TORONTO--(BUSINESS WIRE)--November 11, 2025-- 

Chemtrade Logistics Income Fund (TSX: CHE.UN) ("Chemtrade" or the "Fund") today announced results for the three-month period ended September 30, 2025. The financial statements and MD&A will be available on Chemtrade's website at www.chemtradelogistics.com and on SEDAR+ at www.sedarplus.com.

Third Quarter 2025 Highlights

   --  Revenue of $532.8 million, an increase of $58.6 million or 12.4% 
      year-over-year. Excluding the impact of foreign exchange, revenue was 
      $55.1 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 selling prices for chlorine. 
 
   --  Adjusted EBITDA(1) of $151.2 million is the highest quarterly Adjusted 
      EBITDA generated by Chemtrade since its inception and an increase of 
      $14.0 million or 10.2% year-over-year. Excluding the impact of foreign 
      exchange, Adjusted EBITDA for 2025 was $12.9 million higher than 2024, 
      primarily due to higher selling prices for several products, partially 
      offset by lower selling prices for chlorine and higher input costs. 
 
   --  Net earnings of $42.4 million, a decrease of $17.7 million or 29.5% 
      year-over-year, primarily due to losses related to the change in fair 
      value of debentures and higher depreciation and amortization expense, 
      partially offset by higher Adjusted EBITDA and lower income tax expense. 
 
 
   --  Cash flows from operating activities of $155.5 million increased by 
      $12.2 million or 8.5% year-over-year, mainly due to the higher Adjusted 
      EBITDA. 
 
   --  Distributable cash after maintenance capital expenditures(1) of $77.8 
      million, an increase of $11.8 million or 18.0% year-over-year, reflecting 
      higher Adjusted EBITDA. Distributable cash after maintenance capital 
      expenditures per unit(1) increased by 24.4% year-over-year to $0.69 per 
      unit. Chemtrade's Payout ratio(1) for the last twelve months was 32%. 
 
   --  Purchased approximately 1.0 million units in the third quarter, out of 
      11.2 million authorized under the normal course issuer bid (NCIB) that 
      commenced in August 2025. 
 
   --  Chemtrade continues to maintain a strong balance sheet, with a Net debt 
      to LTM Adjusted EBITDA(1) ratio of 1.8x at the end of the third quarter 
      of 2025. 
 
   --  Although global trade tensions were prevalent through 2025 and still 
      persist, Chemtade's business has shown resilience and continues to 
      deliver strong results with market conditions for its products remaining 
      favourable. This outlook, along with a focus on operational and 
      commercial excellence, allows Chemtrade to raise its Adjusted EBITDA 
      guidance for 2025. Chemtrade now anticipates that 2025 will be a record 
      Adjusted EBITDA year surpassing 2023, when it generated Adjusted EBITDA 
      of $502.6 million. The updated guidance excludes earnings from Polytec as 
      the timing of closing the acquisition is subject to regulatory approvals, 
      which have been delayed due to the U.S. Government shutdown. 
 
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. 
 

Scott Rook, President and CEO of Chemtrade, commented on the third quarter 2025 results, "Chemtrade delivered yet another exceptional quarter with a record quarterly Adjusted EBITDA, alongside double-digit year-over-year growth in revenue and distributable cash. Both segments performed well demonstrating the strength of our diversified portfolio and the favourable demand for most of our products. Third quarter results are reflective of our operational excellence, commercial discipline, and dedicated team that enable Chemtrade to execute on its long-term vision while responding to dynamic market conditions. I am proud of what we have accomplished."

"Enabled by our strong and improving balance sheet and disciplined capital allocation, we are progressing organic growth opportunities in water products that are further complemented by the acquisitions announced earlier this year. The water products business continues to grow in importance and contribution to Chemtrade," continued Mr. Rook. "Our other organic initiatives, including ultra pure acid, continue to progress well and we are confident that these investments will, over time, contribute to the achievement of our Vision 2030 financial targets, which we introduced in the first quarter of 2025."

"Our strong third quarter results build on several quarters of industry-leading performance that highlight the consistency and strength of our execution, alongside continued demand for our products and services. Despite the ongoing trade uncertainties, we expect 2025 to set a new Adjusted EBITDA record for Chemtrade," concluded Mr. Rook.

Consolidated Financial Summary of Q3 2025

The Canadian dollar weakened by $0.02 relative to the U.S. dollar during the third quarter of 2025 compared with the third quarter of 2024, contributing positively to consolidated revenue and consolidated Adjusted EBITDA by $3.5 million and $1.1 million, respectively.

Revenue was $532.8 million, an increase of $58.6 million or 12.4% year-over-year. Excluding the impact of foreign exchange, revenue was $55.1 million higher than in the prior year period. The increase was due to: (i) higher selling prices and volumes for merchant acid, water solutions products, and Regen acid in the Sulphur and Water Chemicals $(SWC)$ segment; (ii) higher selling prices for sulphur products in the SWC segment; (iii) higher sales volumes of sodium chlorate in the Electrochemicals $(EC)$ segment; and (iv) higher selling prices for caustic soda and sodium chlorate in the EC segment. These contributions were partially offset by lower selling prices for chlorine in the EC segment.

Adjusted EBITDA(1) of $151.2 million represented an increase of $14.0 million or 10.2% year-over-year. Excluding the impact of foreign exchange, Adjusted EBITDA was $12.9 million higher than in the prior year period. The increase was primarily due to: (i) higher selling prices and volumes for merchant acid, Regen acid, and water solutions products; (ii) higher sales volumes of sodium chlorate in the EC segment; and (iii) higher selling prices for caustic soda and sodium chlorate in the EC segment. These contributions were partially offset by lower selling prices for chlorine in the EC segment and higher corporate costs.

Distributable cash after maintenance capital expenditures was $77.8 million, an increase of $11.8 million or 18.0% year-over-year, and distributable cash after maintenance capital expenditures per unit increased by 24.4% year-over-year to $0.69 per unit. The increase was primarily due to the same factors that had a positive impact on Adjusted EBITDA as noted above. Chemtrade's Payout ratio(1) for the last twelve months was 32%.

The balance sheet continued to improve in the third quarter of 2025; as of September 30, 2025, Chemtrade's Net Debt was $941.1 million and its Net Debt to LTM Adjusted EBITDA ratio was 1.8x. As of the end of the third quarter of 2025, Chemtrade also maintained strong financial liquidity with US$483.9 million undrawn on its Credit Facilities, in addition to $18.7 million of cash and cash equivalents.

Segmented Financial Summary of Q3 2025

The SWC segment reported revenue of $334.2 million for the third quarter of 2025, compared to $280.5 million for the third quarter of 2024. Adjusted EBITDA in the SWC segment was $92.1 million for the third quarter of 2025, compared to $78.3 million for the third quarter of 2024. The weaker Canadian dollar relative to the U.S. dollar during the third quarter of 2025 compared with the third quarter of 2024 contributed positively to SWC revenue and SWC Adjusted EBITDA by $2.4 million and $0.3 million, respectively.

Excluding the impact of foreign exchange, SWC revenue in the third quarter of 2025 increased by $51.3 million or 18.3% 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, SWC Adjusted EBITDA in the third quarter of 2025 increased by $13.6 million or 17.3% year-over-year due to higher selling prices and volumes for merchant acid, regen acid, and water solutions products, which more than offset higher input costs.

The EC segment reported revenue of $198.6 million for the third quarter of 2025, compared with $193.7 million for the third quarter of 2024. Adjusted EBITDA in the EC Segment was $93.8 million, compared to $83.0 million for the third quarter of 2024. The weaker Canadian dollar relative to the U.S. dollar during the third quarter of 2025, compared with the third quarter of 2024, had a positive impact on EC revenue and EC Adjusted EBITDA of $1.1 million and $0.8 million, respectively.

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