Chemours(US:CC)2025-11-06 21:32Financial Performance - Total Net Sales for Q3 2025 were $1.495 billion, flat compared to Q3 2024, with a 3% decrease in volume and a 1% increase in price [4]. - Net Income attributable to Chemours was $60 million, or $0.40 per diluted share, compared to a Net Loss of $32 million, or $(0.22) per diluted share in Q3 2024, representing a 288% year-over-year improvement [8]. - Adjusted EBITDA for Q3 2025 was $195 million, a decrease of 3% from $202 million in Q3 2024, primarily due to increased costs from operational disruptions [9]. - Free Cash Flow for Q3 2025 was $105 million, reflecting a Free Cash Flow Conversion of 54% [24]. - The company anticipates a sequential Net Sales decrease of 10-15% in Q4 2025, with Adjusted EBITDA expected to range between $130 million and $160 million [25]. - Gross profit for Q3 2025 was $233 million, down 18.5% from $286 million in Q3 2024 [37]. - Adjusted net income for the three months ended September 30, 2025, was $30 million, down from $61 million in the same period of 2024 [48]. - For the three months ended September 30, 2025, Chemours reported a net income of $60 million, compared to a net loss of $32 million in the same period of 2024 [51]. - Adjusted Net Income for the nine months ended September 30, 2025, was $165 million, down from $137 million in the same period of 2024 [51]. - Adjusted EBITDA for the nine months ended September 30, 2025, was $614 million, compared to $600 million in the same period of 2024 [54]. - The estimated Adjusted EBITDA for the year ending December 31, 2025, is projected to be between $745 million and $770 million [55]. - Chemours expects a net loss attributable to the company in the range of $318 million to $335 million for the year ending December 31, 2025 [55]. Segment Performance - The Thermal & Specialized Solutions segment reported Net Sales of $560 million, a 20% increase year-over-year, driven by an 80% increase in Opteon™ Refrigerants [10]. - Titanium Technologies segment Net Sales decreased by 9% to $612 million, primarily due to an 8% decrease in price globally [13]. - Advanced Performance Materials segment Net Sales were $311 million, a 12% decrease year-over-year, driven by a 15% decrease in volume [17]. - The Titanium Technologies segment reported net sales of $612 million for the three months ended September 30, 2025, a decrease of 9% compared to the same period in 2024 [45]. - The Advanced Performance Materials segment experienced a 12% decline in net sales, totaling $311 million for the three months ended September 30, 2025 [45]. Cash Flow and Assets - Cash provided by operating activities for the nine months ended September 30, 2025, was $127 million, a significant recovery from cash used of $771 million in the same period of 2024 [41]. - Total current assets increased to $3,207 million as of September 30, 2025, up from $3,017 million at the end of 2024 [39]. - Total liabilities rose to $7,270 million as of September 30, 2025, compared to $6,925 million at the end of 2024 [39]. - Free Cash Flows for the three months ended September 30, 2025, were $105 million, an increase from $63 million in the same period of 2024 [54]. - The Free Cash Flow Conversion rate for the three months ended September 30, 2025, was 54%, compared to 31% in the previous quarter [54]. Corporate Strategy and Agreements - A strategic agreement was announced with SRF Limited in India to support market needs for essential applications [8]. - The company anticipates guidance for Q2 2025 and full year 2025 performance, reflecting a refreshed corporate strategy [34]. Impairments and Charges - The company reported a goodwill impairment charge of $56 million in Q3 2024, which was not repeated in Q3 2025 [37]. - Litigation-related charges for the twelve months ended September 30, 2025, included $263 million related to a settlement agreement with the State of New Jersey [1]. - Environmental charges for the twelve months ended September 30, 2025, primarily included changes to remediation reserves at sites covered by the New Jersey settlement agreement [1]. Debt and Leverage - The net leverage ratio calculated using non-GAAP earnings was 4.6x for the three months ended September 30, 2025 [48]. - The total debt principal, net of cash and cash equivalents, was $3,572 million as of September 30, 2025 [48]. - The net leverage ratio calculated using GAAP measures is defined as total debt principal, net, divided by income before income taxes [1].