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Chemours(CC) - 2025 Q1 - Quarterly Results
CCChemours(CC)2025-05-06 20:32

Financial Performance - First quarter 2025 Net Sales were 1.368billion,consistentwiththeprior−yearquarter,witha51.368 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 0.03perdilutedshare,comparedtoNetIncomeof0.03 per diluted share, compared to Net Income of 54 million, or 0.36perdilutedshareintheprior−yearquarter[5].−AdjustedEBITDAforQ12025was0.36 per diluted share in the prior-year quarter [5]. - Adjusted EBITDA for Q1 2025 was 166 million, a decrease of 13% from 191millionintheprior−yearquarter[4].−ForQ12025,NetSaleswerereportedat191 million in the prior-year quarter [4]. - For Q1 2025, Net Sales were reported at 1,368 million, a slight increase from 1,362millioninQ12024[43].−TheChemoursCompanyreportedanetlossof1,362 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 54millioninthesameperiodof2024[54].−AdjustedNetIncomeforthethreemonthsendedMarch31,2025,was54 million in the same period of 2024 [54]. - Adjusted Net Income for the three months ended March 31, 2025, was 19 million, down from 47millioninthepreviousyear[57].−TheestimatedAdjustedEBITDAfortheyearendingDecember31,2025,rangesfrom47 million in the previous year [57]. - The estimated Adjusted EBITDA for the year ending December 31, 2025, ranges from 825 million to 950million[61].−ThecompanyanticipatesanetincomeattributabletoChemoursbetween950 million [61]. - The company anticipates a net income attributable to Chemours between 168 million and 263millionfortheyearendingDecember31,2025[61].SegmentPerformance−TSSsegmentachievedNetSalesof263 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 597million,a1597 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 294million,withAdjustedEBITDAincreasing7294 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 597million,a6597 million, a 6% increase compared to 591 million in Q1 2024 [49]. - The Thermal & Specialized Solutions segment reported net sales of 466million,reflectinga12466 million, reflecting a 12% increase from 454 million in Q4 2024 [49]. - The Advanced Performance Materials segment reported net sales of 294million,a9294 million, a 9% decrease from 303 million in Q1 2024 [49]. Cash Flow and Debt - Cash used for operating activities was 112millioninQ12025,adecreasefrom112 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 249millionto249 million to 514 million as of March 31, 2025 [54]. - As of March 31, 2025, consolidated gross debt was 4.1billion,withanetleverageratioofapproximately5.0xonatrailingtwelve−monthAdjustedEBITDAbasis[25].−Thenetleverageratiocalculatedusingnon−GAAPearningswas5xasofMarch31,2025,comparedto3.7xinthepreviousyear[53].−FreeCashFlowsforthethreemonthsendedMarch31,2025,werenegative4.1 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 392millionforthesameperiodin2024[60].−Freecashflowconversionisprojectedtobeintherangeof60−80392 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 950million,withcapitalexpendituresexpectedtorangefrom950 million, with capital expenditures expected to range from 225 million to 275million[35].CorporateActions−ThecompanysignedamanufacturingagreementwithNavinFluorineInternational,Ltd.fortwo−phaseimmersioncoolingfluid[9].−Chemoursannounceda65275 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 592millionforthetwelvemonthsendedMarch31,2024,primarilyrelatedtoaclassactionsuitsettlement[56].−RestructuringandothercostsfortheyearendingDecember31,2025,areestimatedat592 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].