Back to top

Image: Bigstock

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

Read MoreHide Full Article

Key Takeaways

  • Methanex Q2 adjusted EPS of 97 cents topped estimates despite a 13.4% revenue drop to $797M.
  • Production rose 14% Y/Y to 1.62M tons, aided by Geismar plant operations and restarts.
  • Average methanol price rose to $374/ton, offsetting some impact from weaker sales volumes.

Methanex Corporation (MEOH - Free Report) logged a second-quarter 2025 profit (attributable to shareholders) of $64 million or 93 cents per share, up from $35 million or 52 cents per share in the year-ago quarter.

Adjusted earnings per share (barring one-time items) in the reported quarter were 97 cents per share, topping the Zacks Consensus Estimate of 42 cents.

Revenues fell roughly 13.4% year over year to $797 million in the quarter. The top line missed the Zacks Consensus Estimate of $873.9 million.

Adjusted EBITDA in the reported quarter rose around 11.6% year over year to $183 million. 

Methanex Corporation Price, Consensus and EPS Surprise

Methanex Corporation Price, Consensus and EPS Surprise

Methanex Corporation price-consensus-eps-surprise-chart | Methanex Corporation Quote

MEOH’s Operational Highlights

Production in the quarter totaled 1,621,000 tons, up 14% year over year. Production also increased from the prior quarter due to higher production from Geismar as Geismar 1 and 2 operated at full rates in this quarter, and a successful Geismar 3 restart was achieved in early May, as well as increased production in Trinidad. This was offset by reduced production from Egypt due to gas availability, Canada’s planned turnaround and lower production from Chile and New Zealand.

Total sales volume in the first quarter totaled 2,133,000 tons, down 18.3% year over year. The figure missed our estimate of 2,387,000 tons.

The average realized price for methanol was $374 per ton in the quarter, up from $352 per ton in the prior-year quarter. The figure was above our estimate of $362 per ton.

MEOH’s Financials

Cash and cash equivalents were $485 million at the end of the quarter. Cash flow from operating activities was $277 million in the quarter. The company returned $12.5 million to shareholders through dividends in the reported quarter.

MEOH’s Outlook

The company expects its 2025 production to be approximately 8 million tons, subject to fluctuation due to gas availability, scheduled maintenance, unexpected outages, or other unforeseen events.

The company expects higher adjusted EBITDA in the third quarter of 2025 than in the second quarter, owing to higher sales volume of produced methanol, offset by a lower average realized price. Based on the prices stated in July and August, the company expects the average realized price to be between $335 and $345 per ton for these two months.

MEOH’s Price Performance

Shares of Methanex have lost 21.5% in the past year against the 22.4% decline in the industry.

Zacks Investment Research
Image Source: Zacks Investment Research

MEOH’s Zacks Rank & Key Picks

MEOH currently carries a Zacks Rank #3 (Hold).

Some better-ranked stocks worth a look in the basic materials space are Avino Silver & Gold Mines Ltd. (ASM - Free Report) , Barrick Mining Corporation (B - Free Report) and MAG SilverCorp. (MAG - Free Report) .

Avino Silver is slated to report second-quarter results on Aug. 13. The Zacks Consensus Estimate for earnings is pegged at 3 cents per share. ASM’s earnings beat the Zacks Consensus Estimate in each of the last four quarters, with the average surprise being 104.2%. Avino Silver flaunts a Zacks Rank #1 (Strong Buy) at present. You can see the complete list of today’s Zacks #1 Rank stocks here.

Barrick Mining is expected to report second-quarter results on Aug. 11. The Zacks Consensus Estimate for B’s second-quarter earnings is pegged at 47 cents, indicating year-over-year growth of 46.9%. Barrick’s earnings beat the Zacks Consensus Estimate in three of the last four quarters but missed it in one. B currently sports a Zacks Rank #1.

MAG Silver is slated to report second-quarter results on Aug. 11. The consensus estimate for MAG’s earnings is pegged at 26 cents per share. MAG carries a Zacks Rank #2 at present. MAG Silver’s earnings beat the consensus estimate in three of the last four quarters, while missing it in one, with the average surprise being 2.01%.

Published in