Chemours(US:CC)2025-11-06 21:34Financial Performance - Net sales decreased by $13 million (or 1%) to $1.5 billion for the three months ended September 30, 2025, compared to $1.5 billion for the same period in 2024, primarily due to a 3% decrease in volume [402]. - For the nine months ended September 30, 2025, net sales increased by $55 million (or 1%) to $4.5 billion, driven by a 2% increase in volume [404]. - The company reported a net income of $60 million for the three months ended September 30, 2025, compared to a net loss of $32 million for the same period in 2024 [400]. - Basic earnings per share for the three months ended September 30, 2025, was $0.40, compared to a loss of $0.22 for the same period in 2024 [401]. - The company reported a net loss of $387 million for the nine months ended September 30, 2025 [493]. Costs and Expenses - Cost of goods sold (COGS) increased by $40 million (or 3%) to $1.3 billion for the three months ended September 30, 2025, and by $186 million (or 5%) to $3.7 billion for the nine months ended September 30, 2025, primarily due to higher raw materials costs [407]. - Selling, general, and administrative (SG&A) expenses decreased by $28 million (or 20%) to $109 million for the three months ended September 30, 2025, but increased by $241 million (or 56%) to $669 million for the nine months ended September 30, 2025, mainly due to litigation-related charges [408]. - Research and development (R&D) expenses were $26 million and $81 million for the three and nine months ended September 30, 2025, respectively, compared to $29 million and $83 million for the same periods in 2024 [409]. - Restructuring, asset-related, and other charges decreased by $41 million (or 91%) to $4 million for the three months ended September 30, 2025, and increased by $3 million (or 6%) to $55 million for the nine months ended September 30, 2025 [410]. Segment Performance - Thermal & Specialized Solutions segment net sales increased by $92 million (or 20%) to $560 million for the three months ended September 30, 2025, and by $181 million (or 13%) to $1.6 billion for the nine months ended September 30, 2025 [428][429]. - Titanium Technologies segment net sales decreased by $60 million (or 9%) to $612 million for the three months ended September 30, 2025, and by $73 million (or 4%) to $1.9 billion for the nine months ended September 30, 2025 [435][436]. - Adjusted EBITDA for the Thermal & Specialized Solutions segment increased by $55 million (or 40%) to $194 million for the three months ended September 30, 2025, and by $93 million (or 21%) to $542 million for the nine months ended September 30, 2025 [430]. - For the three months ended September 30, 2025, Segment Adjusted EBITDA decreased by $53 million (or 68%) to $25 million, with an Adjusted EBITDA margin of 4%, down from 12% in the same period of 2024 [437]. - The Advanced Performance Materials segment's net sales decreased by $43 million (or 12%) to $311 million for the three months ended September 30, 2025, primarily due to a 15% decrease in volume, partially offset by a 2% increase in price [442]. - For the nine months ended September 30, 2025, Segment Adjusted EBITDA decreased by $109 million (or 47%) to $122 million, with an Adjusted EBITDA margin of 7%, down from 12% in the same period of 2024 [437]. - The Advanced Performance Materials segment's net sales decreased by $50 million (or 5%) to $951 million for the nine months ended September 30, 2025, primarily due to an 8% decrease in volume, partially offset by a 3% increase in price [443]. Cash Flow and Liquidity - The company generated $127 million in cash flows from operating activities for the nine months ended September 30, 2025, compared to a cash outflow of $771 million for the same period in 2024, primarily due to the release of $592 million of restricted cash [472]. - At September 30, 2025, total unrestricted cash and cash equivalents were $613 million, with $426 million held by foreign subsidiaries [459]. - The availability under the Revolving Credit Facility as of September 30, 2025, was $953 million, net of $47 million in outstanding letters of credit [459]. - The company expects liquidity from its sources to support cash needs through at least the end of November 2026 [458]. - Cash and cash equivalents decreased to $613 million at September 30, 2025, down from $713 million at December 31, 2024 [478]. Environmental and Legal Matters - The company has $609 million in environmental remediation liabilities as of September 30, 2025, with $107 million classified as current liabilities [467]. - The company expects to make significant cash payments for known obligations, including $263 million related to a settlement agreement with New Jersey over a 25-year period [469]. - The company is engaged in ongoing discussions with the U.S. EPA and NJ DEP regarding remaining remedial work at the Chambers Works site, which could materially impact financial results [517]. - The company has total environmental and legal remediation-related reserves of $147 million as of September 30, 2025, with gross liabilities estimated at approximately $248 million [544]. - The company aims for a 60% absolute reduction in Scope 1 and Scope 2 greenhouse gas emissions by 2030 [549]. Debt and Financing - The company amended its credit agreement, extending the maturity date of its $1,050 million senior secured U.S. Dollar Term Loan from August 18, 2028, to October 15, 2032 [394]. - The company declared a quarterly cash dividend of $0.0875 per share for Q3 2025, continuing its practice of returning capital to shareholders [469]. - The company anticipates remaining in compliance with applicable covenants under the Credit Agreement through at least November 2026 [462]. - The company expects to fund U.S. operations through a mix of repatriations, intercompany loans, and cash generated from operations [465]. Foreign Currency and Hedging - The Chemours Company is exposed to foreign currency exchange rate changes due to global operations, with assets, liabilities, and cash flows in various currencies [565]. - As of September 30, 2025, the company had 9 foreign currency forward contracts with a gross notional U.S. dollar equivalent of $154 million, resulting in net losses of $2 million for the three months ended [568]. - The company recognized a pre-tax loss of $53 million on its net investment hedge for the nine months ended September 30, 2025 [570]. - Interest rate swaps were utilized to mitigate cash payment volatility, with two swaps outstanding totaling $300 million as of September 30, 2025, resulting in a fair value of negative $4 million [573]. Regulatory and Compliance - The estimated earliest entry into force of PFAS restrictions is 2027, pending completion of the EU REACH restriction process [562]. - The restriction dossier for PFAS was submitted to ECHA in January 2023, with a full ban proposed and specific derogation periods considered [562]. - The company has entered into a voluntary Administrative Order on Consent with the EPA for comprehensive environmental assessment and monitoring [537]. - The company is actively working to reduce PFAS discharges and has submitted revised NPDES permit applications to address exceedances [540].