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The Chemours Company Provides Update on Second Quarter 2025 Outlook

1. Chemours expects TSS net sales to rise 25% due to Opteon™ demand. 2. APM anticipates a 25% sequential increase in Adjusted EBITDA for Q2 2025. 3. TT's Adjusted EBITDA may decline 15% due to operational disruptions at U.S. sites. 4. Overall, consolidated net sales expected at the high end of original projections. 5. Corporate costs are projected to increase due to legacy litigation ongoing in New Jersey.

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Why Bullish?

Positive sales and EBITDA outlook indicates strong growth momentum. Historically, improved earnings forecasts have often led to stock price increases.

How important is it?

The article provides crucial earnings forecasts which are key indicators for investors. Positive and negative adjustments in sales or EBITDA can significantly sway investor sentiment.

Why Short Term?

The projections are for Q2 2025 and are likely to impact stock in the near term. Earnings reports typically influence stock prices quickly following updates.

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APDDDSHW
WILMINGTON, Del.--(BUSINESS WIRE)--The Chemours Company (Chemours) (NYSE: CC), a global chemistry company with leading market positions in Thermal & Specialized Solutions (TSS), Titanium Technologies (TT), and Advanced Performance Materials (APM), today provided an update on its second quarter 2025 outlook. For the second quarter of 2025, due to better-than-expected performance, TSS now anticipates a sequential increase in Net Sales of approximately 25% driven by strong demand for Opteon™ Refrigerants, in connection with the stationary transition to low global warming potential refrigerants under the U.S. AIM Act. Consistent with this increased demand, TSS also projects a sequential increase in Adjusted EBITDA of nearly 40% for the quarter. APM’s Adjusted EBITDA for the second quarter is also anticipated to increase nearly 25% sequentially due to stronger overall cost performance, while Net Sales are anticipated to be within original expectations of low teens sequential growth. For TT, the Company anticipates overall Net Sales for the second quarter to be in line with the segment’s high single-digit growth expectations. However, second quarter Adjusted EBITDA for TT is now projected to decline approximately 15% sequentially, due to operational disruptions at its U.S. sites. These disruptions were primarily caused by a rail line service interruption impacting feedstock mix and other limited operational issues. In order to fulfill customer orders due to the rail line disruption, the Company elected to consume higher-cost ore feedstock, which resulted in incremental costs of approximately $15 million in the second quarter. The costs associated with other one-time operational disruptions are expected to be approximately $10 million for the quarter. As a part of the Company’s strategic focus to resolve legacy litigation, under the Strengthening the Long Term pillar, the Company now anticipates overall corporate costs for the second quarter to be slightly higher-than-expected in connection with the ongoing New Jersey trial. Overall, consolidated Net Sales for the second quarter are expected to be at the high end of the original range, now anticipating a sequential mid-teens increase. Consolidated Adjusted EBITDA is now projected to range between $215 and $225 million, with consolidated Free Cash Flow projected to remain positive in the second quarter. The Company will provide a more comprehensive update in connection with its second quarter earnings process, the date of which will be communicated after the close of the second quarter. About The Chemours Company The Chemours Company (NYSE: CC) is a global leader in providing industrial and specialty chemicals products for markets, including coatings, plastics, refrigeration and air conditioning, transportation, semiconductor and advanced electronics, general industrial, and oil and gas. Through our three businesses – Thermal & Specialized Solutions, Titanium Technologies, and Advanced Performance Materials – we deliver application expertise and chemistry-based innovations that solve customers’ biggest challenges. Our flagship products are sold under prominent brands such as Opteon™, Freon™, Ti-Pure™, Nafion™, Teflon™, Viton™, and Krytox™. Headquartered in Wilmington, Delaware and listed on the NYSE under the symbol CC, Chemours has approximately 6,000 employees and 28 manufacturing sites and serves approximately 2,500 customers in approximately 110 countries. For more information, visit chemours.com or follow us on LinkedIn. Non-GAAP Financial Measures We prepare our financial statements in accordance with Generally Accepted Accounting Principles (GAAP). Within this press release, we make reference to Adjusted EBITDA and Free Cash Flow, which are non-GAAP financial measures. The Company includes these non-GAAP financial measures because management believes they are useful to investors in that they provide for greater transparency with respect to supplemental information used by management in its financial and operational decision making. Management uses Adjusted EBITDA, which is adjusted for (i) certain non-cash items, (ii) certain items we believe are not indicative of ongoing operating performance or (iii) certain nonrecurring, unusual or infrequent items to evaluate the Company's performance in order to have comparable financial results to analyze changes in our underlying business from period to period. Additionally, Free Cash Flow is utilized as liquidity measures to assess the cash generation of our businesses and on-going liquidity position. Accordingly, the Company believes the presentation of these non-GAAP financial measures, when used in conjunction with GAAP financial measures, is a useful financial analysis tool that can assist investors in assessing the Company's operating performance and underlying prospects. This analysis should not be considered in isolation or as a substitute for analysis of our results as reported under GAAP. This analysis, as well as the other information in this press release, should be read in conjunction with the Company's financial statements and footnotes contained in the documents that the Company files with the U.S. Securities and Exchange Commission. The non-GAAP financial measures used by the Company in this press release may be different from the methods used by other companies. The Company does not provide a reconciliation of these forward-looking non-GAAP financial measures to the most directly comparable GAAP reported financial measures on a forward-looking basis because it is unable to predict with reasonable certainty the ultimate outcome of unusual gains and losses, potential future asset impairments and pending litigation without unreasonable effort. These items are uncertain, depend on various factors, and could have a material impact on GAAP reported results for the guidance period. Forward-Looking Statements This press release 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," "estimate," "target," "project" and similar expressions, among others, generally identify "forward-looking statements," which speak only as of the date such statements were made. These forward-looking statements may address, among other things, guidance and expectations of the Company and segment performance for the second quarter of 2025, which is subject to substantial risks and uncertainties that could cause actual results to differ materially from those expressed or implied by such statements. These statements are not guarantees of future performance. Forward-looking statements also involve risks and uncertainties that are beyond Chemours' control. Matters outside our control, including general economic conditions, geopolitical conditions and global health events, and changes in environmental regulations in the U.S. or other jurisdictions that affect demand for or adoption of our products, have affected or may affect our business and operations and may or may continue to hinder our ability to provide goods and services to customers, cause disruptions in our supply chains such as through strikes, labor disruptions or other events, adversely affect our business partners, significantly reduce the demand for our products or increase raw material, energy or other input costs, adversely affect the health and welfare of our personnel or cause other unpredictable events. Additionally, there may be other risks and uncertainties that Chemours is unable to identify at this time or that Chemours does not currently expect to have a material impact on its business. Factors that could cause or contribute to these differences include the risks, uncertainties and other factors discussed in our filings with the U.S. Securities and Exchange Commission, including in our Annual Report on Form 10-K for the year ended December 31, 2024 and our Quarterly Report on Form 10-Q for the quarter ended March 31, 2025. Chemours assumes no obligation to revise or update any forward-looking statement for any reason, except as required by law.

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