Methanex (NasdaqGS:MEOH) Q3 2025 Earnings Call October 30, 2025 11:00 AM ET Speaker0Good morning. My name is Tina and I will be your conference operator today. At this time I would like to welcome everyone to the Methanex Corporation third quarter 2025 results conference call. All lines have been placed on mute to prevent any background noise. After the speaker's remarks, there will be a question and answer session. If you would like to ask a question during this time, simply press STAR followed by the numb ...

Core Insights - Methanex reported quarterly earnings of $0.06 per share, significantly missing the Zacks Consensus Estimate of $0.51 per share, and down from $1.21 per share a year ago, representing an earnings surprise of -88.24% [1] - The company posted revenues of $927 million for the quarter ended September 2025, which was 4.83% below the Zacks Consensus Estimate and a decrease from $935 million year-over-year [2] - Methanex shares have declined approximately 30.9% year-to-date, contrasting with the S&P 500's gain of 17.2% [3] Earnings Outlook - The future performance of Methanex's stock will largely depend on management's commentary during the earnings call and the revisions of earnings estimates [3][4] - The current consensus EPS estimate for the upcoming quarter is $0.88 on revenues of $1.07 billion, while for the current fiscal year, the estimate is $3.66 on revenues of $3.73 billion [7] Industry Context - The Chemical - Diversified industry, to which Methanex belongs, is currently ranked in the bottom 7% of over 250 Zacks industries, indicating a challenging environment [8] - Empirical research suggests a strong correlation between near-term stock movements and trends in earnings estimate revisions, which could impact Methanex's stock performance [5][6]

Except where otherwise noted, all currency amounts are stated in United States dollars. Financial and Production Highlights Delivered first full quarter of safe, reliable operations at newly acquired Beaumont and Natgasoline plants, producing 239,000 tonnes and 222,000 tonnes (Methanex share) of methanol respectively. Beaumont also produced 88,000 tonnes of ammonia in the third quarter.Adjusted EBITDA of $191 million, Adjusted net income of $5 million, and net loss attributable to Methanex shareholders of $ ...

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Core Insights - Methanex Corporation (MEOH) is scheduled to release its third-quarter 2025 results on October 29, with expectations of benefiting from higher methanol volumes despite facing challenges from lower prices [1][7] - The company has consistently surpassed the Zacks Consensus Estimate in the past four quarters, averaging an earnings surprise of approximately 83.2%, with a notable 130.9% surprise in the last quarter [1] Revenue Estimates - The Zacks Consensus Estimate for Methanex's third-quarter consolidated revenues is currently $974 million, reflecting a year-over-year increase of 4.2% [4] Performance Factors - Methanex's third-quarter performance is anticipated to be positively influenced by increased methanol sales volumes, driven by a 4% rise in global methanol demand in the second quarter, particularly in China [5] - However, weaker methanol prices are expected to negatively impact the company's results, with the average realized price for methanol projected to decline to $345 per ton, a 3% year-over-year decrease from the previous quarter's $374 per ton [8] Earnings Prediction - The current model does not predict a definitive earnings beat for Methanex this quarter, as it holds a Zacks Rank of 5 (Strong Sell), despite an Earnings ESP of +22.53% [9][10]

Core Points - Methanex Corporation will host an Investor Day on November 13, 2025, in Toronto at 12:30 PM Eastern Time [1] - The event will feature a business update from Methanex's executive leadership team followed by a live Q&A session [1] - A live webcast of the presentations and Q&A will be available on the company's website and can be replayed after the event [2] Company Information - Methanex is the world's largest supplier of methanol and is based in Vancouver, Canada [3] - The company's shares are traded on the Toronto Stock Exchange under the symbol "MX" and on the Nasdaq under "MEOH" [3] - Additional information about Methanex can be found on their official website [3]

Core Points - Methanex Corporation will host an Investor Day on November 13, 2025, in Toronto at 12:30 PM Eastern Time [1] - The event will feature a business update from Methanex's executive leadership team followed by a live Q&A session [1] - A live webcast of the presentations and Q&A will be available on the company's website and can be replayed after the event [2] Company Information - Methanex is the world's largest supplier of methanol and is based in Vancouver, Canada [3] - The company's shares are traded on the Toronto Stock Exchange under the symbol "MX" and on the Nasdaq under "MEOH" [3] - Additional information about Methanex can be found on their official website [3]

Core Insights - Global equity markets experienced broad positive returns in Q3 2025, driven by resilient corporate earnings, enthusiasm for AI, and the U.S. Federal Reserve's first interest rate cut of the year [3][21] - Emerging markets, particularly China, led the gains, supported by a U.S. trade truce and strength in the tech sector [3][4] - The Polaris Global Equity Composite gained 5.04% (net of fees) for the quarter, underperforming the MSCI World Index, which returned 7.36% [5][6] Market Performance - Developed markets saw weaker currencies benefiting export-oriented indices, with Japan's TOPIX Index up 11.0% and the U.K.'s FTSE All-Share Index up 6.9% [4] - The U.S. market, represented by the S&P 500 Index, gained over 8%, primarily due to tech and communication stocks [4] - France and Germany underperformed due to geopolitical and fiscal concerns, with tepid growth projections under new U.S. trade policy [4] Sector Analysis - The healthcare sector was the best performer, with notable gains from pharmaceutical stocks, while financials, consumer discretionary, and IT also contributed positively [5][6] - Health insurers faced challenges, with UnitedHealth Group and CVS Health posting over 10% returns, while Elevance Health's shares dropped sharply due to profit guidance cuts [7] - In IT, Samsung Electronics excelled with strong performance in HBM technology and a significant deal with Tesla for AI chip manufacturing [11] Company Highlights - United Therapeutics Corp. was a top contributor to portfolio performance, driven by positive clinical trial results for its drug Tyvaso, potentially adding $4-5 billion in peak sales [6] - AbbVie, Inc. expects high single-digit revenue growth through 2029, with flagship drugs projected to exceed $31 billion in sales by 2027 [6] - The Carlyle Group Inc. outperformed in the financial sector, up over 20% due to strong fee-based credit and secondaries business [8] Investment Strategy - The current economic environment is characterized by a "two-speed" economy, with a concentrated AI-driven boom amidst subdued growth in other sectors [21][22] - Financials are seen as attractive due to stable net interest margins and loan growth, while defensives like consumer staples and healthcare are expected to perform well [22] - Opportunities in economically-sensitive sectors are being explored, with a focus on industrials benefiting from AI integration and supply chain modernization [22][23]

Core Insights - The article emphasizes the importance of the Zacks Rank system and Style Scores in identifying strong investment opportunities, particularly in value investing [1][3] Company Analysis - Methanex (MEOH) is highlighted as a stock to watch, currently holding a Zacks Rank of 2 (Buy) and an A for Value, indicating strong potential for value investors [4] - MEOH has a P/E ratio of 9.99, significantly lower than the industry average of 18.87, suggesting it may be undervalued [4] - The stock's Forward P/E has fluctuated between 5.89 and 15.64 over the past 52 weeks, with a median of 10.72, further indicating its valuation potential [4] - Methanex's P/B ratio stands at 1.03, which is attractive compared to the industry average of 1.54, reinforcing the notion of undervaluation [5] - Over the past year, MEOH's P/B has ranged from 0.69 to 1.52, with a median of 1.05, highlighting its relative value [5] - Overall, the data suggests that Methanex is likely undervalued and has a strong earnings outlook, making it a standout in the value stock category [6]

Group 1 - Methanex Corporation (NASDAQ:MEOH) is recognized as one of the top NASDAQ stocks with low P/E ratios [1] - The company established strategic alliances on September 23 to provide methanol bunkering services in South Korea and the Amsterdam-Rotterdam-Antwerp (ARA) area [1][2] - Methanex collaborated with TankMatch to offer barge-to-ship methanol bunkering services in the ARA region, building on a previous agreement involving OCI Global and UniBarge [2] Group 2 - The collaborations in South Korea and ARA leverage Methanex's existing supply chain and local knowledge from nearby bunkering operators [2] - Methanex ensures that all partners meet its operational and safety requirements, providing safety packages and technical advice for companies using methanol as marine fuel [3] - Methanex operates as a methanol manufacturer with a presence in Asia Pacific, North America, Europe, and South America [3]