Caleb

Caleb, on behalf of John McNulty with BMO Capital Markets, asked for clarification on the factors that would lead Chemours to the high versus low end of its full-year guidance range.

Answer

SVP and CFO Shane Hostetter explained that the high end would depend on market evolution (e.g., rate cuts), overall cost-out efforts, net inflation/cost improvements, and continued pricing execution and broader adoption. The low end would be influenced by unforeseen cost inputs, less price receptivity, and volume depression. President and CEO Denise Dignam added that the market is a key variable, while Chemours focuses on controllable factors. Caleb also asked about the TSS growth algorithm post-AIM Act/A2L benefits, relative to long-term mid-to-high single-digit sales growth. Dignam noted significant HFO transition growth in H1 (units, mix, inventory replenishment), expecting continued growth in line with the residential segment (currently depressed), plus growth in data centers and chillers.

Caleb asked what factors would lead Chemours to the high end versus the low end of its full-year EBITDA guidance range. He also inquired about the future growth algorithm for the TSS business, considering past benefits from the AIM Act and A2L transition, and how it aligns with the long-term mid-to-high single-digit sales growth commentary.

Answer

CFO Shane Hostetter outlined high-end drivers as market evolution (e.g., rate cuts), overall cost-out, and continued pricing execution/adoption. Low-end drivers included unforeseen cost inputs, less price receptivity, and volume depression. CEO Denise Dignam added that the market is a key variable. For TSS, Ms. Dignam noted continued significant growth from the HFO transition in the first half, expecting growth in line with the residential segment as the housing market picks up, and further growth in data centers and chillers.