Business Context and Reporting Period
Company: Methanex Corporation (Methanex)
Filing Type: Form 6-K (Report of Foreign Private Issuer)
Reporting Period: Fourth Quarter and Full Year ended December 31, 2025
Release Date: March 5, 2026
Methanex, the world's largest producer and supplier of methanol, reported results for Q4 2025. The company continued integrating the OCI Global methanol business acquired in June 2025 and achieved its best two-year safety record in company history. Operations were impacted by gas availability constraints in New Zealand and Chile, as well as planned and unplanned outages at various facilities.
Key Financial Metrics
| Metric ($ millions) | Q4 2025 | Q3 2025 | Full Year 2025 | Full Year 2024 |
|---|---|---|---|---|
| Revenue | 969 | 927 | 3,589 | 3,720 |
| Net Income (Loss) to Shareholders | (89) | (7) | 80 | 164 |
| Adjusted EBITDA | 186 | 191 | 808 | 764 |
| Adjusted Net Income (Loss) | (11) | 5 | 148 | 252 |
| Cash Flow from Operations | 239 | 184 | 1,016 | 737 |
| Ending Cash Balance | 425 | 413 | 425 | 892 |
| Adjusted Debt | 3,706 | 3,816 | 3,706 | 2,885 |
Operational Metrics:
- Production (Q4 2025): 2,364,000 tonnes (vs. 2,212,000 tonnes in Q3 2025).
- Total Sales Volume (Q4 2025): 2,689,000 tonnes.
- Average Realized Price (Q4 2025): $331 per tonne (vs. $345 in Q3 2025).
Material Changes vs. Prior Period
- Net Loss Expansion: Q4 2025 net loss attributable to shareholders widened to $89 million from a $7 million loss in Q3 2025. This was primarily driven by a non-cash asset impairment charge of $71 million (net of tax impact) related to New Zealand operations, lower average realized prices, and reduced gas sale proceeds in New Zealand.
- Production Growth: Q4 production increased by 152,000 tonnes compared to Q3, largely due to higher output in Chile following improved gas availability from Argentina.
- Price Decline: The average realized price dropped $14 per tonne quarter-over-quarter, reducing Adjusted EBITDA by $36 million.
- Deleveraging: Despite the impairment, the company repaid $200 million of Term Loan A during 2025 and returned $54 million to shareholders via dividends.
Guidance, Outlook, and Risks
- 2026 Production Outlook: Management expects approximately 9.0 million tonnes of methanol and 0.3 million tonnes of ammonia production for 2026.
- Q1 2026 Guidance: Anticipates slightly higher Adjusted EBITDA compared to Q4 2025, driven by similar sales volumes and a slightly higher average realized price.
- Price Expectations: The expected average realized price range for 2026 is $330 to $340 per tonne.
- Risks and Contingencies:
- Gas Supply Constraints: Ongoing challenges in New Zealand and seasonal curtailments in Egypt and Chile remain key operational risks.
- Asset Impairment: The $71 million impairment in New Zealand reflects uncertainty regarding future gas well performance and upstream development.
- Market Volatility: Exposure to natural gas spot prices in North America and methanol price fluctuations globally.
Key Facts for Investor Verification
- Impairment Details: Verify the specific assumptions and recoverability tests used for the $71 million New Zealand asset impairment charge.
- Gas Contract Terms: Review the firm gas contracts in Chile (through 2030/2027) and the status of gas supply negotiations in New Zealand and Egypt.
- OCI Integration: Assess the progress of the OCI Global acquisition integration and the contribution of new assets (Beaumont, Natgasoline) to full-year 2025 results.
- Debt Structure: Confirm the terms of the $600 million revolving credit facility and the schedule for remaining Term Loan A repayments.
- Non-GAAP Reconciliations: Review the reconciliation of Adjusted EBITDA and Adjusted Net Income to GAAP measures to understand the impact of share-based compensation and associate adjustments.