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MEOH Q3 Earnings Beat Estimates on Strong Methanol Pricing
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Key Takeaways
Methanex's Q3 earnings surged to $3.69 per share, beating estimates, while revenues climbed 49.6%.
MEOH's realized methanol price jumped 47.8% to $510 per ton, offsetting a 3.1% decline in production.
Methanex expects Q4 adjusted EBITDA to rise sequentially, supported by higher realized methanol prices.
Methanex Corporation (MEOH - Free Report) reported adjusted earnings of $3.69 per share for the third quarter of 2026, up from 6 cents in the year-ago quarter. The figure surpassed the Zacks Consensus Estimate of $3.17 by 16.4%.
Revenues climbed 49.6% year over year to $1.39 billion, beating the Zacks Consensus Estimate of $1.287 billion by 7.8%. Stronger methanol pricing more than offset lower production, while total methanol sales volume increased from the prior-year period.
Methanex Corporation Price, Consensus and EPS Surprise
Total methanol production slipped 3.1% year over year to 2,143,000 metric tons from 2,212,000 metric tons. The decrease reflected weaker output in Trinidad and seasonal natural gas constraints in Chile, partly offset by higher production in North America and Egypt. The figure was below our estimate of 2,232,000 tons.
Methanex sold 2,595,000 metric tons of methanol during the quarter, up 4.8% from 2,476,000 metric tons a year earlier. The figure lagged our estimate of 2,658,000 tons. Sales of company-produced methanol climbed to 2,279,000 metric tons from 1,891,000 metric tons, while purchased-methanol sales fell to 170,000 metric tons from 488,000 metric tons. Commission sales increased to 146,000 metric tons from 97,000 metric tons.
The average realized methanol price reached $510 per metric ton, up 47.8% from $345 per metric ton in the year-ago quarter. The figure topped our estimate of $467 per ton. Pricing added $413 million to adjusted EBITDA compared with the prior-year period, reflecting supply disruptions in the global methanol market.
MEOH's Financials
Cash flows from operating activities jumped 251.1% year over year to $646 million from $184 million. The company generated adjusted free cash flow of $520 million, compared with $85 million in the prior-year quarter. Working capital provided a $93 million cash inflow, helped by reduced inventories and higher accounts payable.
Methanex ended September with $912 million in cash and access to a $400 million undrawn revolving credit facility. It distributed $14 million in regular dividends and subsequently repaid $300 million of bonds due in October 2027, with plans to redeem the remaining $400 million in the fourth quarter.
Methanex’s Outlook
Management continues to expect 2026 methanol production of approximately 9 million metric tons on a Methanex-interest basis and ammonia production of about 0.3 million metric tons. Actual output remains subject to natural gas availability, maintenance and unplanned operational disruptions.
Based on October and November posted prices and prevailing spot prices, Methanex anticipates an average realized methanol price of $525-$550 per metric ton for those two months. With higher realized prices and similar company-produced methanol sales, it expects fourth-quarter adjusted EBITDA to increase sequentially. The company also plans to indefinitely idle its remaining New Zealand production facility in the first quarter of 2027 after agreeing to sell substantially all remaining natural gas entitlements.
MEOH’s Price Performance
Shares of Methanex have gained 74.9% over the past year compared with the 23.3% growth of its industry.
Image Source: Zacks Investment Research
MEOH’s Zacks Rank & Other Key Picks
MEOH currently sports a Zacks Rank #1 (Strong Buy).
Other top-ranked stocks in the Basic Materials space are Reliance, Inc. (RS - Free Report) , Element Solutions Inc. (ESI - Free Report) and Avino Silver & Gold Mines Ltd. (ASM - Free Report) .
The Zacks Consensus Estimate for RS’ 2026 earnings is pegged at $23.70 per share, indicating a 66.2% year-over-year surge. RSshares have gained 50.4% over the past year.
The Zacks Consensus Estimate for ESI’s 2026 earnings is pegged at $1.85 per share, indicating a year-over-year rise of 24.2%. Its earnings beat the Zacks Consensus Estimate in each of the trailing four quarters, with the average surprise being 6%.
The Zacks Consensus Estimate for ASM’s current fiscal-year earnings is pinned at 28 cents per share. Its earnings beat the Zacks Consensus Estimate in each of the trailing four quarters, with the average surprise being 75%.
View the Zacks #1 Rank List
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MEOH Q3 Earnings Beat Estimates on Strong Methanol Pricing
Key Takeaways
Methanex Corporation (MEOH - Free Report) reported adjusted earnings of $3.69 per share for the third quarter of 2026, up from 6 cents in the year-ago quarter. The figure surpassed the Zacks Consensus Estimate of $3.17 by 16.4%.
Revenues climbed 49.6% year over year to $1.39 billion, beating the Zacks Consensus Estimate of $1.287 billion by 7.8%. Stronger methanol pricing more than offset lower production, while total methanol sales volume increased from the prior-year period.
Methanex Corporation Price, Consensus and EPS Surprise
Methanex Corporation price-consensus-eps-surprise-chart | Methanex Corporation Quote
MEOH's Operational Output
Total methanol production slipped 3.1% year over year to 2,143,000 metric tons from 2,212,000 metric tons. The decrease reflected weaker output in Trinidad and seasonal natural gas constraints in Chile, partly offset by higher production in North America and Egypt. The figure was below our estimate of 2,232,000 tons.
Methanex sold 2,595,000 metric tons of methanol during the quarter, up 4.8% from 2,476,000 metric tons a year earlier. The figure lagged our estimate of 2,658,000 tons. Sales of company-produced methanol climbed to 2,279,000 metric tons from 1,891,000 metric tons, while purchased-methanol sales fell to 170,000 metric tons from 488,000 metric tons. Commission sales increased to 146,000 metric tons from 97,000 metric tons.
The average realized methanol price reached $510 per metric ton, up 47.8% from $345 per metric ton in the year-ago quarter. The figure topped our estimate of $467 per ton. Pricing added $413 million to adjusted EBITDA compared with the prior-year period, reflecting supply disruptions in the global methanol market.
MEOH's Financials
Cash flows from operating activities jumped 251.1% year over year to $646 million from $184 million. The company generated adjusted free cash flow of $520 million, compared with $85 million in the prior-year quarter. Working capital provided a $93 million cash inflow, helped by reduced inventories and higher accounts payable.
Methanex ended September with $912 million in cash and access to a $400 million undrawn revolving credit facility. It distributed $14 million in regular dividends and subsequently repaid $300 million of bonds due in October 2027, with plans to redeem the remaining $400 million in the fourth quarter.
Methanex’s Outlook
Management continues to expect 2026 methanol production of approximately 9 million metric tons on a Methanex-interest basis and ammonia production of about 0.3 million metric tons. Actual output remains subject to natural gas availability, maintenance and unplanned operational disruptions.
Based on October and November posted prices and prevailing spot prices, Methanex anticipates an average realized methanol price of $525-$550 per metric ton for those two months. With higher realized prices and similar company-produced methanol sales, it expects fourth-quarter adjusted EBITDA to increase sequentially. The company also plans to indefinitely idle its remaining New Zealand production facility in the first quarter of 2027 after agreeing to sell substantially all remaining natural gas entitlements.
MEOH’s Price Performance
Shares of Methanex have gained 74.9% over the past year compared with the 23.3% growth of its industry.
Image Source: Zacks Investment Research
MEOH’s Zacks Rank & Other Key Picks
MEOH currently sports a Zacks Rank #1 (Strong Buy).
Other top-ranked stocks in the Basic Materials space are Reliance, Inc. (RS - Free Report) , Element Solutions Inc. (ESI - Free Report) and Avino Silver & Gold Mines Ltd. (ASM - Free Report) .
RS and ESI currently sport a Zacks Rank #1 each, while ASM carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here
The Zacks Consensus Estimate for RS’ 2026 earnings is pegged at $23.70 per share, indicating a 66.2% year-over-year surge. RSshares have gained 50.4% over the past year.
The Zacks Consensus Estimate for ESI’s 2026 earnings is pegged at $1.85 per share, indicating a year-over-year rise of 24.2%. Its earnings beat the Zacks Consensus Estimate in each of the trailing four quarters, with the average surprise being 6%.
The Zacks Consensus Estimate for ASM’s current fiscal-year earnings is pinned at 28 cents per share. Its earnings beat the Zacks Consensus Estimate in each of the trailing four quarters, with the average surprise being 75%.