Methanex Shares Rise 20% in 6 Months: What's Driving the Stock?

Methanex Corporation’s MEOH shares have gained 19.8% in the past six months. The company has also outperformed the Zacks Chemical - Diversified industry’s 16.5% growth over the same time frame.The rally has been driven by strong operating performance across Methanex’s global production network, supported by improved natural gas availability in key regions and reliable contributions from newly acquired assets. Image Source: Zacks Investment ResearchLet’s take a look at the factors that are driving MEOH stock. Strategic Investments Enhance Long-Term Growth for MEOHMethanex reported strong production results for the first quarter of 2026 with total methanol production of about 2.39 million tons. The company's Geismar complex remained its largest production hub and produced 934,000 tons during the quarter. Production from Geismar was more than 50% higher than the year-ago period. The recently acquired Natgasoline facility contributed 203,000 tons, strengthening Methanex's North American production base. Output in Chile increased to 398,000 tons as natural gas supply conditions improved. The Titan plant in Trinidad produced 215,000 tons and recovered from disruptions experienced in the previous quarter.  Methanex ended the first quarter with cash and cash equivalents of $379 million, reflecting a decline of $46 million during the quarter. Cash was also used for financing activities, including a $60 million repayment of the company's Term Loan A facility and $14 million in dividend payments to shareholders. Despite the decline in cash, Methanex maintained a strong financial position with total liquidity of approximately $979 million. Methanex is expected to enhance its asset portfolio and future cash generation, deliver long-term value to shareholders and reduce carbon dioxide intensity from its asset portfolio. With full-year production of G3, an incremental supply is expected. In Chile, Methanex’s operations improved significantly during the first quarter of 2026 as gas supply was fully restored following a third-party pipeline failure in late 2025. Both Chile plants operated well throughout the quarter. Management noted that positive developments in natural gas availability from Chilean and Argentine suppliers continue to support operations. However, seasonal fluctuations are expected to persist, and one Chilean plant is expected to be idled during part of the second quarter due to winter gas constraints. Methanex also maintained stable performance across its broader international portfolio. In New Zealand, production totaled 158,000 tons. The OCI acquisition was closed on June 27, 2025, adding to Methanex’s two world-scale methanol facilities in Beaumont, TX. The area benefits from access to a stable and economic supply of natural gas feedstock. Its reliable operations would help the company meet rising demands. During the first quarter, the newly acquired Texas assets produced 195,000 tons at Beaumont, indicating strong performance. Long-term demand prospects remain supported by emerging applications such as marine fuel, as global shipping companies continue adopting methanol-powered dual-fuel vessels. In China, methanol demand also remained resilient, supported by healthy methanol to olefin (MTO) operating rates. Combined with Methanex’s expanded production base following the OCI acquisition, these trends are expected to support stronger pricing realization and margin performance over the long term. MEOH’s Zacks Rank & Key PicksMEOH currently carries a Zacks Rank #3 (Hold). Some better-ranked stocks in the Basic Materials space are Nucor Corporation NUE, L.B. Foster Company FSTR and Albemarle Corporation ALB. NUE and FSTR sport a Zacks Rank #1 (Strong Buy), while ALB 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 NUE’s current-year earnings stands at $16.34 per share, implying a 111.9% year-over-year increase. Its earnings beat the Zacks Consensus Estimate in two of the trailing four quarters and missed twice, with the average surprise being 8.1%. Shares of the company have surged around 44.6% in the past six months.The Zacks Consensus Estimate for FSTR’s current-year earnings is pegged at $1.74 per share, implying a 152.2% year-over-year increase. Its earnings beat the Zacks Consensus Estimate in one of the trailing four quarters and missed thrice, with the average surprise being 3.62%. Shares of FSTR have surged by around 52.2% in the past six months.The Zacks Consensus Estimate for ALB’s current-year earnings is pegged at $12.39 per share, indicating a 1,668.4% year-over-year increase. Its earnings beat the Zacks Consensus Estimate in three of the trailing four quarters and missed once, with the average surprise being 74.5%. Shares of ALB have plunged 1.4% in the past six months.Beyond Nvidia: AI's Second Wave Is HereThe AI revolution has already minted millionaires. But the stocks everyone knows about aren't likely to keep delivering the biggest profits. AI’s second wave is moving from infrastructure to implementation and these companies are at the forefront of this transition, positioned to become what Amazon and Google were to the internet era.See Stocks Now >>This article originally published on Zacks Investment Research (zacks.com).Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks