Overview

* Chemtrade Q2 revenue up 10.8% yr/yr, beating analyst expectations, per LSEG data

* Adjusted EBITDA for Q2 rises 19.9%, surpassing analyst estimates, per LSEG data

* Co raises 2025 adjusted EBITDA guidance, announces Polytec acquisition

Outlook

* Chemtrade raises 2025 Adjusted EBITDA guidance to C$475 mln-C$500 mln

* Chemtrade Vision 2030 aims for C$550 mln-C$600 mln Adjusted EBITDA by 2030

Result Drivers

* HIGHER SELLING PRICES - Revenue growth driven by increased selling prices for merchant acid, water solutions products, Regen acid, and caustic soda, offsetting lower sodium chlorate volumes and chlorine prices

* FOREIGN EXCHANGE IMPACT - Weaker Canadian dollar relative to the U.S. dollar positively impacted revenue and Adjusted EBITDA by C$5.8 mln and C$2.6 mln, respectively

* MAINTENANCE TURNAROUND - Prior year's maintenance at North Vancouver plant negatively impacted Q2 2024 results, with a C$10.5 mln reduction in revenue and C$17.9 mln decrease in Adjusted EBITDA

Key Details

Metric Beat/Mis Actual Consensu

s s

Estimate

Q2 Beat C$496.70 C$462.90

Revenue mln mln (4

Analysts

)

Q2 Beat C$138 C$118.40

Adjusted mln mln (7

EBITDA Analysts

)

Analyst Coverage

* The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 5 "strong buy" or "buy", 2 "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$15.00, about 25.3% above its August 13 closing price of C$11.20

* The stock recently traded at 9 times the next 12-month earnings vs. a P/E of 8 three months ago

Press Release:

(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.)