Chemtrade Announces Strong Results for Q2 2025, Raises Guidance for 2025 to $475M - $500M; Implementing New NCIB & Redeeming Convertible Debentures
Acquisition of Polytec, Inc. a Provider of Turnkey Water Treatment Solutions
Chemtrade also announced today that it has entered into an agreement to acquire Polytec, Inc. ("Polytec") for US$150 million representing a multiple of approximately 6.5x LTM Adjusted EBITDA. Polytec is a provider of turnkey water treatment solutions with well-established operations in four U.S. states. The transaction is expected to close in the fourth quarter of 2025 subject to regulatory requirements and customary closing conditions. Further details on this transaction can be found in a separate news release.
Second Quarter 2025 Highlights
Revenue of $496.7 million, an increase of $48.6 million or 10.8% year-over-year. Excluding the impact of foreign exchange and the maintenance turnaround at North Vancouver in the second quarter of 2024, revenue was $32.3 million higher than in the prior year period, driven by higher selling prices for several key products, which more than offset the impact of lower volumes of sodium chlorate and lower selling prices for chlorine.
Adjusted EBITDA (1) of $138.0 million, an increase of $22.9 million or 19.9% year-over-year. Excluding the impact of foreign exchange and the maintenance turnaround at North Vancouver in the second quarter of 2024, Adjusted EBITDA was $2.4 million higher than in the prior year period, primarily owing to higher selling prices for several products, partially offset by lower volumes for some products and higher input costs.
Net earnings of $9.7 million, a decrease of $4.9 million or 33.6% year-over-year, primarily due to non-cash impairments of the Prince George sodium chlorate plant and the sodium nitrite Cash Generating Unit ('CGU') of $28.4 million and 15.1 million, respectively.
Cash flows from operating activities of $83.4 million, a decrease of $18.8 million or 18.4% year-over-year, mainly due to an increase in working capital and higher income tax payments which more than offset the higher Adjusted EBITDA.
Distributable cash after maintenance capital expenditures (1) of $71.5 million, an increase of $23.7 million or 49.6% year-over-year, reflecting higher Adjusted EBITDA. Distributable cash after maintenance capital expenditures per unit (1) increased by 54.2% year-over-year to $0.63 per unit. Chemtrade's Payout ratio (1) for the last twelve months was 33%.
Purchased 2.2 million units in the second quarter, totalling 11.2 million units acquired out of 11.7 million authorized under the under the normal course issuer bid (NCIB), which expired in June 2025. Chemtrade has filed a notice of intention to commence a new NCIB, subject to approval from regulatory authorities.
Continues to maintain a strong balance sheet, with a Net debt to LTM Adjusted EBITDA (1) ratio of 2.0x at the end of the second quarter of 2025.
Although global trade tensions persist, the anticipated weakness in our business has not materialized; consequently, Chemtrade is raising the Adjusted EBITDA guidance for 2025. Assuming the current market conditions for our key products remain unchanged for the remainder of 2025, Chemtrade now expects 2025 Adjusted EBITDA to range between $475.0 million and $500.0 million.
In May 2025, Chemtrade introduced Chemtrade Vision 2030, a strategic framework targeting strong total unitholder returns, supported by 5-10% annual growth in Chemtrade's mid-cycle Adjusted EBITDA and Distributable cash after maintenance capital expenditures, disciplined capital allocation, and a continued focus on high-return growth investments. Under this framework, Chemtrade is targeting to grow its mid-cycle annual Adjusted EBITDA to between $550 million and $600 million by 2030.
1) Adjusted EBITDA is a Total of Segments measure, Distributable cash after maintenance capital expenditures is a non-IFRS measure and Net debt to LTM Adjusted EBITDA, Distributable cash after maintenance capital expenditures per unit and Payout ratio are non-IFRS ratios. Maintenance capital expenditures is a Supplementary financial measure. Please see Non-IFRS and Other Financial Measures for more information.
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Scott Rook, President and CEO of Chemtrade, commented on the second quarter 2025 results, 'Chemtrade delivered another strong quarter in Q2, with double-digit growth in revenue, Adjusted EBITDA, and distributable cash. These results reflect the consistent execution of our strategy, underpinned by operational discipline, commercial focus, and the overall strength of our diversified portfolio. I am incredibly proud of how our team continues to perform amid a volatile macro-economic environment. Although global trade tensions persist, our robust first half performance and resilient business provide us with the confidence to once again raise our full-year Adjusted EBITDA guidance for 2025.'
'Our strategy continues to centre on driving profitable growth, backed by disciplined capital allocation and operational excellence. We remain encouraged by the momentum across several business lines, including water chemicals and ultrapure acid where we continue to advance high-return organic investments. These efforts are complemented by our evaluation and execution of strategic and accretive acquisitions, such as Polytec, that align with our long-term vision. Together, these actions support the growth ambitions that we laid out in our Chemtrade Vision 2030 framework. Combined with the stability of our broader portfolio, we believe Chemtrade is well-positioned to grow its mid-cycle Adjusted EBITDA and distributable cash by 5-10% annually.'
'Even amid a dynamic environment, our business continues to demonstrate consistency. With a strong balance sheet, significant cash flow generation, and a focused strategy, we remain confident in our ability to execute and to continue generating long-term value for our unitholders,' Mr. Rook concluded.
Consolidated Financial Summary of Q2 2025
The weaker Canadian dollar relative to the U.S. dollar during the second quarter of 2025 compared with the second quarter of 2024 had a positive impact on consolidated revenue and consolidated Adjusted EBITDA of $5.8 million and $2.6 million, respectively. The biennial maintenance turnaround at the North Vancouver chlor-alkali plant during the second quarter of 2024 had a negative impact on revenue and Adjusted EBITDA in that period of approximately $10.5 million and $17.9 million, respectively.
Revenue for the second quarter of 2025 was $496.7 million, which was $48.6 million or 10.8% higher than revenue for the second quarter of 2024. Excluding the impacts of foreign exchange and the North Vancouver maintenance turnaround, revenue increased by $32.3 million or 7.2% year-over-year. This increase was primarily due to: (i) higher selling prices and volumes of merchant acid, water solutions products, and Regen acid in the Sulphur and Water Chemicals (SWC) segment as well as higher selling prices for sulphur products in the SWC segment; and (ii) higher selling prices for caustic soda, HCl, and sodium chlorate in the Electrochemicals (EC) segment. These factors were partially offset by lower sales volumes of sodium chlorate and lower selling prices for chlorine in the EC segment.
Adjusted EBITDA for the second quarter of 2025 was $138.0 million, which was $22.9 million or 19.9% higher than Adjusted EBITDA for the second quarter of 2024. Excluding the impacts of foreign exchange and the North Vancouver maintenance turnaround, Adjusted EBITDA increased by $2.4 million or 2% year-over-year. This increase was primarily due to higher selling prices for caustic soda, HCl, and sodium chlorate in the EC segment. These factors were partially offset by: (i) lower sales volumes of sodium chlorate and lower selling prices for chlorine in the EC segment; and (ii) lower margins for Regen acid as higher selling prices were more than offset by higher input costs and maintenance turnaround spending in the SWC segment.
Distributable cash after maintenance capital expenditures for the second quarter of 2025 was $71.5 million or $0.63 per unit, compared with $47.8 million or $0.41 per unit in the second quarter of 2024. The increase was primarily due to the same factors that had a positive impact on Adjusted EBITDA, as noted above. Chemtrade's Payout Ratio for the twelve months ended June 30, 2025 was 33%.
Chemtrade maintained a strong balance sheet through the second quarter of 2025. As of June 30, 2025, Chemtrade's Net Debt was $982.8 million and its Net Debt to LTM Adjusted EBITDA ratio was 2.0x. As of the end of the second quarter of 2025, Chemtrade also maintained strong financial liquidity with US$510.0 million undrawn on its Credit Facilities, in addition to $20.1 million of cash and cash equivalents.
Segmented Financial Summary of Q2 2025
The SWC segment reported revenue of $302.4 million for the second quarter of 2025, compared to $266.9 million for the second quarter of 2024. Adjusted EBITDA in the SWC segment was $76.2 million for the second quarter of 2025, compared to $78.2 million for the second quarter of 2024. The weaker Canadian dollar relative to the U.S. dollar during the second quarter of 2025 compared with the second quarter of 2024 had a positive impact on SWC revenue and SWC Adjusted EBITDA of $2.7 million and $0.4 million, respectively.
Excluding the impact of foreign exchange, as noted above, SWC revenue in the second quarter of 2025 increased by $32.8 million or 12.3% year-over-year. The increase in comparable SWC revenue was primarily due to: (i) higher selling prices and volumes of merchant acid and Regen acid; (ii) higher volumes and selling prices for water solutions products; and (iii) higher selling prices for sulphur products. Excluding the impact of foreign exchange, as noted above, SWC Adjusted EBITDA in the second quarter of 2025 decreased by $2.4 million or 3.1% year-over-year. The decrease in comparable SWC Adjusted EBITDA was primarily due to: (i) lower margins for Regen acid, as higher selling prices were more than offset by higher input costs and maintenance turnaround spending; and (ii) higher input costs for merchant acid, water solutions products, and sulphur products, offset by higher selling prices.
The EC segment reported revenue of $194.2 million for the second quarter of 2025, compared with $181.2 million for the second quarter of 2024. Adjusted EBITDA in the EC Segment was $92.1 million, compared to $65.1 million for the second quarter of 2024. The weaker Canadian dollar relative to the U.S. dollar during the second quarter of 2025 compared with the second quarter of 2024 had a positive impact on EC revenue and EC Adjusted EBITDA of $3.1 million and $2.2 million, respectively. The biennial maintenance turnaround at the North Vancouver chlor-alkali plant during the second quarter of 2024 had a negative impact on EC revenue and EC Adjusted EBITDA in that period of approximately $10.5 million and $17.9 million, respectively.
Excluding the impacts of foreign exchange and the maintenance turnaround at North Vancouver in 2024, as noted above, EC revenue in the second quarter of 2025 was similar to that of the second quarter of 2024. This was primarily due to (i) higher selling prices for caustic soda, HCl, and sodium chlorate; offset by (i) lower volumes for sodium chlorate; and (ii) lower selling prices for chlorine. MECU netbacks increased by approximately $165 year-over-year, mainly due to higher netbacks for caustic soda, with higher netbacks for HCl offsetting lower netbacks for chlorine.
Excluding the impacts of foreign exchange and the maintenance turnaround at North Vancouver in 2024, as noted above, EC Adjusted EBITDA in the second quarter of 2025 increased by $6.9 million. The factors that affected EC revenue also had an impact on EC Adjusted EBITDA on a year-over-year basis.
Corporate costs for the second quarter of 2025 were $30.3 million, compared with $28.2 million in the second quarter of 2024. Corporate costs increased on a year-over-year basis, reflecting: (i) $1.5 million of higher short-term incentive compensation costs compared to the second quarter of 2024; (ii) $1.7 million of higher legal and other costs; (iii) $0.3 million of lower long-term incentive plan costs; and (iv) $0.1 million of realized foreign exchange gains compared to $0.6 million of realized foreign exchange losses in the comparable prior year period.
2025 Guidance
Although global trade tensions persist, the anticipated weakness in our business has not materialized; consequently, Chemtrade has raised the Adjusted EBITDA guidance for 2025 as outlined below. Assuming the current market conditions for key products remain unchanged for the remainder of 2025, Chemtrade now expects 2025 Adjusted EBITDA to range between $475.0 and $500.0 million. This excludes earnings from Polytec as timing of closing the acquisition is uncertain and it is not expected to have a material impact on Adjusted EBITDA for 2025. Based on the following guidance assumptions, including the anticipated spending on growth capital expenditures and capital allocation, Chemtrade's implied Payout ratio (1) for 2025 is approximately 40%.
Chemtrade's Adjusted EBITDA for 2024 was $470.8 million, marking the second-highest annual Adjusted EBITDA in Chemtrade's history. Achieving the revised 2025 guidance would make 2025 the second-highest annual Adjusted EBITDA in Chemtrade's history. This level of Adjusted EBITDA reinforces the significant step-change in Chemtrade's Adjusted EBITDA and cash flow generation compared to pre-pandemic levels as it would be the fourth consecutive year at the higher level of Adjusted EBITDA.
Key Assumptions
2025 Assumptions
2024
Actual
Current
Previous
Approximate North American MECU sales volumes
177,000
168,500
172,000
2025 realized MECU netback being higher than 2024 (per MECU)
CAD $60
CAD $30
N/A
Average CMA (1) NE Asia caustic spot price index per tonne (2)
US$440
US$450
US$385
Approximate North American production volumes of sodium chlorate (MTs)
270,000
254,500
270,000
USD to CAD average foreign exchange rate
1.380
1.380
1.370
Long term incentive plan costs (in $ millions)
$15.0 - $20.0
$12.0 - $18.0
$23.3
(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 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.
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Chemtrade Vision 2030
In May 2025, Chemtrade shared Chemtrade Vision 2030 and the acquisition of Polytec is an important step towards achieving the targets outlined in Vision 2030. One of the key aspects of Chemtrade Vision 2030 is to grow mid-cycle annual Adjusted EBITDA to between $550 million and $600 million by 2030. Chemtrade expects to achieve this by continuing to focus on operational and commercial excellence, as well as pursuing organic and external growth.
This improvement in Adjusted EBITDA, along with Chemtrade's commitment to returning capital to unitholders while maintaining a prudent balance sheet, is expected to deliver compelling unitholder value.
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 various organic growth initiatives. In 2025, Chemtrade plans to invest between $40.0 million and $60.0 million in growth capital expenditures, which includes expansions of water treatment chemicals, upgrades to ultrapure sulphuric acid production, and other organic growth projects.
Construction of the Cairo, Ohio ultrapure acid project is complete, and the project is progressing through the start-up process, with Chemtrade now going through quality validation trials with major customers. Chemtrade continues to expect commercial ramp-up to take place towards the end of 2025. This is expected to be one of the first ultrapure sulphuric acid plants in North America that will meet the quality requirements for next generation semiconductor nodes. This project will further bolster Chemtrade's position as a leading North American supplier of ultrapure sulphuric acid to the semiconductor industry.
Acquisition of Polytec, Inc. a Provider of Turnkey Water Treatment Solutions
Chemtrade also announced today, that it has entered into an agreement to acquire Polytec, Inc. ("Polytec") for US$150 million representing a multiple of approximately 6.5x LTM Adjusted EBITDA. Polytec is a provider of turnkey water treatment solutions with well-established operations in four U.S. states. The transaction is expected to close in the fourth quarter of 2025 subject to regulatory requirements and customary closing conditions. Further details on this transaction can be found in a separate news release.
Distributions and Capital Allocation Update
During the second quarter of 2025, Chemtrade purchased approximately 2.2 million units as part of its normal course issuer bid (NCIB). Chemtrade was authorized to purchase approximately 11.7 million units under its NCIB that expired in June 2025. As of June 30, 2025, it had acquired 11.2 million units. Chemtrade intends to implement a new NCIB. 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.
Distributions declared in the second quarter of 2025 totalled $0.1725 per unit, comprised of monthly distributions of $0.0575 per unit. This distribution remains well-covered by Chemtrade's cash flow generation, with a Payout Ratio in the second quarter of 2025 of 27% and a Payout Ratio for twelve months ending June 30, 2025 of 33%.
Rohit Bhardwaj, CFO of Chemtrade, commented on Chemtrade's capital allocation, 'In the context of an uncertain macroeconomic environment, we remain committed to a disciplined and balanced approach to capital allocation. We continue to prioritize long-term value creation by investing in strategic growth opportunities, while delivering consistent and sustainable capital returns to unitholders. In particular, our successful leverage reduction strategy has provided Chemtrade with the financial flexibility to successfully pursue compelling growth opportunities such as the acquisition of Polytec while continuing to maintain a conservative balance sheet and leverage within our target range. Our capital deployment decisions remain grounded in financial discipline and aligned with our goal of driving sustainable earnings growth and attractive total unitholder returns. To that effect, we are both implementing another NCIB and announcing our intent to redeem the 6.50% convertible debenture due October 31, 2026 using funds from our credit facilities . In addition to continuing to simplify and optimize our capital structure, the redemption will result, on a like basis, in lower interest costs.
Normal Course Issuer Bid (NCIB) For Units
Chemtrade has filed with the Toronto Stock Exchange ('TSX') a notice of intention to commence a new normal course issuer bid for a one-year period. If accepted by the TSX, Chemtrade would be permitted to purchase for cancellation, through the facilities of the TSX and/or alternative Canadian trading systems, up to 10% of the public float (calculated in accordance with the TSX rules) of Chemtrade's issued and outstanding units during the 12-month period. Subject to TSX acceptance, Chemtrade currently anticipates the NCIB commencing on or about August 19, 2025 and in any event, at least two trading days after TSX acceptance of the normal course issuer bid. The timing and exact amount of any purchases will be determined on the date of acceptance of the notice of intention by the TSX.
Redemption of all of the 6.50% Convertible Debentures Due October 31, 2026
Chemtrade will redeem on September 15, 2025 (the 'Redemption Date') all of its outstanding 6.50% convertible unsecured subordinated debentures due October 31, 2026 (the '2026 Debentures') in accordance with the terms of the trust indenture, as amended and supplemented by supplemental indentures thereto (collectively, the 'Indenture'), pursuant to which they were issued (the 'Redemption').
On the Redemption Date, holders of the 2026 Debentures will receive approximately $1,024.5753425 for each $1,000 principal amount of 2026 Debentures, representing their par value, plus all accrued and unpaid interest thereon to but excluding the Redemption Date. The 2026 Debentures that are redeemed in connection with the Redemption will cease to bear interest from and after the Redemption Date. Formal notice of redemption is being delivered to the holders of the 2026 Debentures today in accordance with the terms of the Indenture. The aggregate principal amount of 2026 Debentures outstanding as of the date hereof is $100,000,000.
Chemtrade will use cash on hand, or a combination of cash on hand and draws on its credit facilities, to fund the Redemption.
About Chemtrade
Chemtrade operates a diversified business providing industrial chemicals and services to customers in North America and around the world. Chemtrade is one of North America's largest suppliers of sulphuric acid, spent acid processing services, inorganic coagulants for water treatment, sodium chlorate, sodium nitrite and sodium hydrosulphite. Chemtrade is also a leading producer of high purity sulphuric acid for the semiconductor industry in North America. Chemtrade is a leading regional supplier of sulphur, chlor-alkali products, and zinc oxide. Additionally, Chemtrade provides industrial services such as processing by-products and waste streams.
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 flow from operating activities less lease payments net of sub-lease receipts, maintenance capital expenditures incurred, 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.
Net debt
Most directly comparable IFRS financial measure: Total long-term debt, Debentures, lease liabilities, and long-term lease liabilities, less cash and cash equivalents.
Definition: Net debt is calculated as the total of long-term debt, the principal value of Debentures, lease liabilities and long-term lease liabilities, less cash and cash equivalents.
Why we use the measure and why is it useful to investors: It provides useful information related to Chemtrade's aggregate debt balances.
Growth capital expenditures
Most directly comparable IFRS financial measure: Capital expenditures
Definition: Growth capital expenditures are calculated as capital expenditures less Maintenance capital expenditures, plus investments in joint ventures. These include unpaid amounts at each reporting period.
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.
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)
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. These include unpaid amounts at each reporting period.
Non-maintenance capital expenditures
Represents capital expenditures, including unpaid amounts, 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.
Cash interest
Represents the interest expense on long-term debt, interest on Debentures, and 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 (Ontario). Forward-looking statements can be generally identified by the use of words such as 'anticipate', 'continue', 'estimate', 'expect', 'expected', 'intend', 'may', 'will', 'project', 'plan', 'should', 'believe' and similar expressions. Specifically, forward-looking statements in this news release include statements respecting certain future expectations about: Its ability to obtain required regulatory approvals and to close the Polytec acquisition and the timing thereof; the Fund's intention to commence a new normal course issuer bid, its ability to obtain regulatory approvals and the timing thereof; its expectation that 2025 Adjusted EBITDA guidance will range between $475 million and $500 million; its expectation of strong unitholder returns, 5 to 10% annual growth in mid-cycle Adjusted EBITDA and Distributable cash after maintenance capital expenditures, and ability to have disciplined capital allocation and a continued focus on high-return growth investments; its expectation to grow its mid-cycle annual Adjusted EBITDA to between $550 million and $600 million of mid-cycle EBITDA by 2030; the Fund's expectation that Chemtrade is well-positioned to grow its mid-cycle Adjusted EBITDA and distributable cash by 5-10% annually; its ability to execute and continue generating long-term value for unitholders; the Fund's expectation of an implied Payout ratio for 2025 of approximately 40%, its expectation to achieve the second highest annual EBITDA in Chemtrade's history and the fourth consecutive year at the higher level of adjusted EBITDA; the expected stated range of maintenance capital expenditures and growth capital expenditures, lease payments, cash interest and cash tax; its ability to achieve the objectives of Chemtrade Vision 2030, namely its ability to grow mid-cycle annual Adjusted EBITDA to between $550 million and $600 million in mid-cycle EBITDA by 2030; its intention to continue to focus on operational and commercial excellence, as well as pursue organic and external growth; its expectation that its commitment to returning capital to unitholders while maintaining a prudent balance sheet will deliver compelling unitholder value; its intention to invest between $40.0 million and $60.0 million in growth capital expenditures in 2025 and its allocation among water treatment chemicals expansions, ultrapure sulphuric acid production upgrades, and other organic growth projects; the expected timing of commercial ramp-up of the Cairo project; its ability to be one of the first North American UPA plants to meet the quality requirements of the next generation semiconductor nodes; Chemtrade's ability to retain its position as a leading North American ultrapure sulphuric acid supplier to the semiconductor industry; its ability to effect a disciplined and balanced approach to capital allocation; its ability to carry out its strategy to prioritize long-term value creation by investing in strategic growth opportunities while delivering consistent and sustainable capital returns to unitholders; its intention to redeem the 6.50% convertible debentures due October 31, 2026 and the expected sources of funding to accomplish such redemption and its ability to lower interest costs as a result thereof. 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: the stated North American MECU sales volumes and sodium chlorate production volumes; the 2025 MECU netback differing from 2024 by the stated amount; the stated average CMA NE Asia caustic spot price index; the stated U.S. dollar average foreign exchange rate; and the stated range of LTIP costs; the timing and completion of the Redemption; there being no significant disruptions affecting the operations of the Fund and its subsidiaries; the timely receipt of required regulatory approvals; no significant changes in global economic conditions.
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.
A conference call to review the second quarter 2025 results will be webcast live on Friday, August 15, 2025 at 10:00 a.m. ET. To access the webcast click here.
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(Bloomberg) -- CoreWeave Inc.'s March initial public offering has been a roaring success for anyone lucky enough to get in at the start. The stock more than quadrupled by mid-June. Even after a recent selloff, the shares are still up nearly 150%. The US-Canadian Road Safety Gap Is Getting Wider Festivals and Parades Are Canceled Amid US Immigration Anxiety To Head Off Severe Storm Surges, Nova Scotia Invests in 'Living Shorelines' Five Years After Black Lives Matter, Brussels' Colonial Statues Remain For Homeless Cyclists, Bikes Bring an Escape From the Streets The problem, though, is most of those early investors haven't been able to cash in. That changes Friday for holders of more than 80% of CoreWeave's Class A shares, with the IPO lockup expiring two days after its second earnings release as a public company. The stock plunged 33% in those two days, in part, analysts say, in anticipation of a flood of selling. 'It's a challenging, even confusing setup,' said Dave Mazza, chief executive officer at Roundhill Investments, which holds CoreWeave. 'It's reasonable to expect there could be significant selling, which is already weighing on shares. Over the long run, it opens up the stock to have greater float.' CoreWeave's shares available to trade currently stand at less than 15% of those outstanding, compared to an average of roughly 95% for stocks in the S&P 500 Index, according to data compiled by Bloomberg. CoreWeave stock fell as much as 4.8% in early trading Friday in New York, extending losses into a third consecutive day. The Livingston, New Jersey-based company has become a popular way to bet on soaring spending for AI computing and counts Microsoft Corp. as its biggest customer. The stock closed at a record market value of $88 billion in June, up from less than $20 billion in the wake of its debut. But the shares have slumped amid concerns about CoreWeave's money-losing operations as well as a proposed all-stock acquisition of data-center operator Core Scientific Inc. CoreWeave closed on Thursday with a market value of about $49 billion, down 46% from the June 20 peak. Analysts expect the end of the lockup to at best cap near-term advances in the shares, as early investors lock in some gains. At worst, they see the stock falling even further. D.A. Davidson's Gil Luria, who is one of the three analysts tracked by Bloomberg with a sell rating on the stock, sees downside of more than 60%, based on his $36 price target. One owner that probably won't be selling: Nvidia Corp. The company, which dominates the market for AI chips that it supplies to CoreWeave, has about a 6.5% stake after slightly boosting its holdings in the quarter that ended in June, according to data compiled by Bloomberg. The position is worth about $2.4 billion at current levels. For long-term investors, CoreWeave's business prospects still look promising with tech giants spending ever larger sums in a race for AI supremacy. In its second-quarter earnings report on Wednesday, CoreWeave raised its revenue forecast for 2025 to $5.15 billion to $5.35 billion, from $4.9 billion to $5.1 billion. But that was overshadowed by a wider-than-expected net loss in the quarter. CoreWeave plans to spend as much as $23 billion on capital expenses this year. Of course, even if early investors like hedge-funds Magnetar Capital and Coatue Management want to sell, they have an incentive not to unwind positions too quickly, which could send the stock into a downward spiral. And having more shares available to trade could also be a benefit in the long run, giving more investors the opportunity to snap up the stock, according to Citigroup analyst Tyler Radke. 'The upcoming lock-up may further pressure shares, but we believe buyers will emerge,' Radke wrote in a research note earlier this week. Top Tech Stories The Trump administration is in talks with Intel Corp. to have the US government take a stake in the beleaguered chipmaker, according to people familiar with the plan, in the latest sign of the White House's willingness to blur the lines between state and industry. In the first two weeks of August alone, Masayoshi Son has added $11 billion to his fortune as SoftBank Group Corp.'s artificial intelligence bets sent its shares to record highs. That's put Son's wealth firmly back on the upswing after years of turbulence. Meta Platforms Inc. is spending a fortune to assemble the brightest minds in artificial intelligence. Chief Executive Officer Mark Zuckerberg may want to note: Research suggests that packing a team with too much genius can backfire. Accenture Plc is buying Australian cybersecurity firm CyberCX, its largest acquisition to date in the sector that will boost operations in the Asia-Pacific region. Earnings Due Friday No major earnings expected --With assistance from Subrat Patnaik and David Watkins. (Updates stock moves after market open) Americans Are Getting Priced Out of Homeownership at Record Rates What Declining Cardboard Box Sales Tell Us About the US Economy Bessent on Tariffs, Deficits and Embracing Trump's Economic Plan Dubai's Housing Boom Is Stoking Fears of Another Crash Twitter's Ex-CEO Is Moving Past His Elon Musk Drama and Starting an AI Company ©2025 Bloomberg L.P. Sign in to access your portfolio
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Stock market today: Dow eyes record on UnitedHealth surge, S&P 500, Nasdaq fall as rate-cut bets col
US stocks were mixed on Friday as Wall Street tempered its rate-cut hopes amid economic data this week showing higher than expected wholesale inflation and a rise in July retail sales. Traders were also awaiting Friday's meeting between President Trump and Vladimir Putin, looking for clues on how the outcome could steer markets. The Dow Jones Industrial Average (^DJI) rose around 0.4%, with the index's first record since December in sight. The benchmark S&P 500 (^GSPC) fell 0.2%, and the tech-heavy Nasdaq Composite (^IXIC) lost 0.5%. US Census Bureau data released Friday morning showed retail sales rose 0.5% in July from the prior month. That was less than the 0.6% gain expected by economists, but still viewed as a solid advance after a sharp pullback in consumer spending this spring. Consumer sentiment also saw its first decline in four months. On Thursday, stocks had wobbled, ending a two-day rally sparked by investor confidence that an interest rate cut in September was nearly certain. Doubts about a significant cut at the Fed's next policy meeting crept in after July's Producer Price Index (PPI) came in hotter than expected. Major Dow component UnitedHealth (UNH) stock soared on Friday after a regulatory filing showed Warren Buffett's Berkshire Hathaway (BRK-B, BRK-A) bought 5 million shares in the company. Intel (INTC) shares jumped Friday after a Bloomberg report said the Trump administration is considering taking a stake in chipmaker, using funds from the US Chips act. President Trump met with Intel's CEO on Monday after calling on him to resign the previous week. And Applied Materials (AMAT) stock sank 14% after the chip equipment maker issued weak fourth-quarter forecasts due to sluggish demand in China, fueling concerns over tariff-related risks. Consumer sentiment falls in August, marking first decline in 4 months US consumer sentiment deteriorated in August, falling for the first time in four months. The University of Michigan's Consumer Sentiment Index fell to 58.6 last month from a reading of 61.7 in July. It was also less than the 62 reading expected by economists surveyed by Bloomberg. 'This deterioration largely stems from rising worries about inflation,' wrote Joanne Hsu, the director of the university's Surveys of Consumers. Consumer sentiment had improved in June and July after plummeting in the spring as Americans worried about the impacts of Trump's tariffs. In May, the index showed sentiment at its second-lowest level on record as consumers expressed concerns over long-term inflation, fueled by uncertainty surrounding Trump's trade policies. Sentiment improved in June as Trump dialed back some of his aggressive stances on tariffs. 'Overall, consumers are no longer bracing for the worst-case scenario for the economy feared in April when reciprocal tariffs were announced and then paused,' Hsu said. 'However, consumers continue to expect both inflation and unemployment to deteriorate in the future.' US stocks mixed at the open US stocks were mixed on Friday at the open as Wall Street tempered its hopes for the Fed to cut interest rates in September, as economic data this week showed higher than expected wholesale inflation and a rise in July retail sales. The Dow Jones Industrial Average (^DJI) rose around 0.5%, putting the index on track for its first record since December. The benchmark S&P 500 (^GSPC) rose less than 0.1%, and the tech-heavy Nasdaq Composite (^IXIC) fell below the flatline. Intel stock continues rise as Trump administration reportedly mulls taking stake in chipmaker Intel (INTC) stock spiked more than 7% Thursday and continued to climb 3% before the market open on Friday, following a report that the US government is considering taking a stake in the troubled chipmaker. Bloomberg reported that the Trump administration is in talks with Intel about the deal, which would help the company complete its Ohio factory expansion that had been put on hold. The report follows a meeting between President Trump and Intel CEO Lip-Bu Tan earlier this week, which came after the president called for the CEO's resignation due to his ties with China. "As Intel's prospects have dimmed, the idea of support (governmental or otherwise) has gained traction, understandable given the company, for better or worse, remains the only US-headquartered prospect for leading edge semiconductor chips and processes; it seems like Trump may have been persuaded to see the light," Bernstein analyst Stacy Rasgon wrote in a note to investors Friday. It's not the first time the Trump administration has allegedly floated ideas to prop up Intel. In February, a news report said the US was pitching proposals to its rival TSMC to help support its turnaround by establishing a joint venture with Intel. Read more here. Retail sales climb less than expected in July Retail sales rose 0.5% in July from the prior month, according to data from the US Census Bureau released Friday — marking the second monthly gain in a row, as consumer spending steadies following a dramatic drop in earlier in the year. Still, the jump was less than the 0.6% gain expected by economists surveyed by Bloomberg. Excluding auto and gas sales, retail sales were up 0.2%, also less than the 0.3% projected. An even narrower slice of retail sales called the 'control group' — a more precise measure of consumer spending that excludes certain sales such as those from office supply and tobacco stores — climbed 0.5%, ahead of the 0.4% expected. Retail sales rebounded in June, a sign that consumer spending habits were remaining resilient despite President Trump's tariffs. Read more here. Investors want rate cut 'validation,' but the Fed's dilemma won't go away Yahoo Finance's Hamza Shaban writes in today's Morning Brief: Read more here. Good morning. Here's what's happening today. Economic data: Retail sales (July); Export prices (July); Industrial production (July); University of Michigan consumer sentiment (August preliminary) Earnings: No notable earnings. Here are some of the biggest stories you may have missed overnight and early this morning: 'Striking while the iron is hot' Investors want rate cut 'validation,' but the Fed's dilemma remains Applied Materials' shares sink on weak China demand, tariff risks UnitedHealth jumps as Buffett's Berkshire buys 5M shares BofA's Hartnett sees profit-taking in stocks after Jackson Hole AI exacerbates tech divide with smaller stocks languishing A trader's guide to the Alaska talks between Trump and Putin China's economy slows in July on tariffs, weak property market Applied Materials' shares sink on weak China demand, tariff risks Shares in Applied Materials (AMAT) sank 14% before the bell on Friday after the chip equipment maker issued weak fourth-quarter forecasts on sluggish China demand, fueling concerns over tariff-related risks. Reuters reports: Read more here. UnitedHealth stock soars as Buffett's Berkshire buys 5M shares UnitedHealth Group stock rose 12% before the bell on Friday after Warren Buffett's Berkshire Hathaway (BRK-B, BRK-A) acquired 5 million shares in the company. A regulatory filing showed the purchase on Thursday. Reuters reports: Read more here. Consumer sentiment falls in August, marking first decline in 4 months US consumer sentiment deteriorated in August, falling for the first time in four months. The University of Michigan's Consumer Sentiment Index fell to 58.6 last month from a reading of 61.7 in July. It was also less than the 62 reading expected by economists surveyed by Bloomberg. 'This deterioration largely stems from rising worries about inflation,' wrote Joanne Hsu, the director of the university's Surveys of Consumers. Consumer sentiment had improved in June and July after plummeting in the spring as Americans worried about the impacts of Trump's tariffs. In May, the index showed sentiment at its second-lowest level on record as consumers expressed concerns over long-term inflation, fueled by uncertainty surrounding Trump's trade policies. Sentiment improved in June as Trump dialed back some of his aggressive stances on tariffs. 'Overall, consumers are no longer bracing for the worst-case scenario for the economy feared in April when reciprocal tariffs were announced and then paused,' Hsu said. 'However, consumers continue to expect both inflation and unemployment to deteriorate in the future.' US consumer sentiment deteriorated in August, falling for the first time in four months. The University of Michigan's Consumer Sentiment Index fell to 58.6 last month from a reading of 61.7 in July. It was also less than the 62 reading expected by economists surveyed by Bloomberg. 'This deterioration largely stems from rising worries about inflation,' wrote Joanne Hsu, the director of the university's Surveys of Consumers. Consumer sentiment had improved in June and July after plummeting in the spring as Americans worried about the impacts of Trump's tariffs. In May, the index showed sentiment at its second-lowest level on record as consumers expressed concerns over long-term inflation, fueled by uncertainty surrounding Trump's trade policies. Sentiment improved in June as Trump dialed back some of his aggressive stances on tariffs. 'Overall, consumers are no longer bracing for the worst-case scenario for the economy feared in April when reciprocal tariffs were announced and then paused,' Hsu said. 'However, consumers continue to expect both inflation and unemployment to deteriorate in the future.' US stocks mixed at the open US stocks were mixed on Friday at the open as Wall Street tempered its hopes for the Fed to cut interest rates in September, as economic data this week showed higher than expected wholesale inflation and a rise in July retail sales. The Dow Jones Industrial Average (^DJI) rose around 0.5%, putting the index on track for its first record since December. The benchmark S&P 500 (^GSPC) rose less than 0.1%, and the tech-heavy Nasdaq Composite (^IXIC) fell below the flatline. US stocks were mixed on Friday at the open as Wall Street tempered its hopes for the Fed to cut interest rates in September, as economic data this week showed higher than expected wholesale inflation and a rise in July retail sales. The Dow Jones Industrial Average (^DJI) rose around 0.5%, putting the index on track for its first record since December. The benchmark S&P 500 (^GSPC) rose less than 0.1%, and the tech-heavy Nasdaq Composite (^IXIC) fell below the flatline. Intel stock continues rise as Trump administration reportedly mulls taking stake in chipmaker Intel (INTC) stock spiked more than 7% Thursday and continued to climb 3% before the market open on Friday, following a report that the US government is considering taking a stake in the troubled chipmaker. Bloomberg reported that the Trump administration is in talks with Intel about the deal, which would help the company complete its Ohio factory expansion that had been put on hold. The report follows a meeting between President Trump and Intel CEO Lip-Bu Tan earlier this week, which came after the president called for the CEO's resignation due to his ties with China. "As Intel's prospects have dimmed, the idea of support (governmental or otherwise) has gained traction, understandable given the company, for better or worse, remains the only US-headquartered prospect for leading edge semiconductor chips and processes; it seems like Trump may have been persuaded to see the light," Bernstein analyst Stacy Rasgon wrote in a note to investors Friday. It's not the first time the Trump administration has allegedly floated ideas to prop up Intel. In February, a news report said the US was pitching proposals to its rival TSMC to help support its turnaround by establishing a joint venture with Intel. Read more here. Intel (INTC) stock spiked more than 7% Thursday and continued to climb 3% before the market open on Friday, following a report that the US government is considering taking a stake in the troubled chipmaker. Bloomberg reported that the Trump administration is in talks with Intel about the deal, which would help the company complete its Ohio factory expansion that had been put on hold. The report follows a meeting between President Trump and Intel CEO Lip-Bu Tan earlier this week, which came after the president called for the CEO's resignation due to his ties with China. "As Intel's prospects have dimmed, the idea of support (governmental or otherwise) has gained traction, understandable given the company, for better or worse, remains the only US-headquartered prospect for leading edge semiconductor chips and processes; it seems like Trump may have been persuaded to see the light," Bernstein analyst Stacy Rasgon wrote in a note to investors Friday. It's not the first time the Trump administration has allegedly floated ideas to prop up Intel. In February, a news report said the US was pitching proposals to its rival TSMC to help support its turnaround by establishing a joint venture with Intel. Read more here. Retail sales climb less than expected in July Retail sales rose 0.5% in July from the prior month, according to data from the US Census Bureau released Friday — marking the second monthly gain in a row, as consumer spending steadies following a dramatic drop in earlier in the year. Still, the jump was less than the 0.6% gain expected by economists surveyed by Bloomberg. Excluding auto and gas sales, retail sales were up 0.2%, also less than the 0.3% projected. An even narrower slice of retail sales called the 'control group' — a more precise measure of consumer spending that excludes certain sales such as those from office supply and tobacco stores — climbed 0.5%, ahead of the 0.4% expected. Retail sales rebounded in June, a sign that consumer spending habits were remaining resilient despite President Trump's tariffs. Read more here. Retail sales rose 0.5% in July from the prior month, according to data from the US Census Bureau released Friday — marking the second monthly gain in a row, as consumer spending steadies following a dramatic drop in earlier in the year. Still, the jump was less than the 0.6% gain expected by economists surveyed by Bloomberg. Excluding auto and gas sales, retail sales were up 0.2%, also less than the 0.3% projected. An even narrower slice of retail sales called the 'control group' — a more precise measure of consumer spending that excludes certain sales such as those from office supply and tobacco stores — climbed 0.5%, ahead of the 0.4% expected. Retail sales rebounded in June, a sign that consumer spending habits were remaining resilient despite President Trump's tariffs. Read more here. Investors want rate cut 'validation,' but the Fed's dilemma won't go away Yahoo Finance's Hamza Shaban writes in today's Morning Brief: Read more here. Yahoo Finance's Hamza Shaban writes in today's Morning Brief: Read more here. Good morning. Here's what's happening today. Economic data: Retail sales (July); Export prices (July); Industrial production (July); University of Michigan consumer sentiment (August preliminary) Earnings: No notable earnings. Here are some of the biggest stories you may have missed overnight and early this morning: 'Striking while the iron is hot' Investors want rate cut 'validation,' but the Fed's dilemma remains Applied Materials' shares sink on weak China demand, tariff risks UnitedHealth jumps as Buffett's Berkshire buys 5M shares BofA's Hartnett sees profit-taking in stocks after Jackson Hole AI exacerbates tech divide with smaller stocks languishing A trader's guide to the Alaska talks between Trump and Putin China's economy slows in July on tariffs, weak property market Economic data: Retail sales (July); Export prices (July); Industrial production (July); University of Michigan consumer sentiment (August preliminary) Earnings: No notable earnings. Here are some of the biggest stories you may have missed overnight and early this morning: 'Striking while the iron is hot' Investors want rate cut 'validation,' but the Fed's dilemma remains Applied Materials' shares sink on weak China demand, tariff risks UnitedHealth jumps as Buffett's Berkshire buys 5M shares BofA's Hartnett sees profit-taking in stocks after Jackson Hole AI exacerbates tech divide with smaller stocks languishing A trader's guide to the Alaska talks between Trump and Putin China's economy slows in July on tariffs, weak property market Applied Materials' shares sink on weak China demand, tariff risks Shares in Applied Materials (AMAT) sank 14% before the bell on Friday after the chip equipment maker issued weak fourth-quarter forecasts on sluggish China demand, fueling concerns over tariff-related risks. Reuters reports: Read more here. Shares in Applied Materials (AMAT) sank 14% before the bell on Friday after the chip equipment maker issued weak fourth-quarter forecasts on sluggish China demand, fueling concerns over tariff-related risks. Reuters reports: Read more here. UnitedHealth stock soars as Buffett's Berkshire buys 5M shares UnitedHealth Group stock rose 12% before the bell on Friday after Warren Buffett's Berkshire Hathaway (BRK-B, BRK-A) acquired 5 million shares in the company. A regulatory filing showed the purchase on Thursday. Reuters reports: Read more here. UnitedHealth Group stock rose 12% before the bell on Friday after Warren Buffett's Berkshire Hathaway (BRK-B, BRK-A) acquired 5 million shares in the company. A regulatory filing showed the purchase on Thursday. Reuters reports: Read more here.
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20 minutes ago
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Trump administration eyeing Chips Act funds for Intel stake, Bloomberg News reports
(Reuters) -U.S. President Donald Trump's administration is eyeing Chips Act funds for Intel in exchange for a stake in the chipmaker, Bloomberg News reported on Friday. Error while retrieving data Sign in to access your portfolio Error while retrieving data Error while retrieving data Error while retrieving data Error while retrieving data
