Chemours(US:CC)2025-05-06 20:32Financial 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].