TORONTO, ON — January 8, 2026 — Leads & Copy — Chemtrade Logistics Income Fund (TSX: CHE.UN) has released its 2026 guidance and announced an increase in monthly distributions to its unitholders.
The company expects its 2026 Adjusted EBITDA to range between $485.0 million and $525.0 million. Factoring in growth capital expenditures and changes in capital allocation, Chemtrade anticipates ending 2026 with a Net debt to Adjusted EBITDA ratio of approximately 2.5x and an implied Payout ratio of around 45%.
Chemtrade’s latest guidance for 2025 projects Adjusted EBITDA to be a record year, surpassing the $502.6 million generated in 2023. The midpoint of the 2026 guidance aligns with the projected 2025 Adjusted EBITDA, underscoring the significant improvement in Chemtrade’s Adjusted EBITDA and cash flow generation over the past five years.
The company is increasing its monthly distribution from 5.75 cents per month to 6.00 cents per month, effective with the distribution declared in January 2026. This marks the third consecutive year of increased distributions, following a 10% increase to 5.5 cents per month in January 2024 and approximately a 5% increase to 5.75 cents per month in January 2025. The distribution represents a 45% Payout ratio based on the midpoint of Chemtrade’s 2026 guidance.
Chemtrade intends to continue buying units under its NCIB program, having purchased 8.9 million units during 2025, representing about 8% of units outstanding at the end of December 2025.
Key assumptions underpinning Chemtrade’s 2026 guidance include:
- No significant unplanned downtime at principal manufacturing facilities.
- No labor disruptions at any of Chemtrade’s principal manufacturing facilities.
- Approximate North American MECU sales volumes of 171,000.
- 2026 realized MECU Netback being lower than 2025 by CAD $155 per MECU.
- Average CMA NE Asia caustic spot price index of US$450 per tonne.
- Approximate North American production volumes of sodium chlorate of 254,000 MTs.
- USD to CAD average foreign exchange rate of 1.375.
- Long-term incentive plan costs between $22.0 million and $28.0 million.
Chemtrade remains focused on delivering sustainable earnings growth and generating value for investors, with plans to invest between $35M and $55M in growth capital expenditures in 2026, primarily in water treatment chemicals projects.
Chemtrade operates a diversified business providing industrial chemicals and services to customers in North America and globally. It is a major supplier of sulphuric acid, spent acid processing services, inorganic coagulants for water treatment, sodium chlorate, sodium nitrite, and sodium hydrosulphite. Chemtrade is also a large producer of high-purity sulphuric acid for the semiconductor industry in North America and a leading regional supplier of sulphur, chlor-alkali products, and zinc oxide. The company also provides turnkey water treatment solutions and industrial services, such as processing by-products and waste streams.
2026 Guidance (in $ millions):
- Adjusted EBITDA: $485.0 – $525.0
- Maintenance capital expenditures: $120.0 – $150.0
- Growth capital expenditures: $35.0 – $55.0
- Lease payments: $70.0 – $80.0
- Cash interest: $65.0 – $75.0
- Cash tax: $35.0 – $45.0
Source: Chemtrade Logistics Income Fund
