 2025 were
Segmented Financial Summary of Q4 2025
The SWC segment reported revenue of
Excluding the impact of foreign exchange, SWC revenue in the fourth quarter of 2025 increased by
The EC segment reported revenue of
Excluding the impact of foreign exchange, EC revenue in the fourth quarter of 2025 decreased by
Corporate costs in the fourth quarter of 2025 were
2026 Guidance
Chemtrade is reaffirming its 2026 guidance, as detailed below and previously issued in January 2026, with expected Adjusted EBITDA between
Achieving the midpoint of this range would mark a near record Adjusted EBITDA in Chemtrade’s history, at a similar level to the record Adjusted EBITDA achieved in 2025, highlighting the significant step-change in Chemtrade’s Adjusted EBITDA and cashflow generation in the last five years.
($ million) |
2026 Guidance |
Actual |
|
2025(2) |
2024 |
||
Adjusted EBITDA |
|
|
|
Maintenance capital expenditures(1) |
|
|
|
Growth capital expenditures(1) |
|
|
|
Lease payments |
|
|
|
Cash interest(1) |
|
|
|
Cash tax (1) |
|
|
|
(1) Maintenance capital expenditures, Cash interest and Cash tax are supplementary financial measures. Growth capital expenditures is a Non-IFRS financial measure. See Non-IFRS and Other Financial Measures. |
|||
(2) Unaudited results. |
|||
Chemtrade’s guidance is based on numerous assumptions. Certain key assumptions that underpin the are as follows:
- None of the principal manufacturing facilities (as set out in Chemtrade’s AIF) incurs significant unplanned downtime
- No labour disruptions occur at any of Chemtrade’s principal manufacturing facilities (as set out in Chemtrade’s AIF)
-
The biennial turnaround at the
North Vancouver chlor-alkali facility is executed as planned
All of Chemtrade’s products are currently compliant under the
Key Assumptions |
2026 Assumptions |
2025(3) Actual |
2024 Actual |
Approximate North American MECU sales volumes |
171,000 |
170,000 |
172,000 |
2026 realized MECU netback being lower than 2025 (per MECU) |
CAD ( |
N/A |
N/A |
Average CMA(1) |
|
|
|
Approximate North American production volumes of sodium chlorate (MTs) |
254,000 |
273,000 |
270,000 |
USD to CAD average foreign exchange rate |
1.375 |
1.397 |
1.370 |
Long term incentive plan costs (in $ millions) |
|
|
|
(1) Chemical Market Analytics (CMA) by OPIS, A Dow Jones Company, formerly IHS Markit Base Chemical. |
|||
(2) The average CMA NE Asia caustic spot price for 2026, 2025 and 2024 is the average spot price of the four quarters ending with the third quarter of that year as the majority of our pricing is based on a one quarter lag. |
|||
(3) Unaudited results. |
|||
Chemtrade Vision 2030
In May 2025, Chemtrade shared Chemtrade Vision 2030 where one of the key aspects is to grow mid-cycle annual Adjusted EBITDA to between
Update on Organic Growth Projects
Chemtrade remains focused on its long-term objective of delivering sustained earnings growth and generating value for investors. To accomplish this, Chemtrade has identified and is executing on various organic growth initiatives, particularly related to water chemicals, where it continues to progress in-line with expectations. In 2026, Chemtrade plans to invest between
Construction and the start-up process of the
Distributions and Capital Allocation Update
Distributions declared in the fourth quarter of 2025 totalled
In January 2026, Chemtrade announced an additional increase to its monthly distribution of approximately
During the fourth quarter of 2025, Chemtrade purchased approximately 1.9 million units as part of the NCIB approved in August 2025, which authorizes purchases of approximately 11.2 million units. During 2025, Chemtrade purchased approximately 8.9 million units under two NCIBs (2.8 million units under the NCIB approved in August 2025 and 6.1 million units under the NCIB that expired in June 2025). Purchases of units were effected through the facilities of the TSX and/or alternative Canadian trading systems and were made by means of open market transactions, or such other means as may be permitted by the TSX, including block purchases of units, at prevailing market rates. The timing and amount of any purchases are subject to management’s discretion.
Chemtrade’s management and Board of Trustees continue to assess opportunities to further adjust and optimize its capital structure. This could potentially include refinancing of a portion of its outstanding debentures or notes depending on market conditions and capital priorities.
Rohit Bhardwaj, CFO of Chemtrade, commented on Chemtrade’s financial position and capital allocation, “Our focus on reducing leverage over the past few years provided the dry powder necessary to finance two acquisitions during 2025 without diluting our unitholders. We concluded 2025 in a strong financial position with a prudent balance sheet, plentiful liquidity, and optimized capital structure. We remain committed to a judicious capital allocation approach that, utilizing Chemtrade’s robust cash flow and cash flow conversion, balances investments with returning of capital to unitholders via monthly distributions and the NCIB. Chemtrade’s key leverage ratio was below our target at the end of 2025 and is expected to remain at or near our target in 2026.”
“During 2025, Chemtrade pro-actively undertook a number of steps to optimize its capital structure, lower its capital cost, and extend the maturity of its outstanding debt. We significantly reduced the principal amount of convertible debentures outstanding, and their inherent equity dilution potential, by approximately
During 2025, and as further discussed in its financial disclosures, Chemtrade completed several transactions to optimize its capital structure, including (i) the Redemption of all of the
Trading on the OTCQX® Best Market
Subsequent to year end, on February 20, 2026, Chemtrade began trading on the OTCQX® Best Market under the symbol "CGIFF". Upgrading to the OTCQX® Best Market is an important step enabling Chemtrade to provide more transparent trading and to expand its reach with U.S. investors.
About Chemtrade
Chemtrade operates a diversified business providing industrial chemicals and services to customers in
NON-IFRS AND OTHER FINANCIAL MEASURES
Non-IFRS financial measures and non-IFRS ratios
Non-IFRS financial measures are financial measures disclosed by an entity that (a) depict historical or expected future financial performance, financial position or cash flow of an entity, (b) with respect to their composition, exclude amounts that are included in, or include amounts that are excluded from, the composition of the most directly comparable financial measure disclosed in the primary financial statements of the entity, (c) are not disclosed in the financial statements of the entity and (d) are not a ratio, fraction, percentage or similar representation. Non-IFRS ratios are financial measures disclosed by an entity that are in the form of a ratio, fraction, percentage, or similar representation that has a non-IFRS financial measure as one or more of its components, and that are not disclosed in the financial statements of the entity.
These non-IFRS financial measures and non-IFRS ratios are not standardized financial measures under IFRS and, therefore, are unlikely to be comparable to similar financial measures presented by other entities. Management believes these non-IFRS financial measures and non-IFRS ratios provide transparent and useful supplemental information to help investors evaluate Chemtrade’s financial performance, financial condition and liquidity using the same measures as management. These non-IFRS financial measures and non-IFRS ratios should not be considered as a substitute for, or superior to, measures of financial performance prepared in accordance with IFRS.
The following section outlines Chemtrade’s non-IFRS financial measures and non-IFRS ratios, their compositions, and why management uses each measure. It includes reconciliations to the most directly comparable IFRS measures. Except as otherwise described herein, Chemtrade’s non-IFRS financial measures and non-IFRS ratios are calculated on a consistent basis from period to period and are adjusted for specific items in each period, as applicable.
Distributable cash after maintenance capital expenditures
Most directly comparable IFRS financial measure: Cash flows from operating activities
Definition: Distributable cash after maintenance capital expenditures is calculated as cash flows from operating activities less lease payments net of sub-lease receipts, maintenance capital expenditures including unpaid amounts and adjusting for cash interest and current taxes, and before decreases or increases in working capital.
Why we use the measure and why it is useful to investors: It provides useful information related to Chemtrade’s cash flows including the amount of cash available for distribution to Unitholders, repayment of debt and other investing activities.
Distributable cash after maintenance capital expenditures per unit
Definition: Distributable cash after maintenance capital expenditures per unit is calculated as distributable cash after maintenance capital expenditures divided by the weighted average number of units outstanding.
Why we use the measure and why it is useful to investors: It provides useful information related to Chemtrade’s cash flows including the amount of cash available for distribution to Unitholders, repayment of debt and other investing activities.
Payout ratio
Definition: Payout ratio is calculated as Distributions declared per unit divided by Distributable cash after maintenance capital expenditures per unit.
Why we use the measure and why it is useful to investors: It provides useful information related to Chemtrade’s cash flows including Chemtrade’s ability to pay distributions to Unitholders.
|
Three months ended |
Twelve months ended |
||||||
($'000, except per unit metrics and ratios) |
December 31, 2025(3) |
December 31, 2024 |
December 31, 2025(3) |
December 31, 2024 |
||||
|
|
|
|
|
||||
Cash flows from operating activities |
|
|
|
|
||||
|
|
|
|
|
||||
Add (Less): |
|
|
|
|
||||
Lease payments net of sub-lease receipts |
(17,909) |
(17,142) |
(70,018) |
(65,379) |
||||
Increase in working capital |
(7,124) |
(1,285) |
51,779 |
31,279 |
||||
Changes in other items (1) |
5,551 |
10,156 |
14,684 |
9,627 |
||||
Maintenance capital expenditures (2) |
(49,336) |
(36,055) |
(123,538) |
(104,474) |
||||
Distributable cash after maintenance capital expenditures |
|
|
|
|
||||
|
|
|
|
|
||||
Divided by: |
|
|
|
|
||||
Weighted average number of units outstanding |
114,087,626 |
120,590,348 |
114,323,060 |
118,424,190 |
||||
Distributable cash after maintenance capital expenditures per unit |
|
|
|
|
||||
|
|
|
|
|
||||
Distributions declared per unit |
|
|
|
|
||||
Payout ratio (%) |
|
|
|
|
||||
(1) Changes in other items relate to Cash interest and current taxes. |
||||||||
(2) Maintenance capital expenditures are a Supplementary financial measure. See “Supplementary financial measures” for more information. |
||||||||
(3) Unaudited results. |
||||||||
Net debt
Most directly comparable IFRS financial measure: Total long-term debt, Convertible Debentures, lease liabilities, and long-term lease liabilities, less cash and cash equivalents.
Definition: Net debt is calculated as the principal of long-term debt, the principal value of Convertible Debentures, lease liabilities and long-term lease liabilities, less cash and cash equivalents.
Why we use the measure and why it is useful to investors: It provides useful information related to Chemtrade’s aggregate debt balances.
($'000) |
As of December 31, 2025(3) |
As of December 31, 2024 |
||
|
|
|
||
Long-term debt (1) |
|
|
||
Add (Less): |
|
|
||
Convertible Debentures (1) |
25,534 |
340,000 |
||
Long-term lease liabilities |
132,352 |
148,268 |
||
Lease liabilities (2) |
58,655 |
58,145 |
||
Cash and cash equivalents |
(27,420) |
(25,497) |
||
Net debt |
|
|
||
(1) Principal amount outstanding |
||||
(2) Presented as current liabilities in the Consolidated Statements of Financial Position |
||||
(3) Unaudited results |
||||
Growth capital expenditures
Most directly comparable IFRS financial measure: Capital expenditures
Definition: Growth capital expenditures are calculated as capital expenditures, adjusted for unpaid capital expenditures, less Maintenance capital expenditures, plus investments in a joint venture.
Why we use the measure and why it is useful to investors: It provides useful information related to the capital spending and investments intended to grow earnings.
|
Three months ended |
Twelve months ended |
||||||
($'000) |
December 31, 2025(2) |
December 31, 2024 |
December 31, 2025(2) |
December 31, 2024 |
||||
|
|
|
|
|
||||
Capital expenditures |
|
|
|
|
||||
Net change in account payable and accrued liabilities related to capital expenditures |
14,253 |
16,149 |
(4,863) |
5,730 |
||||
Capital expenditures, including unpaid capital expenditures |
|
|
|
|
||||
Add (Less): |
|
|
|
|
||||
Maintenance capital expenditures |
(49,336) |
(36,055) |
(123,538) |
(104,474) |
||||
Non-maintenance capital expenditures (1) |
19,320 |
24,663 |
48,193 |
81,329 |
||||
Growth capital expenditures |
|
|
|
|
||||
(1) Non-maintenance capital expenditures is a Supplementary financial measure. |
||||||||
(2) Unaudited results. |
||||||||
Total of segments measures
Total of segments measures are financial measures disclosed by an entity that (a) are a subtotal of two or more reportable segments, (b) are not a component of a line item disclosed in the primary financial statements of the entity, (c) are disclosed in the notes of the financial statements of the entity, and (d) are not disclosed in the primary financial statements of the entity.
The following section provides an explanation of the composition of the total of segments measures.
Adjusted EBITDA
Most directly comparable IFRS financial measure: Net earnings (loss)
|
Three months ended |
Twelve months ended |
||||||
($'000, except per unit metrics and ratios) |
December 31, 2025(1) |
December 31, 2024 |
December 31, 2025(1) |
December 31, 2024 |
||||
Net earnings |
|
|
|
|
||||
|
|
|
|
|
||||
Add (less): |
|
|
|
|
||||
Depreciation and amortization |
57,797 |
49,929 |
220,086 |
188,545 |
||||
Net finance costs |
3,002 |
11,501 |
104,509 |
72,560 |
||||
Income tax expense (recovery) |
1,608 |
7,250 |
16,094 |
43,922 |
||||
Impairment of joint venture |
- |
3,834 |
- |
3,834 |
||||
Impairment of PPE |
- |
- |
43,484 |
- |
||||
Change in environmental and decommissioning liability |
2,433 |
(1,116) |
1,912 |
(930) |
||||
Net loss (gain) on disposal and write-down of PPE |
18 |
5,488 |
(56) |
8,502 |
||||
Unrealized foreign exchange loss (gain) |
(4,943) |
21,433 |
(18,015) |
27,451 |
||||
Adjusted EBITDA |
|
|
|
|
||||
(1) Unaudited results. |
||||||||
Capital management measures
Capital management measures are financial measures disclosed by an entity that (a) are intended to enable an individual to evaluate an entity’s objectives, policies and processes for managing the entity’s capital, (b) are not a component of a line item disclosed in the primary financial statements of the entity, (c) are disclosed in the notes of the financial statements of the entity, and (d) are not disclosed in the primary financial statements of the entity.
Net debt to LTM Adjusted EBITDA
Definition: Net debt to LTM Adjusted EBITDA is calculated as Net debt divided by LTM Adjusted EBITDA. LTM Adjusted EBITDA represents the last twelve months’ Adjusted EBITDA
Why we use the measure and why it is useful to investors: It provides useful information related to Chemtrade’s debt leverage and Chemtrade’s ability to service debt. Chemtrade monitors Net debt to LTM Adjusted EBITDA as a part of liquidity management to sustain future investment in the growth of the business and make decisions about capital.
Supplementary financial measures
Supplementary financial measures are financial measures disclosed by an entity that (a) are, or are intended to be, disclosed on a periodic basis to depict the historical or expected future financial performance, financial position, or cash flow of an entity, (b) are not disclosed in the financial statements of the entity, (c) are not non-IFRS financial measures, and (d) are not non-IFRS ratios.
The following section provides an explanation of the composition of those supplementary financial measures.
Maintenance capital expenditures
Represents capital expenditures that are required to sustain operations at existing levels and include major repairs and maintenance and plant turnarounds, including unpaid amounts.
Non-maintenance capital expenditures
Represents capital expenditures that are (a) pre-identified or pre-funded, usually as part of a significant acquisition and related financing; (b) considered to expand the capacity of Chemtrade’s operations; (c) significant environmental capital expenditures that are considered to be non-recurring; or (d) capital expenditures to be reimbursed by a third party, including unpaid amounts.
Cash interest
Represents the interest expense on long-term debt, interest on Convertible Debentures, pension plan interest expense and interest income.
Cash tax
Represents current income tax expense.
Caution Regarding Forward-Looking Statements
Certain statements contained in this news release constitute forward-looking statements within the meaning of certain securities laws, including the Securities Act (
Forward-looking statements in this news release describe the expectations of the Fund and its subsidiaries as of the date hereof. These statements are based on assumptions and involve known and unknown risks, uncertainties and other factors that may cause actual results or events to differ materially from those anticipated in such forward-looking statements for a variety of reasons, including without limitation the risks and uncertainties detailed under the “RISK FACTORS” section of the Fund’s latest Annual Information Form and the “RISKS AND UNCERTAINTIES” section of the Fund’s most recent Management’s Discussion & Analysis.
Although the Fund believes the expectations reflected in these forward-looking statements and the assumptions upon which they are based are reasonable, no assurance can be given that actual results will be consistent with such forward-looking statements, and they should not be unduly relied upon. With respect to the forward-looking statements contained in this news release, the Fund has made assumptions regarding: 2026 guidance assumption of a return to historical ranges for acid products as well as softness for certain chlor-alkali products; there being no significant unplanned downtime nor labour disruptions affecting Chemtrade’s principal manufacturing facilities; the biennial turnaround at the
Except as required by law, the Fund does not undertake to update or revise any forward-looking statements, whether as a result of new information, future events or for any other reason. The forward-looking statements contained herein are expressly qualified in their entirety by this cautionary statement.
Further information can be found in the disclosure documents filed by Chemtrade Logistics Income Fund with the securities regulatory authorities, available at www.sedarplus.com.
Chemtrade will provide pre-recorded management remarks and supporting slides on February 25, 2026 in the Investor Relations section of its website, available at www.chemtradelogistics.com/investors/. A question and answer call regarding the fourth quarter and full year 2025 results will be webcast live on Thursday, February 26, 2026 at 10:00 a.m. ET. To access the webcast click here.
APPENDIX
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
(unaudited; CA$'000, except per unit amounts)
|
Year ended December 31, |
|||
|
2025 |
2024 |
||
Revenue |
|
|
||
Cost of sales and services |
(1,537,688) |
(1,356,482) |
||
Gross profit |
460,088 |
430,551 |
||
Selling and administrative expenses |
(156,611) |
(183,286) |
||
Impairment of PPE |
(43,484) |
— |
||
Impairment of joint venture |
— |
(3,834) |
||
Share of loss from joint venture |
— |
(41) |
||
Operating income |
259,993 |
243,390 |
||
Net finance costs |
(104,509) |
(72,560) |
||
Income before income tax |
155,484 |
170,830 |
||
Income tax (expense) recovery |
|
|
||
Current |
(30,986) |
(42,130) |
||
Deferred |
14,892 |
(1,792) |
||
|
(16,094) |
(43,922) |
||
Net earnings |
|
|
||
Other comprehensive (loss) income |
|
|
||
Items that may subsequently be reclassified to earnings: |
|
|
||
Net investment hedge of foreign operations, net of tax of $nil (2024 - net of tax $nil) |
2,762 |
(8,632) |
||
Foreign currency translation differences for foreign operations, net of tax of $nil (2024 - $nil) |
(41,445) |
69,417 |
||
Effective portion of change in the fair value of cash flow hedges, net of tax of ( |
1,335 |
640 |
||
Cash flow hedges reclassified to earnings, net of tax of $nil (2024 - net of tax of |
— |
(4,597) |
||
Items that will not be reclassified to earnings: |
|
|
||
Defined benefit plan adjustments, net of tax of ( |
853 |
4,046 |
||
Change in fair value of convertible debentures due to own credit risk, net of tax of |
(7,003) |
3,953 |
||
Other comprehensive (loss) income |
(43,498) |
|
||
Total comprehensive income |
|
|
||
Net earnings per unit |
|
|
||
Basic net earnings per unit |
|
|
||
Diluted net earnings per unit |
|
|
||
CONSOLIDATED STATEMENT OF FINANCIAL POSITION
(unaudited; CA$'000)
|
December 31, 2025 |
December 31, 2024 |
||
ASSETS |
|
|
||
Current assets |
|
|
||
Cash and cash equivalents |
|
|
||
Trade and other receivables |
199,672 |
148,085 |
||
Inventories |
135,347 |
134,932 |
||
Income taxes receivable |
19,382 |
5,498 |
||
Prepaid expenses and other assets |
32,559 |
20,689 |
||
Total current assets |
414,380 |
334,701 |
||
Non-current assets |
|
|
||
Property, plant and equipment |
1,101,009 |
1,088,145 |
||
Right-of-use assets |
179,096 |
186,036 |
||
Investment in a joint venture |
707 |
707 |
||
Income taxes receivable |
66,000 |
66,000 |
||
Other assets |
17,677 |
18,870 |
||
Intangible assets |
731,198 |
541,952 |
||
Deferred tax assets |
21,269 |
47,996 |
||
Total non-current assets |
2,116,956 |
1,949,706 |
||
Total assets |
|
|
||
LIABILITIES AND UNITHOLDERS’ EQUITY |
|
|
||
Current liabilities |
|
|
||
Trade and other payables |
|
|
||
Distributions payable |
6,567 |
6,548 |
||
Provisions |
20,820 |
49,265 |
||
Lease liabilities |
58,655 |
58,145 |
||
Convertible Debentures (Mature in June 2028) |
30,960 |
356,596 |
||
Total current liabilities |
462,496 |
798,002 |
||
Non-current liabilities |
|
|
||
Long-term debt |
977,054 |
336,250 |
||
Other long-term liabilities |
33,503 |
26,316 |
||
Long-term lease liabilities |
132,352 |
148,268 |
||
Employee benefits |
17,914 |
19,576 |
||
Provisions |
114,603 |
121,130 |
||
Deferred tax liabilities |
18,306 |
16,508 |
||
Total non-current liabilities |
1,293,732 |
668,048 |
||
Total liabilities |
1,756,228 |
1,466,050 |
||
Unitholders’ equity |
|
|
||
Units |
1,549,325 |
1,629,576 |
||
Contributed surplus |
46,365 |
26,384 |
||
Deficit |
(1,033,945) |
(1,095,317) |
||
Accumulated other comprehensive income |
213,363 |
257,714 |
||
Total unitholders’ equity |
775,108 |
818,357 |
||
Total liabilities and unitholders’ equity |
|
|
CONSOLIDATED STATEMENT OF CASH FLOWS
(unaudited; CA$'000)
|
Year ended December 31, |
|||
|
2025 |
2024 |
||
Cash flows from operating activities: |
|
|
||
Net earnings |
|
|
||
Adjustments for: |
|
|
||
Depreciation and amortization |
220,086 |
188,545 |
||
Net (gain) loss on disposal and write-down of property, plant and equipment ("PPE") |
(56) |
8,502 |
||
Impairment of PPE |
43,484 |
— |
||
Impairment of joint venture |
— |
3,834 |
||
Change in environmental and decommissioning liability |
1,912 |
(930) |
||
Income tax expense |
16,094 |
43,922 |
||
Net finance costs |
104,509 |
72,560 |
||
Unrealized foreign exchange loss (gain) |
(18,015) |
27,451 |
||
|
507,404 |
470,792 |
||
Increase in working capital(1) |
(51,779) |
(31,279) |
||
Interest paid |
(54,936) |
(48,041) |
||
Interest received |
3,780 |
2,998 |
||
Income tax paid |
(49,395) |
(52,401) |
||
Net cash flows from operating activities |
355,074 |
342,069 |
||
|
|
|
||
Cash flows from investing activities: |
|
|
||
Capital expenditures |
(176,594) |
(180,073) |
||
Acquisition of intangible assets |
(39,141) |
— |
||
Business acquisition |
(212,831) |
— |
||
Net cash flows used in investing activities |
(428,566) |
(180,073) |
||
|
|
|
||
Cash flows from financing activities: |
|
|
||
Distributions to unitholders, net of distributions reinvested |
(78,852) |
(76,614) |
||
Repayment of convertible debentures |
(244,618) |
(42,748) |
||
Repayment of lease liability |
(70,018) |
(65,379) |
||
Net change in revolving credit facility |
206,931 |
(161,801) |
||
Proceeds from issuance of senior unsecured notes |
375,000 |
250,000 |
||
Transaction costs related to the issuance of senior unsecured notes |
(6,890) |
(6,092) |
||
Transaction costs related to credit facility extension |
(1,818) |
(1,271) |
||
Debt extinguishment costs |
(2,875) |
(863) |
||
Repurchase of units under NCIB |
(100,847) |
(54,531) |
||
Net cash flows from (used in) financing activities |
76,013 |
(159,299) |
||
|
|
|
||
(Decrease) increase in cash and cash equivalents |
2,521 |
2,697 |
||
Cash and cash equivalents, beginning of the period |
25,497 |
21,524 |
||
Effect of exchange rates on cash held in foreign currencies |
(598) |
1,276 |
||
Cash and cash equivalents, end of the period |
|
|
||
(1) The comparatives for certain items on the consolidated statements of cash flow have been amended to be consistent with current year presentation. |
||||
FINANCIAL HIGHLIGHTS
These financial highlights have been presented in accordance with IFRS, except where noted.
|
Three months ended |
Year ended |
||||||||||
(unaudited; $’000 except per unit amounts) |
December 31,
|
December 31,
|
December 31,
|
December 31,
|
||||||||
|
|
|
|
|
||||||||
Revenue |
$ |
502,041 |
$ |
446,525 |
$ |
1,997,776 |
$ |
1,787,033 |
||||
Net earnings |
$ |
38,252 |
$ |
10,274 |
$ |
139,390 |
$ |
126,908 |
||||
Net earnings per unit (1) |
$ |
0.34 |
$ |
0.09 |
$ |
1.22 |
$ |
1.07 |
||||
Diluted net earnings per unit (1) |
$ |
0.18 |
$ |
0.09 |
$ |
1.22 |
$ |
1.04 |
||||
Total assets |
$ |
2,531,336 |
$ |
2,284,407 |
$ |
2,531,336 |
$ |
2,284,407 |
||||
Long-term debt |
$ |
977,054 |
$ |
336,250 |
$ |
977,054 |
$ |
336,250 |
||||
Convertible unsecured subordinated debentures |
$ |
30,960 |
$ |
356,596 |
$ |
30,960 |
$ |
356,596 |
||||
Adjusted EBITDA (2) |
$ |
98,167 |
$ |
108,593 |
$ |
507,404 |
$ |
470,792 |
||||
Cash flows from operating activities(4) |
$ |
85,468 |
$ |
83,842 |
$ |
355,074 |
$ |
342,069 |
||||
Distributable cash after maintenance capital expenditures (2) |
$ |
16,650 |
$ |
39,516 |
$ |
227,981 |
$ |
213,122 |
||||
Distributable cash after maintenance capital expenditures per unit (1) (2) |
$ |
0.1459 |
$ |
0.3277 |
$ |
1.9942 |
$ |
1.7996 |
||||
Distributions declared |
$ |
19,838 |
$ |
19,833 |
$ |
78,871 |
$ |
78,348 |
||||
Distributions declared per unit (3) |
$ |
0.1725 |
$ |
0.1650 |
$ |
0.6900 |
$ |
0.6600 |
||||
Distributions paid, net of distributions reinvested |
$ |
19,710 |
$ |
19,973 |
$ |
78,852 |
$ |
76,614 |
||||
(1) Based on weighted average number of units outstanding for the period. |
||||||||||||
(2) See Non-IFRS and Other Financial Measures. |
||||||||||||
(3) Based on actual number of units outstanding on record date. |
||||||||||||
(4) The 2024 comparative amount for the change in working capital within cash flows from operating activities has been restated to reflect capital expenditure related accruals that were previously classified within investing activities. |
||||||||||||
SULPHUR AND WATER CHEMICALS (SWC)
|
Three months ended |
Year ended |
||||||||||
($’000, unaudited) |
December 31, 2025 |
December 31, 2024 |
December 31, 2025 |
December 31, 2024 |
||||||||
|
|
|
|
|
||||||||
Revenue |
$ |
323,063 |
$ |
260,110 |
$ |
1,230,739 |
$ |
1,038,163 |
||||
Gross profit |
|
32,983 |
|
39,842 |
|
198,830 |
|
196,747 |
||||
Adjusted EBITDA |
|
60,707 |
|
62,450 |
|
288,576 |
|
270,370 |
||||
ELECTROCHEMICALS (EC)
|
Three months ended |
Year ended |
||||||||||
($'000, unaudited) |
December 31, 2025 |
December 31, 2024 |
December 31, 2025 |
December 31, 2024 |
||||||||
|
|
|
|
|
||||||||
North American sales volumes: |
|
|
|
|
||||||||
Sodium chlorate sales volumes (000's MT) |
|
67 |
|
65 |
|
273 |
|
270 |
||||
Chlor-alkali sales volumes (000's MECU) |
|
35 |
|
43 |
|
170 |
|
172 |
||||
|
|
|
|
|
||||||||
Revenue |
$ |
178,978 |
$ |
186,415 |
$ |
767,037 |
$ |
748,870 |
||||
Gross profit |
|
52,933 |
|
58,808 |
|
261,258 |
|
233,804 |
||||
Adjusted EBITDA |
|
71,589 |
|
83,487 |
|
345,680 |
|
314,080 |
||||
Corporate Costs
Corporate costs include the administrative costs of corporate activities such as treasury, finance, information technology, human resources, legal and risk management, and environmental, health and safety support, which are not directly allocable to a reportable segment.
|
Three months ended |
Year ended |
||||||
($'000, unaudited) |
December 31, 2025 |
December 31, 2024 |
December 31, 2025 |
December 31, 2024 |
||||
Corporate costs (Adjusted EBITDA) |
|
|
|
|
||||
| _________________________ |
1 Adjusted EBITDA is a Total of Segments measure, Distributable cash after maintenance capital expenditures is a non-IFRS measure and Payout ratio is a Non-IFRS ratio. Please see Non-IFRS and Other Financial Measures for more information. |
2 Net Debt to LTM Adjusted EBITDA is a Non-IFRS ratio. Please see Non-IFRS and Other Financial Measures for more information. |
3 Net Debt is a non-IFRS measure. Please see Non-IFRS and Other Financial Measures for more information. |
View source version on businesswire.com: https://www.businesswire.com/news/home/20260225628536/en/
Endri Leno
Vice President, Investor Relations
Email: investor-relations@chemtradelogistics.com
Source: Chemtrade Logistics Income Fund
