Chemtrade Logistics Income Fund (CHE-UN) Investor presentation summary

Business overview and strategy

• Supplies essential industrial chemicals to critical industries with a diversified, recession-resistant portfolio.

• Achieved a 16% CAGR in Adjusted EBITDA from 2021 to 2025, with a 2026 guidance of $485–$525 million.

• Focuses on operational excellence, commercial execution, and disciplined capital allocation.

• Vision 2030 targets $550–$600 million in mid-cycle Adjusted EBITDA by 2030, with 5–10% annual growth.

• Growth driven by organic investments, acquisitions, and unit buybacks, especially in water chemicals and ultrapure acid.

Financial performance and capital allocation

• 2025 revenue reached $1.998 billion, up 12% year-over-year, with Adjusted EBITDA at a record $507.4 million.

• Distributable cash flow CAGR of ~28% (2021–2025), with average conversion of ~45% from Adjusted EBITDA.

• Net debt to Adjusted EBITDA at 2.3x by end of 2025, with available liquidity over US$370 million.

• Capital allocation balanced across buybacks ($155M), acquisitions ($252M), distributions ($320M), and debt reduction ($296M) from 2021–2025.

• Distribution increased 20% since 2023, with a 5% yield and payout ratios of 35–45%.

Segment and product highlights

• Sulphur & Water Chemicals (SWC) and Electrochemicals (EC) segments serve water treatment, refineries, pulp & paper, and industrial markets.

• Water treatment chemicals market expected to grow at 5% CAGR (2023–2033), with Chemtrade as a leading supplier.

• Largest sodium chlorate plant in North America and leading regional supplier of caustic soda and chlorine.

• Strategic facility locations near customers provide cost and service advantages.

• Recent acquisitions (Polytec, Thatcher Group assets) expanded water solutions platform.