Methanex Corporation
- Open
- 60.91
- Day high
- 60.91
- Day low
- 59.43
- Prev close
- 60.57
- Volume
- 28K
- Mkt cap
- $4.6B
- P/E (TTM)
- 53.2
- EPS (TTM)
- $1.12
- P/B
- 1.8
- P/S
- 1.1
- Yield
- 1.24%
- Per share
- $0.74
Methanex Corporation (MEOH) is a Basic Materials company listed on NASDAQ. The stock is up 71% over the past year. Drillr has 1 published research article covering MEOH.
Methanex Corporation (MEOH) financials & analyst ratings
Fundamentals (TTM)
Analyst consensus · 3 analysts
Source: exchange market data + company filings. Figures are trailing-twelve-month or as most recently reported. For informational purposes only — not investment advice.
MEOH earnings date, history & EPS estimates
| Report date | EPS est | EPS actual | Surprise | Revenue | Rev. surprise |
|---|---|---|---|---|---|
| Jul 29, 2026 | $4.00 | $3.87 | -3.2% | $1.4B | -2.9% |
| Apr 30, 2026 | $0.42 | $0.30 | -28.6% | $953M | -1.2% |
| Mar 6, 2026 | $0.67 | $-0.14 | -121.0% | $984M | -11.3% |
| Oct 29, 2025 | $0.51 | $0.06 | -88.2% | $917M | -10.9% |
| Jul 30, 2025 | $0.42 | $0.97 | +131.0% | $810M | -17.2% |
| Apr 30, 2025 | $1.25 | $1.30 | +4.0% | $896M | -12.1% |
| Jan 29, 2025 | $0.94 | $1.24 | +31.9% | $949M | -4.6% |
| Jan 31, 2024 | $0.32 | $0.52 | +62.5% | $948M | +10.0% |
| Oct 25, 2023 | $-0.08 | $0.02 | +125.0% | $823M | +4.3% |
| Jul 26, 2023 | $0.55 | $0.60 | +9.1% | $939M | +15.8% |
| Feb 2, 2023 | $0.45 | $0.73 | +62.2% | $986M | +7.0% |
| Oct 26, 2022 | $0.82 | $0.69 | -15.9% | $1.0B | +6.8% |
Methanex Corporation company profile
Overview
Methanex Corporation (NASDAQ:MEOH) is a Canadian chemical company founded in 1968 and headquartered in Vancouver, Canada. The company went public in 1992 and has grown to become the world's largest producer and supplier of methanol, a key industrial chemical used in numerous applications from plastics manufacturing to marine fuel. Methanex operates production facilities across multiple continents and maintains a global distribution network supported by its own fleet of specialized ocean-going vessels and storage terminals.
Business
Methanex operates in the basic chemicals industry, specifically focusing on the production and distribution of methanol, a colorless liquid chemical compound also known as methyl alcohol or wood alcohol. Methanol serves as a fundamental building block in the chemical industry and has emerged as an important alternative fuel source. The company's core business revolves around methanol production through natural gas reforming, where natural gas is converted into synthesis gas and then into methanol through a catalytic process. This chemical is essential for manufacturing a wide range of products including formaldehyde (used in resins and adhesives), acetic acid, methyl tertiary-butyl ether (MTBE), and various plastics and synthetic materials. Methanex operates production facilities in several key regions: the United States (Geismar, Louisiana), Chile, Egypt, New Zealand, and Trinidad. The company also purchases methanol from third-party producers under offtake agreements to supplement its own production. Beyond manufacturing, Methanex maintains an integrated supply chain including approximately 30 ocean-going vessels for transportation and numerous storage and terminal facilities worldwide. The company's customer base primarily consists of chemical and petrochemical producers who use methanol as a feedstock for downstream chemical production. Increasingly, methanol is being adopted as a marine fuel and for methanol-to-olefins (MTO) production, particularly in China, which represents approximately 60% of global methanol demand.
Revenue model
Methanex generates revenue primarily through the sale of methanol at market-determined prices, which fluctuate based on global supply and demand dynamics. The company sells methanol both from its own production facilities and through purchased volumes under offtake contracts, typically pricing sales based on regional market rates that can vary significantly between geographic regions. The company's profitability is heavily influenced by the spread between methanol selling prices and natural gas costs, as natural gas represents the primary feedstock and largest variable cost component. Natural gas costs can account for 60-70% of methanol production costs, making gas price volatility a critical margin driver. Methanex employs hedging strategies to manage gas price exposure, typically hedging 65-85% of its natural gas requirements. Several factors impact the company's margins and financial performance. On the positive side, tight global methanol supply conditions, strong demand from traditional chemical applications, growing adoption of methanol as marine fuel, and expansion of methanol-to-olefins capacity in China can drive higher prices and margins. Conversely, margin pressure can arise from increased natural gas costs, new methanol capacity additions globally, economic slowdowns affecting chemical demand, and operational disruptions due to gas supply constraints or plant maintenance. The methanol industry exhibits cyclical characteristics, with prices and margins fluctuating based on global economic conditions, energy costs, and supply-demand imbalances. Regional price differentials also create arbitrage opportunities, as methanol prices can vary significantly between the Atlantic and Pacific basins depending on local supply conditions.
Competitive moat
Methanex possesses a moderate competitive moat built primarily on scale advantages, operational expertise, and integrated logistics capabilities. As the world's largest methanol producer with global production capacity and an integrated supply chain including its own shipping fleet, the company benefits from economies of scale that smaller competitors cannot easily replicate. The company's extensive logistics network, including approximately 30 specialized ocean-going vessels and strategically located storage terminals, creates barriers to entry and provides flexibility in serving global markets. This integrated approach allows Methanex to optimize delivery costs and respond quickly to regional supply-demand imbalances, providing a competitive advantage over producers who rely on third-party logistics. However, the methanol industry faces several competitive challenges that limit the strength of Methanex's moat. Methanol is largely a commodity product with limited differentiation opportunities, making the business susceptible to price competition and margin compression. The industry has relatively low barriers to entry for well-capitalized competitors, particularly in regions with access to low-cost natural gas feedstock. Emerging competition comes from several sources: new methanol capacity additions globally, particularly in regions with abundant natural gas resources; potential disruption from alternative chemical feedstocks or production technologies; and the growing focus on green methanol production, which could favor companies with better access to renewable energy sources or carbon capture technologies. Additionally, large integrated chemical companies with captive methanol production capabilities can pose competitive threats in certain market segments.
Risks & safety
Methanex demonstrates a solid margin of safety with strong liquidity and manageable debt levels, though cyclical earnings create some volatility concerns. • Liquidity and Cash Position: Strong cash position of $1.09 billion as of Q1 2025, with an additional $500 million undrawn revolving credit facility providing substantial financial flexibility • Debt Management: Debt-to-equity ratio of 1.44, which is elevated but manageable for a capital-intensive business; company actively deleveraging with plans to reduce debt by $550-600 million over 18 months following the OCI acquisition • Cash Generation: Consistent positive free cash flow generation of $268 million in Q1 2025, demonstrating ability to self-fund operations and growth • Valuation Metrics: Trading at attractive valuation multiples with P/E ratio of 5.3 and EV/EBITDA of 3.5 based on recent quarters, suggesting potential undervaluation • Current Ratio: Strong current ratio of 3.17 indicates excellent short-term liquidity coverage • Cyclical Risk: Earnings volatility due to commodity price cycles and economic sensitivity requires careful monitoring of market conditions
Recent development
Over the past few years, Methanex has focused on several key strategic initiatives that position the company for long-term growth. The most significant development has been the completion and ramp-up of the Geismar 3 (G3) plant in Louisiana, which began production in late 2023 and reached full operating rates by 2024. This facility represents a major capacity addition with expected annual EBITDA contribution of $200-250 million at normalized methanol prices. The company has also been actively pursuing the acquisition of OCI's methanol business, which is expected to close in Q2 2025. This strategic transaction will significantly expand Methanex's production capacity and global footprint, requiring substantial integration efforts and a focus on achieving identified synergies while managing the associated debt increase. Operationally, Methanex has been adapting to changing gas supply dynamics across its global portfolio. In Chile, the company successfully extended gas contracts and secured additional gas supplies from Argentina for non-winter months. However, the company made the difficult decision to indefinitely idle one of its New Zealand plants due to persistent gas supply constraints, highlighting the ongoing challenges of securing reliable feedstock supplies. The company has also been positioning itself for the emerging green and low-carbon methanol market, particularly targeting the marine fuel sector where methanol adoption is accelerating. Methanex is exploring various low-carbon production pathways including renewable natural gas utilization and potential carbon capture technologies, while also supporting the development of methanol bunkering infrastructure for the shipping industry.
MEOH company profile · for informational purposes only — not investment advice.
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