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Chemours Co (CC)·Q1 2025 Earnings Summary

Executive Summary

  • Q1 2025 was mixed: revenue in line but profitability compressed. Net sales were $1.368B (+0% YoY, +1% QoQ), Adjusted EBITDA $166M (-13% YoY, -1% QoQ), and Adjusted diluted EPS $0.13 versus $0.31 a year ago .
  • Versus Wall Street: revenue beat consensus ($1.368B vs $1.352B*), EPS missed ($0.13 vs $0.20*), and EBITDA missed modestly ($166M vs $171M*) — driven by Freon pricing weakness in TSS and price pressure in TT, partly offset by strong Opteon growth .
  • Guidance recalibrated: Q2 2025 consolidated net sales expected up low-to-mid teens sequentially, Adjusted EBITDA up 40–45%; full-year 2025 Adjusted EBITDA range narrowed to $825–$950M (down from prior top end $975M) .
  • Capital allocation pivot: dividend cut 65% to $0.0875 to prioritize balance sheet flexibility; revolver extended/increased (up to $1.0B commitments) to strengthen liquidity ($1.1B at Q1) .
  • Structural growth: Opteon Refrigerants +40% YoY net sales; liquid cooling commercialization steps advanced via Navin Fluorine manufacturing agreement (initial capacity beginning 2026), positioning CC for AI/data center thermal needs .

What Went Well and What Went Wrong

What Went Well

  • Opteon Refrigerants net sales +40% YoY (to $279M), supported by the U.S. AIM Act stationary OEM transition; TSS net sales +3% YoY and +19% QoQ; TSS margins remained robust at ~30% .
  • Strategic steps toward liquid cooling: manufacturing agreement with Navin Fluorine to produce Opteon two‑phase immersion cooling fluid; management emphasized commercialization path and capacity alignment for 2026 .
  • Corporate liquidity and working capital discipline: Q1 operating cash outflow improved to -$112M from -$290M YoY; capex trimmed to $84M; total liquidity $1.1B .

Management quotes:

  • “We experienced continued, strong demand for Opteon Refrigerants, with 40% year‑over‑year Net Sales growth.” — Denise Dignam, President & CEO .
  • “We will be able to successfully offset elevated input costs [R32] to our pricing going forward.” — Denise Dignam .
  • “The amended credit facility extends commitments to 2030 with a capacity of up to $1 billion.” — Company release .

What Went Wrong

  • Freon pricing weakness and price pressure in TT weighed on profitability; consolidated Adjusted EBITDA fell 13% YoY; TSS Adjusted EBITDA margin decreased 3 pts YoY (30%) .
  • TT net sales flat YoY (+1%) but Adjusted EBITDA -28% YoY to $50M; cold weather downtime at U.S. sites hurt operations early in quarter .
  • APM net sales -3% YoY amid cyclical end market and hydrogen weakness; FX headwinds (EUR) and volume softness; restructuring charges ($27M) tied to SPS Capstone exit contributed to GAAP loss .

Analyst/concern points:

  • EPS missed consensus; EBITDA below expectations; dividend cut signals more conservative capital return to protect flexibility .
  • TT pricing remains pressured outside “fair trade” regions; management narrowed FY EBITDA top end given TT market volatility .

Financial Results

Consolidated Quarterly Trend (oldest → newest)

MetricQ3 2024Q4 2024Q1 2025
Net Sales ($USD Billions)$1.501 $1.359 $1.368
Adjusted EBITDA ($USD Millions)$208 $179 $166
Adjusted Diluted EPS ($USD)$0.40 $0.11 $0.13

Q1 Comparison vs Prior Year, Prior Quarter, and Estimates

MetricQ1 2024Q4 2024Q1 2025 ActualQ1 2025 Consensus
Net Sales ($USD Billions)$1.362 $1.359 $1.368 $1.352*
Adjusted EBITDA ($USD Millions)$191 $179 $166 $171*
Adjusted Diluted EPS ($USD)$0.31 $0.11 $0.13 $0.20*

Notes: *Values retrieved from S&P Global.

Segment Breakdown (Q1 2025 with YoY and QoQ context)

SegmentNet Sales ($USD Millions)YoYQoQAdjusted EBITDA ($USD Millions)YoYQoQMargin
Thermal & Specialized Solutions (TSS)$466 +3% +19% $141 -6% +16% 30%
Titanium Technologies (TT)$597 +1% -6% $50 -28% -29% 8%
Advanced Performance Materials (APM)$294 -3% -9% $32 +7% -32% 11%
Other$11 -21% -15% $1 -$1 +$1 —

TSS Product Mix (Q1 2025)

ProductNet Sales ($USD Millions)YoYQoQ
Opteon Refrigerants$279 +40% +57%
Freon Refrigerants$97 -44% -22%
Foam, Propellants & Other$90 +11% +2%

KPIs and Balance Sheet

KPIQ1 2025Context
Cash from Operating Activities ($USD Millions)-$112 Improved vs -$290 prior-year; seasonality and unwind effects
Capital Expenditures ($USD Millions)$84 Lower spend vs prior-year
Free Cash Flow ($USD Millions)-$196 Versus -$392 prior-year
Total Liquidity ($USD Billions)$1.1 $464M cash + $623M revolver capacity
Net Debt Principal, Net ($USD Billions)$3.683 Debt principal net of cash
Net Leverage (Non-GAAP)5.0x TTM Adjusted EBITDA basis
Dividend Paid ($USD Millions)$37 Q1 payout

Guidance Changes

MetricPeriodPrevious GuidanceCurrent GuidanceChange
Consolidated Net Sales (seq.)Q2 2025—Low-to-mid teens increase Raised sequential
Consolidated Adjusted EBITDA (seq.)Q2 2025—+40–45% Raised sequential
Corporate Expenses (offset to Adj. EBITDA)Q2 2025—Decrease low-single digits QoQ Lower
Capital ExpendituresQ2 2025~$80M (Q1 outlook) ~$50M Lower
Free Cash FlowQ2 2025Q1 usage (seasonal) Slightly positive Improved
TSS Net Sales (seq.)Q2 2025Slight increase (Q1 outlook) Low ~20% increase Raised
TT Net Sales (seq.)Q2 2025Decrease (Q1 outlook) High single-digit increase Improved
APM Net Sales (seq.)Q2 2025Decrease (Q1 outlook) Low-teens increase Improved
FY Adjusted EBITDAFY 2025$825–$975M $825–$950M Lower top-end
FY CapexFY 2025$250–$300M $225–$275M Lower
FY FCF Conversion (H2)FY 2025—60–80% New
Dividend per shareQ2 2025 onwardPrior level$0.0875 (−65%) Lower

Earnings Call Themes & Trends

TopicPrevious Mentions (Q3 2024, Q4 2024)Current Period (Q1 2025)Trend
Opteon adoption & marginsDouble-digit Opteon growth; TSS margins >30% guided; Corpus expansion on track Opteon +40% YoY; TSS margin 30%; cylinder tightness being addressed Strengthening volume; margins resilient
Freon pricing/inventoryHFC inventory keeping prices low into 2025 Freon weakness drove price declines in TSS; Freon sales halving in U.S. in 2025 Ongoing headwind; mix shifting away
TT market & fair tradeTT transformation savings; early share gains; seasonality; antidumping benefits anticipated TT price down; western volume strength vs weaker RoW; cold weather downtime; sequential improvement expected Stabilizing in regulated markets
Liquid cooling (AI/data centers)Pathway to Thrive focus; PFA in semis; commercialization timing later decade Navin Fluorine manufacturing agreement; field trials capacity; 2030 TAM ~$1.5B, 2035 ~$3B Execution steps progressing
Tariffs & supply chainTariff exposure mitigation in TSS; HFO sourcing/blending Limited direct impact expected; flexible supply chain using Mexico blending; cylinder supply tightness short‑lived Managed; neutral impact
Regulatory/legal (PFAS, EPA)Controls remediation; legacy litigation framework; NJ DEP mention First quarter legal cost uptick; continued NJ DEP prep; science‑based EPA dialogue Active management

Management Commentary

  • Strategy execution: “We remain steadfast in executing our strategy, focusing on driving long‑term shareholder value.” — CEO .
  • TSS dynamics: “Opteon blend demand has been even higher than expected… we are increasing our line fill capacity… we believe this situation will correct quickly.” — CEO .
  • Balance sheet & dividend: “Resizing the dividend allows us the flexibility of the balance sheet to execute priorities… still attractive payout in chems/industrial space.” — CFO .
  • TT outlook: “We expect TT’s net sales to increase sequentially by high‑single digits… Adjusted EBITDA to increase in the low 40% range.” — CFO .
  • Cash flow/ore contracts: “As contracts roll off, net cash flow benefit will approximate $100–$150M.” — CEO/CFO .

Q&A Highlights

  • Liquid cooling capacity: $14M asset investment with Navin Fluorine sized for field trials (2–5 tons each); scalable as customer commitments firm up .
  • TT ore contracts: Expected $100–$150M cash flow benefit as high‑grade ore contracts expire (phasing late 2026/2027) .
  • Dividend rationale: Reduction balances strategic growth and liquidity; maintains practice of returning cash .
  • Tariffs: Neutral overall given supply chain flexibility; extensive blending and local sourcing options .
  • TSS supply: Cylinder tightness short‑term; adds shifts and third‑party ops to normalize in months; meeting OEM commitments .

Estimates Context

  • Q1 2025 vs Consensus: Revenue beat ($1.368B vs $1.352B*), EPS miss ($0.13 vs $0.20*), EBITDA miss ($166M vs $171M*) .
  • FY 2025 consensus: Revenue ~$5.81B*, EBITDA ~$758M* (below company’s $825–$950M guidance), EPS ~$1.01* [GetEstimates].
  • Q2 2025 actuals (post-quarter): Revenue $1.615B*, EPS $0.58*, EBITDA $152M* — results diverged from Q2 sequential EBITDA increase guide (context for forward estimate revisions) [GetEstimates; 23/21/25 listings indicate release timing].

Notes: *Values retrieved from S&P Global.

Key Takeaways for Investors

  • TSS is the engine: robust Opteon growth and ~30% margins underpin the thesis; Freon headwinds persist but mix shift to HFOs continues .
  • TT leverage to fair‑trade regimes: western markets show volume resilience; watch for regional share gains and cost‑out execution to stabilize margins .
  • Capital discipline ahead of cycle: dividend cut and revolver extension prioritize flexibility; capex trimmed; H2 FCF conversion targeted at 60–80% .
  • Liquid cooling optionality: concrete commercialization steps (Navin Fluorine), but revenue ramps later in decade; strategic value as AI thermal needs expand .
  • Estimates likely to reset: EPS/EBITDA miss in Q1 and narrowed FY guide suggest consensus may drift toward mid‑range; monitor Q2/Q3 seasonal uplift in TSS versus TT price backdrop .
  • Near-term trading setup: sequential improvement guided for Q2 on revenue and EBITDA; catalysts include TSS pricing actions, TT operational tailwinds post weather downtime, and APM cost controls .
  • Risk watch: TT global pricing, tariff spillovers, litigation costs, and cylinder/logistics timing in TSS; company indicates mitigations in place .
All non-estimate figures sourced from company filings and transcripts as cited. Consensus values marked with * retrieved from S&P Global.