Chemours Q4 Earnings Call Highlights

Key Points

• Chemours generated strong fourth-quarter cash flow of $92 million, driven by record Thermal & Specialized Solutions performance and Opteon refrigerant momentum — Opteon revenue was up 37% year-over-year in Q4 and annual Opteon sales grew 56%, with TSS margins around 32%.
• Near-term headwinds: an outage at the Washington Works site is expected to cut APM sales by about $20–25 million in Q1 (APM net sales guided down in the high teens), while Titanium Technologies faces timing/mining impacts with mineral sales down ~60% sequentially and TT EBITDA guided to roughly breakeven–$5 million in Q1.
• Chemours guided full-year 2026 net sales growth of 3–5% and adjusted EBITDA of $800–900 million, expects free cash flow conversion above 25%, and plans to use roughly $300 million from the Kuan Yin land sale to reduce debt and push toward long-term net leverage below 3x (targeting <4x by end-2026).

Chemours NYSE: CC executives used the company’s fourth-quarter 2025 earnings call to highlight strong cash generation, record sales in its Thermal & Specialized Solutions (TSS) segment, and an expected debt-reduction boost from a pending land sale, while also outlining a first-quarter 2026 outlook that reflects near-term disruptions in Advanced Performance Materials (APM) and a seasonally weaker start for Titanium Technologies (TT).

Fourth-quarter performance: strong cash flow led by TSS

President and CEO Denise Dignam said fourth-quarter net sales met expectations, “largely due to TSS achieving record sales,” driven by continued adoption of Opteon refrigerants and “consistent commercial performance across all divisions.” She added that the company generated fourth-quarter free cash flow of $92 million, which management described as more reflective of Chemours’ longer-term cash generation potential.

Dignam noted that APM’s results were pressured by near-term end-market weakness. As the quarter progressed, the company shifted its focus toward promoting cash flow, which led to “certain non-cash charges” and selling certain products to reduce inventory. Those actions supported cash generation but contributed to Chemours “just missing the low end” of its earnings range, according to Dignam.

At the corporate level, Dignam said expenses declined significantly versus the prior-year quarter, reflecting ongoing expense management and progress under the operational excellence pillar of the company’s “Pathway to Thrive” strategy.

TSS: record Opteon sales and continued regulatory tailwinds

Chemours reported a fourth-quarter record for Opteon sales, with Opteon revenue up 37% versus the prior-year quarter, Dignam said. The segment’s top-line increase was attributed to higher pricing and moderate volume increases, supported by a favorable mix for Opteon refrigerant blends related to the U.S. AIM Act-driven residential HVAC equipment transition, as well as “opportunistic sales for certain Freon refrigerants.”

Management said TSS delivered record annual sales in 2025 despite subdued shipped residential stationary HVAC units. Dignam also stated that annual Opteon refrigerant sales grew 56% in 2025 and represented 75% of total refrigerant sales, up from 56% the prior year. Adjusted EBITDA margins in TSS were 32% for the year, up from 31%, even with about $22 million of additional R&D investment in liquid cooling and next-generation refrigerants.

Looking to first-quarter 2026, CFO Shane Hostetter projected TSS net sales will rise sequentially in the mid-20% to 30% range, with Opteon refrigerants expected to increase sequentially 30% to 40%. Adjusted EBITDA for TSS is expected to be $170 million to $185 million, driven by seasonality and continued transition to Opteon stationary refrigerants. Hostetter said year-over-year double-digit Opteon growth should continue into the second quarter before normalizing in the second half as comparison points reflect late-2025 regulatory-driven demand.

TT: pricing focus amid stable demand and mining changes

In Titanium Technologies, Dignam said fourth-quarter performance came in line with expectations and adjusted EBITDA “remained ahead” due to stabilized pricing and cost performance, even as the global market remained tepid and some end markets saw seasonal volume impacts.

Management emphasized ongoing pricing actions. Dignam said a December pricing announcement helped contribute to pricing stability between the third and fourth quarters, which she described as groundwork for continued pricing strength in 2026. In Q&A, executives repeatedly characterized the 2026 demand backdrop as stable and said the outlook is primarily based on pricing execution rather than major demand triggers.

Hostetter guided to a sequential first-quarter net sales decline for TT in the low- to mid-single digits. The company also split mineral sales from TiO2 pigment sales in its reporting. For the first quarter, mineral sales are expected to be down 60% sequentially due to timing and mining changes, while TiO2 pigment sales are expected to decline in the low single digits due to weaker seasonal volumes in non-Western markets offsetting expected strength in Western markets. Average global pricing for TiO2 pigment is expected to be generally in line with the prior-year quarter.

TT adjusted EBITDA is expected to be between breakeven and $5 million in the first quarter. Hostetter attributed the low level to the timing of mineral sales and about $17 million of net costs tied to inventory and ore mix, as well as impacts from low plant utilization. Executives said TT is positioned to grow earnings and cash flow during the year as pricing trends and cost initiatives progress.

Management also described a restructuring of TT’s mining operations that began in early January, including temporarily idling one North Florida mine and transitioning to a third-party earthmoving contractor, with the goal of supporting cost efforts and improving cash generation.

APM: outage-driven Q1 headwinds, signs of semiconductor recovery

Dignam said APM’s end markets such as auto and industrial construction remained weak, but the company saw an improving order book entering the first quarter of 2026, particularly in semiconductors, along with growth in data center materials. She highlighted demand for Performance Solutions products such as high-purity PFA, tying the opportunity to the AI-driven buildout of data centers and semiconductor capacity.

However, APM’s near-term outlook is constrained by a disruption at the Washington Works facility. Dignam said the site experienced an event in January requiring a temporary shutdown that limited capacity. The disruption was traced to equipment affected by a local utility service outage in August, and the restart was delayed by challenging winter weather. Operations have resumed, and the company said it pulled forward some maintenance related to the incident, while a regular turnaround cadence remains planned.

Hostetter guided to a sequential first-quarter APM net sales decline in the high teens percentage range and adjusted EBITDA of breakeven to $5 million, primarily due to Washington Works. The outage is expected to have a negative impact of $20 million to $25 million in the quarter, mostly from restricted sales. Hostetter said the company expects progressively improved sales and earnings through 2026, though full-year net sales will reflect the closure of the APM SPS Capstone line in 2025, which Chemours plans to offset with higher-contribution specialty Performance Solutions products.

Cash flow, leverage targets, and portfolio actions

Chemours projected consolidated first-quarter 2026 net sales to increase 3% to 5% sequentially and consolidated adjusted EBITDA of $120 million to $150 million. The company expects corporate expenses of $45 million to $50 million, first-quarter capital expenditures of about $50 million, and free cash flow to be a use of cash not to exceed $100 million, which Hostetter attributed to working-capital seasonality.

For full-year 2026, Chemours guided to:

• Net sales growth: 3% to 5%
• Adjusted EBITDA: $800 million to $900 million
• Capital expenditures: $275 million to $325 million
• Free cash flow conversion: above 25%

Management also discussed the expected sale of the Kuan Yin site. Dignam said Chemours reached an agreement to sell the property and expects estimated net proceeds of $300 million, which it plans to use to reduce outstanding debt and support its progress toward a long-term target net leverage below 3x. Hostetter said the company anticipates net leverage below 4x adjusted EBITDA by the end of 2026, aided by the Kuan Yin proceeds and improved cash generation.

On strategy, Dignam said Chemours delivered at least $125 million of gross controllable cost savings in 2025 and formally rolled out the “Chemours Business System” to embed lean principles. She also highlighted progress commercializing a two-phase liquid cooling solution, including qualification by Samsung Electronics and a manufacturing agreement with Navin Fluorine targeting initial commercial production in the third quarter of 2026. The company plans to continue investing in liquid cooling and next-generation refrigerants at roughly $5 million per quarter.

In portfolio updates, Dignam said Chemours is continuing a European asset review that will extend into 2027 and announced the closure of its Villers-Saint-Paul site in France. She also referenced a proposed judicial consent order with the state of New Jersey as a milestone toward resolving legacy liabilities, and said the company continues working on matters tied to facilities in West Virginia and North Carolina.

About Chemours NYSE: CC

Chemours Company, established in 2015 as a spin-off from E. I. du Pont de Nemours and Company, is a global chemistry organization headquartered in Wilmington, Delaware. Since its formation, Chemours has focused on delivering performance chemicals that help customers lower their carbon footprint, increase energy efficiency and conserve water. The company operates with a commitment to safety, environmental stewardship and innovation.

Chemours' principal business activities are organized into three core segments.

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