Group 1 - The Chemours Company (NYSE:CC) is considered chronically undervalued, despite concerns regarding "forever chemicals" which are believed to be behind the company [1] - Chemours delivers specialty chemicals across various industries, including refrigerants, pigments, resins, coatings, and advanced materials for applications in electronics, packaging, energy, transportation, and medical fields [1] - Mizuho analyst John Roberts raised Chemours' price target to $19 from $16 while maintaining an Outperform rating, citing favorable settlement progress regarding per- and polyfluoroalkyl substances and stronger market valuations [1]

Group 1 - The Chemours Company (NYSE:CC) is considered one of the best undervalued stocks to invest in, according to Reddit discussions [1] - Truist raised the price target for Chemours' stock from $18 to $21 while maintaining a "Buy" rating, indicating confidence in the company's future performance [1] - The TiO2 industry is showing signs of pricing discipline and production curtailments, which are expected to contribute to earnings growth for Chemours [1] Group 2 - In Q2 2025, Chemours reported net sales of $1.6 billion, a 4% increase compared to the same quarter last year, driven by a 3% rise in volume and a 1% rise in price [2] - The company's results exceeded expectations, with improvements across all three business segments, supported by strong demand for Opteon™, volume growth in TT, and favorable pricing in APM [2]

Group 1 - Chemours Company signed strategic agreements with SRF Limited to enhance its global supply chain and operational flexibility [1][8] - The partnership allows Chemours to access SRF's manufacturing capacity for fluoropolymers and fluoroelastomers, supporting a shift towards higher value applications without upfront capital investment [2][8] - SRF's expertise in complex chemical production is expected to strengthen its position as a trusted manufacturer of advanced materials through this collaboration [3] Group 2 - For Q3 2025, Chemours anticipates a sequential decrease in consolidated net sales by 4-6% and adjusted EBITDA in the range of $175-$195 million [6] - Full-year 2025 sales are projected between $5.9 billion and $6 billion, with adjusted EBITDA expected to be between $775 million and $825 million [7] - Capital expenditures for 2025 are forecasted to be approximately $250 million [7] Group 3 - Chemours' stock has declined by 16% over the past year, compared to a 20.6% decline in the industry [5] - The company currently holds a Zacks Rank of 4 (Sell), while other stocks in the Basic Materials sector, such as CF Industries and Nutrien, have better rankings [8]

Core Insights - The Chemours Company reported a net loss of $381 million or $2.54 per share for Q2 2025, compared to a net income of $60 million or 39 cents in the same quarter last year [1] - Adjusted earnings were 58 cents per share, exceeding the Zacks Consensus Estimate of 46 cents [1] Financial Performance - Q2 2025 net sales reached $1,615 million, a 4% increase from the previous year, surpassing the Zacks Consensus Estimate of $1,568.3 million [2] - Adjusted EBITDA improved by 22% year-over-year to $253 million, driven by volume growth, pricing, and lower corporate expenses [2] - Cash used by operating activities in the first half of 2025 was $19 million, significantly lower than $910 million in the prior-year period [6] Segment Performance - Titanium Technologies division revenues were $657 million, a 3% decrease year-over-year, but above the estimate of $640.1 million, primarily due to a 4% decrease in price [3] - Thermal & Specialized Solutions segment revenues increased by 15% year-over-year to $597 million, driven by an 11% increase in volume and a 4% increase in price, exceeding the estimate of $582.6 million [4] - Advanced Performance Materials unit revenues were flat at $346 million year-over-year, beating the estimate of $332.9 million, with a 6% decrease in volume offset by a 6% increase in pricing [5] Future Outlook - For Q3 2025, the company expects consolidated net sales to decrease by 4-6% sequentially, with adjusted EBITDA projected between $175 million and $195 million [7] - Full-year 2025 sales are expected to be between $5.9 billion and $6 billion, with adjusted EBITDA between $775 million and $825 million [8] Stock Performance - Chemours shares have declined by 32.1% over the past year, compared to a 23.1% decline in the industry [9]

Group 1 - Chemours shares have underperformed over the past year, losing over a third of their value [1] - The chemical industry is facing challenges due to lackluster demand [1] Group 2 - The article does not provide specific investment recommendations or advice [2]

Financial Data and Key Metrics Changes - The company reported strong second quarter results, surpassing expectations with improved performance across all three business segments [8] - Adjusted EBITDA margin for the TSS business was 35%, reflecting the strength of the differentiated portfolio [11] - The company anticipates third quarter net sales to decrease 4% to 6% sequentially, with adjusted EBITDA expected to range between $175 million to $195 million [21] Business Segment Performance Changes - TSS business saw net sales of Opteon refrigerants grow 65% year over year, with Opteon now making up 75% of total refrigerants revenues, up from 57% in the prior year [10][12] - TT delivered sequential net sales up 10%, supported by increased volumes of 9% despite operational issues [13][14] - APM's performance reflected a sequential sales increase of 14%, driven by product sales into the data center cable market, with Advanced Materials seeing a 20% sequential sales increase [16][17] Market Data and Key Metrics Changes - The company noted the effects of Chinese producer capacity rationalization, which has provided opportunities in Western markets [15] - The demand for Opteon refrigerants is expected to continue growing in the second half of the year, moderated by typical seasonality [11] Company Strategy and Industry Competition - The company is focused on executing its Pathway to Thrive strategy, with significant progress in resolving legacy litigation and improving operational excellence [23] - The company aims to be the lowest cost manufacturer and is focused on gaining share in fair trade markets [66] Management's Comments on Operating Environment and Future Outlook - Management acknowledged operational challenges but expressed confidence in the team's ability to address these issues and drive long-term improvements [39] - The company expects to deliver adjusted EBITDA of $775 million to $825 million for the full year 2025, with capital expenditures anticipated to approximate $250 million [21][22] Other Important Information - A settlement with New Jersey was reached, resolving all environmental claims related to PFAS, with a net present value of approximately $250 million [7] - The company has established a new agreement with DuPont and Corteva to acquire rights to insurance proceeds, providing approximately $150 million to fund the New Jersey settlement [7] Q&A Session Summary Question: Outlook for the full year and seasonal patterns - Management indicated that while there will be a seasonal decline, strength in TSS and continued execution across businesses will help offset typical seasonal patterns [32] Question: Drivers of TSS performance - Management highlighted that the strong performance was driven by the transition to Opteon and some potential hoarding due to shortages, but confidence remains for continued growth [35] Question: Vulnerability of TT operations - Management reassured that cost-cutting efforts have not impacted operational reliability and emphasized a clear plan to address operational issues [39] Question: APM outage impact - The outage at Washington Works is expected to have a one-time impact of approximately $20 million, with management confident in the business's overall performance [41] Question: Insurance proceeds and liquidity - The $150 million insurance proceeds relate to past claims and will be realized over the next five years to offset payments under the New Jersey settlement [44] Question: Long-term sales growth expectations - Management anticipates greater than 5% sales growth starting in 2026, driven primarily by TSS [48] Question: Competitive dynamics in TiO2 - The company is focused on being the lowest cost manufacturer and gaining share in fair trade markets, with significant capacity taken out of the market [66][75]

Financial Performance - Net sales reached $1615 million in Q2 2025, a year-over-year increase of $61 million [7] - Adjusted EBITDA was $253 million in Q2 2025, up $46 million compared to Q2 2024 [7] - The company reported a net loss of $381 million in Q2 2025, compared to a net income of $60 million in Q2 2024 [7] - Adjusted EPS was $058 in Q2 2025, compared to $038 in Q2 2024 [7] - Free cash flow was $50 million in Q2 2025, a significant increase of $743 million compared to Q2 2024's negative $693 million [7] Segment Performance - TSS (Thermal & Specialized Solutions) net sales increased to $597 million in Q2 2025 [15] - TT (Titanium Technologies) net sales decreased to $657 million in Q2 2025 [15] - APM (Advanced Performance Materials) net sales slightly increased to $346 million in Q2 2025 [15] Strategic Initiatives and Outlook - Opteon Refrigerants in TSS achieved 65% year-over-year net sales growth [6] - The company announced a settlement with the State of New Jersey to resolve environmental claims, with Chemours' discounted share of settlement payments being approximately $250 million [6, 27] - Q3 2025 net sales are expected to decline 4-6% sequentially, with adjusted EBITDA between $175-$195 million [40, 41] - Full year 2025 adjusted EBITDA is projected to be between $775 million and $825 million, with net sales between $59 billion and $60 billion [44]

Core Insights - Chemours reported revenue of $1.62 billion for the quarter ended June 2025, reflecting a 5% increase year-over-year and surpassing the Zacks Consensus Estimate of $1.57 billion by 2.98% [1] - The company's EPS was $0.58, up from $0.38 in the same quarter last year, resulting in an EPS surprise of 26.09% compared to the consensus estimate of $0.46 [1] Revenue Performance - Other Segment revenues were $15 million, exceeding the average estimate of $11.95 million, with a year-over-year increase of 15.4% [4] - Titanium Technologies generated $657 million in revenue, slightly below the average estimate of $646.02 million, representing a year-over-year decline of 2.4% [4] - Advanced Performance Materials reported revenues of $346 million, surpassing the average estimate of $330.36 million, marking a 2.1% increase year-over-year [4] - Thermal & Specialized Solutions achieved revenues of $597 million, exceeding the average estimate of $579.52 million, with a year-over-year growth of 16.4% [4] Adjusted EBITDA Analysis - Adjusted EBITDA for Titanium Technologies was $47 million, below the average estimate of $50 million [4] - Corporate and Other segment reported an adjusted EBITDA of -$53 million, better than the average estimate of -$59.68 million [4] - Other Segment adjusted EBITDA was $4 million, exceeding the average estimate of $1.93 million [4] - Advanced Performance Materials had an adjusted EBITDA of $50 million, surpassing the average estimate of $38.9 million [4] - Thermal & Specialized Solutions reported adjusted EBITDA of $207 million, exceeding the average estimate of $193.28 million [4] Stock Performance - Chemours shares have returned -1.7% over the past month, while the Zacks S&P 500 composite increased by 1% [3] - The stock currently holds a Zacks Rank 5 (Strong Sell), indicating potential underperformance relative to the broader market in the near term [3]

Core Viewpoint - Chemours reported quarterly earnings of $0.58 per share, exceeding the Zacks Consensus Estimate of $0.46 per share, and showing an increase from $0.38 per share a year ago, indicating a strong earnings surprise of +26.09% [1] Group 1: Earnings Performance - The company has surpassed consensus EPS estimates three times over the last four quarters [2] - Chemours posted revenues of $1.62 billion for the quarter ended June 2025, surpassing the Zacks Consensus Estimate by 2.98%, compared to $1.54 billion in the same quarter last year [2] - The earnings report reflects a significant improvement in earnings performance compared to the previous quarter, where the expected earnings were $0.19 per share, but the actual was $0.13, resulting in a surprise of -31.58% [1][2] Group 2: Stock Performance and Outlook - Chemours shares have declined approximately 27.8% since the beginning of the year, contrasting with the S&P 500's gain of 7.6% [3] - The company's earnings outlook is crucial for assessing future stock performance, with current consensus EPS estimates at $0.50 for the coming quarter and $1.47 for the current fiscal year [4][7] - The Zacks Rank for Chemours is currently 5 (Strong Sell), indicating expectations of underperformance in the near future [6] Group 3: Industry Context - The Chemical - Diversified industry, to which Chemours belongs, is currently ranked in the bottom 7% of over 250 Zacks industries, suggesting a challenging environment for stock performance [8] - Empirical research indicates a strong correlation between near-term stock movements and trends in earnings estimate revisions, which can impact Chemours' stock performance [5]

PART I. FINANCIAL INFORMATION This part presents the interim consolidated financial statements, detailed notes, and management's discussion and analysis of financial condition and results of operations [Item 1. Interim Consolidated Financial Statements](index=3&type=section&id=Item%201.%20Interim%20Consolidated%20Financial%20Statements) This section presents the unaudited interim consolidated financial statements, including statements of operations, comprehensive income, balance sheets, stockholders' equity, and cash flows, for the periods ended June 30, 2025 and 2024, reflecting a significant net loss and comprehensive loss driven by increased expenses and changes in other comprehensive income components [Interim Consolidated Statements of Operations (Unaudited)](index=3&type=section&id=Interim%20Consolidated%20Statements%20of%20Operations%20(Unaudited)) This section presents the unaudited interim consolidated statements of operations, detailing net sales, gross profit, and net income (loss) for the reported periods Net (Loss) Income and EPS (Three Months Ended June 30) | Metric | 2025 ($M) | 2024 ($M) | Change ($M) | | :----------------------------------- | :-------- | :-------- | :---------- | | Net sales | 1,615 | 1,554 | 61 | | Gross profit | 278 | 308 | (30) | | Selling, general, and administrative expense | 437 | 154 | 283 | | Net (loss) income attributable to Chemours | (381) | 60 | (441) | | Diluted (loss) earnings per share | (2.54) | 0.39 | (2.93) | Net (Loss) Income and EPS (Six Months Ended June 30) | Metric | 2025 ($M) | 2024 ($M) | Change ($M) | | :----------------------------------- | :-------- | :-------- | :---------- | | Net sales | 2,983 | 2,915 | 68 | | Gross profit | 514 | 592 | (78) | | Selling, general, and administrative expense | 560 | 292 | 268 | | Net (loss) income attributable to Chemours | (385) | 113 | (498) | | Diluted (loss) earnings per share | (2.56) | 0.75 | (3.31) | [Interim Consolidated Statements of Comprehensive Income (Unaudited)](index=4&type=section&id=Interim%20Consolidated%20Statements%20of%20Comprehensive%20Income%20(Unaudited)) This section presents the unaudited interim consolidated statements of comprehensive income, detailing net income (loss) and other comprehensive income (loss) components Comprehensive Loss (Three Months Ended June 30) | Metric | 2025 ($M) | 2024 ($M) | Change ($M) | | :----------------------------------- | :-------- | :-------- | :---------- | | Net (loss) income | (380) | 60 | (440) | | Other comprehensive income (loss) | 45 | (73) | 118 | | Comprehensive loss attributable to Chemours | (336) | (13) | (323) | Comprehensive Loss (Six Months Ended June 30) | Metric | 2025 ($M) | 2024 ($M) | Change ($M) | | :----------------------------------- | :-------- | :-------- | :---------- | | Net (loss) income | (384) | 113 | (497) | | Other comprehensive income (loss) | 74 | (73) | 147 | | Comprehensive income (loss) attributable to Chemours | (311) | 40 | (351) | [Interim Consolidated Balance Sheets (Unaudited)](index=5&type=section&id=Interim%20Consolidated%20Balance%20Sheets%20(Unaudited)) This section presents the unaudited interim consolidated balance sheets, providing a snapshot of assets, liabilities, and equity at specific reporting dates Consolidated Balance Sheet Highlights | Metric | June 30, 2025 ($M) | December 31, 2024 ($M) | Change ($M) | | :----------------------------------- | :----------------- | :--------------------- | :---------- | | Total assets | 7,488 | 7,513 | (25) | | Total liabilities | 7,249 | 6,925 | 324 | | Total equity | 239 | 588 | (349) | | Cash and cash equivalents | 502 | 713 | (211) | | Accounts and notes receivable, net | 959 | 770 | 189 | | Inventories | 1,558 | 1,463 | 95 | | Total current assets | 3,100 | 3,017 | 83 | | Total current liabilities | 1,850 | 1,817 | 33 | [Interim Consolidated Statements of Stockholders' Equity (Unaudited)](index=6&type=section&id=Interim%20Consolidated%20Statements%20of%20Stockholders'%20Equity%20(Unaudited)) This section presents the unaudited interim consolidated statements of stockholders' equity, detailing changes in equity components over the reported periods Changes in Stockholders' Equity (Six Months Ended June 30, 2025) | Item | Amount ($M) | | :----------------------------------- | :---------- | | Balance at January 1, 2025 | 588 | | Net loss | (385) | | Dividends declared on common shares | (50) | | Other comprehensive income | 74 | | Balance at June 30, 2025 | 239 | [Interim Consolidated Statements of Cash Flows (Unaudited)](index=7&type=section&id=Interim%20Consolidated%20Statements%20of%20Cash%20Flows%20(Unaudited)) This section presents the unaudited interim consolidated statements of cash flows, categorizing cash movements from operating, investing, and financing activities Cash Flow Summary (Six Months Ended June 30) | Activity | 2025 ($M) | 2024 ($M) | Change ($M) | | :----------------------------------- | :-------- | :-------- | :---------- | | Cash used for operating activities | (19) | (910) | 891 | | Cash used for investing activities | (128) | (171) | 43 | | Cash used for financing activities | (84) | (94) | 10 | | Decrease in cash, cash equivalents, restricted cash and restricted cash equivalents | (210) | (1,188) | 978 | - The significant decrease in cash used for operating activities in 2025 was primarily due to the release of **$592 million of restricted cash** from the U.S. public water system settlement fund and the unwinding of year-end 2023 net working capital actions, partially offset by lower earnings[19](index=19&type=chunk) [Notes to the Interim Consolidated Financial Statements (Unaudited)](index=8&type=section&id=Notes%20to%20the%20Interim%20Consolidated%20Financial%20Statements%20(Unaudited)) This section provides detailed notes to the interim consolidated financial statements, covering background information, accounting policies, disaggregation of net sales, restructuring charges, financial instrument details, and extensive disclosures on commitments and contingent liabilities, particularly related to PFAS litigation and environmental remediation, including segment-specific financial data and reconciliations [Note 1. Background, Description of the Business, and Basis of Presentation](index=8&type=section&id=Note%201.%20Background,%20Description%20of%20the%20Business,%20and%20Basis%20of%20Presentation) This note provides background information on Chemours, describes its business segments, and outlines the basis of presentation for the financial statements - Chemours is a global provider of performance chemicals, managing operations through three principal reportable segments: Thermal & Specialized Solutions, Titanium Technologies, and Advanced Performance Materials, with the Other Non-Reportable Segment including the Performance Chemicals and Intermediates business[21](index=21&type=chunk) - The company revised previously issued consolidated financial statements (beginning January 1, 2022) to correct immaterial errors related to income statement presentation of byproduct revenue sales, certain ore sales, and the timing of cost of goods sold recognition, with the aggregate impact of these adjustments being material to the three months ended March 31, 2025[24](index=24&type=chunk)[25](index=25&type=chunk) Impact of Revisions on Consolidated Statements of Operations (Six Months Ended June 30, 2024) | Metric | As Reported ($M) | Adjustments ($M) | As Revised ($M) | | :--------------------------------- | :--------------- | :--------------- | :-------------- | | Net sales | 2,887 | 28 | 2,915 | | Cost of goods sold | 2,294 | 29 | 2,323 | | Gross profit | 593 | (1) | 592 | | Selling, general and administrative expense | 281 | 11 | 292 | | Net income attributable to Chemours | 121 | (8) | 113 | | Diluted earnings per share of common stock | 0.81 | (0.06) | 0.75 | - At June 30, 2025, the company had **$502 million of unrestricted cash and cash equivalents** and **$954 million of availability** under its revolving credit facility, which it believes provides sufficient liquidity to settle current liabilities through at least August 2026[34](index=34&type=chunk) [Note 2. Recent Accounting Pronouncements](index=13&type=section&id=Note%202.%20Recent%20Accounting%20Pronouncements) This note discusses recently issued accounting pronouncements and their expected impact on the company's financial statements - The FASB issued ASU 2023-09, 'Improvements to Income Tax Disclosures,' effective for fiscal years beginning after December 15, 2024, which the company plans to adopt in 2025[35](index=35&type=chunk) - The FASB issued ASU 2024-03, 'Expense