Chemours(CC) - 2024 Q4 - Earnings Call Transcript

Financial Data and Key Metrics Changes - Consolidated net sales for Q4 2024 were approximately $1.4 billion, down 1$176 million in the prior year to $179 million, primarily due to cost savings from the TT Transformation Plan and increased volumes in TSS [19][20] - For the full year 2024, consolidated net sales were approximately$5.8 billion, down 5% compared to the prior year, with adjusted EBITDA decreasing to $786 million from$1 billion [21][22] Business Segment Performance TSS Segment - Q4 net sales for TSS reached a record $390 million, a 3$1.8 billion, a 1% decrease, primarily due to a 3% price decrease, despite a 2% volume increase [27][28] TT Segment - Q4 net sales for TT fell 3% year-over-year to $632 million, primarily due to a 2$2.6 billion, with adjusted EBITDA increasing 8% to $312 million, driven by cost savings from the TT Transformation Plan [31][32] APM Segment - Q4 net sales for APM were$324 million, a 1% decline, largely due to a 3% decline in price, partially offset by a 2% increase in volume [34][35] - Full year net sales for APM decreased 9% to $1.3 billion, driven by a 5$250 million through operational excellence and portfolio management [57][59] - Recent appointments in the executive team aim to strengthen leadership and drive long-term value [14][15][16] - The company is evaluating its APM European asset footprint to optimize operations and enhance shareholder value [66][71] Management's Comments on Operating Environment and Future Outlook - Management expressed cautious optimism regarding the macroeconomic environment, anticipating improved results in 2025 compared to 2024 [54][55] - The company expects to see continued growth in Opteon Refrigerants and is committed to managing costs effectively [48][49] Other Important Information - The company reported a net loss of $8 million for Q4 2024, an improvement from a net loss of$18 million in the prior year [20] - Corporate expenses increased to $69 million in Q4, primarily due to legacy asbestos matters [40][41] Q&A Session Summary Question: Understanding the bridge from '24 to '25 EBITDA guidance - Management acknowledged one-time costs in '24 that are not expected to recur, with operational headwinds anticipated in Q1 2025 [75][78] Question: Insights on TT business performance - Management clarified that while volumes are not improving sequentially, there are signs of market share gains and a positive outlook for the coatings market [86][90] Question: Clarification on TT pricing and volumes for 2025 - Management indicated that they are not baking in significant macro changes but are cautiously optimistic about market conditions and inventory adjustments [96][97] Question: CapEx budget and data center opportunities - Management confirmed that the CapEx budget does not include specific investments for the data center opportunity, with updates expected in the future [107][110] Question: TSS segment outlook and Freon inventory destocking - Management noted that the transition to low GWP refrigerants is expected to reduce dependence on Freon, with anticipated growth in Opteon sales [113][115]