Financial Data and Key Metrics Changes - Consolidated net sales for Q1 2025 were approximately $1.4 billion, consistent with the prior year, with a 5% increase in volume offset by a 4% price decline and a slight 1% currency headwind [19] - Adjusted EBITDA for Q1 2025 was $166 million, down from $191 million in the prior year, primarily due to lower pricing across all businesses and unfavorable currency movements [19][20] - The company reported a net loss of $4 million or $0.03 per diluted share compared to net income of $54 million or $0.36 per diluted share in the prior year [19][20] Business Segment Performance - TSS achieved net sales of $466 million in Q1 2025, a 3% increase from the prior year, driven by a 10% volume increase, partially offset by a 6% price decline [21][22] - TT's net sales increased 1% year over year to $597 million, primarily due to a 6% increase in volume, offset by a 4% decrease in price [25] - APM reported net sales of $294 million, a 3% decrease compared to the prior year, driven by a 2% currency headwind and a 1% decrease in volume [27] Market Data and Key Metrics Changes - In TSS, Opteon refrigerants saw a 40% year-over-year net sales increase due to increased demand related to the U.S. AIM Act [6][22] - TT's sales in Western markets, which have established fair trade regulations, drove a 12% sales increase sequentially [11] - Weaker sales were noted in China, India, and other parts of Asia and Latin America due to Chinese TiO2 product dumping [12] Company Strategy and Industry Competition - The company announced a strategic agreement with Naveen Fluorine to produce Opteon two-phase immersion cooling fluid, addressing data cooling needs driven by AI and next-generation chips [5] - The Pathway to Thrive strategy focuses on enabling growth and operational excellence, with a commitment to cost reductions and portfolio management [46][55] - The company anticipates a shift towards low GWP offerings, with Freon sales projected to decrease by half in 2025 compared to the prior year [36] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in mitigating impacts from recent tariff announcements and emphasized the importance of maintaining a flexible balance sheet [16][41] - The company expects strong results for TSS in 2025, with continued double-digit net sales growth in Opteon refrigerants [36] - APM is expected to face ongoing weakness in cyclical end markets, but cost reduction efforts are anticipated to alleviate some headwinds [40] Other Important Information - The company announced a 65% reduction in its dividend to $0.08 per share to enhance balance sheet flexibility [34][68] - Consolidated gross debt stood at $4.1 billion with approximately $1.1 billion in total liquidity as of March 31, 2025 [30] - The company is focused on resolving legacy liabilities and improving operational performance as part of its long-term strategy [54][55] Q&A Session Summary Question: Capacity from Naveen Fluorine and commercialization timeline - Management highlighted a $14 million investment in the asset, with field trials expected to require two to five tons, and opportunities for additional volume as customer commitments are secured [60] Question: TiO2 EBITDA expectations for 2025 - Management confirmed that 2025 EBITDA is expected to be better than 2024, with a focus on optimizing cash conversion related to high-grade ore contracts [62][64] Question: Timing of dividend cut - The dividend reduction was made to provide balance sheet flexibility for growth investments and to settle liabilities responsibly [68] Question: TiO2 pricing trends in regulated markets - Management noted stabilization in pricing and volume increases in fair trade markets, but refrained from discussing forward pricing [73] Question: Supply tightness in refrigerants and cylinders - Management indicated that the cylinder shortage is not a Chemours issue and expects normalization in the next couple of months [83]

Financial Data and Key Metrics Changes - The consolidated net sales for Q1 2025 were approximately $1.4 billion, consistent with the prior year, with a 5% increase in volume offset by a 4% price decline and a slight 1% currency headwind [20] - Adjusted EBITDA for Q1 2025 was $166 million, down from $191 million in the prior year, primarily due to lower pricing across all businesses and unfavorable currency movements [20][21] - The company reported a net loss of $4 million or $0.03 per diluted share compared to net income of $54 million or $0.36 per diluted share in the prior year [20][21] Business Segment Performance - TSS achieved net sales of $466 million, a 3% increase from the prior year, driven by a 10% volume increase, partially offset by a 6% price decline [21][22] - TT's net sales increased 1% year over year to $597 million, primarily due to a 6% increase in volume, offset by a 4% decrease in price [26] - APM reported net sales of $294 million, a 3% decrease compared to the prior year, driven by a 2% currency headwind and a 1% decrease in volume [28] Market Data and Key Metrics Changes - In TSS, Opteon refrigerants saw a 40% year-over-year net sales increase due to increased demand related to the U.S. AIM Act [6][22] - The TiO2 market in North America, Europe, and Brazil, categorized as western markets, drove a 12% sales increase sequentially, reflecting the highest first-quarter combined regional sales since 2022 [12][13] - Weaker sales were noted in China, India, and other parts of Asia and Latin America due to high levels of Chinese TiO2 product being dumped [12][13] Company Strategy and Industry Competition - The company announced a strategic agreement with Naveen Fluorine to produce Opteon two-phase immersion cooling fluid, addressing data cooling center needs created by AI and next-generation chips [5][6] - Chemours is focused on executing its "Pathway to Thrive" strategy, which includes driving growth in low GWP offerings and managing costs effectively [5][46] - The company anticipates a shift in its product mix towards Opteon refrigerants, projecting a 50% decrease in Freon sales in 2025 compared to the prior year [36] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in mitigating the impact of recent tariff announcements and emphasized the company's strong competitive position across key markets [17][18] - The company expects Q2 2025 net sales to increase in the low to mid-teens sequentially, with adjusted EBITDA anticipated to increase between 40% to 45% sequentially [39] - For the full year 2025, adjusted EBITDA is expected to be in the range of $825 million to $950 million, reflecting a refined outlook based on market dynamics [40][41] Other Important Information - The company announced a 65% reduction in its dividend to $0.08 per share, aligning with its capital allocation strategy to maintain balance sheet flexibility [34][67] - As of March 31, 2025, consolidated gross debt stood at $4.1 billion, with approximately $1.1 billion in total liquidity [31] - The company is focused on resolving legacy liabilities and has engaged with policymakers to advocate for its essential chemistry amid evolving regulatory landscapes [51][52] Q&A Session Summary Question: Can you help us think about the capacity provided by Naveen Fluorine and the timeline for commercialization? - The company is investing about $14 million in the asset, with field trials expected to require two to five tons, and anticipates customer commitments after these trials [57][59] Question: Are you expecting 2025 EBITDA to be up versus 2024? - Yes, 2025 is expected to be better than 2024 in terms of earnings, particularly in the TT segment [61][64] Question: Why now for the dividend cut, and why not eliminate it completely? - The resizing of the dividend allows for balance sheet flexibility to execute on growth investments and settle liabilities responsibly [67] Question: How have TiO2 prices been trending in regulated markets? - There is stabilization in price and volume increases in fair trade markets, with expectations for continued strength [72][73] Question: What is the outlook for supply tightness in refrigerants and cylinders? - The company is addressing cylinder shortages through additional shifts and third-party operations, expecting normalization in the next couple of months [83][84]

Industry Overview - The chemicals industry has faced significant challenges over the past year, including weak industrial demand, a slowdown in China, and chronic excess supply [1] - These factors have resulted in weak pricing and slow volumes within the industry [1] Company Specifics - Chemours (NYSE: CC) is mentioned as being affected by the overall industry conditions, although specific performance metrics for Chemours are not detailed in the provided text [1]

For the quarter ended March 2025, Chemours (CC) reported revenue of $1.37 billion, up 1.3% over the same period last year. EPS came in at $0.13, compared to $0.32 in the year-ago quarter.The reported revenue represents a surprise of +0.94% over the Zacks Consensus Estimate of $1.36 billion. With the consensus EPS estimate being $0.19, the EPS surprise was -31.58%.While investors closely watch year-over-year changes in headline numbers -- revenue and earnings -- and how they compare to Wall Street expectatio ...

Group 1: Earnings Performance - Chemours reported quarterly earnings of $0.13 per share, missing the Zacks Consensus Estimate of $0.19 per share, and down from $0.32 per share a year ago, representing an earnings surprise of -31.58% [1] - The company posted revenues of $1.37 billion for the quarter ended March 2025, surpassing the Zacks Consensus Estimate by 0.94%, compared to year-ago revenues of $1.35 billion [2] - Over the last four quarters, Chemours has surpassed consensus EPS estimates two times and topped consensus revenue estimates three times [2] Group 2: Stock Performance and Outlook - Chemours shares have lost about 28.4% since the beginning of the year, while the S&P 500 has declined by -3.9% [3] - The company's earnings outlook is crucial for investors, as it includes current consensus earnings expectations for upcoming quarters and any recent changes to these expectations [4] - The current consensus EPS estimate for the coming quarter is $0.57 on $1.59 billion in revenues, and $1.81 on $5.89 billion in revenues for the current fiscal year [7] Group 3: Industry Context - The Zacks Industry Rank indicates that the Chemical - Diversified sector is currently in the bottom 18% of over 250 Zacks industries, suggesting potential challenges for stocks in this category [8] - Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions, which can be tracked by investors [5] - The current estimate revisions trend for Chemours is mixed, resulting in a Zacks Rank 3 (Hold) for the stock, indicating expected performance in line with the market [6]

Financial Performance - Net Sales reached $1368 million in 1Q25, a slight increase of $6 million compared to 1Q24[7] - Adjusted EBITDA was $166 million in 1Q25, a decrease of $25 million compared to $191 million in 1Q24[7] - The company experienced a Net Loss of $4 million in 1Q25, compared to a Net Income of $54 million in 1Q24[7] - Free Cash Flow was negative $196 million in 1Q25, compared to negative $392 million in 1Q24[7] - The company returned $37 million in cash to shareholders in Q1 2025[6] Segment Performance - TSS (Thermal & Specialized Solutions) Net Sales were $466 million in 1Q25, with Adjusted EBITDA at $141 million[15] - TT (Titanium Technologies) Net Sales were $597 million in 1Q25, with Adjusted EBITDA at $50 million[15] - APM (Advanced Performance Materials) Net Sales were $294 million in 1Q25, with Adjusted EBITDA at $32 million[15] - Opteon Refrigerants experienced a 40% YoY Net Sales growth in TSS[6] Strategic Initiatives and Outlook - The company is executing its "Pathway to Thrive" three-year corporate strategy[6] - The company anticipates a low-to-mid teens percentage increase in Net Sales and a 40% to 45% sequential increase in Adjusted EBITDA for 2Q25[49, 51] - The company expects Adjusted EBITDA for full year 2025 to be in the range of $825 million to $950 million[54] - The company is expanding into the liquid cooling market, projecting a $3 billion addressable market by 2030[41]

Financial Performance - Net sales for the three months ended March 31, 2025, were $1.368 billion, a slight increase from $1.362 billion in the same period of 2024[366]. - Gross profit decreased to $236 million for the three months ended March 31, 2025, down from $284 million in 2024, reflecting a decline in profitability[366]. - The net loss for the three months ended March 31, 2025, was $4 million, compared to a net income of $54 million in the same period of 2024[366]. - The company recorded a provision for income taxes of $4 million for the three months ended March 31, 2025, down from $16 million in 2024, due to decreased profitability[379]. - For the three months ended March 31, 2025, Chemours utilized supply chain financing to accelerate the collection of $93 million in accounts receivable, compared to $17 million in the same period of 2024[416]. - Chemours experienced a decrease in cash used for operating activities, with $112 million in Q1 2025 compared to $290 million in Q1 2024, primarily due to the unwinding of year-end 2023 net working capital actions[426]. - The net loss attributable to Chemours for the same period was $45 million, compared to a loss before income taxes of $53 million[444]. Cost and Expenses - The cost of goods sold increased by $54 million (or 5%) to $1.132 billion for the three months ended March 31, 2025, primarily due to higher raw materials costs[371]. - Selling, general, and administrative expenses decreased by $14 million (or 10%) to $123 million for the three months ended March 31, 2025, attributed to lower audit-related costs[373]. - Restructuring, asset-related, and other charges rose by $29 million (over 100%) to $33 million for the three months ended March 31, 2025, due to the exit from the SPS Capstone business[375]. - Interest expense increased by $3 million (or 5%) to $66 million for the three months ended March 31, 2025, driven by higher interest rates and increased debt principal[377]. Segment Performance - For the Thermal & Specialized Solutions segment, net sales increased by $12 million (or 3%) to $466 million for the three months ended March 31, 2025, compared to $454 million in the same period in 2024[387]. - Adjusted EBITDA for the Thermal & Specialized Solutions segment decreased by $9 million (or 6%) to $141 million, with an Adjusted EBITDA margin of 30%, down from 33% in the prior year[388]. - The Titanium Technologies segment's net sales increased by $6 million (or 1%) to $597 million for the three months ended March 31, 2025, compared to $591 million in the same period in 2024[394]. - Adjusted EBITDA for the Titanium Technologies segment decreased by $19 million (or 28%) to $50 million, with an Adjusted EBITDA margin of 8%, down from 12% in the prior year[395]. - The Advanced Performance Materials segment's net sales decreased by $9 million (or 3%) to $294 million for the three months ended March 31, 2025, compared to $303 million in the same period in 2024[401]. - Adjusted EBITDA for the Advanced Performance Materials segment increased by $2 million (or 7%) to $32 million, with an Adjusted EBITDA margin of 11%, up from 10% in the prior year[402]. Cash and Liquidity - Total unrestricted cash and cash equivalents as of March 31, 2025, amounted to $464 million, with $291 million held by foreign subsidiaries[412]. - The availability under the Revolving Credit Facility as of March 31, 2025, was $623 million, net of $52 million in outstanding letters of credit[412]. - The company expects liquidity from its sources to adequately support cash needs through at least the end of May 2026[411]. - As of March 31, 2025, Chemours reported unrestricted cash and cash equivalents of $291 million held by foreign subsidiaries, with a net cash outflow of approximately $31 million from the U.S. due to intercompany loans and dividends[418]. - Current liabilities decreased by $144 million (or 8%) to $1.673 billion at March 31, 2025, with accounts payable down by $150 million (or 13%) to $1 billion[436]. - Chemours declared a quarterly cash dividend of $0.0875 per share for Q2 2025, representing a 65% decrease from the previous quarter's dividend, aligning with the company's capital allocation strategy[423]. - Chemours anticipates significant cash payments for contractual obligations over the next 12 months, funded through operations, available cash, and existing debt financing[420]. - The company expects to maintain sufficient liquidity to meet its obligations through at least May 2026, focusing on growth initiatives and returning cash to shareholders[423]. Environmental and Regulatory Matters - The company has accrued litigation costs of $192 million as of March 31, 2025, which includes settlements with Ohio and Delaware[421]. - Environmental remediation liabilities amounted to $567 million as of March 31, 2025, slightly down from $571 million at the end of 2024[458]. - The five most significant environmental remediation sites account for 83% of total accrued liabilities, with expected spending of $128 million over the next three years for these sites[464]. - The New Jersey Department of Environmental Protection (NJ DEP) has mandated a remediation funding source of $943 million for Chambers Works, primarily for non-PFAS remediation[490]. - A conditional fine of up to €3.7 million has been indicated by DCMR for non-compliance with discharge limits, with a grace period until July 2025[474]. - The company has accrued €1 million related to a penalty from the Dutch ILT agency concerning hydrofluorocarbon reporting errors as of March 31, 2025[475]. - The company has implemented improvements to reporting procedures to comply with hydrofluorocarbon regulations after exceeding its quota[475]. - The company has been ordered to meet specific limits for PFAS discharges or face conditional fines, reflecting increased regulatory scrutiny[473]. - The company submitted a revised NPDES permit application in December 2024 to address discharge exceedances and is expected to incur future capital expenditures related to this[487]. - The company is engaged in ongoing legal discussions with four municipalities regarding environmental-related expenditures, with potential losses deemed probable but not estimable at this time[472]. Sustainability Initiatives - Chemours aims for a 60% absolute reduction in greenhouse gas emissions by 2030 and has set a new Scope 3 target to reduce emissions by 25% per ton of product by 2030[492]. - The Opteon™ product portfolio is projected to result in 325 million tons of avoided carbon dioxide equivalent emissions globally by the end of 2025[494]. - A 60% reduction in Scope 1 and Scope 2 absolute GHG emissions has been achieved, along with a 99% reduction in air and water process emissions of fluorinated organic chemicals[495]. - Chemours' Titanium Technologies business is advancing sustainability goals through the Ti-Pure™ Sustainability product series, focusing on climate impact and resource efficiency[498]. Financial Instruments and Hedging - At March 31, 2025, Chemours had 11 foreign currency forward contracts outstanding with a gross notional U.S. dollar equivalent of $185 million[512]. - For the three months ended March 31, 2025, Chemours recognized net losses of $2 million related to non-designated foreign currency forward contracts[512]. - The company has 185 foreign currency forward contracts under a cash flow hedge program with an aggregate notional U.S. dollar equivalent of $201 million as of March 31, 2025[513]. - A pre-tax loss of $15 million was recognized on the net investment hedge for the three months ended March 31, 2025[514]. - The company entered into a cross-currency swap to convert $600 million of senior unsecured notes due January 2033 into €567 million, with a fair value loss of $11 million as of March 31, 2025[515]. - A pre-tax loss of $16 million was recognized for the cross-currency swap for the three months ended March 31, 2025[515]. - The company has two interest rate swaps with an aggregate notional value of $300 million, resulting in a fair value loss of $4 million as of March 31, 2025[517]. - A pre-tax loss of $1 million was recognized for the interest rate swaps for the three months ended March 31, 2025[517]. - The company recognized a pre-tax gain of $4 million from interest rate swaps during the three months ended March 31, 2024[517].

Financial Performance - First quarter 2025 Net Sales were $1.368 billion, consistent with the prior-year quarter, with a 5% increase in volume offset by a 4% decrease in price [4]. - Net Loss attributable to Chemours was $4 million, or $0.03 per diluted share, compared to Net Income of $54 million, or $0.36 per diluted share in the prior-year quarter [5]. - Adjusted EBITDA for Q1 2025 was $166 million, a decrease of 13% from $191 million in the prior-year quarter [4]. - For Q1 2025, Net Sales were reported at $1,368 million, a slight increase from $1,362 million in Q1 2024 [43]. - The Chemours Company reported a net loss of $4 million for the three months ended March 31, 2025, compared to a net income of $54 million in the same period of 2024 [54]. - Adjusted Net Income for the three months ended March 31, 2025, was $19 million, down from $47 million in the previous year [57]. - The estimated Adjusted EBITDA for the year ending December 31, 2025, ranges from $825 million to $950 million [61]. - The company anticipates a net income attributable to Chemours between $168 million and $263 million for the year ending December 31, 2025 [61]. Segment Performance - TSS segment achieved Net Sales of $466 million, a 3% increase year-over-year, driven by a 10% volume increase, while Opteon™ Refrigerants saw a 40% year-over-year growth in Net Sales [11]. - TT segment Net Sales were $597 million, a 1% increase year-over-year, but Adjusted EBITDA decreased 28% to $50 million due to pricing pressures [14]. - APM segment Net Sales decreased 3% to $294 million, with Adjusted EBITDA increasing 7% to $32 million, reflecting lower costs despite unfavorable currency movements [18]. - The Titanium Technologies segment generated net sales of $597 million, a 6% increase compared to $591 million in Q1 2024 [49]. - The Thermal & Specialized Solutions segment reported net sales of $466 million, reflecting a 12% increase from $454 million in Q4 2024 [49]. - The Advanced Performance Materials segment reported net sales of $294 million, a 9% decrease from $303 million in Q1 2024 [49]. Cash Flow and Debt - Cash used for operating activities was $112 million in Q1 2025, a decrease from $290 million in Q1 2024 [54]. - The company’s cash, cash equivalents, restricted cash, and restricted cash equivalents decreased by $249 million to $514 million as of March 31, 2025 [54]. - As of March 31, 2025, consolidated gross debt was $4.1 billion, with a net leverage ratio of approximately 5.0x on a trailing twelve-month Adjusted EBITDA basis [25]. - The net leverage ratio calculated using non-GAAP earnings was 5x as of March 31, 2025, compared to 3.7x in the previous year [53]. - Free Cash Flows for the three months ended March 31, 2025, were negative $196 million, compared to negative $392 million for the same period in 2024 [60]. - Free cash flow conversion is projected to be in the range of 60-80% in the second half of 2025, assuming the current tariff environment remains unchanged [35]. Future Outlook - For Q2 2025, the company anticipates consolidated Net Sales to increase in the low to mid-teens sequentially, with Adjusted EBITDA expected to rise by 40% to 45% [29]. - The Company expects a sequential Net Sales increase in the high single-digits, primarily driven by seasonal volume increases in western markets [33]. - Adjusted EBITDA is anticipated to increase in the low 40% range sequentially due to seasonal volume increases and operational improvements following cold weather downtime at U.S. sites [33]. - For the full year 2025, the Company projects Adjusted EBITDA between $825 million and $950 million, with capital expenditures expected to range from $225 million to $275 million [35]. Corporate Actions - The company signed a manufacturing agreement with Navin Fluorine International, Ltd. for two-phase immersion cooling fluid [9]. - Chemours announced a 65% reduction in its quarterly dividend to $0.0875 per share to enhance balance sheet flexibility [28]. - The Company has approximately 6,000 employees and operates 28 manufacturing sites globally, serving around 2,500 customers in approximately 110 countries [37]. - The Company emphasizes the use of non-GAAP financial measures to provide greater transparency regarding its financial performance and operational decision-making [38]. - The company incurred litigation-related charges of $592 million for the twelve months ended March 31, 2024, primarily related to a class action suit settlement [56]. - Restructuring and other costs for the year ending December 31, 2025, are estimated at $24 million [62].

Company Overview - Chemours (CC) is expected to report a year-over-year decline in earnings, with a projected earnings per share (EPS) of $0.19, reflecting a decrease of 40.6% compared to the previous year [3] - Revenue for the quarter is anticipated to be $1.36 billion, which represents a slight increase of 0.4% from the same quarter last year [3] Earnings Expectations - The earnings report is scheduled for release on May 6, 2025, and the stock price may react positively if the results exceed expectations, while a miss could lead to a decline [2] - The consensus EPS estimate has been revised down by 0.87% over the last 30 days, indicating a bearish sentiment among analysts [4] Earnings Surprise Prediction - The Most Accurate Estimate for Chemours is lower than the Zacks Consensus Estimate, resulting in an Earnings ESP of -25.33%, which suggests a challenging outlook for beating the consensus EPS estimate [10][11] - Historically, Chemours has beaten consensus EPS estimates three out of the last four quarters, with a recent surprise of +10% when it reported earnings of $0.11 per share against an expectation of $0.10 [12][13] Industry Comparison - In the Zacks Chemical - Diversified industry, DuPont de Nemours (DD) is expected to report earnings of $0.95 per share, indicating a year-over-year increase of 20.3%, with revenues projected at $3.04 billion, up 3.7% from the previous year [17] - DuPont's consensus EPS estimate has been revised down by 2.4% over the last 30 days, and it currently holds an Earnings ESP of -0.32%, making it difficult to predict a beat against the consensus [18]

Core Insights - Chemours shares have declined approximately 14% since the last earnings report, underperforming the S&P 500 [1] - The consensus estimate for Chemours has decreased by 62.75% over the past month, indicating a negative trend in estimates [2] Financial Performance - The most recent earnings report highlighted a downward trend in estimates, suggesting potential challenges ahead for Chemours [4] - Chemours currently holds a Zacks Rank of 3 (Hold), indicating expectations for an in-line return in the coming months [4] Investment Scores - Chemours has a subpar Growth Score of D and a Momentum Score of F, but it received an A for Value, placing it in the top 20% for this investment strategy [3] - The aggregate VGM Score for Chemours is C, which is relevant for investors not focused on a single strategy [3]