Overview

* Chemtrade Q3 revenue grows 12.4% yr/yr, beating analyst expectations

* Adjusted EBITDA for Q3 reaches record high, beating analyst estimates

* Net earnings for Q3 decrease due tolosses related to the change in fair value of debentures and higher depreciation and amortization expense

Outlook

* Chemtrade expects 2025 Adjusted EBITDA guidance to be above C$503 mln

* Company plans C$40-C$50 mln in growth capital expenditures for 2025

Result Drivers

* HIGHER SELLING PRICES - Revenue growth driven by higher selling prices for merchant acid, water solutions products, and Regen acid, offsetting lower chlorine prices

* OPERATIONAL EXCELLENCE - Strong results attributed to operational excellence and commercial discipline, according to CEO Scott Rook

Key Details

Metric Beat/Mis Actual Consensu

s s

Estimate

Q3 Beat C$532.8 C$499.8

Revenue mln mln (4

Analysts

)

Q3 Net C$42.4

Income mln

Q3 Beat C$151.2 C$124.20

Adjusted mln mln (7

EBITDA Analysts

)

Analyst Coverage

* The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 7 "strong buy" or "buy", no "hold" and no "sell" or "strong sell"

* The average consensus recommendation for the commodity chemicals peer group is "buy"

* Wall Street's median 12-month price target for Chemtrade Logistics Income Fund is C$16.00, about 11.6% above its November 10 closing price of C$14.14

* The stock recently traded at 10 times the next 12-month earnings vs. a P/E of 9 three months ago

Press Release:

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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)