Other

CHEMTRADE LOGISTICS INCOME FUND ISSUES 2026 GUIDANCE AND RAISES MONTHLY DISTRIBUTIONS

By The Northwire Desk — AI Analysis Jan 08, 2026 · 17:05 CHE · 15.63 None

CHE · Price

Chemtrade Logistics Income Fund issued its 2026 financial guidance, projecting Adjusted EBITDA of $485‑$525 million and a Net Debt to Adjusted EBITDA ratio near 2.5× at year‑end.
Monthly unit distributions were raised to 6.00 cents per month (effective January 2026), representing an implied payout ratio of ~45%.
The Fund plans $35‑$55 million in growth capital expenditures in 2026, focused on water‑treatment chemical projects, while maintaining a strong balance sheet.

2026 Adjusted EBITDA guidance: $485.0 M – $525.0 M (mid‑point similar to 2025 record year).
Maintenance capital expenditures 2026: $120.0 M – $150.0 M.
Growth capital expenditures 2026: $35.0 M – $55.0 M (targeted at water‑treatment chemicals).
Lease payments 2026: $70.0 M – $80.0 M.
Cash interest 2026: $65.0 M – $75.0 M.
Cash tax 2026: $35.0 M – $45.0 M.
Projected Net Debt/Adjusted EBITDA (end‑2026): ~2.5×.
Implied payout ratio (mid‑point 2026 guidance): ~45%.
Distribution increase: Monthly distribution raised from 5.75 cents to 6.00 cents per unit, third consecutive annual increase; payout ratio now 45% based on mid‑point guidance.
NCIB program: 2025 purchases of 8.9 M units (~8% of outstanding units).
Key assumptions underpinning guidance:
No significant unplanned downtime at principal facilities.
No labour disruptions at principal facilities.
Approx. 171,000 MECU sales volume (North America) in 2026.
Realized MECU netback lower than 2025 by CAD $155 per unit.
Average NE Asia caustic spot price index: US$450/tonne.
Sodium chlorate production forecast: 254,000 MT (North America).
USD/CAD FX rate assumed: 1.375.
Long‑term incentive plan costs (2026): $22.0 M – $28.0 M.

(No direct quotes were provided in the release.)

More from None