Core Insights - Methanex reported quarterly earnings of $0.97 per share, significantly exceeding the Zacks Consensus Estimate of $0.42 per share, and up from $0.62 per share a year ago, representing an earnings surprise of +130.95% [1] - The company posted revenues of $797 million for the quarter ended June 2025, which fell short of the Zacks Consensus Estimate by 8.8% and decreased from $920 million year-over-year [2] - Methanex shares have declined approximately 32.2% year-to-date, contrasting with the S&P 500's gain of 8.3% [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 $0.53 on revenues of $976.2 million, while for the current fiscal year, the estimate is $3.10 on revenues of $4 billion [7] Industry Context - The Chemical - Diversified industry, to which Methanex belongs, is currently ranked in the bottom 5% of over 250 Zacks industries, indicating potential challenges ahead [8] - The performance of Methanex's stock may also be influenced by the overall outlook for the industry, as historical data shows that the top 50% of Zacks-ranked industries outperform the bottom 50% by more than 2 to 1 [8]

Financial Performance - Methanex reported net income attributable to shareholders of $64 million for Q2 2025, down from $111 million in Q1 2025, primarily due to lower average realized prices and reduced sales volume[12]. - Adjusted EBITDA for Q2 2025 was $183 million, compared to $248 million in Q1 2025, reflecting the impact of lower sales and prices[12]. - In Q2 2025, Methanex recorded a net income of $64 million, down from $111 million in Q1 2025, primarily due to a lower average realized price and reduced sales of produced product[39]. - Adjusted EBITDA for Q2 2025 was $183 million, down from $248 million in Q1 2025, while adjusted net income was $66 million compared to $88 million in Q1 2025[36][37]. - Adjusted net income for Q2 2025 was $66 million, down from $88 million in Q1 2025 and up from $42 million in Q2 2024[116]. - Revenue for Q2 2025 was $797 million, a decrease from $896 million in Q1 2025 and $949 million in Q4 2024[116]. - The effective tax rate for Q2 2025 was 3%, compared to a negative 5% in Q1 2025, reflecting a recovery due to resolved tax disputes[81]. - Comprehensive income for Q2 2025 was $74,305 thousand, compared to $50,904 thousand in Q2 2024, an increase of 45.9%[131]. - The total net income for the six months ended June 30, 2025, was $160.1 million, up from $86.0 million in the same period of 2024, representing an increase of 86.0%[161]. Production and Sales - Total sales volume for Q2 2025 was 2,133,000 tonnes, a decrease from 2,217,000 tonnes in Q1 2025, with Methanex-produced methanol sales at 1,528,000 tonnes[12]. - Production for Q2 2025 was 1,621,000 tonnes, slightly up from 1,619,000 tonnes in Q1 2025, with higher output from Geismar and Trinidad offset by lower production in Chile, New Zealand, and Egypt[12]. - Methanol sales volume in Q2 2025 was 106,000 tonnes lower than Q1 2025 and 367,000 tonnes lower than Q2 2024, impacting Adjusted EBITDA by $12 million and $37 million respectively[59]. - Methanex produced 1,621,000 tonnes of methanol in Q2 2025, slightly up from 1,619,000 tonnes in Q1 2025[39]. - In Q2 2025, total methanol production reached 2,594,000 tonnes, a 60% increase from Q2 2024's 1,619,000 tonnes[40]. - Methanol sales volume reached 4,350 thousand tonnes in Q2 2025, a 104% increase from 2,133 thousand tonnes in Q1 2025[121]. Pricing - The average realized price for methanol in Q2 2025 was $374 per tonne, down from $404 per tonne in Q1 2025[11]. - The average realized price for methanol in Q2 2025 was $374 per tonne, a decrease of $60 from Q1 2025 and an increase of $43 from Q2 2024[57]. - The average non-discounted posted price for methanol was $605 per tonne in Q2 2025, compared to $639 per tonne in Q1 2025[36]. - Average realized methanol price increased to $390 per tonne in Q2 2025, compared to $374 per tonne in Q1 2025, indicating a positive pricing trend[119]. Dividends and Shareholder Returns - Methanex paid a quarterly dividend of $0.185 per common share, totaling $12.5 million in Q2 2025[12]. - The company had 77,339,520 common shares outstanding as of July 29, 2025[29]. - Adjusted net income per common share for Q2 2025 was $0.97, compared to $1.30 in Q1 2025 and $0.62 in Q2 2024[115]. - Basic net income per common share increased to $0.95 in Q2 2025, up from $0.52 in Q2 2024, representing an increase of 82.7%[129]. Acquisition and Expansion - The company closed the OCI Acquisition on June 27, 2025, which includes two methanol facilities in Beaumont, Texas, and a low-carbon methanol production business[12]. - The acquisition of OCI's global methanol business was completed on June 27, 2025, including two methanol facilities in Beaumont, Texas[50]. - The company anticipates benefits from the OCI Acquisition, including expected synergies and commodity diversification, which may enhance future performance[123]. - The company reported a significant increase in finance costs, totaling $51,216 thousand in Q2 2025, compared to $27,684 thousand in Q2 2024, marking an 84.5% rise[148]. Cash Flow and Liquidity - Cash balance as of June 30, 2025, was $485 million, with access to a revolving credit facility increased to $600 million[12]. - Cash provided by operating activities in Q2 2025 was $277 million, an increase of $114 million compared to $163 million in Q2 2024[97]. - Cash used in investing activities in Q2 2025 was $1,304 million, primarily related to the OCI Acquisition, compared to $10 million in Q2 2024[100]. - The company has access to a $600 million committed revolving credit facility, enhancing its liquidity position[150]. Operational Efficiency - The company is focused on maintaining competitive cash costs and optimizing production efficiency to support profitability[125]. - Methanex is actively monitoring global economic conditions and natural gas supply dynamics, which are critical for its operational strategy[126]. - Planned operational capital expenditure for maintenance and major projects is estimated at approximately $50 million for the remainder of 2025[101]. Market Conditions - Global methanol demand increased slightly in Q2 2025, driven by higher demand in China[85]. - The company expects limited capacity additions in the methanol industry over the next few years due to technical and financing challenges in Iran[89]. - Methanex expects continued demand for methanol, particularly for energy uses, which could drive future sales growth[124].

Financial Performance - In Q2 2025, Methanex reported net income of $64 million ($0.93 per diluted share), down from $111 million ($1.44 per diluted share) in Q1 2025 [3][14] - Adjusted EBITDA for Q2 2025 was $183 million, compared to $248 million in Q1 2025 [3][7] - The average realized price in Q2 2025 was $374 per tonne, a decrease from $404 per tonne in Q1 2025 [7][14] Production and Sales - Methanex produced 1,621,000 tonnes of methanol in Q2 2025, slightly up from 1,619,000 tonnes in Q1 2025 [7][14] - Total sales volume in Q2 2025 was 2,133,000 tonnes, down from 2,217,000 tonnes in Q1 2025 [8][14] - Sales of Methanex-produced methanol were 1,528,000 tonnes in Q2 2025, compared to 1,703,000 tonnes in Q1 2025 [14] Acquisition and Strategic Position - The company completed the OCI Acquisition on June 27, 2025, which includes two methanol facilities in Beaumont, Texas, enhancing its production footprint [4][14] - The acquisition is expected to provide access to a stable and economic supply of natural gas feedstock, crucial for methanol production [4][14] - The integration of the acquired business is a focus for the company to capture its full strategic value [4] Cash Position and Dividends - As of June 30, 2025, Methanex had a cash balance of $485 million, or $459 million excluding non-controlling interests [7][14] - The company returned $12.5 million to shareholders through dividends in Q2 2025, with a dividend of $0.185 per common share [7][14] Production Highlights by Region - Geismar produced 829,000 tonnes in Q2 2025, up from 617,000 tonnes in Q1 2025, while Trinidad's Titan plant produced 216,000 tonnes, an increase from 137,000 tonnes [16][20] - Production in Chile decreased to 295,000 tonnes in Q2 2025 from 429,000 tonnes in Q1 2025 due to the idling of the Chile 4 plant [19] - New Zealand's production fell to 53,000 tonnes in Q2 2025 from 160,000 tonnes in Q1 2025 due to a temporary idling of operations [21] Outlook - The company expects 2025 production, including newly acquired assets, to be approximately 8.0 million tonnes [24] - For Q3 2025, Methanex anticipates higher Adjusted EBITDA compared to Q2, despite a lower average realized price [25]

Core Points - Methanex Corporation has completed the acquisition of OCI Global's international methanol business, which was first announced in September 2024 [1][2] - The acquisition includes two world-scale methanol facilities in Beaumont, Texas, a low-carbon methanol production and marketing business, and an idled methanol facility in the Netherlands [2] - The total transaction consideration is approximately $1.2 billion in cash, the issuance of about 9.9 million common shares, and the assumption of around $450 million in debt and leases [2] Company Overview - Methanex is the world's largest producer and supplier of methanol, based in Vancouver, Canada, and is publicly traded on the Toronto Stock Exchange and Nasdaq [4] - The company aims to ensure a smooth integration of the acquired business, maintain safe operations, and deliver strategic benefits from the acquisition [3]

Core Points - Methanex Corporation has completed the acquisition of OCI Global's international methanol business, which was first announced in September 2024 [1][2] - The acquisition includes two world-scale methanol facilities in Beaumont, Texas, a low-carbon methanol production and marketing business, and an idled methanol facility in the Netherlands [2] - The total transaction consideration is approximately $1.2 billion in cash, the issuance of about 9.9 million common shares, and the assumption of around $450 million in debt and leases [2] Company Overview - Methanex is the world's largest producer and supplier of methanol, based in Vancouver, Canada, and is publicly traded on the Toronto Stock Exchange and Nasdaq [4] - The company aims to ensure a smooth integration of the acquired business, maintain safe operations, and deliver strategic benefits from the acquisition [3]

Core Insights - Methanex Corporation (MEOH) has secured all regulatory approvals for its acquisition of OCI Global's international methanol business, with the transaction expected to close on June 27, 2025 [1][8] - The acquisition involves purchasing 100% of OCI Methanol, including all of OCI's U.S. and European methanol assets, and Methanex plans to quickly pursue integration post-closing to realize strategic benefits [2][8] - Methanex's shares have declined by 25.1% over the past year, closely mirroring the 25.2% decline of the industry [2] Production and Financial Outlook - The company anticipates lower production in 2025 than the previously estimated 7.5 million tons due to an unplanned G3 outage, with updates on production guidance expected in the second-quarter results [3] - Adjusted EBITDA for the second quarter is expected to be lower than in the first quarter, primarily due to reduced sales from the G3 outage and a lower average realized price, projected to be between $360 and $370 per ton for April and May [4]

Core Viewpoint - Methanex Corporation has received all necessary regulatory approvals to proceed with the acquisition of OCI Global's international methanol business, with the transaction expected to close on June 27, 2025 [1][2]. Group 1: Acquisition Details - The regulatory review period under the U.S. Hart-Scott-Rodino Antitrust Act has lapsed, allowing Methanex to finalize the acquisition [1]. - The acquisition is anticipated to close on June 27, 2025, pending customary closing conditions [1]. - Methanex's President and CEO, Rich Sumner, expressed optimism about the integration planning and the strategic benefits expected from the acquisition [2]. Group 2: Company Overview - Methanex is the world's largest producer and supplier of methanol, headquartered in Vancouver, Canada [2]. - The company's shares are traded on the Toronto Stock Exchange under the symbol "MX" and on the Nasdaq under "MEOH" [2].

Core Viewpoint - Methanex Corporation has received all necessary regulatory approvals to proceed with the acquisition of OCI Global's international methanol business, with the transaction expected to close on June 27, 2025 [1][2]. Group 1: Acquisition Details - The regulatory review period under the U.S. Hart-Scott-Rodino Antitrust Act has lapsed, allowing Methanex to finalize the acquisition [1]. - The acquisition is anticipated to close on June 27, 2025, pending customary closing conditions [1]. - Methanex's President and CEO, Rich Sumner, expressed optimism about the integration planning and the strategic benefits expected from the acquisition [2]. Group 2: Company Overview - Methanex is the world's largest producer and supplier of methanol, headquartered in Vancouver, Canada [2]. - The company's shares are traded on the Toronto Stock Exchange under the symbol "MX" and on the Nasdaq under "MEOH" [2].

Core Viewpoint - Methanex shares have increased by approximately 2.6% since the last earnings report, underperforming the S&P 500, raising questions about the sustainability of this trend leading up to the next earnings release [1] Group 1: Earnings and Estimates - Recent estimates for Methanex have trended downward, with the consensus estimate shifting by -49.32% over the past month [2] - The stock has a Zacks Rank of 3 (Hold), indicating expectations for an in-line return in the coming months [4] Group 2: VGM Scores - Methanex currently holds a strong Growth Score of A, but has a low Momentum Score of F, while also receiving an A for value, placing it in the top 20% for this investment strategy [3] - The overall aggregate VGM Score for Methanex is A, which is significant for investors not focused on a single strategy [3]

Core Viewpoint - Methanex Corporation reported a significant increase in profit for the first quarter of 2025, despite a decline in revenues and production, indicating potential challenges ahead for the company. Financial Performance - The profit attributable to shareholders for Q1 2025 was $111 million or $1.44 per share, up from $53 million or 77 cents per share in the same quarter last year [1] - Adjusted earnings per share were $1.30, exceeding the Zacks Consensus Estimate of $1.25 [1] - Revenues decreased by approximately 2.2% year over year to $896 million, missing the Zacks Consensus Estimate of $1,039.5 million [1] Operational Highlights - Adjusted EBITDA rose around 55% year over year to $248 million [2] - Total production for the quarter was 1,619,000 tons, down 5.9% year over year, affected by a planned turnaround and an unplanned outage [2] - Total sales volume decreased by 16.9% year over year to 2,217,000 tons, missing the estimate of 2,629,000 tons [3] - The average realized price for methanol was $404 per ton, up from $343 per ton in the prior-year quarter, exceeding the estimate of $396 per ton [3] Cash Flow and Shareholder Returns - Cash and cash equivalents at the end of the quarter were $1,087.4 million [4] - Cash flow from operating activities was $315 million [4] - The company returned $12.5 million to shareholders through dividends in the reported quarter [4] Outlook - Methanex expects 2025 production to be lower than the previously estimated 7.5 million tons due to the unplanned G3 outage [5] - The company anticipates lower adjusted EBITDA in Q2 2025 compared to Q1, primarily due to reduced sales from the G3 outage and a lower average realized price [6] - The expected average realized price for methanol in April and May is projected to be between $360 and $370 per ton [6] Stock Performance - Methanex shares have declined by 33.1% over the past year, compared to a 28.9% decline in the industry [7] Zacks Rank and Comparisons - Methanex currently holds a Zacks Rank 3 (Hold) [8] - Other better-ranked stocks in the basic materials sector include Hawkins, Inc. (Zacks Rank 1), Franco-Nevada Corporation (Zacks Rank 2), and Avino Silver & Gold Mines Ltd. (Zacks Rank 2) [8]