Chemtrade Logistics Income Fund Announces Results for the First Quarter of 2026; Reiterates 2026 Adjusted EBITDA Guidance of $485 to $525 Million

TORONTO--(BUSINESS WIRE)--Chemtrade Logistics Income Fund (TSX: CHE.UN, OTCQX®: CGIFF) (“Chemtrade” or the “Fund”) today announced results for the three-month period ended March 31, 2026. The financial statements and MD&A will be available on Chemtrade’s website at www.chemtradelogistics.com and on SEDAR+ at www.sedarplus.com.

First Quarter 2026 Highlights

• Revenue of $503.0 million, an increase of $36.7 million or 7.9% year-over-year driven by the Polytec acquisition in the WS segment as well as higher selling prices for merchant acid, sulphur products and Regen acid in the ASP segment. This more than offset lower selling prices and volumes of chlor-alkali products and sodium chlorate in the EC segment.
• Adjusted EBITDA⁽¹⁾ of $113.5 million, a decrease of $6.6 million or 5.5% year-over-year. Excluding the impact of foreign exchange, Adjusted EBITDA was 0.5% lower than 2025 as EBITDA from the Polytec acquisition and higher EBITDA from merchant and Regen acid were more than offset by lower selling prices and volumes of chlor-alkali products and sodium chlorate.
• Net earnings of $25.4 million, a decrease of $23.7 million year-over-year primarily due to higher finance costs, unfavourable unrealized foreign exchange losses and lower Adjusted EBITDA year-over-year.
• Cash flows from operating activities of $42.4 million, an increase of $8.0 million or 23.3% year-over-year, mainly due to a decrease in working capital compared to 2025, partially offset by lower Adjusted EBITDA.
• Distributable cash after maintenance capital expenditures⁽¹⁾ of $40.1 million, a decrease of $22.0 million or 35.4% year-over-year reflecting lower Adjusted EBITDA and higher maintenance capital spending ⁽¹⁾. Distributable cash after maintenance capital expenditures per unit⁽¹⁾ decreased by 33.0% to $0.36 per unit year-over-year.
• During the first quarter of 2026, Chemtrade increased its monthly distribution by approximately 4% to $0.06 per unit or $0.72 per unit per year. Chemtrade’s Payout ratio⁽¹⁾ for the first quarter of 2026 was 51% and for the last twelve months was 38%.
• During the first quarter of 2026, Chemtrade purchased approximately 2.3 million units as part of its normal course issuer bid (NCIB). Subsequent to quarter end, on April 15, 2026, Chemtrade announced the early renewal of the NCIB that would have expired on August 18, 2026. Under the new NCIB, which terminates on April 16, 2027, Chemtrade is authorized to purchase approximately 5.8 million units.
• Chemtrade continues to maintain a strong balance sheet, with a Net debt to LTM Adjusted EBITDA⁽¹⁾ ratio of 2.5x at the end of the first quarter of 2026.
• Due to geopolitical events, several products that Chemtrade manufactures have seen significant price volatility in the last several weeks. While this volatility makes forecasting results for the remainder of 2026 challenging, Chemtrade is maintaining its 2026 Adjusted EBITDA guidance unchanged and reiterates a range of $485.0 to $525.0 million.
• Subsequent to the end of the first quarter, on April 14, 2026, Chemtrade announced that the District of North Vancouver Council rejected its rezoning application, which would have allowed significant safety upgrades and continued liquid chlorine production at its North Vancouver chlor-alkali facility beyond 2030. On May 5, 2026, the District of North Vancouver issued a statement that the Mayor would be exercising his authority to bring forward a notice of reconsideration of Chemtrade’s rezoning application and will be asking the Council to reconsider the rezoning application in response to new conditions brought forth by Chemtrade. The proposed changes address concerns voiced by the Mayor and Council regarding site security, quantitative risk assessments, and the permanent nature of the amendment that would allow liquid chlorine production. If Council agrees, the Mayor has indicated that he would recommend holding a new public hearing. Chemtrade continues to engage with the District of North Vancouver, and multiple stakeholders and partners on the best path to secure continued liquid chlorine operations and uninterrupted municipal water safety in Western Canada.

Scott Rook, President and CEO of Chemtrade, commented “First quarter 2026 results demonstrate the merits of our diversified product portfolio, multifaceted growth strategy, and dedicated team. Despite the elevated volatility in the prices of several of our products and their inputs, we maintained operational and commercial discipline across all segments. We continue to execute on multiple organic growth projects while focusing on the further strengthening of our operations.”

“Throughout the first quarter and into the second quarter, we continued the integration of Polytec, increased our reach with existing and new customers, started production at the new Augusta, GA plant, continued technical and commercial progress in UPA, and completed the chlor-alkali facility biennial turnaround while maintaining a focus on cash flow generation. I would like to thank our entire team for their efforts and dedication,” continued Mr. Rook.

“Despite the heightened volatility, we remain encouraged by the outlook for several key products and are focused on ensuring reliable production in the long term. We will continue to execute towards Vision 2030 targets while maintaining a strong balance sheet and robust cash flow generation which allows us to return capital to unitholders,” concluded Mr. Rook.

Consolidated Financial Summary of Q1 2026

The Canadian dollar strengthened by approximately $0.06 relative to the U.S. dollar during the first quarter of 2026, compared to the first quarter of 2025, with a negative impact to consolidated revenue and consolidated Adjusted EBITDA of $18.2 million and $6.0 million, respectively.

Revenue for the first quarter of 2026 was $503.0 million, an increase of $36.7 or 7.9% year-over-year. Excluding the impact of foreign exchange, revenue was $54.9 million or 11.8% higher than in the prior year period, driven by (i) revenue from the acquisition of Polytec in the WS segment; and (ii) higher selling prices for merchant acid and sulphur products as well as higher volumes and selling prices for Regen acid in the ASP segment. These gains were partially offset by lower MECU netbacks and volumes for chlor-alkali products as well as lower sales volumes and lower selling prices for sodium chlorate in the EC segment.

Adjusted EBITDA⁽¹⁾ was $113.5 million, a decrease of $6.6 million or 5.5% year-over-year. Excluding the impact of foreign exchange, Adjusted EBITDA in the first quarter was $0.6 million or 0.5% lower than in the first quarter of 2025. The year-over-year change was primarily due to lower MECU netbacks and volumes for chlor-alkali products as well as lower sales volumes and lower selling prices for sodium chlorate in the EC segment. EBITDA contribution from (i) the Polytec acquisition in the WS segment, and (ii) merchant and Regen acid in the ASP segment provided a partial offset.

Distributable cash after maintenance capital expenditures for the first quarter of 2026 was $40.1 million or $0.36 per unit, compared with $62.1 million or $0.53 per unit in the first quarter of 2025. The year-over year change primarily reflects the same factors that impacted Adjusted EBITDA, as noted above, and higher maintenance capital expenditures partially offset by a lower number of units. Chemtrade’s payout ratio for the twelve months ended March 31, 2026 was 38%.

Chemtrade maintained a strong balance sheet through the first quarter of 2026. As of March 31, 2026, Chemtrade’s Net debt was $1.2 billion and its Net Debt to LTM Adjusted EBITDA ratio was 2.5x. As of the end of the first quarter of 2026, Chemtrade also maintained ample financial liquidity with approximately $415 million (US$298 million) undrawn on its credit facilities, in addition to $46.5 million of cash on hand.

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 and 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.

Segmented Financial Summary of Q1 2026

As previously reported, Chemtrade has separated the former Sulphur and Water Chemicals (SWC) segment into two new segments, the Acid and Sulphur Products (ASP) segment and the Water Solutions (WS) segment. Chemtrade now reports its results in three segments:

• Acid and Sulphur Products, or ASP, segment markets, removes, and/or produces merchant, regen, and ultrapure acid, sodium nitrite, all other sulphur-related products, and provides other processing services.
• Water Solutions, or WS, segment manufactures and markets a variety of inorganic coagulants used in water treatment, including aluminum sulphate (alum), aluminum chlorohydrate (ACH), polyaluminum chloride (PACl), and ferric sulphate (ferric). WS also provides value-added water solutions.
• Electrochemicals, or EC, segment manufactures and markets sodium chlorate and chlor-alkali products including caustic soda, chlorine and hydrochloric acid, largely for the pulp and paper, oil and gas, and water treatment industries. These products are marketed primarily to North American and South American customers.

The ASP segment reported revenue of $180.3 million for the first quarter of 2026, compared to $153.1 million for the first quarter of 2025. Adjusted EBITDA in the ASP segment was $40.2 million for the first quarter of 2026, compared to $36.0 million for the first quarter of 2025. The stronger Canadian dollar relative to the U.S. dollar during the first quarter of 2026 compared with the first quarter of 2025 had a negative impact on ASP revenue and ASP Adjusted EBITDA of $6.9 million and $1.5 million, respectively.

Excluding the impact of foreign exchange, as noted above, ASP revenue in the first quarter of 2026 increased by $34.1 million or 22.3% year-over-year. The increase in comparable ASP revenue was primarily due to higher selling prices for merchant acid and sulphur products, and higher volumes and selling prices for Regen acid. The higher selling prices were largely driven by an increase in the index price of sulphur. Excluding the impact of foreign exchange, as noted above, ASP Adjusted EBITDA in the first quarter of 2026 increased by $5.7 million or 15.8% year-over-year. The increase in comparable ASP Adjusted EBITDA was primarily due to contributions from merchant and Regen acid as higher selling prices more than offset higher sulphur costs.

The Water Solutions, or WS, segment reported revenue of $151.6 million for the first quarter of 2026, compared to $117.9 million for the first quarter of 2025. Adjusted EBITDA in the WS segment was $27.2 million for the first quarter of 2026, compared to $23.4 million for the first quarter of 2025. The stronger Canadian dollar relative to the U.S. dollar during the first quarter of 2026 had a negative year-over-year impact on WS revenue and WS Adjusted EBITDA of $5.6 million and $0.5 million, respectively.

Excluding the impact of foreign exchange, as noted above, WS revenue in the first quarter of 2026 increased by $39.3 million or 33.3% year-over-year. The increase in WS revenue was primarily due to the Polytec acquisition, which closed in the fourth quarter of 2025. Excluding the impact of foreign exchange, as noted above, WS Adjusted EBITDA in the first quarter of 2026 increased by $4.3 million or 18.4% year-over-year. The increase in WS Adjusted EBITDA was primarily due to the Polytec acquisition. Higher selling prices for water solutions products offset higher input costs.

The EC segment reported revenue of $171.1 million for the first quarter of 2026, compared to $195.3 million for the first quarter of 2025. Adjusted EBITDA in the EC segment was $71.9 million for the first quarter of 2026, compared to $88.3 million for the first quarter of 2025. The stronger Canadian dollar relative to the U.S. dollar during the first quarter of 2026 had a negative year-over-year impact on EC revenue and EC Adjusted EBITDA of $5.7 million and $4.3 million, respectively.

Excluding the impact of foreign exchange, as noted above, EC revenue in the first quarter of 2026 was $18.5 million or 9.5% lower compared to the first quarter of 2025. The decrease in EC revenue was primarily due to (i) lower MECU netbacks and volumes for chlor-alkali products; and (ii) lower sales volumes and lower selling prices for sodium chlorate. MECU netbacks decreased by approximately $290 year-over-year with approximately 70% of the decline attributable to hydrochloric acid and chlorine. Excluding the impact of foreign exchange, as noted above, EC Adjusted EBITDA for the first quarter of 2026 was $12.1 million or 13.7% lower year-over-year. The factors that affected EC revenue also had an impact on EC’s Adjusted EBITDA on a year-over-year basis.

Corporate costs for the first quarter of 2026 were $25.8 million, compared with $27.6 million in the first quarter of 2025. The decrease in corporate costs was primarily due to $4.1 million of lower realized foreign exchange losses in 2025 and lower legal expenses, partially offset by $3.0 million of higher long-term incentive plan costs.

2026 Guidance

Due to geopolitical events, several products that Chemtrade manufactures have seen significant price volatility in the last several weeks. While this volatility makes forecasting results for the remainder of 2026 challenging, Chemtrade is maintaining its 2026 Adjusted EBITDA guidance unchanged and reiterates a range of $485.0 to $525.0 million. Based on current guidance assumptions, including the anticipated spending on Growth capital expenditures and changes in capital allocation, Chemtrade expects to end 2026 with a Net debt to Adjusted EBITDA ratio of close to 2.5x and an implied Payout ratio of approximately 40%.

Achieving the midpoint of this range would mark a near record Adjusted EBITDA in Chemtrade’s history, at a similar level to the record Adjusted EBITDA achieved in 2025, highlighting the significant step-change in Chemtrade’s Adjusted EBITDA and cashflow generation in the last five years.

Chemtrade Vision 2030

In May 2025, Chemtrade shared Chemtrade Vision 2030 where one of the key aspects is to grow mid-cycle annual Adjusted EBITDA to between $550.0 million and $600.0 million by 2030. Chemtrade expects to achieve this target by continuing to focus on operational and commercial excellence while pursuing both organic and external growth opportunities such as the acquisitions of Polytec and the assets of Thatcher Group in 2025. This improvement in Adjusted EBITDA, alongside Chemtrade’s commitment to returning capital to unitholders while maintaining a prudent balance sheet, is expected to deliver compelling value on a per unit basis.

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 2026, Chemtrade plans to invest between $35.0 million and $55.0 million in growth capital expenditures with a focus on water solutions projects.

In Ultrapure Acid, following quality improvement upgrades and plant start-ups at the Cairo, Ohio and Tulsa, Oklahoma facilities, Chemtrade remains well on-track to achieve certification and commercial targets throughout 2026.

Rezoning Application Related to the North Vancouver Chlor-Alkali Facility

Subsequent to the end of the first quarter, on April 14, 2026, Chemtrade announced that the District of North Vancouver Council rejected its rezoning application, which would have allowed significant safety upgrades and continued liquid chlorine production at its North Vancouver chlor-alkali facility beyond 2030.

On May 5, 2026, the District of North Vancouver issued a statement that the Mayor would be exercising his authority to bring forward a notice of reconsideration of Chemtrade’s rezoning application and will be asking the Council to reconsider the rezoning application in response to new conditions brought forth by Chemtrade. The proposed changes address concerns voiced by the Mayor and Council regarding site security, quantitative risk assessments, and the permanent nature of the amendment that would allow liquid chlorine production. If Council agrees, the Mayor has indicated that he would recommend holding a new public hearing.

Chemtrade continues to engage with the District of North Vancouver, and multiple stakeholders and partners on the best path to secure continued liquid chlorine operations and uninterrupted municipal water safety in Western Canada.

Distributions and Capital Allocation Update

Distributions declared in the first quarter of 2026 totalled $0.18 per unit, comprised of monthly distributions of $0.06 per unit, which reflects a 4% increase beginning with the distribution declared during the month of January 2026. The distribution is well-covered by Chemtrade’s robust cash flow generation with a first quarter 2026 Payout ratio of 51% and a last twelve months payout ratio of 38%.

During the first quarter of 2026, Chemtrade purchased approximately 2.3 million units as part of its normal course issuer bid (NCIB). Subsequent to quarter end, on April 15, 2026, Chemtrade announced the early renewal of the NCIB that would have expired on August 18, 2026. Under the new NCIB, which terminates on April 16, 2027, Chemtrade is authorized to purchase approximately 5.8 million units. As of May 8^th, 2026, approximately 5.6 million units remain available for purchase. Purchases of units are effected through the facilities of the TSX and/or alternative Canadian trading systems and are 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.

Chemtrade’s management and Board of Trustees continue to assess opportunities to further adjust and optimize its capital structure. This could potentially include refinancing of a portion of its outstanding debentures or notes depending on market conditions and capital priorities.

Rohit Bhardwaj, CFO of Chemtrade, commented on Chemtrade’s financial position and capital allocation, “Chemtrade closed the first quarter 2026 with a prudent and efficient balance sheet, on-target leverage, and plentiful liquidity that allows for a continued balanced approach to capital allocation. We remain committed to returning capital to unitholders via distributions and the NCIB. Simultaneously, we seek to further strengthen our cash flow profile by deploying capital into high-return organic growth initiatives primarily in water solutions.”

Although much work was completed during 2025 to optimize our capital structure, we are flexible to further targeted improvements that remove potential sources of equity dilution, extend and/or stagger our debt maturity profile, or lower our debt capital cost,” concluded Mr. Bhardwaj.

About Chemtrade

Chemtrade operates a diversified business providing industrial chemicals and services to customers in North and South America. 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 value-added water solutions, as well as 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

Endri Leno
Vice President, Investor Relations
Email: investor-relations@chemtradelogistics.com