Chemtrade Logistics Income Fund Announces Record Quarterly Adjusted EBITDA for the Third Quarter of 2025; Increases Full-Year 2025 Guidance to Record Adjusted EBITDA of Above $503 Million

Executive Summary

• Chemtrade Logistics Income Fund reported Q3 2025 revenue of $532.8 M (+12.4% YoY) and record Adjusted EBITDA of $151.2 M, the highest quarterly level since inception.
• Net earnings fell to $42.4 M (‑29.5% YoY) due to fair‑value losses on debentures and higher depreciation/amortisation, but distributable cash after maintenance capex rose 18.0% to $77.8 M ($0.69 per unit).
• The Fund raised its 2025 Adjusted EBITDA guidance to a record level (>$502.6 M) and provided detailed updates on organic growth projects, the pending Polytec acquisition, and significant capital‑structure actions (debt redemption, new senior notes, SIBs).

Key Details

• Financial Highlights
• Revenue: $532.8 M (+$58.6 M YoY); FX‑adjusted increase of $55.1 M.
• Adjusted EBITDA: $151.2 M (+$14.0 M YoY; +10.2%); FX‑adjusted up $12.9 M.
• Net earnings: $42.4 M (‑$17.7 M YoY) – impacted by debenture fair‑value loss and higher D&A.
• Operating cash flow: $155.5 M (+8.5% YoY).
• Distributable cash after maintenance capex: $77.8 M (+18.0% YoY; $0.69 per unit, +24.4%).

• Payout ratio (12‑month): 32%; quarterly payout 25%.

• Balance Sheet

• Net debt: $941.1 M; Net‑debt/LTM Adjusted EBITDA = 1.8×.

• Undrawn credit facility capacity: US$483.9 M plus $18.7 M cash.

• Guidance Update

• 2025 Adjusted EBITDA guidance raised to >$502.6 M (record level).
• Implied 2025 mid‑point payout ratio ≤ 37%.

• Maintenance capex forecast: $115–$125 M; growth capex $40–$50 M.

• Organic Growth Projects

• Cairo, Ohio ultra‑pure acid plant construction completed – ramp‑up in 2026.

• Augusta, Georgia water products plant slated for early Q1 2026 start‑up.

• Acquisition Update

• Polytec acquisition announced Aug 14 2025 for US$150 M (≈6.5× LTM Adjusted EBITDA). Closing pending U.S. regulatory approvals (delayed by government shutdown).

• Capital Allocation & Debt Management

• NCIB purchases: ~1.0 M units in Q3 (of 11.2 M authorized).
• Distributions declared: $0.1725 per unit (monthly $0.0575).
• Redemption of 6.50% convertible debentures (Oct 31 2026) – $100 M principal redeemed at par plus accrued interest.
• SIB for 6.25% debentures (Aug 31 2027): $85.6 M tendered, $115.7 M consideration; $4.9 M subsequently redeemed.
• SIB for 7.00% debentures (June 30 2028): $82.4 M tendered; $73.9 M new debentures issued, $27 M cash paid.
• Private placement of 5.75% senior unsecured notes – $250 M closed Oct 1 2025; proceeds used to repay debt and general corporate purposes (transaction costs $4.6 M).

• Credit facility extended to Oct 31 2030.

• Management Commentary

• CEO Scott Rook highlighted record Adjusted EBITDA, strong cash generation, and progress on water‑products and ultra‑pure acid initiatives supporting Vision 2030 targets.
• CFO Rohit Bhardwaj emphasized disciplined capital allocation, balance‑sheet strength, and upcoming debt‑structure optimization (conversion reduction, longer‑tenor notes).

Notable Quotes

• “Chemtrade delivered yet another exceptional quarter with a record quarterly Adjusted EBITDA… Our strong third quarter results build on several quarters of industry‑leading performance…” – Scott Rook, President & CEO
• “We remain committed to a balanced and disciplined capital allocation approach that continues to deliver value to our unitholders…” – Rohit Bhardwaj, CFO