Executive Summary

Q2 revenue and EPS topped Street: Net sales $1.615B vs $1.567B* and Adjusted EPS $0.58 vs $0.46*, while Adjusted EBITDA rose 22% YoY to $253M; GAAP EPS was a loss due to litigation charges .
Values marked * are from S&P Global.
TSS led upside with Opteon refrigerants +65% YoY and segment EBITDA margin expanding to 35%; TT volumes improved sequentially, while APM price/mix lifted margins; company-wide net loss of $381M reflected New Jersey PFAS settlement accounting .
Guidance: Q3 EBITDA $175–$195M and sales down 4–6% sequentially; FY25 Adjusted EBITDA cut to $775–$825M (from $825–$950M previously); FY25 sales $5.9–$6.0B; capex ~ $250M; H2 FCF conversion 60–80% .
Strategic/legal de-risking: Comprehensive New Jersey PFAS settlement (Chemours’ NPV share ≈ $250M) supported by $150M insurance rights and expected release of ~$50M escrow; net leverage 4.7x TTM Adjusted EBITDA with $1.5B liquidity .
“Values retrieved from S&P Global” for any items marked *.

What Went Well and What Went Wrong

What Went Well

TSS outperformance: “Opteon refrigerants grew 65% YoY… contributing to a 35% adjusted EBITDA margin,” benefiting from the U.S. AIM Act stationary AC transition; Opteon now ~75% of total refrigerants revenue vs 57% a year ago .
Pricing and portfolio in APM: Higher pricing in high-value applications and SPS Capstone wind-down supported 14% segment EBITDA margin; sequential sales +18% .
Legal clarity: “Settlement with the State of New Jersey… resolves all statewide environmental claims, including PFAS,” with funding plan via $150M insurance proceeds and ~$50M escrow release through 2030, reducing litigation overhang .

What Went Wrong

TT margin pressure and ops disruptions: TT price -4% YoY with discrete operational issues (rail service interruption; higher-cost ore consumption), adding ~$15M incremental cost and ~$8M other disruption costs in Q2; Q3 expects another ~$15M ops cost .
APM outage: Unplanned shutdown at Washington Works due to power outage; Q3 APM EBITDA guided to ~$15M with ~$20M outage costs .
GAAP loss driven by litigation charges: Net loss of $381M (–$2.54/sh) due to $257M NJ-related charges within SG&A and tax impacts despite better operating performance .

Financial Results

Consolidated summary (YoY and QoQ context; estimates comparison in “Estimates Context”)

Metric	Q2 2024	Q1 2025	Q2 2025
Net Sales ($MM)	$1,554	$1,368	$1,615
Adjusted EBITDA ($MM)	$207	$166	$253
GAAP Diluted EPS	$0.39	$(0.03)	$(2.54)
Adjusted Diluted EPS	$0.38	$0.13	$0.58

Segment performance

Segment	Metric	Q2 2024	Q1 2025	Q2 2025
TSS	Net Sales ($MM)	$519	$466	$597
	Adjusted EBITDA ($MM)	$160	$141	$207
	Adj. EBITDA Margin	31%	30%	35%
TT	Net Sales ($MM)	$677	$597	$657
	Adjusted EBITDA ($MM)	$83	$50	$47
	Adj. EBITDA Margin	12%	8%	7%
APM	Net Sales ($MM)	$345	$294	$346
	Adjusted EBITDA ($MM)	$45	$32	$50
	Adj. EBITDA Margin	13%	11%	14%

TSS product KPIs

KPI ($MM)	Q2 2024	Q1 2025	Q2 2025
Opteon Refrigerants	$227	$279	$375
Freon Refrigerants	$173	$97	$123
Foam, Propellants & Other	$119	$90	$99
Opteon as % of refrigerants (mgmt)	57%	—	~75%

Liquidity/Leverage/FCF

Metric	Q2 2025
Gross Debt	$4.2B
Cash & Equivalents	$502M
Net Leverage (TTM Adj. EBITDA)	~4.7x
Total Liquidity	$1.5B (cash $502M + RCF $954M)
Operating Cash Flow	$93M
Capex	$43M
Free Cash Flow	$50M
Dividend Declared (3Q25)	$0.0875/sh

Guidance Changes

Metric	Period	Previous Guidance	Current Guidance	Change
Consolidated Net Sales	FY 2025	—	$5.9–$6.0B	New
Adjusted EBITDA	FY 2025	$825–$950M	$775–$825M	Lowered
Capex	FY 2025	$225–$275M	≈$250M	Tightened/Narrowed
FCF Conversion	H2 2025	60–80% implied	60–80%	Maintained
Q3 Net Sales (seq)	Q3 2025	—	Down 4–6%	New
Q3 Adjusted EBITDA	Q3 2025	—	$175–$195M	New
Q3 Corporate Expenses	Q3 2025	—	~5% lower seq	New
Q3 Capex	Q3 2025	—	≈$50M	New
Q3 FCF Conversion	Q3 2025	—	60–80%	New
TSS (seq)	Q3 2025	—	Sales down mid-single-digit%; EBITDA down low-teens%	New
TT (seq)	Q3 2025	—	Sales down low-single-digit%; EBITDA down low-teens% incl. ~$15M ops cost	New
APM (seq)	Q3 2025	—	Sales down mid-teens%; EBITDA ≈$15M incl. ~$20M outage cost	New
Dividend	3Q25	$0.0875 (Q2 board action)	$0.0875 declared for 3Q25	Maintained

Earnings Call Themes & Trends

Topic	Previous Mentions (Q4’24, Q1’25)	Current Period (Q2’25)	Trend
Opteon/Regulatory tailwind	Q4’24: Record Q4 TSS sales; regulatory adoption; Opteon YF expansion complete . Q1’25: Opteon +40% YoY; OEM transition under U.S. AIM Act .	Opteon +65% YoY; 75% of refrigerants sales; margins 35% .	Strengthening; mix shifting to Opteon.
TT supply/demand & trade	Q4’24: TT cost saves; pricing down; transformation plan . Q1’25: TT volumes up in western “fair trade” markets, price -4% .	Sequentials better on volume; ops headwinds; management cites China capacity rationalization and effective duties .	Cautious improvement; watch ops reliability.
Ops reliability/COE	Q1’25: Cold weather downtime in TT .	CEO elevates manufacturing COE engagement; phases to improve reliability; acknowledges discrete issues in TT/APM .	Focused remediation underway.
Legal de-risking (PFAS)	Ongoing legacy matters; 2024 insurance recoveries .	NJ settlement (NPV ≈$250M share) funded via $150M insurance and ~$50M escrow; clarifies multi-year payments .	Positive de-risking step.
AI/Liquid cooling	—	DataVolt collaboration (liquid cooling) and Samsung qualification of Opteon 2-phase immersion fluid .	Emerging growth vector.

Management Commentary

“Our results surpassed our expectations… driven by strong demand for Opteon, volume growth in TT, and favorable pricing in APM… we reached a settlement to comprehensively resolve all statewide environmental claims… in New Jersey.” — CEO Denise Dignam .
“Opteon refrigerants make up 75% of total refrigerants revenues, up from 57% in the prior year quarter… our YF capacity expansion at Corpus Christi is ahead of target.” — CEO .
“We’ve had some discrete operational issues [in TT]… rail service interruption… and gaps in operational discipline… actions to rectify are underway.” — CEO .
“APM’s Washington Works outage… one-time ~$20M impact; Q3 EBITDA ~ $15M.” — CEO/CFO .
“Q3 consolidated net sales down 4–6% sequentially; Adjusted EBITDA $175–$195M; FY25 Adjusted EBITDA $775–$825M.” — CFO Shane Hostetter .

Q&A Highlights

Bridging 4Q seasonality vs Q3 guide: ~$35M of TT/APM operational items in Q3 should not repeat in Q4; TSS strength helps offset normal seasonal declines in Q4 .
TSS sustainability of margins/growth: Management expects run-rate margins >30% but notes competitive dynamics and some raw-material lag; aftermarket “hoarding” in 2025 seen as limited one-time impact .
TT strategy: Emphasis on lowest-cost production and share gains in fair-trade markets; denies structural shift away from value-over-volume, despite aggressive regional positioning .
PFAS settlement structure/insurance: $150M upfront via DuPont/Corteva for NJ-related insurance rights; total potential insurance pool ~$750M gross; focused on NJ first . State’s larger “funds” reflect surety/backstop and do not directly add to Chemours’ NPV obligation .
Capex cadence: ~ $250M in 2025; medium-term capex may tick up modestly but remains disciplined and focused on safety/compliance and targeted growth .

Estimates Context

Metric (Q2 2025)	Consensus*	Actual
Revenue ($MM)	1,566.8*	1,615
Adjusted/Primary EPS ($)	0.4569*	0.58
EBITDA ($MM)	220.8*	253 Adjusted EBITDA (company-reported)

Note: S&P Global shows “EBITDA” actual 152.0*, which is not directly comparable to Chemours’ Adjusted EBITDA. We anchor EPS and revenue beats on S&P consensus; EBITDA comparison uses company-reported Adjusted EBITDA definition.
Values marked * are from S&P Global.

Implication: Revenue and EPS were above consensus; Street will likely lift 2H run-rate for TSS but trim TT/APM near-term on Q3 outage/disruption guidance.
Q3 consensus snapshots for context: Revenue ~$1,498.0MM*, EPS ~$0.242*, EBITDA ~$183.6MM* vs company guide $175–$195M .
Values marked * are from S&P Global.

Key Takeaways for Investors

Core demand/mix tailwind remains in TSS: regulatory-driven Opteon transition is powering double-digit growth and >30% margins, supporting multi-quarter earnings resilience .
TT is a swing factor: sequential volumes improving but pricing and operational reliability are headwinds; management is prioritizing cost/COE actions and sees benefits from China rationalization and anti-dumping measures .
APM quality-of-earnings improving on price/mix and portfolio actions, but Q3 outage will temporarily depress results; management points to a one-quarter impact .
FY25 guide reset reduces risk: lowering EBITDA range to $775–$825M and adding Q3 specifics increases transparency; a clean Q4 without one-offs is critical to re-rating .
Balance sheet/liquidity manageable: $1.5B liquidity and net leverage ~4.7x TTM Adjusted EBITDA; New Jersey settlement structure helps cash-flow visibility through 2030 .
Emerging AI optionality: Data center liquid cooling partnerships (DataVolt) and Samsung qualification of Opteon 2-phase immersion fluid broaden medium-term growth avenues beyond refrigerants .
Near-term trading setup: Expect focus on TSS seasonality and confirmation that TT/APM operational issues are transitory; delivery vs Q3 guide and clarity on Q4 run-rate are the next catalysts .

“Values retrieved from S&P Global” for any items marked *.

Chemours Co (CC)·Q2 2025 Earnings Summary