Core Insights - Chemours achieved record annual sales in its Thermal & Specialized Solutions (TSS) segment for 2025, driven by the strong adoption of Opteon refrigerants, which accounted for 75% of total refrigerant sales, up from 56% the previous year [1] - The company reported a significant increase in Opteon sales, with a 37% rise in the fourth quarter compared to the same period last year, attributed to higher pricing and moderate volume increases [2] - Chemours' adjusted EBITDA margins for TSS improved to 32% in 2025, up from 31%, despite an additional $22 million investment in R&D for liquid cooling and next-generation refrigerants [1] Financial Performance - Fourth-quarter net sales met expectations, largely due to TSS's record sales and consistent performance across all divisions, resulting in a free cash flow of $92 million [4] - For the first quarter of 2026, TSS net sales are projected to rise sequentially by 20% to 30%, with Opteon refrigerants expected to increase by 30% to 40% [5] - Chemours anticipates consolidated first-quarter 2026 net sales to increase by 3% to 5% sequentially, with adjusted EBITDA projected between $120 million and $150 million [14] Segment Performance - Advanced Performance Materials (APM) faced near-term end-market weakness, with a projected sequential net sales decline in the high teens percentage range due to a disruption at the Washington Works facility [3][13] - Titanium Technologies (TT) is expected to see a sequential net sales decline in the low- to mid-single digits, with adjusted EBITDA anticipated to be between breakeven and $5 million [8][9] Strategic Initiatives - Chemours is focused on ongoing pricing actions to maintain stability and strength in 2026, with a December pricing announcement contributing to this stability [7] - The company plans to use estimated net proceeds of $300 million from the sale of the Kuan Yin site to reduce outstanding debt and improve its leverage ratio [15] - Chemours has rolled out the "Chemours Business System" to implement lean principles and has made progress in commercializing a two-phase liquid cooling solution, with initial production targeted for the third quarter of 2026 [16] Outlook - For full-year 2026, Chemours projects net sales growth of 3% to 5%, adjusted EBITDA between $800 million and $900 million, and capital expenditures of $275 million to $325 million [17] - The company is continuing a European asset review and has announced the closure of its Villers-Saint-Paul site in France as part of its portfolio updates [18]

Financial Data and Key Metrics Changes - The company reported strong quarterly free cash flow of $92 million, reflecting its long-term cash generation potential [9] - Adjusted EBITDA margins for the TSS business increased to 32%, up from 31% in the prior year, despite additional costs of approximately $22 million in R&D investments [10] - For the full year 2026, the company anticipates overall net sales growth to be between 3% and 5%, with Adjusted EBITDA expected to range from $800 million to $900 million [26] Business Line Data and Key Metrics Changes - The TSS business achieved record sales for Opteon refrigerants, with a 37% increase compared to the prior year quarter, driven by higher pricing and moderate volume increases [9][10] - The TT business is expected to see sequential net sales decrease in the low- to mid-single digits percentage range in the first quarter, with mineral sales anticipated to drop 60% sequentially [18][19] - The APM business is projected to experience a high teens percentage decrease in net sales sequentially due to sustained market weakness and the impact of a facility outage [21] Market Data and Key Metrics Changes - The company noted a strengthening order book in the semiconductor sector, indicating preliminary signs of recovery in the APM business [13] - The TT segment is experiencing stable demand with no major demand triggers expected, while pricing power remains strong [38][72] - The company anticipates that average global pricing for TiO2 pigment will be generally in line with the prior year quarter [19] Company Strategy and Development Direction - The company is focused on executing its Pathway to Thrive strategy, which emphasizes operational excellence, cost management, and cash flow generation [29][35] - The recent sale of the Kuan Yin facility is expected to generate approximately $300 million in net proceeds, which will be used to reduce debt and improve the net leverage ratio [6][27] - The company is committed to enhancing its market position through innovation and strategic portfolio management, including the closure of underperforming sites [32][33] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's ability to generate cash flow and improve earnings throughout 2026, despite facing challenges in certain end markets [24][35] - The company expects to see continued growth in the TSS business driven by regulatory adoption and market demand for Opteon refrigerants [16][17] - Management highlighted the importance of maintaining operational stability and reliability in light of recent disruptions at key manufacturing facilities [13][14] Other Important Information - The company has made significant progress in reducing corporate-level expenses compared to the same quarter last year, reflecting ongoing efforts in expense management [15] - The company plans to invest approximately $5 million per quarter in liquid cooling and next-generation refrigerant growth opportunities [31] Q&A Session Summary Question: Can you share more detail on the assumptions for TiO2 volume growth in your 2026 guidance? - Management indicated that demand is stable with no major triggers, and they are focused on pricing power [38] Question: Do you have visibility on resolving legacy liabilities during 2026? - Management noted significant progress in addressing legacy liabilities, particularly in New Jersey, and expects updates on other facilities throughout the year [39] Question: Can you provide insights on the APM segment's performance across different end markets? - Management highlighted weaknesses in auto and industrial sectors but noted strong demand in the Performance Solutions portfolio, particularly related to AI and data centers [44] Question: What factors could lead to achieving the high end of your guidance range for the full year? - Management mentioned market evolution, cost improvements, and continued execution on pricing as key factors [78] Question: How do you see the growth algorithm for the TSS business evolving? - Management expects significant growth from the HFO transition and a recovery in the residential segment as new units are put on the market [81]

THE CHEMOURS COMPANY Q4 & FULL YEAR 2025 EARNINGS PRESENTATION February 20, 2026 Safe Harbor Statement and Other Matters This presentation contains forward-looking statements, within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934, which involve risks and uncertainties. Forward-looking statements provide current expectations of future events based on certain assumptions and include any statement that does not directly relate to a historical or ...

Group 1 - Tronox Holdings is one of the largest vertically integrated producers of TiO2 pigment globally [1] - The company operates mineral sands operations and smelting facilities in Australia and South Africa, producing feedstock material [1]