Methanex Authorizes Buyback of 3,868,213 Shares as Net Income Reaches $265 Million
Key Facts
On October 29, 2026, Methanex approved a normal course issuer bid allowing it to repurchase and cancel up to 3,868,213 shares, representing 5% of its 77,364,263 shares outstanding on that date. The announcement came alongside third-quarter results, which showed net income attributable to shareholders of $265 million, or $3.42 per diluted share. CEO Rich Sumner said the company was making progress in reducing debt toward a stronger, more flexible balance sheet. He added that the program allows additional capital to be returned to shareholders. The announcement places the buyback within the company's efforts to reduce debt and strengthen its balance sheet following strong operating cash flow.
The announced limit is a ceiling on purchases: the company said it would buy shares from time to time at the prevailing market price, and that repurchased shares would be canceled. Purchases could begin on November 4, 2026, and must end no later than November 3, 2027. Outside self-imposed blackout periods, purchases will be made at management's discretion. The company did not say in the announcement that the program would necessarily reach the maximum permitted amount. The move comes as management said strong operating results and higher methanol prices are supporting debt reduction and the return of additional capital to shareholders.
Net income attributable to shareholders rose from $198 million, or $2.45 per diluted share, in the second quarter to $265 million, or $3.42 per share, in the third quarter. The company attributed the increase from the previous quarter mainly to an asset impairment charge recorded in the second quarter. Adjusted profit measures, however, declined over the same period: adjusted EBITDA was $543 million, compared with $577 million, and adjusted net income was $284 million, compared with $300 million. The average realized methanol price also fell to $510 per ton from $529 in the second quarter. Year over year, third-quarter revenue rose to $1.388 billion from $927 million, while net income swung from a loss of $7 million to a profit of $265 million.
Sumner said the impact of the conflict in the Middle East on the methanol industry continued during the third quarter, and that the loss of significant industry supply supported continued price strength. He added that the improved asset base continued to perform well, particularly in North America, helping the company generate strong cash flow and adjusted earnings. Cash provided by operating activities totaled $646 million during the quarter. The company ended September with cash of $912 million, alongside an undrawn $400 million revolving credit facility. The CEO said that "the significant loss of industry supply supports continued price strength" and that the asset base "continued to perform well, particularly in North America."
Methanex expects an average realized price of about $525 to $550 per ton in October and November, compared with an average of $510 per ton in the third quarter. The company said it expects adjusted EBITDA to rise in the fourth quarter, supported by a higher realized price and similar sales volumes of produced methanol. It also notified bondholders that it would redeem $300 million of $700 million in outstanding notes due in October 2027. It expects to redeem the remaining $400 million during the fourth quarter of 2026. These steps reflect the company's focus on reducing debt alongside its operating outlook for the coming period.
On production, the company expects to produce about 9.0 million tons of methanol on an attributable basis, in addition to 0.3 million tons of ammonia, during 2026. It also expects to curtail operations at its New Zealand production facilities indefinitely during the first quarter of 2027, following an agreement to sell most of its remaining rights under natural gas contracts there. Methanex describes itself as the world's largest producer and supplier of methanol. Its shares trade on the Toronto Stock Exchange under the symbol MX and on Nasdaq under the symbol MEOH. The company places its production outlook and the New Zealand curtailment within its business outlook for next year.