Chemours(US:CC)2025-08-05 21:12PART 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 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) 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) 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) 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 ($M) | | :----------------------------------- | :----------------- | :--------------------- | :---------- | | Total assets | 7,488 | 7,513 | (25) | | Total liabilities | 7,249 | 6,925 | 324 | | Total equity | 239 | 588 | (349) | | Cash and cash equivalents | 502 | 713 | (211) | | Accounts and notes receivable, net | 959 | 770 | 189 | | Inventories | 1,558 | 1,463 | 95 | | Total current assets | 3,100 | 3,017 | 83 | | Total current liabilities | 1,850 | 1,817 | 33 | Interim Consolidated Statements of Stockholders' Equity (Unaudited) This section presents the unaudited interim consolidated statements of stockholders' equity, detailing changes in equity components over the reported periods Changes in Stockholders' Equity (Six Months Ended June 30, 2025) | Item | Amount ($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) 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 $592 million of restricted cash from the U.S. public water system settlement fund and the unwinding of year-end 2023 net working capital actions, partially offset by lower earnings19 Notes to the Interim Consolidated Financial Statements (Unaudited) This section provides detailed notes to the interim consolidated financial statements, covering background information, accounting policies, disaggregation of net sales, restructuring charges, financial instrument details, and extensive disclosures on commitments and contingent liabilities, particularly related to PFAS litigation and environmental remediation, including segment-specific financial data and reconciliations Note 1. Background, Description of the Business, and Basis of Presentation This note provides background information on Chemours, describes its business segments, and outlines the basis of presentation for the financial statements - Chemours is a global provider of performance chemicals, managing operations through three principal reportable segments: Thermal & Specialized Solutions, Titanium Technologies, and Advanced Performance Materials, with the Other Non-Reportable Segment including the Performance Chemicals and Intermediates business21 - The company revised previously issued consolidated financial statements (beginning January 1, 2022) to correct immaterial errors related to income statement presentation of byproduct revenue sales, certain ore sales, and the timing of cost of goods sold recognition, with the aggregate impact of these adjustments being material to the three months ended March 31, 20252425 Impact of Revisions on Consolidated Statements of Operations (Six Months Ended June 30, 2024) | Metric | As Reported ($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 202634 Note 2. Recent Accounting Pronouncements 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 202535 - The FASB issued ASU 2024-03, 'Expense