The Chemours Company (CC) reported a net loss of $4 million or 3 cents per share for first-quarter 2025 in contrast to the year-ago quarter's net income of $54 million or 36 cents.Barring one-time items, earnings were 13 cents per share. The metric fell short of the Zacks Consensus Estimate of 19 cents per share.The company reported first-quarter net sales of $1,368 million, reflecting a 1.3% rise from the previous-year quarter. It also beat the Zacks Consensus Estimate of $1,355.2 million. A gain of 5% in ...

The Chemours Company (CC) Q1 2025 Earnings Call May 07, 2025 08:00 AM ET Speaker0 Good morning. My name is Michelle, I will be your conference operator today. I would like to welcome everyone to the Chemours Company First Quarter and Full Year twenty twenty five Results Conference Call. Currently, all participants are in a listen only mode. A question and answer session will follow the conclusion of the prepared remarks. I would like to remind everyone that this conference call is being recorded. I would no ...

The past year has been a difficult time for the chemicals industry, which has faced weak industrial demand, a slowdown in China, and chronic excess supply. This has led to weak pricing and slow volumes; Chemours (NYSE: CC ) has beenOver fifteen years of experience making contrarian bets based on my macro view and stock-specific turnaround stories to garner outsized returns with a favorable risk/reward profile. If you want me to cover a specific stock or have a question for an article, just let me know!Analy ...

For the quarter ended March 2025, Chemours (CC) reported revenue of $1.37 billion, up 1.3% over the same period last year. EPS came in at $0.13, compared to $0.32 in the year-ago quarter.The reported revenue represents a surprise of +0.94% over the Zacks Consensus Estimate of $1.36 billion. With the consensus EPS estimate being $0.19, the EPS surprise was -31.58%.While investors closely watch year-over-year changes in headline numbers -- revenue and earnings -- and how they compare to Wall Street expectatio ...

Group 1: Earnings Performance - Chemours reported quarterly earnings of $0.13 per share, missing the Zacks Consensus Estimate of $0.19 per share, and down from $0.32 per share a year ago, representing an earnings surprise of -31.58% [1] - The company posted revenues of $1.37 billion for the quarter ended March 2025, surpassing the Zacks Consensus Estimate by 0.94%, compared to year-ago revenues of $1.35 billion [2] - Over the last four quarters, Chemours has surpassed consensus EPS estimates two times and topped consensus revenue estimates three times [2] Group 2: Stock Performance and Outlook - Chemours shares have lost about 28.4% since the beginning of the year, while the S&P 500 has declined by -3.9% [3] - The company's earnings outlook is crucial for investors, as it includes current consensus earnings expectations for upcoming quarters and any recent changes to these expectations [4] - The current consensus EPS estimate for the coming quarter is $0.57 on $1.59 billion in revenues, and $1.81 on $5.89 billion in revenues for the current fiscal year [7] Group 3: Industry Context - The Zacks Industry Rank indicates that the Chemical - Diversified sector is currently in the bottom 18% of over 250 Zacks industries, suggesting potential challenges for stocks in this category [8] - Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions, which can be tracked by investors [5] - The current estimate revisions trend for Chemours is mixed, resulting in a Zacks Rank 3 (Hold) for the stock, indicating expected performance in line with the market [6]

2 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 current fact. The words "believe," "expect," "will," "anticipate," "plan," "est ...

Financial Performance - Net sales for the three months ended March 31, 2025, were $1.368 billion, a slight increase from $1.362 billion in the same period of 2024[366]. - Gross profit decreased to $236 million for the three months ended March 31, 2025, down from $284 million in 2024, reflecting a decline in profitability[366]. - The net loss for the three months ended March 31, 2025, was $4 million, compared to a net income of $54 million in the same period of 2024[366]. - The company recorded a provision for income taxes of $4 million for the three months ended March 31, 2025, down from $16 million in 2024, due to decreased profitability[379]. - For the three months ended March 31, 2025, Chemours utilized supply chain financing to accelerate the collection of $93 million in accounts receivable, compared to $17 million in the same period of 2024[416]. - Chemours experienced a decrease in cash used for operating activities, with $112 million in Q1 2025 compared to $290 million in Q1 2024, primarily due to the unwinding of year-end 2023 net working capital actions[426]. - The net loss attributable to Chemours for the same period was $45 million, compared to a loss before income taxes of $53 million[444]. Cost and Expenses - The cost of goods sold increased by $54 million (or 5%) to $1.132 billion for the three months ended March 31, 2025, primarily due to higher raw materials costs[371]. - Selling, general, and administrative expenses decreased by $14 million (or 10%) to $123 million for the three months ended March 31, 2025, attributed to lower audit-related costs[373]. - Restructuring, asset-related, and other charges rose by $29 million (over 100%) to $33 million for the three months ended March 31, 2025, due to the exit from the SPS Capstone business[375]. - Interest expense increased by $3 million (or 5%) to $66 million for the three months ended March 31, 2025, driven by higher interest rates and increased debt principal[377]. Segment Performance - For the Thermal & Specialized Solutions segment, net sales increased by $12 million (or 3%) to $466 million for the three months ended March 31, 2025, compared to $454 million in the same period in 2024[387]. - Adjusted EBITDA for the Thermal & Specialized Solutions segment decreased by $9 million (or 6%) to $141 million, with an Adjusted EBITDA margin of 30%, down from 33% in the prior year[388]. - The Titanium Technologies segment's net sales increased by $6 million (or 1%) to $597 million for the three months ended March 31, 2025, compared to $591 million in the same period in 2024[394]. - Adjusted EBITDA for the Titanium Technologies segment decreased by $19 million (or 28%) to $50 million, with an Adjusted EBITDA margin of 8%, down from 12% in the prior year[395]. - The Advanced Performance Materials segment's net sales decreased by $9 million (or 3%) to $294 million for the three months ended March 31, 2025, compared to $303 million in the same period in 2024[401]. - Adjusted EBITDA for the Advanced Performance Materials segment increased by $2 million (or 7%) to $32 million, with an Adjusted EBITDA margin of 11%, up from 10% in the prior year[402]. Cash and Liquidity - Total unrestricted cash and cash equivalents as of March 31, 2025, amounted to $464 million, with $291 million held by foreign subsidiaries[412]. - The availability under the Revolving Credit Facility as of March 31, 2025, was $623 million, net of $52 million in outstanding letters of credit[412]. - The company expects liquidity from its sources to adequately support cash needs through at least the end of May 2026[411]. - As of March 31, 2025, Chemours reported unrestricted cash and cash equivalents of $291 million held by foreign subsidiaries, with a net cash outflow of approximately $31 million from the U.S. due to intercompany loans and dividends[418]. - Current liabilities decreased by $144 million (or 8%) to $1.673 billion at March 31, 2025, with accounts payable down by $150 million (or 13%) to $1 billion[436]. - Chemours declared a quarterly cash dividend of $0.0875 per share for Q2 2025, representing a 65% decrease from the previous quarter's dividend, aligning with the company's capital allocation strategy[423]. - Chemours anticipates significant cash payments for contractual obligations over the next 12 months, funded through operations, available cash, and existing debt financing[420]. - The company expects to maintain sufficient liquidity to meet its obligations through at least May 2026, focusing on growth initiatives and returning cash to shareholders[423]. Environmental and Regulatory Matters - The company has accrued litigation costs of $192 million as of March 31, 2025, which includes settlements with Ohio and Delaware[421]. - Environmental remediation liabilities amounted to $567 million as of March 31, 2025, slightly down from $571 million at the end of 2024[458]. - The five most significant environmental remediation sites account for 83% of total accrued liabilities, with expected spending of $128 million over the next three years for these sites[464]. - The New Jersey Department of Environmental Protection (NJ DEP) has mandated a remediation funding source of $943 million for Chambers Works, primarily for non-PFAS remediation[490]. - A conditional fine of up to €3.7 million has been indicated by DCMR for non-compliance with discharge limits, with a grace period until July 2025[474]. - The company has accrued €1 million related to a penalty from the Dutch ILT agency concerning hydrofluorocarbon reporting errors as of March 31, 2025[475]. - The company has implemented improvements to reporting procedures to comply with hydrofluorocarbon regulations after exceeding its quota[475]. - The company has been ordered to meet specific limits for PFAS discharges or face conditional fines, reflecting increased regulatory scrutiny[473]. - The company submitted a revised NPDES permit application in December 2024 to address discharge exceedances and is expected to incur future capital expenditures related to this[487]. - The company is engaged in ongoing legal discussions with four municipalities regarding environmental-related expenditures, with potential losses deemed probable but not estimable at this time[472]. Sustainability Initiatives - Chemours aims for a 60% absolute reduction in greenhouse gas emissions by 2030 and has set a new Scope 3 target to reduce emissions by 25% per ton of product by 2030[492]. - The Opteon™ product portfolio is projected to result in 325 million tons of avoided carbon dioxide equivalent emissions globally by the end of 2025[494]. - A 60% reduction in Scope 1 and Scope 2 absolute GHG emissions has been achieved, along with a 99% reduction in air and water process emissions of fluorinated organic chemicals[495]. - Chemours' Titanium Technologies business is advancing sustainability goals through the Ti-Pure™ Sustainability product series, focusing on climate impact and resource efficiency[498]. Financial Instruments and Hedging - At March 31, 2025, Chemours had 11 foreign currency forward contracts outstanding with a gross notional U.S. dollar equivalent of $185 million[512]. - For the three months ended March 31, 2025, Chemours recognized net losses of $2 million related to non-designated foreign currency forward contracts[512]. - The company has 185 foreign currency forward contracts under a cash flow hedge program with an aggregate notional U.S. dollar equivalent of $201 million as of March 31, 2025[513]. - A pre-tax loss of $15 million was recognized on the net investment hedge for the three months ended March 31, 2025[514]. - The company entered into a cross-currency swap to convert $600 million of senior unsecured notes due January 2033 into €567 million, with a fair value loss of $11 million as of March 31, 2025[515]. - A pre-tax loss of $16 million was recognized for the cross-currency swap for the three months ended March 31, 2025[515]. - The company has two interest rate swaps with an aggregate notional value of $300 million, resulting in a fair value loss of $4 million as of March 31, 2025[517]. - A pre-tax loss of $1 million was recognized for the interest rate swaps for the three months ended March 31, 2025[517]. - The company recognized a pre-tax gain of $4 million from interest rate swaps during the three months ended March 31, 2024[517].

Financial Performance - First quarter 2025 Net Sales were $1.368 billion, consistent with the prior-year quarter, with a 5% increase in volume offset by a 4% decrease in price [4]. - Net Loss attributable to Chemours was $4 million, or $0.03 per diluted share, compared to Net Income of $54 million, or $0.36 per diluted share in the prior-year quarter [5]. - Adjusted EBITDA for Q1 2025 was $166 million, a decrease of 13% from $191 million in the prior-year quarter [4]. - For Q1 2025, Net Sales were reported at $1,368 million, a slight increase from $1,362 million in Q1 2024 [43]. - The Chemours Company reported a net loss of $4 million for the three months ended March 31, 2025, compared to a net income of $54 million in the same period of 2024 [54]. - Adjusted Net Income for the three months ended March 31, 2025, was $19 million, down from $47 million in the previous year [57]. - The estimated Adjusted EBITDA for the year ending December 31, 2025, ranges from $825 million to $950 million [61]. - The company anticipates a net income attributable to Chemours between $168 million and $263 million for the year ending December 31, 2025 [61]. Segment Performance - TSS segment achieved Net Sales of $466 million, a 3% increase year-over-year, driven by a 10% volume increase, while Opteon™ Refrigerants saw a 40% year-over-year growth in Net Sales [11]. - TT segment Net Sales were $597 million, a 1% increase year-over-year, but Adjusted EBITDA decreased 28% to $50 million due to pricing pressures [14]. - APM segment Net Sales decreased 3% to $294 million, with Adjusted EBITDA increasing 7% to $32 million, reflecting lower costs despite unfavorable currency movements [18]. - The Titanium Technologies segment generated net sales of $597 million, a 6% increase compared to $591 million in Q1 2024 [49]. - The Thermal & Specialized Solutions segment reported net sales of $466 million, reflecting a 12% increase from $454 million in Q4 2024 [49]. - The Advanced Performance Materials segment reported net sales of $294 million, a 9% decrease from $303 million in Q1 2024 [49]. Cash Flow and Debt - Cash used for operating activities was $112 million in Q1 2025, a decrease from $290 million in Q1 2024 [54]. - The company’s cash, cash equivalents, restricted cash, and restricted cash equivalents decreased by $249 million to $514 million as of March 31, 2025 [54]. - As of March 31, 2025, consolidated gross debt was $4.1 billion, with a net leverage ratio of approximately 5.0x on a trailing twelve-month Adjusted EBITDA basis [25]. - The net leverage ratio calculated using non-GAAP earnings was 5x as of March 31, 2025, compared to 3.7x in the previous year [53]. - Free Cash Flows for the three months ended March 31, 2025, were negative $196 million, compared to negative $392 million for the same period in 2024 [60]. - Free cash flow conversion is projected to be in the range of 60-80% in the second half of 2025, assuming the current tariff environment remains unchanged [35]. Future Outlook - For Q2 2025, the company anticipates consolidated Net Sales to increase in the low to mid-teens sequentially, with Adjusted EBITDA expected to rise by 40% to 45% [29]. - The Company expects a sequential Net Sales increase in the high single-digits, primarily driven by seasonal volume increases in western markets [33]. - Adjusted EBITDA is anticipated to increase in the low 40% range sequentially due to seasonal volume increases and operational improvements following cold weather downtime at U.S. sites [33]. - For the full year 2025, the Company projects Adjusted EBITDA between $825 million and $950 million, with capital expenditures expected to range from $225 million to $275 million [35]. Corporate Actions - The company signed a manufacturing agreement with Navin Fluorine International, Ltd. for two-phase immersion cooling fluid [9]. - Chemours announced a 65% reduction in its quarterly dividend to $0.0875 per share to enhance balance sheet flexibility [28]. - The Company has approximately 6,000 employees and operates 28 manufacturing sites globally, serving around 2,500 customers in approximately 110 countries [37]. - The Company emphasizes the use of non-GAAP financial measures to provide greater transparency regarding its financial performance and operational decision-making [38]. - The company incurred litigation-related charges of $592 million for the twelve months ended March 31, 2024, primarily related to a class action suit settlement [56]. - Restructuring and other costs for the year ending December 31, 2025, are estimated at $24 million [62].

Company Overview - Chemours (CC) is expected to report a year-over-year decline in earnings, with a projected earnings per share (EPS) of $0.19, reflecting a decrease of 40.6% compared to the previous year [3] - Revenue for the quarter is anticipated to be $1.36 billion, which represents a slight increase of 0.4% from the same quarter last year [3] Earnings Expectations - The earnings report is scheduled for release on May 6, 2025, and the stock price may react positively if the results exceed expectations, while a miss could lead to a decline [2] - The consensus EPS estimate has been revised down by 0.87% over the last 30 days, indicating a bearish sentiment among analysts [4] Earnings Surprise Prediction - The Most Accurate Estimate for Chemours is lower than the Zacks Consensus Estimate, resulting in an Earnings ESP of -25.33%, which suggests a challenging outlook for beating the consensus EPS estimate [10][11] - Historically, Chemours has beaten consensus EPS estimates three out of the last four quarters, with a recent surprise of +10% when it reported earnings of $0.11 per share against an expectation of $0.10 [12][13] Industry Comparison - In the Zacks Chemical - Diversified industry, DuPont de Nemours (DD) is expected to report earnings of $0.95 per share, indicating a year-over-year increase of 20.3%, with revenues projected at $3.04 billion, up 3.7% from the previous year [17] - DuPont's consensus EPS estimate has been revised down by 2.4% over the last 30 days, and it currently holds an Earnings ESP of -0.32%, making it difficult to predict a beat against the consensus [18]

Core Insights - Chemours shares have declined approximately 14% since the last earnings report, underperforming the S&P 500 [1] - The consensus estimate for Chemours has decreased by 62.75% over the past month, indicating a negative trend in estimates [2] Financial Performance - The most recent earnings report highlighted a downward trend in estimates, suggesting potential challenges ahead for Chemours [4] - Chemours currently holds a Zacks Rank of 3 (Hold), indicating expectations for an in-line return in the coming months [4] Investment Scores - Chemours has a subpar Growth Score of D and a Momentum Score of F, but it received an A for Value, placing it in the top 20% for this investment strategy [3] - The aggregate VGM Score for Chemours is C, which is relevant for investors not focused on a single strategy [3]