Financial Data and Key Metrics Changes - The company exceeded adjusted EBITDA expectations despite ongoing macroeconomic challenges, driven by strong performance in Opteon Refrigerants and lower corporate costs [4][5] - Opteon sales grew by 80% year-over-year, accounting for 80% of total refrigerant sales, up from 58% the previous year, with a 35% adjusted EBITDA margin [5][6] - Consolidated fourth quarter net sales are expected to decrease by 10%-15% sequentially, with adjusted EBITDA projected between $130 million and $160 million [18] Business Line Data and Key Metrics Changes - The TSS business reported record Opteon sales, with double-digit growth and strong commercial execution [5][6] - APM business is expected to see low single-digit % decrease in net sales due to global industrial market weakness, with adjusted EBITDA anticipated at $30 million-$40 million [15] - TT business is projected to experience a sequential net sales decrease in the high single digits to low teens % range, primarily due to seasonality and destocking [16] Market Data and Key Metrics Changes - The company noted destocking activities in Western markets, which are expected to be short-term as customers preserve cash [8][10] - Fair trade actions in Europe and finalized actions in Brazil and Saudi Arabia are expected to provide longer-term opportunities in Western markets [10] - The company anticipates a modest recovery in demand in 2026, with restocking efforts expected in the first quarter [17] Company Strategy and Development Direction - The company continues to execute its Pathway to Thrive strategy, focusing on operational excellence, cost reduction, and portfolio management [19][25] - The company is exploring opportunities in critical minerals, with an estimated $90 million in annual mineral sales, leveraging government funding for innovative separation technologies [21][24] - The company is committed to improving its financial position and optimizing its real estate footprint to enhance operational efficiency [19][25] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in achieving double-digit Opteon growth into early 2026, driven by OEM transitions [12][43] - The company remains focused on controlling costs and aligning production with anticipated demand, despite ongoing macroeconomic challenges [17][19] - Management acknowledged that operational disruptions experienced in 2025 are now resolved, positioning the company for improved performance in 2026 [36][54] Other Important Information - The company incurred higher-than-anticipated one-time costs related to liquid cooling product development, which are expected to decrease in the future [6][56] - The company is reviewing its business portfolio for potential value creation opportunities, including critical minerals and data centers [19][32] Q&A Session Summary Question: Insights on TSS business performance and expectations for 2026 - Management highlighted strong performance in TSS, with expectations for continued double-digit growth driven by a broad portfolio and effective quota management [29][30] Question: Concerns about managing multiple growth opportunities - Management expressed confidence in their ability to manage various initiatives under the Pathway to Thrive strategy, focusing on operational excellence and portfolio optimization [32][33] Question: Updates on operational performance within the TT business - Management confirmed that operational disruptions are resolved, and they are implementing contingency plans to enhance reliability [36][38] Question: Confidence in TiO2 price increases despite weak demand - Management indicated stability in pricing within fair trade markets and expressed confidence in customer restocking in early 2026 [39][40] Question: Impact of destocking on future performance - Management acknowledged the impact of destocking but emphasized that share gains and operational improvements will balance the effects [74] Question: Importance of architectural coatings to overall profit pool - Architectural coatings represent approximately 70% of the TT business, highlighting their significance [76] Question: Future of refrigerant gases and innovation - Management confirmed ongoing innovation in next-generation refrigerants, aiming to address environmental concerns [78] Question: Industry pricing and volume impacts from competitor actions - Management noted that competitor inventory liquidation would have a short-term impact, with expectations for recovery in the current quarter [89]

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 Data and Key Metrics Changes - Consolidated net sales for Q1 2025 were approximately $1.4 billion, consistent with the prior year, with a 5% increase in volume offset by a 4% price decline and a slight 1% currency headwind [19] - Adjusted EBITDA for Q1 2025 was $166 million, down from $191 million in the prior year, primarily due to lower pricing across all businesses and unfavorable currency movements [19][20] - The company reported a net loss of $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 [19][20] Business Segment Performance - TSS achieved net sales of $466 million in Q1 2025, a 3% increase from the prior year, driven by a 10% volume increase, partially offset by a 6% price decline [21][22] - TT's net sales increased 1% year over year to $597 million, primarily due to a 6% increase in volume, offset by a 4% decrease in price [25] - APM reported net sales of $294 million, a 3% decrease compared to the prior year, driven by a 2% currency headwind and a 1% decrease in volume [27] Market Data and Key Metrics Changes - In TSS, Opteon refrigerants saw a 40% year-over-year net sales increase due to increased demand related to the U.S. AIM Act [6][22] - TT's sales in Western markets, which have established fair trade regulations, drove a 12% sales increase sequentially [11] - Weaker sales were noted in China, India, and other parts of Asia and Latin America due to Chinese TiO2 product dumping [12] Company Strategy and Industry Competition - The company announced a strategic agreement with Naveen Fluorine to produce Opteon two-phase immersion cooling fluid, addressing data cooling needs driven by AI and next-generation chips [5] - The Pathway to Thrive strategy focuses on enabling growth and operational excellence, with a commitment to cost reductions and portfolio management [46][55] - The company anticipates a shift towards low GWP offerings, with Freon sales projected to decrease by half in 2025 compared to the prior year [36] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in mitigating impacts from recent tariff announcements and emphasized the importance of maintaining a flexible balance sheet [16][41] - The company expects strong results for TSS in 2025, with continued double-digit net sales growth in Opteon refrigerants [36] - APM is expected to face ongoing weakness in cyclical end markets, but cost reduction efforts are anticipated to alleviate some headwinds [40] Other Important Information - The company announced a 65% reduction in its dividend to $0.08 per share to enhance balance sheet flexibility [34][68] - Consolidated gross debt stood at $4.1 billion with approximately $1.1 billion in total liquidity as of March 31, 2025 [30] - The company is focused on resolving legacy liabilities and improving operational performance as part of its long-term strategy [54][55] Q&A Session Summary Question: Capacity from Naveen Fluorine and commercialization timeline - Management highlighted a $14 million investment in the asset, with field trials expected to require two to five tons, and opportunities for additional volume as customer commitments are secured [60] Question: TiO2 EBITDA expectations for 2025 - Management confirmed that 2025 EBITDA is expected to be better than 2024, with a focus on optimizing cash conversion related to high-grade ore contracts [62][64] Question: Timing of dividend cut - The dividend reduction was made to provide balance sheet flexibility for growth investments and to settle liabilities responsibly [68] Question: TiO2 pricing trends in regulated markets - Management noted stabilization in pricing and volume increases in fair trade markets, but refrained from discussing forward pricing [73] Question: Supply tightness in refrigerants and cylinders - Management indicated that the cylinder shortage is not a Chemours issue and expects normalization in the next couple of months [83]