Executive Summary

Q3 2025 delivered $1.495B in net sales (down 1% YoY, down 7% QoQ), GAAP diluted EPS of $0.40 (vs. $(0.22) YoY), and Adjusted EBITDA of $195M (down 3% YoY, down 23% QoQ). Strength in Opteon Refrigerants offset operational disruptions in TT and APM, with free cash flow rising to $105M and cash from operations at $146M .
TSS was the bright spot: Net sales +20% YoY to $560M and Adjusted EBITDA +40% YoY to $194M (35% margin), with Opteon Refrigerants up 80% YoY to $368M; TT and APM were impacted by pricing and outages, with TT EBITDA at $25M and APM EBITDA at $14M .
Q4 2025 outlook: consolidated Adjusted EBITDA $130–$160M, with segment ranges TSS $125–$140M, TT $15–$20M (includes a $25M production cost impact), and APM $30–$40M; capex ~$50M and FCF conversion 50–70% .
Guidance reset: FY25 Adjusted EBITDA now $745–$770M (down from $775–$825M in Q2 and $825–$950M in Q1) amid TT demand weakness and APM disruptions; dividend maintained at $0.0875 for Q4 2025 .
Catalysts: announced global TiO2 price increase effective Dec 1, 2025; successful qualification of two‑phase immersion cooling fluid with Samsung Electronics; continued double‑digit Opteon growth expected through early 2026 and margin support from Corpus expansion .

What Went Well and What Went Wrong

What Went Well

TSS delivered strong execution: Net sales +20% YoY, Adjusted EBITDA +40% YoY, margin expansion to 35%; management emphasized “industry‑leading performance” as Opteon Refrigerants grew 80% YoY to $368M driven by the U.S. AIM Act transition .
Opteon mix shift and aftermarket strength: “Opteon refrigerants now account for 80% of total combined refrigerant revenues, up from 58%” YoY, with pricing support in aftermarket and continued double‑digit growth expected into early 2026 .
Liquidity and cash generation improved: cash from operations $146M, free cash flow $105M (54% conversion), total liquidity $1.6B, and net leverage ratio at 4.6x (TTM) .

What Went Wrong

TT profitability compressed: Net sales −9% YoY and Adjusted EBITDA down 68% YoY to $25M, with margin at 4% due to weaker pricing and ~$11M operational disruption costs; sequential price and volume pressures persisted .
APM outage impact: Washington Works outage drove volume −15% YoY, APM Adjusted EBITDA reduced to $14M, with ~$20M outage‑related costs and SPS Capstone line exit completed during the quarter .
Consolidated sequential decline: Q3 Adjusted EBITDA fell to $195M from $253M in Q2 (−23%), and guidance lowered for FY25 as macro weakness and operational disruptions persisted in TT and APM .

Financial Results

Metric	Q3 2024	Q2 2025	Q3 2025
Net Sales ($USD Millions)	$1,508	$1,615	$1,495
GAAP Diluted EPS ($)	$(0.22)	$(2.54)	$0.40
Adjusted Diluted EPS ($)	$0.40	$0.58	$0.20
Adjusted EBITDA ($USD Millions)	$202	$253	$195
Cash from Operations ($USD Millions)	$139	$93	$146
Capital Expenditure ($USD Millions)	$76	$43	$41
Free Cash Flow ($USD Millions)	$63	$50	$105

Segment breakdown:

Segment	Q3 2024	Q2 2025	Q3 2025
TSS Net Sales ($M)	$468	$597	$560
TSS Adjusted EBITDA ($M)	$139	$207	$194
TT Net Sales ($M)	$672	$657	$612
TT Adjusted EBITDA ($M)	$78	$47	$25
APM Net Sales ($M)	$354	$346	$311
APM Adjusted EBITDA ($M)	$38	$50	$14
Other Net Sales ($M)	$14	$15	$12
Other Adjusted EBITDA ($M)	$3	$4	$2

KPIs:

KPI	Q3 2024	Q2 2025	Q3 2025
Opteon Refrigerants Net Sales ($M)	$205	$375	$368
Net Leverage Ratio (Non‑GAAP, TTM)	4.5x	4.7x	4.6x
Total Liquidity ($USD Billions)	—	1.5	1.6

Guidance Changes

Metric	Period	Previous Guidance	Current Guidance	Change
Consolidated Adjusted EBITDA ($M)	Q4 2025	—	130–160	New
Corporate Expenses ($M, offset to Adj. EBITDA)	Q4 2025	—	40–45	New
Capital Expenditure ($M)	Q4 2025	—	~50	New
Free Cash Flow Conversion (%)	Q4 2025	—	50–70	New
TSS Adjusted EBITDA ($M)	Q4 2025	—	125–140	New
TT Adjusted EBITDA ($M)	Q4 2025	—	15–20; includes ~$25M production cost impact	New
APM Adjusted EBITDA ($M)	Q4 2025	—	30–40	New
FY Adjusted EBITDA ($M)	FY 2025	825–950 (Q1)	745–770 (Q3)	Lowered (vs. 775–825 in Q2 )
Dividend per share ($)	Q4 2025	—	0.0875	Maintained at reduced level
TT Pricing	Dec 1, 2025	—	Global TiO2 price increase effective Dec 1, 2025	Announced

Earnings Call Themes & Trends

Topic	Previous Mentions (Q1 & Q2)	Current Period (Q3)	Trend
Opteon demand & AIM Act transition	Opteon +40% YoY (Q1); +65% YoY (Q2); margins ~30–35%	Opteon +80% YoY; 80% of refrigerant revenues; double‑digit growth expected into early 2026	Strengthening; aftermarket robust; OEM transition ongoing
TT fair trade & pricing	TT volumes up in Western markets; pricing pressure; cost‑out targeted	TT: price down; destocking; price increase announced; view 300kt+ capacity rationalization inclusive; regional mix	Near‑term weak; longer‑term supportive with duties
Operational excellence & COE	Addressed cold weather and rail issues (Q1/Q2)	Manufacturing COE launched; outage impacts resolved; standardized operating system	Improving reliability; cost‑out continuing
Liquid cooling & data center	Navin Fluorine agreement; commercialization later in decade	Samsung qualification; one‑time $22M item (non‑cash) through EBITDA; ~$40M FY25 development costs	Advancing product validation; investment tapering in 2026
PFAS settlements & insurance	NJ settlement (Q2): ~$250M NPV; $150M insurance rights advance	Continued advocacy; no impact from U.S. govt shutdown; exploring portfolio and real estate optimization	De‑risking balance sheet; cash flow support

Management Commentary

“Opteon refrigerants now account for 80% of total combined refrigerant revenues, up from 58% from the prior‑year quarter” — Denise Dignam (CEO) .
“Adjusted EBITDA was $195 million… primarily driven by increased costs due to now resolved operational disruptions in the TT business and the previously referenced APM outage, partially offset by strong TSS performance” — Prepared Remarks .
“We recently communicated a global pricing increase [for TiO₂]… while it will take some months for the oversupply to work through, we believe these changes provide longer‑term opportunities in Western markets” — Denise Dignam (CEO) .
“For Q4, consolidated adjusted EBITDA is expected to range between $130 million and $160 million… TT’s decrease in production will result in a $25 million cost impact to TT’s adjusted EBITDA” — Shane Hostetter (CFO) .
“Successful qualification of our two‑phase immersion cooling fluid by Samsung Electronics” — Denise Dignam (CEO) .

Q&A Highlights

TSS sustainability and aftermarket vs OEM: Management expects double‑digit Opteon growth to continue into early 2026, citing quota maximization and aftermarket strength despite OEM inventory dynamics .
TT operations and pricing: One‑off operational issues resolved; Q4 includes $25M fixed cost absorption from lower production; confidence in executing price increase in fair trade markets (EMEA, North America) .
Liquid cooling investments: A non‑cash, one‑time ~$22M charge flowed through EBITDA; FY25 product development costs ~$40M, trending toward ~$20M annually in 2026 .
PFAS and insurance proceeds: $150M insurance rights advance supports settlement payments; broader insurance pool ~$750M gross being pursued over time .
Balance sheet and refinancing: Extended U.S. term loan maturity to 2032; opportunistic approach to upcoming maturities including potential secured structures .

Estimates Context

Chemours vs S&P Global consensus:

Metric	Q1 2025	Q2 2025	Q3 2025
Revenue Actual ($USD Billions)	1.368	1.615	1.495
Revenue Consensus Mean ($USD Billions)	1.352*	1.567*	1.498*
Adjusted Diluted EPS Actual ($)	0.13	0.58	0.20
Primary EPS Consensus Mean ($)	0.199*	0.457*	0.242*
Adjusted EBITDA Actual ($USD Millions)	166	253	195
EBITDA Consensus Mean ($USD Millions)	171.2*	220.8*	183.6*

Notes: Consensus values marked with * retrieved from S&P Global.
Q3 2025: slight revenue and adjusted EPS misses vs consensus, but Adjusted EBITDA beat. Q2 2025: broad beats; Q1 2025: revenue beat, adjusted EPS and EBITDA modest misses [functions.GetEstimates]*.

Key Takeaways for Investors

TSS momentum remains the core earnings driver; double‑digit Opteon growth and 35% margins provide near‑term resilience while TT and APM stabilize .
TT near‑term headwinds (pricing, destocking) offset by announced global price increase and supportive fair trade regimes; expect Q4 earnings pressure from $25M production cost impact but improved cash generation strategy .
Cash discipline showing: FCF improved to $105M with 54% conversion; liquidity at $1.6B and net leverage at 4.6x; dividend maintained at the resized level .
FY25 guidance reset reflects conservatism amidst macro/operational noise; watch Q4 execution and TT pricing traction and 2026 restocking commentary as estimate revision catalysts .
Emerging growth optionality: validation milestones in immersion cooling (Samsung) and continued development; spend tapering in 2026, with potential long‑term TAM .
Near‑term trading: stock likely sensitive to TT price increase realization and Q4 EBITDA delivery vs range; medium‑term thesis anchored on TSS growth, cost‑out, and de‑risked balance sheet from settlements and insurance proceeds .

Chemours Co (CC)·Q3 2025 Earnings Summary