Methanex Reports Q4 2025 Loss Amid Market Weakness
Methanex Corp (MEOH) experienced a significant decline of 5.04% in its stock price, crossing below the 5-day SMA, reflecting broader market trends as the Nasdaq-100 and S&P 500 also posted losses.
The company reported a loss of $89 million in Q4 2025, translating to a loss of $1.15 per share, which is a stark contrast to a profit of $45 million in the same quarter last year. This disappointing financial performance, coupled with revenues that fell short of expectations, indicates increasing pressure on profitability and market demand. Methanex's production increased year-over-year, but sales volumes did not meet forecasts, leading to a cautious outlook for the future.
This financial setback raises concerns among investors about Methanex's ability to navigate market fluctuations and maintain profitability. The company's anticipated production levels for 2026 suggest some resilience, but the recent earnings miss may prompt investors to reassess their positions.
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- Company Update: MethaneX has been affected by JP Morgan's decision to cut its rating to neutral.
- Target Price Adjustment: JP Morgan has raised the target price for MethaneX from $56 to $65.
- High Voting Participation: At the Annual General Meeting on April 30, 2026, a total of 64,397,180 common shares were voted, representing 83.27% of outstanding shares, indicating strong shareholder engagement and interest in company affairs.
- Board Election Results: All director nominees were elected with support rates exceeding 99%, particularly Don Marchand who received 99.95% approval, reflecting strong shareholder confidence in the management team.
- Auditor Reappointment: KPMG LLP was reappointed as Methanex's auditor with 76.52% support, ensuring financial transparency and compliance, which enhances investor confidence in the company's financial practices.
- Executive Compensation Advisory Vote: The non-binding advisory vote on executive compensation received 97.86% approval, indicating shareholder endorsement of the company's compensation policies, which may enhance management incentives and governance standards.
- Earnings Performance: Methanexpress reported a non-GAAP EPS of $0.30 for Q1 2026, indicating the company's resilience amid market fluctuations, despite an uncertain overall economic environment.
- Price Growth Trend: The average realized price in Q1 was $351 per tonne, up from $331 per tonne in Q4 2025, demonstrating positive progress in the company's pricing strategy.
- Future Price Expectations: Based on April and May posted prices, the average realized price is expected to range between $500 and $525 per tonne for these two months, which will further drive revenue growth and enhance market confidence.
- Industry Performance: Methanexpress has been recognized as a top-performing foreign materials stock year-to-date, reflecting its competitiveness in the industry and investor recognition, potentially attracting more investor interest.
- Net Loss Overview: Methanex reported a net loss of $14 million in Q1 2026, primarily driven by mark-to-market expenses related to share-based compensation due to rising share prices, although this was an improvement from a $89 million loss in Q4 2025, indicating effective cost control measures.
- Adjusted Financial Performance: The company achieved an Adjusted EBITDA of $220 million and an Adjusted net income of $23 million in the first quarter, reflecting positive progress in operational efficiency and pricing power, which is expected to lay a foundation for future profitability.
- Production and Sales Data: Methanex produced 2.391 million tonnes of methanol in Q1 2026, a slight increase from 2.364 million tonnes in Q4 2025, with total sales volume at 2.622 million tonnes, indicating stable market demand despite a decrease in sales volume compared to the previous quarter.
- Cash Flow and Debt Management: The company repaid $60 million of its Term Loan A and returned $14 million to shareholders through dividends, ending the quarter with a cash balance of $379 million, demonstrating strong liquidity and prudent financial management strategies.






