Methanex's Q2 Earnings Surpass Estimates, Revenues Decline Y/Y

Core Insights - Methanex Corporation (MEOH) reported a second-quarter 2025 profit of $64 million or 93 cents per share, an increase from $35 million or 52 cents per share in the same quarter last year. Adjusted earnings per share were 97 cents, exceeding the Zacks Consensus Estimate of 42 cents [1][9] - Revenues decreased by approximately 13.4% year over year to $797 million, falling short of the Zacks Consensus Estimate of $873.9 million [1][9] Financial Performance - Adjusted EBITDA rose around 11.6% year over year to $183 million [2] - Cash and cash equivalents stood at $485 million at the end of the quarter, with cash flow from operating activities amounting to $277 million. The company returned $12.5 million to shareholders through dividends [5] Operational Highlights - Total production for the quarter was 1,621,000 tons, reflecting a 14% year-over-year increase. This was driven by full-rate operations at Geismar 1 and 2, a successful restart of Geismar 3, and increased production in Trinidad. However, production was negatively impacted by reduced output from Egypt, planned maintenance in Canada, and lower production from Chile and New Zealand [3] - Total sales volume in the first quarter was 2,133,000 tons, down 18.3% year over year, missing the estimate of 2,387,000 tons. The average realized price for methanol was $374 per ton, up from $352 per ton in the prior-year quarter, and above the estimate of $362 per ton [4][9] Outlook - The company anticipates its 2025 production to be approximately 8 million tons, subject to fluctuations due to gas availability, maintenance, and unforeseen events [6] - Methanex expects higher adjusted EBITDA in the third quarter of 2025 compared to the second quarter, driven by increased sales volume, although this will be offset by a lower average realized price projected between $335 and $345 per ton for July and August [7] Market Performance - Methanex shares have declined by 21.5% over the past year, compared to a 22.4% decline in the industry [8]