CC

It has been about a month since the last earnings report for Chemours (CC). Shares have added about 7.5% in that time frame, outperforming the S&P 500. But investors have to be wondering, will the recent positive trend continue leading up to its next earnings release, or is Chemours due for a pullback? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at its most recent earnings report in order to get a better handle on the important drivers. Chemours reported a net loss of $274 million or a loss of $1.81 per share for the second quarter of 2026. This compares favorably with the year-ago quarter’s net loss of $380 million or a loss of $2.53 per share. Barring one-time items, earnings were 42 cents per share, which missed the Zacks Consensus Estimate of 43 cents by roughly 2.3%. Adjusted earnings also declined from 61 cents per share in the year-ago quarter. The company reported second-quarter net sales of $1,591 million, reflecting a 1% decrease from the previous-year quarter. The figure missed the Zacks Consensus Estimate of $1,674.1 million by roughly 5%. Net sales were affected by a 4% decrease in volumes, partly offset by a 2% increase in price and a 1% favorable currency impact. Adjusted EBITDA declined 5% year over year to $247 million for the quarter from $260 million. The decrease was due to higher costs in APM associated with the Washington Works outage and lower sales following the SPS Capstone line closure, partly offset by pricing increases across all segments. The TT division recorded revenues of $661 million in the second quarter, marking a 1% increase from the previous year. The figure missed our estimate of $663.6 million. The year-over-year increase was driven by a 2% rise in global pricing and a 1% currency tailwind, which more than offset a 2% decline in global volumes. In the TSS segment, revenues decreased 1% year over year to $591 million in the reported quarter. The figure missed our estimate of $637.3 million. The decline was due to a 4% fall in volumes, partly offset by a 2% increase in price and a slight currency tailwind. Lower volumes primarily reflected weaker North American stationary AC aftermarket sales of Opteon blends compared with elevated demand in the prior-year quarter. TSS adjusted EBITDA increased 3% year over year to $213 million, while adjusted EBITDA margin improved one percentage point to 36%, aided by higher pricing and the timing of certain costs. Revenues in the APM unit amounted to $326 million, which declined 6% year over year. The figure missed our estimate of $338.2 million. The downside was mainly caused by a 9% decrease in volumes, partly offset by a 2% increase in price and a slight currency tailwind. The volume decline primarily reflected the SPS Capstone line closure, while Performance Solutions sales rose 8% year over year on strength in data center and semiconductor end markets. Operating cash flow in the second quarter was $158 million compared with $93 million in the year-ago quarter. Capital expenditures were $44 million compared with $43 million in the prior-year quarter. Free cash flow increased to $114 million from $50 million a year earlier. As of June 30, 2026, Chemours had consolidated gross debt of $3.9 billion. Debt, net of $671 million in unrestricted cash and cash equivalents, was $3.2 billion. Total liquidity was $1.6 billion, and the net leverage ratio was approximately 4.4. For the third quarter, the company expects consolidated net sales to decline in the range of 5% to flat sequentially. Consolidated adjusted EBITDA is expected to be in the range of $175-$205 million. Corporate expenses are expected to be $40-$45 million. The company also expects capital expenditures of around $65 million and free cash flow of at least $50 million. Chemours expects TSS’ net sales to decrease sequentially in the mid-teens to 20% range in the third quarter, reflecting less favorable seasonality and weaker Opteon blends aftermarket demand. Adjusted EBITDA is projected to be between $125 million and $140 million. TT’s net sales are expected to increase sequentially in the low-to-mid-single-digit percentage range, driven by recent pricing announcements, with stable volumes. Adjusted EBITDA is expected to be in the range of $70-$80 million. APM’s net sales are expected to increase sequentially in the mid-to-high-single-digit percentage range, driven by normalized operations at Washington Works and continued strength in Performance Solutions. Adjusted EBITDA for APM is expected to be between $20 million and $30 million. For 2026, Chemours expects net sales to grow in the range of 1-5% year over year and adjusted EBITDA of $775-$825 million. Capital expenditures are expected in the range of $250-$280 million, with free cash flow conversion above 25%. The company continues to target a net leverage ratio of around 3.8x by year-end 2026. In the past month, investors have witnessed a downward trend in estimates revision. The consensus estimate has shifted -46.39% due to these changes. Currently, Chemours has a great Growth Score of A, though it is lagging a lot on the Momentum Score front with an F. However, the stock has a score of A on the value side, putting it in the top quintile for value investors. Overall, the stock has an aggregate VGM Score of A. If you aren't focused on one strategy, this score is the one you should be interested in. Estimates have been broadly trending downward for the stock, and the magnitude of these revisions indicates a downward shift. Interestingly, Chemours has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months. Chemours belongs to the Zacks Chemical - Diversified industry. Another stock from the same industry, Air Products and Chemicals (APD), has gained 4.9% over the past month. More than a month has passed since the company reported results for the quarter ended June 2026. Air Products and Chemicals reported revenues of $3.16 billion in the last reported quarter, representing a year-over-year change of +4.6%. EPS of $3.47 for the same period compares with $3.09 a year ago. Air Products and Chemicals is expected to post earnings of $3.60 per share for the current quarter, representing a year-over-year change of +6.2%. Over the last 30 days, the Zacks Consensus Estimate has changed +0.4%. The overall direction and magnitude of estimate revisions translate into a Zacks Rank #3 (Hold) for Air Products and Chemicals. Also, the stock has a VGM Score of D. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report The Chemours Company (CC) : Free Stock Analysis Report Air Products and Chemicals, Inc. (APD) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

Image source: The Motley Fool. Wednesday, Aug. 5, 2026 at 8:00 a.m. ET Vice President and Head of Strategy and Investor Relations - Brandon Ontjes President and Chief Executive Officer - Denise Dignam Senior Vice President and Chief Financial Officer - Shane Hostetter Operator: Good morning. My name is Therese, and I will be your conference operator today. I would like to welcome everyone to The Chemours Company's Second Quarter 2026 Results Conference Call. [Operator Instructions] I would like to remind everyone that this conference call is being recorded. I would now like to hand the conference call over to Brandon Ontjes, Vice President and Head of Strategy and Investor Relations for Chemours. You may begin. Brandon Ontjes: Good morning, everybody. Welcome to the Chemours Company's Second Quarter 2026 Earnings Conference Call. I'm joined today by Denise Dignam, Chemours' President and Chief Executive Officer; and our Senior Vice President and Chief Financial Officer, Shane Hostetter. Before we start, I would like to remind you that comments made on this call as well as in the supplemental information provided on our website contain forward-looking statements that involve risks and uncertainties as described in Chemours' SEC filings. These forward-looking statements are not guarantees of future performance and are based on certain assumptions and expectations of future events that may not be realized. Actual results may differ, and Chemours undertakes no duty to update any forward-looking statements as a result of future developments or new information. During this call, we'll refer to certain non-GAAP financial measures that we believe are useful to investors evaluating the company's performance. A reconciliation of non-GAAP terms and adjustments is included in our press release issued yesterday evening. Additionally, we posted our earnings presentation on our website yesterday evening as well. With that, I will turn the call over to Denise. Denise Dignam: Thank you, Brandon, and thank you, everyone, for joining us this morning. On today's call, I'll start with highlights from our recent performance, then turn it over to Shane to walk through our outlook for the third quarter and the balance of 2026. After that, I'd like to share my reflections as we've reached our halfway point under Pathway to Thrive and discuss the opportunities ahead before we open the line for your questions. For the second quarter, our results reflect disciplined commercial execution, continued pricing actions and progress against our priorities across all 3 businesses. Net sales were slightly below expectations, primarily due to softer residential stationary AC demand in Thermal and Specialized Solutions. However, pricing improved across all our businesses, including continued execution in Titanium Technologies. Adjusted EBITDA exceeded expectations, supported by stronger operational performance and an improved product mix in Advanced Performance Materials, lower corporate costs and the referenced pricing strength in TT. Importantly, we continue to see tangible evidence that the actions we are taking under Pathway to Thrive are strengthening the business. In TT, we announced an additional global TiO2 price increase effective June 1, building on prior pricing actions and supporting local price increases of approximately 5% year-to-date. Separately, in APM's Performance Solutions portfolio, net sales grew 8% year-over-year, underscoring the momentum we are building in the high-value specialty applications for data center and semiconductor end markets as we fulfill a backlog of existing orders. More recently, we also recorded nominal sales of 2-phase liquid cooling products for sampling across 2-phase applications with several customers. These early sales support continued progress through product trials, which have increased 70% year-over-year while reinforcing the relevance of our innovation pipeline in attractive growth markets. As an indication of the momentum in this space, recent research from the Uptime Institute, an industry-leading authority on data center infrastructure and operations, identified a growing share of operators evaluating 2-phase systems for future deployments as AI-driven compute demand accelerates the shift towards liquid cooling. Additionally, we continue to strengthen Chemours' financial position through strong cash generation and disciplined capital allocation, enabling further debt reduction and enhancing our financial flexibility. We also made notable progress resolving legacy litigation as demonstrated by our recent settlements with the U.S. EPA and the West Virginia Department of Environmental Protection. Collectively, these actions represent important steps to derisk the balance sheet, improve leverage and cash positioning while enabling Chemours to invest with discipline in opportunities that support long-term value creation. Now let me expand on the quarter's business activities. Our TSS business delivered solid second quarter results. Net sales were slightly down versus the prior year quarter, driven by lower volumes from reduced aftermarket sales of Opteon blend in North America, while Opteon OEM volumes saw growth year-over-year in addition to continued growth into data center end markets. In the second quarter, that volume pressure was partially offset by higher pricing supported by strength in Freon refrigerants, primarily in automotive applications. It's important to note that the prior year quarter benefited from advanced demand tied to the initial aftermarket channel fill associated with the stationary AC transition under the U.S. AIM Act. Given our advantaged position in the market, Chemours moved quickly to help ensure distributors and technicians were well supplied to support the new equipment installations. As a result of the initial channel fill, aftermarket customers built additional inventory, creating an oversupplied channel heading into 2026. Today, while we continue to see strength in the OEM market, the aftermarket is working through elevated inventory levels. At the same time, residential demand is being pressured by higher interest rates, affordability challenges and a slower housing market. Together, these factors weighed on second quarter order activity and may continue to drive destocking as we move through the year. Looking ahead, we would expect the aftermarket to begin normalizing as inventory levels are reduced and seasonal restocking begins ahead of next year's cooling season. Adjusted EBITDA for TSS increased year-over-year with margins also expanding. This improvement was driven by higher pricing and benefited from the timing of certain costs in the quarter. Overall, TSS continues to demonstrate the value of disciplined commercial execution and strong margin performance even while facing some near-term weakness in the stationary aftermarket. In Titanium Technologies, the team continued to execute well in a challenging and inflationary market environment. Second quarter net sales increased slightly versus the prior year quarter, driven primarily by global pricing strength. Pricing increased across all regions, reflecting the discipline and consistency of our commercial pricing approach in light of the dynamic demand environment. Volumes were lower across key end markets with the exception of Asian markets, excluding China and Latin America, where demand remained more resilient in connection with recent antidumping duties in Brazil. Adjusted EBITDA for TT also improved year-over-year, while adjusted EBITDA margin was flat. The increase was primarily driven by the global pricing strength noted earlier, partially offset by higher costs from inflation. Importantly, our performance shows that even as inflation continues to pressure the cost structure, the business is responding with strong commercial execution and disciplined cost management, outpacing any inflationary headwinds. We have now announced 3 TiO2 price increases since December 2025, including our most recent global increase effective June 1. Together, these actions have contributed to an approximately 5% year-to-date price increase relative to where we started the year. As we look ahead, our team remains agile and responsive with an optimized manufacturing circuit that enhances efficiency and flexibility, enabling us to adjust production levels to meet demand while continuing to deliver outstanding service and quality for our customers. This combination of disciplined pricing, operational flexibility and customer focus positions TT to manage through a dynamic environment and capture value as opportunities emerge. In APM, second quarter net sales were down versus the prior year quarter, primarily driven by lower volumes associated with the SPS Capstone line closure completed in the third quarter of 2025. This was partially offset by higher pricing in the business. Adjusted EBITDA declined year-over-year, reflecting the lower sales volumes from the line closure as well as higher costs tied to the now resolved Washington Works outage. Notably, we continue to see strong momentum in the Performance Solutions portfolio, where net sales increased 8% year-over-year. Order book strength is driven by long-term sustainable demand tailwinds in data center and semiconductor end markets, where our specialty products play an important role in supporting complex and high-performance applications. Performance Solutions is becoming a larger part of APM's portfolio, reinforcing our focus on higher-value markets with stronger growth and margin potential. As a point of emphasis, our exposure to high-growth markets is expanding across Chemours. Sales into data center, semiconductor, AI and advanced electronics end markets now represent a high single-digit percentage of total sales across APM and TSS, supported by strong demand for differentiated solutions in both businesses. Within Performance Solutions, more than 40% of sales are focused on these targeted markets, where we see durable demand trends and robust growth potential in the years ahead. Importantly, this does not include the investments we are making in liquid cooling and next-generation refrigerants, which we believe will further expand our participation in these attractive growth platforms. Collectively, these dynamics position Chemours to participate more meaningfully in high-value applications that we believe can become a meaningful driver of overall earnings over time. With that, I'll turn it over to Shane to walk through our third quarter guide and our updated outlook for the full year 2026. Shane? Shane Hostetter: Thank you, Denise, and good morning, everyone. As shared in the earnings materials available on our investor website, I would now like to discuss our expectations for the third quarter and the remainder of the year as we look ahead. Beginning with TSS. For the third quarter, we expect TSS' net sales to decline sequentially from the mid-teens to 20%. While we continue to see stability in overall OEM sales, we anticipate softer residential and light commercial aftermarket demand for our Opteon blends during the third quarter in connection with destocking trends in the aftermarket and broader macroeconomic uncertainty. Also, consistent with our end market concentration, we expect seasonality as we progress through the Northern Hemisphere's cooling season. For the third quarter, we expect TSS' adjusted EBITDA to be between $125 million and $140 million, which considers seasonality as well as a less favorable mix from lower Opteon aftermarket sales. Longer term, as seasonal restocking occurs in the aftermarket and the installed OEM base in residential and light commercial systems continues to expand in North America, we expect the business to return to GDP plus growth. That growth should also be supported by continued heat pump adoption in Europe as well as rising global demand for data center chiller applications. Overall, despite the softer near-term demand backdrop, we remain confident in the long-term fundamentals of this business, supported by our advantaged market position with OEMs and aftermarket distributors, regulatory tailwinds and disciplined commercial execution. Going forward, we anticipate the stationary aftermarket to grow annually in the mid- to high single-digit percentage range. This, combined with continued advancements in liquid cooling and our next-generation refrigerants will act as growth catalysts for the future in TSS. For our TT business, in the third quarter, we expect TT's net sales to increase sequentially in the low to mid-single-digit percentage range, driven by continued execution of recent pricing announcements on modest year-over-year volume increases. Also, we expect TT's adjusted EBITDA to range between $70 million and $80 million. This expected improvement reflects the momentum we are seeing from our commercial excellence efforts, which have led to realized pricing gains across the business. Importantly, this pricing momentum is more than offsetting the cost and inflationary headwinds the business continues to face. It also demonstrates the value of our commercial discipline, customer focus and ability to move quickly as market conditions change. While we anticipate some volume-driven seasonality as we exit the year, additionally, we anticipate volumes to be up year-over-year in the second half across all end markets outside of China. Also, we expect continued cost productivity from operational improvements and broader cost reduction efforts to help keep earnings stable. Longer term, we remain focused on controlling what we can control. We continue to operate with commercial and operational agility, managing production to demand, optimizing the use of higher cost inventory on hand, which will drive notable earnings and cash flow productivity and staying disciplined on price to protect value in a dynamic global TiO2 environment. Turning now to our APM business. For the third quarter, we expect APM's net sales to increase sequentially in the mid- to high single-digit percentage range. This top line improvement is expected to be driven by a return to normal operating levels at Washington Works, along with continued strength in the Performance Solutions order book. We expect APM's adjusted EBITDA to be between $20 million and $30 million for the third quarter, which reflects approximately $5 million in performance that was pulled forward into the second quarter given sales timing. Within Performance Solutions, as Denise highlighted, we continue to see strong order book momentum for specialty products that address critical needs across the AI infrastructure ecosystem, including data center and semiconductor applications, which we anticipate will exceed 40% of these sales. These end markets are supported by durable demand trends and remain areas where Chemours is well positioned to deliver differentiated material solutions. While broader industrial demand remains mixed, the strength in Performance Solutions reinforces our confidence in APM's path toward higher-value growth. As we move through the balance of the year, we expect operational improvements and continued order book fulfillment in Performance Solutions, which will support anticipated earnings growth beyond the third quarter. Longer term, we remain focused on shifting our portfolio mix to Performance Solutions, where we see continued order book strength in high-value data center and semiconductor end markets. Our ability to continue to drive operational improvements and sharpen our portfolio will increase our earnings opportunities and drive us past our expected $30 million to $40 million adjusted EBITDA range. Looking to our consolidated outlook. We expect third quarter net sales to range from a decrease of 5% to flat sequentially. This reflects the referenced weaker demand in TSS' stationary aftermarket for Opteon blends, partially offset by continued pricing momentum in TT and sequential sales and cost improvements in APM. Our consolidated adjusted EBITDA is expected to range between $175 million and $205 million for the third quarter. Corporate expenses are expected to be approximately $40 million to $45 million. We also anticipate capital expenditure to be in the range of $65 million with free cash flow of at least $50 million, reflecting the timing of payments for plant turnaround activities commencing later in the third quarter. Turning to the full year. We expect 2026 net sales to grow between 1% and 5% over 2025, with adjusted EBITDA growing to be between $775 million and $825 million. This outlook is supported by pricing momentum and ongoing cost improvements across each of our businesses. As highlighted for the third quarter, continued destocking of our Opteon blends in the aftermarket will impact TSS, but this headwind is expected to be partially offset by strength in TT from pricing and cost improvements as well as APM's operational resilience and demand strength in higher-value end markets as the year progresses. Capital expenditures are expected to be between $250 million and $280 million for the full year, with free cash flow conversion above 25%, reflecting higher earnings and improvements in working capital throughout the year. We also continue to anticipate achieving a net leverage ratio around 3.8x adjusted EBITDA by the end of 2026, further positioning us towards our longer-term goal of being sustainably below 3x net leverage. As Denise mentioned, we have continued to prioritize debt repayment using both organic cash flow as well as the proceeds received to date from the Kuan Yin land sale. In the second quarter, we repaid close to $270 million of our 2028 euro term loan, which represents an additional $103 million beyond what was communicated on our first quarter call. We intend to continue to prioritize debt reduction as a key element of our capital allocation strategy in order to enhance the overall strength of Chemours' balance sheet. This work is fundamental to executing against the 4 pillars of our Pathway to Thrive strategy and allows us flexibility for the longer term. With that, I'll turn the call back over to Denise for her closing remarks. Denise Dignam: Thank you, Shane. As we close, it's worth taking a step back and recognizing where we are on our journey. We are now roughly halfway through our Pathway to Thrive strategy, which makes it a good moment to reflect on what we've accomplished and just as importantly, where we're headed. Looking back, Pathway to Thrive was never simply a cost, productivity, or restructuring program. We undertook it to strengthen the foundation of Chemours, improve the resilience of the company and create strategic portfolio options that can maximize value for our shareholders. As evidenced by our results, we've made significant progress taking decisive actions to strengthen and derisk our balance sheet while advancing our portfolio transformation. At the same time, we've continued to establish a stronger operating model through the application of lean principles driving the discipline, capabilities and culture that will support long-term performance. The progress is real and it's undeniable, but there is still work ahead. As we move past this halfway point, we will continue to execute with urgency and pursue opportunities that enhance our strategic and portfolio optionality, including transformational partnerships and actions to reshape our existing portfolio. The work we have done has created a stronger foundation and greater flexibility to act. We will build on that momentum by expanding our strategic choices, strengthening our portfolio and positioning Chemours to deliver greater long-term value for shareholders. I want to be clear; no portfolio action is off the table where we see an opportunity to unlock a step change in value creation for our shareholders. Moving forward, what gives me confidence is the trajectory we're creating for Chemours. We have 3 market-leading businesses, differentiated solutions and solid positions in attractive end markets. Combined with the progress under Pathway to Thrive, these strengths are creating a stronger foundation and expanding the opportunities ahead of us. Across Chemours, our talented people are embracing new ways of working, building a culture of continuous improvement and bringing a passion to win every day. Together, we are creating a company that is stronger, more resilient and increasingly positioned to have greater strategic optionality. I'm excited about what the future holds. We have more to accomplish, more value to unlock and more opportunities ahead of us than behind us. The choices available to Chemours today are meaningfully different than they were when we launched Pathway to Thrive, and I believe the actions we take on our priorities can create substantial value for our shareholders. We look forward to sharing that progress with you as we continue to execute our strategy and realize the full potential of Chemours. In closing, from our core businesses, we are confident that steadfast execution of our strategy can deliver a business with at least $1 billion of annual adjusted EBITDA, free cash flow conversion exceeding 40%, while progressively derisking the balance sheet. These efforts are already driving results today and will create greater financial and strategic flexibility. With that, I'd like to open the line for your questions. Operator: [Operator Instructions] Our first question today is from Pete Osterland with Truist Securities. Peter Osterland: So I just wanted to start with the margins implied in the third quarter TSS guide. So the midpoints imply a high 20s margin for third quarter below the 30% that you've talked about historically. I guess could you rank order what the drivers are here between mix and input costs, overall cost absorption? And I guess more broadly, do you expect this margin level to be a 1 quarter occurrence with a snapback? Or is it more likely resetting the baseline here with gradual improvement thereafter? Shane Hostetter: Peter, thank you. Yes, so I appreciate the perspective there. I don't look at the margin sequentially from Q2 to Q3. I kind of look at it compared to prior year. Certainly, we'd be guiding to lower margins. And really, this goes hand-in-hand with the discussions we had on the script whereby we're seeing really slower business in the aftermarket, specifically in residential, light commercial in TSS. And that's really a mixed attribute. That's really the predominant driver there. As I look ahead, going to your latter point and the question of where this is going, seasonally, Q4 margins tend to be a little bit kind of on the downside, just given the mix of seasonality of refrigerants versus FPL. But we still stand behind that this business is a 30-plus margin business. And as we look ahead into '27, we will see some restocking of that aftermarket, which will help mix happen that side. But I think more importantly is we're very excited about the market of the aftermarket in this side. You see the potential impact they have on the actual margins themselves and really see it as a growth business going forward. Peter Osterland: Very helpful. And I guess just a follow-up on that point on mix. Could you size what proportion of your Opteon sales are made up by the stationary aftermarket business? And how much are you assuming that business will be down year-over-year in your third quarter guidance? Shane Hostetter: Thanks. We haven't really talked a lot about the actual sizing of the aftermarket from this perspective. As we think about quantifying how much it's down, last year, you might recall, we had a really sizable sales into the aftermarket given the transition under the AIM Act. We believe from the Q2 and Q3 perspective, there's probably about $65 million of aftermarket sales that realistically, you think about like-for-like probably should have been allocated to more of this year. It was just more prebuy given some of the overall inventory constraints in the market that we took advantage of in supply. So like-for-like, I think if you look at Q2, Q3 comparatively year-over-year, there's probably about a $65 million balance. Operator: Our next question is from Duffy Fischer with Goldman Sachs. Patrick Fischer: Another question on TSS. So with the -- whatever you want to call it, the presales from last year, does that mean that we need to anniversary falling sales from this aftermarket stationary business through the first quarter of next year? Or how long does it take for that to correct before you get back to kind of selling in what you're selling out? Denise Dignam: Thanks for the question. Yes, I think that's a good way to look at it. I think you should look at this transition -- the transition of the technology over '25 and '26 and then really picking back up in next season in the end of the Q1 of 2027. Patrick Fischer: Okay. And then if we jump to TT, surprisingly, the Chinese exports, given their sulfur costs and stuff like that, have remained quite high year-to-date. And when you look at collectively, I think the numbers that you guys put up, Kronos and Tronox will put up plus the Chinese, year-over-year, that supply to the world is running much faster than what the end markets, paint and some other construction stuff seems to be growing. Where is that product going? Was there a low inventory, so people are rebuilding inventory? Or how is the production and sales volume of TiO2 kind of running ahead of end consumption in your view? Denise Dignam: Yes. Thanks for the question. I mean, as we talked about, we're focused on the fair-trade markets where our customers value what we bring to the table. And we're not seeing -- obviously, there were disruptions with the war, and our customers really count on reliability. And what we see is in those fair-trade markets, we see a pretty balanced market and our ability to maintain our share. Operator: Our next question is from [ Drew Clowder ] with Mizuho Securities. John Ezekiel Roberts: Let me just check. This is John Roberts. Can you hear me? Operator: Yes, we can. John Ezekiel Roberts: Good. Okay. The refrigerant aftermarket is very fragmented, a lot of small service providers. How much visibility do you actually have into the inventory of those small customers? Denise Dignam: Thanks for the question, John. I mean, I guess what I want to say is that we have -- we're market leaders here, right? We have the majority of the share. We feel like we have good visibility into this market. Clearly, as you think about last year, there were mixed signals on what -- from the channel on what the demand would be this year. I think there's a couple of things that have happened. When we think about this year, Shane mentioned it earlier, we've had -- as we've gotten into the year, we had a colder spring in the Northeast, which definitely impacts demand. And then the macro environment with the war, really affordability concerns with consumers has distributors holding back. So I guess, really just high level, we think we have good visibility into the market with our leadership position. John Ezekiel Roberts: And then what's causing the price strength in Freon? Is it something related to the emission allowances, or something related to costs? Shane Hostetter: John, yes, you might have -- remember in Q1, we talked a little bit about overall mix shift. This is really into more of the automotive aftermarket and strength there that we've been able to take. That continued into Q2 on that side. So just overall mix shift as where the pricing opportunity has gone. John Ezekiel Roberts: Okay. So it's mixed. It's not raising like-for-like prices. Shane Hostetter: We feel like it's a mix to higher-priced products that we've taken advantage. Operator: Our next question is from Hassan Ahmed with Alembic Global Advisors. Hassan Ahmed: A question around your full year's guidance. If I sort of take the midpoint of the Q3 guidance, it seems that you guys are sort of forecasting 100 and so -- midpoint obviously being $190 million for Q3. And it seems you guys are guiding to a range of, call it, $170 million to maybe $220 million for Q4. So just trying to understand in an otherwise seasonally weak quarter that is Q4, what gives you guys the confidence of that sequential step-up from Q3 to Q4 EBITDA? Shane Hostetter: Thanks, Hassan. Yes, I think your observation is correct that we do anticipate a strong Q4 on the backs of really strength in TT and APM comparatively to the prior quarters with seasonality still in effect given TSS obviously will have lower volumes in the quarter as well as some slight lower volumes in TT. So the strength in TT really is on the back of some pricing, obviously, tailwinds that we're seeing in the market. But also, we have line of sight into really good cost improvements within TT that we anticipate coming through in the fourth quarter, both on input costs as well as operational. On APM, right, so obviously you've seen we've had some lighter EBITDA in the first 3 quarters that we're anticipating compared to where we really would like the business to be. Those on the backs of some obviously downtime in our Washington Works facility and related impacts. As we think about Q4, we've talked about how strong the order book is in APM on really great end markets with product mix that is advantageous to us. So it's that. And then it's also -- the first 3 quarters really were impacted by higher costs that we were sitting in inventory that were coming through given the absorption related to Washington Works. We're not going to see that in the fourth quarter. So it's a mix of both really strong portfolio in APM as well as improved costs as well as just really good tailwinds in TT. Hassan Ahmed: Very helpful. And as a follow-up on TT, I mean, can you guys talk a bit about what you guys are seeing on the cost curves? Obviously, we keep hearing about elevated sulfuric acid prices, availability of sulfuric acid being obviously a concern as well. So what role is that playing in sort of facilitating some of the price hikes that you guys are implementing? And part and parcel with that, are you guys seeing potential rationalizations or accelerated rationalizations in China on the back of where the cost curves are? Denise Dignam: Thanks for the question, Hassan. Yes, I mean, relative to cost curves, there's no doubt with the input cost of sulfur increasing that's causing an increase in cost for sulfate produced TiO2. This trend was actually happening even before the war. So it's only been exacerbated. We see that continue. Is that fundamentally -- do we see fundamental rationalization? Not per se, but certainly, it's helpful from a pricing standpoint. As I mentioned before, our focus is on fair trade markets and where we know our customers value what we provide. And there's less of a, I'll say, competition from a Chinese perspective. Operator: Our next question is from Josh Spector with UBS. Joshua Spector: I wanted to follow up on TSS again. Just -- I mean, at a high level, I mean, it seems like initially, you thought TSS would grow EBITDA by about $50 million. Now your guidance, I'm assuming for the year is kind of flat to down. So following up on some of the prior questions where you talk about aftermarket visibility and like your position, it just seems like expectations changed quite materially over the last quarter. So what surprised to really drive that where we're talking about a year ago, we should have known this, but now we're baking that in. It just seems like something more changed under the hood than what your answer implied previously. Denise Dignam: Thanks for the question, Josh. So first of all, I just want to be clear, this is a significant change in the market size for this year, right? So when we think about what the volume in the aftermarket was last year versus this year, we see about a 25% drop. So why -- the question is, what's changed? As I said earlier, we were getting signals from the channel about demand this year. As we got into the year and we saw what was happening with the colder spring, we did signal that we were starting to see a slower start to the season, mainly the end of the first quarter. As we started to see that with the cool weather as well as the war, it really -- just thinking about consumer discretion and being able to make choices of whether you put in a new system or you repair and distributors really not taking risk on premium products. So it's really something that has evolved I would say, over the second quarter, and we've adjusted our forecast. Shane Hostetter: Yes. And I would just tag on to that, Josh. As I think about where we believe we were going into this year, the TT business has really outperformed where we expected coming into the year. And we thought the balance of the portfolio would help itself, seeing a little bit of a delay in that aftermarket start, but also seeing really price strength in TT maybe offsetting some of that delay, so. Denise Dignam: Yes. We -- I mean, the fundamentals are there for this market. I mean, basically, you had a whole market turnover with a technology transition where you've gone from many suppliers to just 2. I think you need to just look at it at 2025, 2026, that's really a transition. There's -- it's hard to read those tea leaves when a technology changes in that way. We feel extremely positive about this business. We have said that it's a GDP plus growth business. When you look at the aftermarket, there's a huge growth platform with high single-digit growth in the coming years. Joshua Spector: Yes. I guess maybe if you could help a little bit. It's just the tone is different between you and your larger competitor that talked about gains in the aftermarket mix up in the second half. I mean this seems more like share shift between one player versus another, maybe in addition to destocking. I mean, can you comment on that? Is there a view about why your mix would be pretty materially different here? Denise Dignam: Yes. I mean -- first of all, I'm not going to talk about what competitors say and what they do. But all I know is that last year, we had significant share, and we were able to supply market when others weren't. There's a huge difference in the comparatives. If you look at some of the comments that were made, the aftermarket for stationary is viewed as an upside in the second half. That's not something that has occurred to date. So I think there's a different comp between the 2 companies. Operator: Our next question is from Arun Viswanathan from RBC Capital Markets. Arun Viswanathan: Maybe I could ask another question on TSS as well. And thanks for the slides on data center use cases, very interesting stuff here. So if you kind of think about TSS when you step back, I think you mentioned $1 billion of EBITDA longer term. Could you provide us maybe some bridge items to get from, say, $800 million in 2026 to that $1 billion level? Does that kind of include maybe a couple of hundred million from data center by the end of the decade? Or what kind of the longer-term opportunity as you see it, including the 2-phase immersion cooling products that you discussed on those slides as well? Shane Hostetter: Thanks, Arun. Yes. No, we're very excited to say that $1 billion target with the 40% free cash flow. As I think about -- you mentioned bridging items, Denise talked about in her script, just excitement around different end markets around just AI infrastructure, whether it be in data center, semiconductors, advanced electronics. Right now, it's about 9% of our overall TSS and APM portfolio. We anticipate large growth in those markets ahead of us. And obviously, those are advantaged market positions. So that will be key contributors going forward. I would say other bridge items, we'll continue to execute on pricing across each one of the businesses. And then also, obviously, we're in a little bit of a cyclical downside on certain businesses where we will bring considerable volume in the base business as well. I would say outside of that, it's really continuing to control what we control from a cost-out perspective, making sure we're optimizing performance. But we're really excited about Chemours Business Systems and the lean principles there, too, which really would drive like more operational reliability, and we believe there's a lot of area there to drive really efficient costs. I would say, I think I'm equally excited around cash flow characteristics of this business. This quarter, we were above 40% from a free cash flow perspective. We continue to think through opportunities to drive that attribute. As earnings grow, those will grow as well, but we're excited also to work on the balance sheet and unlock further working capital opportunities similar to what we've talked about before with some of the high-grade ore contracts in TT. Denise Dignam: And maybe to build on that, Arun, we talk about these high growth areas in AI infrastructure, but we also have to talk about one of the elements is liquid cooling. We put some things in the script that really give us a really good indication of the market traction that we're starting to see. And there are upside. So liquid cooling as well as our work in next-generation refrigerant, NGR are upsides to that $1 billion case. Arun Viswanathan: Okay. And just -- again, just kind of from a composition standpoint, would that $1 billion kind of require maybe mid-cycle assumptions for TT, say, in the annualized run rate of, say, $300 million to $400 million of EBITDA and then you're thinking maybe $160 million or so for APM and maybe $800 million for TSS offset by corporate? Or how are you thinking about that $1 billion composition from a segment basis? And then also, as I mentioned earlier, what kind of the target for that? Is that -- from a time frame? Is that end of the decade? Or is there a line of sight to when you'd achieve that level? Shane Hostetter: Thanks, Arun. Yes, I really appreciate you kind of mapping that out. I'm not going to get into specifics as in regard to each number for the company. But I just -- I reflect and think through, yes, I mean, I think there's a floor mid-cycle, call it, over 400 for TT. That's going to help get there. I think there's attributes to really build upon APM. As we've talked about exiting this year, really strengthen the order book and operational resilience. And TSS continues to be really a good growth momentum business off that side. As it relates to timing, not get into that, but I do believe in the coming years, you'll see us hit these targets. Denise Dignam: And Arun, just to build on that, for TT, a thing to remember is that there are structural cost changes coming with ore and chlorine that have -- are not yet visible in our earnings. Operator: Our next question is from John McNulty with BMO Capital Markets. Caleb Boehnlein: This is Caleb on for John. So just a follow-up on Josh's question about what kind of changed since the start of the year. Some of your HVAC OEM customers have raised their unit outlook for the start of the year. So can you just kind of square how they're raising their outlook, but then you're talking about kind of like a slowdown happening just kind of like intuitively isn't really making a lot of sense. Denise Dignam: Yes. Thanks, Caleb. Yes, what you have to remember is that our sales are into OEMs or the OEM sales, our aftermarket sales are actually once the distributors -- actually the unit is put in operation. So yes, I mean, could we see some upside in the fourth quarter? Potentially, but we think it's likely going to be more next year just because of the time difference. Caleb Boehnlein: Got you. Okay. And then maybe just on the data center opportunity, is there a way to frame your content in either like a dollar basis or a kilogram basis for the same data center that would be using single-phase direct-to-chip, two-phase direct-to-chip and then two-phase immersion cooling? Denise Dignam: Yes. I mean just to be clear, liquid cooling has taken off in data centers, right? And -- but it's not two-phase. What you see today is the single-phase. So there is not any -- today any share in the commercial market. So that's all upside. The thing that we've talked about is that as we think about the AI infrastructure and the things that where we participate. Today, in APM, we have about 40% of our Performance Solutions portfolio is towards that end market. If you look at TSS and APM together, it's a high single digit of the total sales that are in that AI infrastructure space. Anything related to liquid cooling data centers will be on top of that, and it's part of the robust growth that we see. Operator: Our next question is from Vincent Andrews with Morgan Stanley. Vincent Andrews: Sticking with the liquid cooling. Denise, could you just talk about what your route or routes to market might be in liquid cooling, I'm just looking sort of at the broader industry structure, there seems to be a lot of consolidation and vertical integration going on there. So would you be a supplier to one of the big integrated folks? Or would you be selling directly to the data center customer? Or how would this work? Denise Dignam: Thanks, Vincent. It's a good question. Yes. I mean the way this works is, first of all, this is, as you said, a complicated value chain, lots of different players. We really have to, I'll say, sell across the value chain. You saw our announcements around Samsung qualification. We're working with other hyperscalers. We have to first kind of get scoped in or spec into the architecture for the design of the data center. We also work with the OEMs that are putting in equipment similar as we do currently in our refrigeration market. So where will the sales be made? Ultimately, it's going to be -- really the specific sale is going to be to the OEM, but it's going to be pulled through specifications across the ecosystem. Vincent Andrews: Okay. And then as a follow-up for Shane, I guess kind of a 2-part question on free cash flow. One, you were able to actually increase the free cash flow guidance for the year despite the reduction in EBITDA. It sounds like it's some working capital and some other timing issues. Are those going to reverse in '27 and make a harder comp on free cash flow? And then separately, what's the -- you talked about the long-term goal of 40%. Is there something that limits 40% as the free cash flow conversion level? Is it you're baking in some potential litigation payments over time or just other contingencies? But what is it that would make 40% the ceiling on free cash flow conversion? Shane Hostetter: So very excited about the free cash flow characteristics for the year. We continue to really make sure we're prioritizing that cash inflow above 45% with the guide for this year. I think as you were asking, is there anything that are onetime oriented in nature? Yes, we do have some large cash this year on this side, which will help with the overall free cash flow. But at the same point, I think we're very focused into next year, and we don't believe we'll take a sizable decline. We are focused really on improving the free cash flow characteristics of this business. As it relates to the 40% and areas around -- you called it the ceiling, I said -- I would tell you it's 40% plus, right? So where we believe we can take this business. Notably, yes, I mean, in that perspective, we will have existing settlements that are paid over multiple periods. For instance, New Jersey is over 25 years on that side. And then we also have obviously ongoing environmental and other legal costs that weigh that down. But also you have other areas that are right off the top as far as conversion, whether it be the interest costs that we're paying, taxes or obviously CapEx. So we're mindful of all these areas that are weighing down the free cash flow conversion, and our job is to really focus and improve upon them. Operator: And our next question comes from Aaron Rosenthal with JPM. Aaron Rosenthal: Are you willing to elaborate at all on the strategic portfolio comments mentioned just ahead of the Q&A session? Just curious if there was any maybe unsolicited inbound from third party or if there's some sort of momentum on efforts driven by Chemours? Denise Dignam: Aaron, thanks for the question. I think first, I want to take a step back and say, why are we even talking about it, kind of reflective, right? We're halfway through Pathway to Thrive. And I thought it was a great time to kind of step back and say and to talk with our shareholders about why did we develop this strategy. The Pathway to Thrive pillars were designed to solidify the foundation of the company to create optionality for us. So we've improved our balance sheet, derisking our liabilities, improving our cash flow, growing into high-value applications, improving our operational and commercial performance. So all of these things are what's helping us build to a stronger balance sheet that gives us that optionality. I'm not going to speculate on any specific actions that we're considering or that we would take. But it really is just to assure our shareholders that there's no portfolio action that's off the table that would create step change value for the company. And that really -- the Pathway to Thrive is really gets us to the point to be able to do those -- make those kinds of decisions. You can see it could be around product lines, or assets, it could be strategic partnerships. We've already announced some of those, but it's really about taking a step back, really taking a high-level view of why are we doing Pathway to Thrive and what is it going to accomplish for us. Aaron Rosenthal: Okay. Totally fair. That was a question. And then maybe just one on APM. Are there any updates on the permitting front tied to the Washington Works site? And just curious if there's any lingering uncertainty on that front, maybe how that is baked into guidance from a utilization assumption perspective? Denise Dignam: Yes. I mean we don't have any uncertainty relative to that. I mean I think it's telling that as we did the EPA settlement, it was commented by many parties of the importance of that site just for many different applications, critical applications for fluoropolymers when it comes to national security and defense. So we have strong support for operation of that site. Aaron Rosenthal: Okay. Just to verify, was the -- I think there was a permit expiry in July that was cited in the 10-Q. Has that been resolved? Denise Dignam: Yes, it has. Operator: Thank you. We have reached the end of our question-and-answer session. Thank you for joining the Chemours Second Quarter 2026 Results Conference Call. You may now disconnect. 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This article is a transcript of this conference call produced for The Motley Fool. While we strive for our Foolish Best, there may be errors, omissions, or inaccuracies in this transcript. As with all our articles, The Motley Fool does not assume any responsibility for your use of this content, and we strongly encourage you to do your own research, including listening to the call yourself and reading the company's SEC filings. Please see our Terms and Conditions for additional details, including our Obligatory Capitalized Disclaimers of Liability. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. Chemours (CC) Q2 2026 Earnings Call Transcript was originally published by The Motley Fool

The Chemours Company CC reported a net loss of $274 million or a loss of $1.81 per share for the second quarter of 2026. This compares favorably with the year-ago quarter’s net loss of $380 million or a loss of $2.53 per share. Barring one-time items, earnings were 42 cents per share, which missed the Zacks Consensus Estimate of 43 cents by roughly 2.3%. Adjusted earnings also declined from 61 cents per share in the year-ago quarter. The company reported second-quarter net sales of $1,591 million, reflecting a 1% decrease from the previous-year quarter. The figure missed the Zacks Consensus Estimate of $1,674.1 million by roughly 5%. Net sales were affected by a 4% decrease in volumes, partly offset by a 2% increase in price and a 1% favorable currency impact. Adjusted EBITDA declined 5% year over year to $247 million for the quarter from $260 million. The decrease was due to higher costs in Advanced Performance Materials (APM) associated with the Washington Works outage and lower sales following the SPS Capstone line closure, partly offset by pricing increases across all segments. The Chemours Company price-consensus-eps-surprise-chart | The Chemours Company Quote The Titanium Technologies (TT) division recorded revenues of $661 million in the second quarter, marking a 1% increase from the previous year. The figure missed our estimate of $663.6 million. The year-over-year increase was driven by a 2% rise in global pricing and a 1% currency tailwind, which more than offset a 2% decline in global volumes. In the Thermal & Specialized Solutions (TSS) segment, revenues decreased 1% year over year to $591 million in the reported quarter. The figure missed our estimate of $637.3 million. The decline was due to a 4% fall in volumes, partly offset by a 2% increase in price and a slight currency tailwind. Lower volumes primarily reflected weaker North American stationary AC aftermarket sales of Opteon blends compared with elevated demand in the prior-year quarter. TSS adjusted EBITDA increased 3% year over year to $213 million, while adjusted EBITDA margin improved one percentage point to 36%, aided by higher pricing and the timing of certain costs. Revenues in the APM unit amounted to $326 million, which declined 6% year over year. The figure missed our estimate of $338.2 million. The downside was mainly caused by a 9% decrease in volumes, partly offset by a 2% increase in price and a slight currency tailwind. The volume decline primarily reflected the SPS Capstone line closure, while Performance Solutions sales rose 8% year over year on strength in data center and semiconductor end markets. Operating cash flow in the second quarter was $158 million compared with $93 million in the year-ago quarter. Capital expenditures were $44 million compared with $43 million in the prior-year quarter. Free cash flow increased to $114 million from $50 million a year earlier. As of June 30, 2026, Chemours had consolidated gross debt of $3.9 billion. Debt, net of $671 million in unrestricted cash and cash equivalents, was $3.2 billion. Total liquidity was $1.6 billion, and the net leverage ratio was approximately 4.4. For the third quarter, the company expects consolidated net sales to decline in the range of 5% to flat sequentially. Consolidated adjusted EBITDA is expected to be in the range of $175-$205 million. Corporate expenses are expected to be $40-$45 million. The company also expects capital expenditures of around $65 million and free cash flow of at least $50 million. Chemours expects TSS’ net sales to decrease sequentially in the mid-teens to 20% range in the third quarter, reflecting less favorable seasonality and weaker Opteon blends aftermarket demand. Adjusted EBITDA is projected to be between $125 million and $140 million. TT’s net sales are expected to increase sequentially in the low-to-mid-single-digit percentage range, driven by recent pricing announcements, with stable volumes. Adjusted EBITDA is expected to be in the range of $70-$80 million. APM’s net sales are expected to increase sequentially in the mid-to-high-single-digit percentage range, driven by normalized operations at Washington Works and continued strength in Performance Solutions. Adjusted EBITDA for APM is expected to be between $20 million and $30 million. For 2026, Chemours expects net sales to grow in the range of 1-5% year over year and adjusted EBITDA of $775-$825 million. Capital expenditures are expected in the range of $250-$280 million, with free cash flow conversion above 25%. The company continues to target a net leverage ratio of around 3.8x by year-end 2026. Chemours’ shares have gained 17.4% in the past year compared with the 6.8% rise of the industry. Image Source: Zacks Investment Research CC currently carries a Zacks Rank #3 (Hold). Some better-ranked stocks are Almonty Industries Inc. ALM, ClearSign Technologies Corporation CLIR and Applied Industrial Technologies, Inc. AIT. Almonty is expected to report second-quarter results on Aug. 13. The Zacks Consensus Estimate for ALM’s second-quarter earnings is pegged at 10 cents per share. It carries a Zacks Rank #2 (Buy) at present. ClearSign is scheduled to report second-quarter 2026 results on Aug. 19. The consensus estimate for CLIR’s loss per share is pegged at 25 cents. CLIR presently carries a Zacks Rank #2. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here. Applied Industrial is scheduled to report fourth-quarter fiscal 2026 results on Aug. 13. The Zacks Consensus Estimate for AIT’s fourth-quarter earnings per share is pegged at $2.92. AIT carries a Zacks Rank #2 at present. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report The Chemours Company (CC) : Free Stock Analysis Report Applied Industrial Technologies, Inc. (AIT) : Free Stock Analysis Report ClearSign Technologies Corporation (CLIR) : Free Stock Analysis Report Almonty Industries Inc. (ALM) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

Interested in The Chemours Company? Here are five stocks we like better. Second-quarter performance exceeded profit expectations despite sales falling slightly short, as pricing gains, improved operations, stronger product mix and lower corporate costs lifted adjusted EBITDA. Thermal & Specialized Solutions faces near-term pressure from residential air-conditioning aftermarket destocking, higher rates and weak housing activity; third-quarter sales are expected to decline sequentially by the mid-teens to 20%. Chemours maintained its 2026 outlook and reduced debt after repaying nearly $270 million of its 2028 euro term loan. The company continues to expect 1%–5% annual sales growth, $775 million–$825 million in adjusted EBITDA and year-end net leverage of about 3.8 times adjusted EBITDA. Why These 3 Nuclear ETFs Are Getting a Fresh Look as AI Power Demand Rises Chemours (NYSE:CC) said its second-quarter results reflected pricing gains, operational improvements and continued execution under its Pathway to Thrive strategy, while softer residential air-conditioning aftermarket demand weighed on sales in its Thermal & Specialized Solutions business. President and Chief Executive Officer Denise Dignam said second-quarter net sales came in slightly below the company’s expectations, primarily because of softer residential stationary air-conditioning demand in Thermal & Specialized Solutions, or TSS. However, adjusted EBITDA exceeded expectations, helped by stronger operations and product mix in Advanced Performance Materials, lower corporate costs and pricing gains in Titanium Technologies. → SpaceX’s First Earnings Report Could Decide Whether Shorts or Bulls Have Control MarketBeat Week in Review – 06/22 - 06/26 “The actions we are taking under Pathway to Thrive are strengthening the business,” Dignam said, citing pricing actions, debt reduction, cash generation and recent settlements with the U.S. Environmental Protection Agency and West Virginia Department of Environmental Protection. TSS net sales were slightly lower than a year earlier, as lower North American aftermarket sales of Opteon refrigerant blends offset year-over-year growth in OEM volumes and continued growth in data-center-related markets. Higher prices, including strength in Freon refrigerants used primarily in automotive applications, partly mitigated the volume decline. → 3 Drone Stocks That Should Soar After the Summer Slump Uncle Sam Plugs In: Nuclear Energy’s Cash Flow Moment Is Finally Here Dignam said the prior-year period benefited from distributor channel filling connected to the U.S. AIM Act transition in stationary air conditioning. That inventory build left the aftermarket with elevated stock entering 2026. The company said residential demand has also been constrained by higher interest rates, affordability pressures and slower housing activity. A colder spring in the Northeast and broader macroeconomic uncertainty contributed to weaker order activity, executives said. → The Bitcoin Comeback May Already Be Underway—2 ETFs for Exposure For the third quarter, Chemours expects TSS net sales to decline sequentially by the mid-teens to 20% range, with adjusted EBITDA of $125 million to $140 million. CFO Shane Hostetter said the outlook reflects seasonal factors and a less favorable mix from lower Opteon aftermarket sales. Hostetter said the company still views TSS as a business capable of margins above 30% over time. He said the company expects seasonal restocking to begin ahead of the 2027 cooling season, while the expanding installed base of newer residential and light-commercial systems should support longer-term growth. Chemours expects the stationary aftermarket to grow at a mid- to high-single-digit annual percentage rate over the longer term, supported by equipment replacement activity, heat-pump adoption in Europe and data-center chiller demand. In Titanium Technologies, second-quarter net sales increased slightly from the prior-year quarter, driven primarily by global pricing gains. Volumes declined in key end markets, except in Asian markets excluding China and in Latin America, where demand was more resilient following antidumping duties in Brazil. Adjusted EBITDA improved year over year, while adjusted EBITDA margin was flat. Chemours said higher pricing more than offset inflation-related costs. The company has announced three titanium dioxide price increases since December 2025, including a global increase effective June 1. Together, the actions have resulted in an approximately 5% year-to-date increase in pricing compared with the start of the year, according to management. For the third quarter, Chemours expects Titanium Technologies net sales to rise sequentially in the low- to mid-single-digit percentage range and adjusted EBITDA to total $70 million to $80 million. The company expects volumes to be higher year over year in the second half across all end markets outside China. Dignam said rising sulfur costs are increasing costs for sulfate-produced titanium dioxide, a trend that predated the war and has since intensified. She said the company remains focused on “fair trade markets” where it believes customers value supply reliability and its product offering. Advanced Performance Materials sales declined year over year in the second quarter, largely because of the SPS Capstone line closure completed in the third quarter of 2025. Higher prices partially offset the volume impact. Adjusted EBITDA also declined, reflecting the line closure and costs related to the now-resolved Washington Works outage. Within APM, Performance Solutions sales increased 8% from the prior-year period. Dignam said the business is benefiting from order-book strength in data center and semiconductor applications. More than 40% of Performance Solutions sales are tied to targeted markets including data centers, semiconductors, artificial intelligence and advanced electronics, management said. Chemours recorded nominal sales of two-phase liquid-cooling products for customer sampling during the quarter. Product trials increased 70% year over year, according to the company. Dignam said commercial liquid cooling today is primarily single-phase, while two-phase liquid cooling represents a potential future opportunity. For the third quarter, Chemours expects APM sales to increase sequentially in the mid- to high-single-digit percentage range, supported by normalized operations at Washington Works and Performance Solutions order fulfillment. Adjusted EBITDA is expected to be $20 million to $30 million, including about $5 million of sales performance pulled forward into the second quarter. Chemours expects third-quarter consolidated net sales to range from down 5% sequentially to flat, with adjusted EBITDA of $175 million to $205 million. Corporate expenses are expected to be approximately $40 million to $45 million, capital expenditures are expected to be about $65 million, and free cash flow is projected to be at least $50 million. Full-year 2026 net sales are expected to grow 1% to 5% from 2025. Full-year adjusted EBITDA is projected at $775 million to $825 million. Capital expenditures are expected to total $250 million to $280 million. Free-cash-flow conversion is expected to exceed 25%. Net leverage is expected to be about 3.8 times adjusted EBITDA by year-end 2026. The company repaid nearly $270 million of its 2028 euro term loan during the second quarter, including $103 million beyond the amount discussed on its first-quarter call. Hostetter said Chemours intends to continue prioritizing debt repayment through organic cash flow and proceeds received from the Kuan Yin land sale. Looking beyond 2026, Dignam said Chemours is pursuing strategic and portfolio optionality, including potential partnerships and actions involving product lines or assets. She said no portfolio action is off the table if it could create a “step change” in shareholder value, though she declined to discuss specific potential transactions. The company said its core businesses could ultimately support at least $1 billion in annual adjusted EBITDA and free-cash-flow conversion exceeding 40%, while it continues to reduce balance-sheet risk. 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. This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to [email protected]. The article "Chemours Q2 Earnings Call Highlights" was originally published by MarketBeat. View MarketBeat's top stocks for August 2026.

This article first appeared on GuruFocus. Release Date: August 05, 2026 For the complete transcript of the earnings call, please refer to the full earnings call transcript. Adjusted EBITDA exceeded expectations, supported by stronger operational performance and improved product mix in APM, lower corporate costs, and pricing strength in TT. Pricing improved across all businesses, including a 5% year-to-date price increase in TT and continued execution of global TIO2 price hikes. Performance Solutions portfolio in APM grew net sales 8% year-over-year, driven by strong demand in data center and semiconductor end markets. Strong cash generation enabled further debt reduction, with $270 million repaid on the term loan in Q2, improving financial flexibility. Progress on resolving legacy litigation, including settlements with the U.S. EPA and West Virginia DEP, de-risks the balance sheet. Early sales of two-phase liquid cooling products and a 70% year-over-year increase in product trials signal growth in AI infrastructure markets. TSS delivered solid results with year-over-year adjusted EBITDA growth and margin expansion despite softer aftermarket demand. TT pricing momentum is more than offsetting inflationary cost headwinds, with volumes expected to be up year-over-year in the second half outside China. APM's Washington Works outage is resolved, and the company expects a return to normal operating levels, supporting Q3 sequential sales growth. Management reaffirmed long-term targets of at least $1 billion annual adjusted EBITDA and free cash flow conversion exceeding 40%. Net sales were slightly below expectations due to softer residential stationary AC demand in TSS. TSS aftermarket is experiencing elevated inventory levels and destocking, leading to a 25% drop in aftermarket volumes year-over-year. Third-quarter TSS net sales are expected to decline sequentially by mid-teens to 20%, with adjusted EBITDA guided lower at $125-$140 million. TT volumes were lower across key markets, with only Asian markets (excluding China) and Latin America showing resilience. APM net sales declined year-over-year due to the SPS capstone line closure and higher costs from the Washington Works outage. Full-year 2026 adjusted EBITDA guidance was reduced to $775-$825 million, reflecting weaker TSS aftermarket demand. The company faces ongoing inflationary cost pressures, particularly in TT, which partially offset pricing gains. Residential demand is pressured by higher interest rates, affordability challenges, and a slower housing market, impacting TSS. The aftermarket destocking is expected to continue through the year, with normalization not expected until 2027. Free cash flow conversion is guided above 25% for 2026, below the long-term target of 40%, due to litigation payments and other costs. Warning! GuruFocus has detected 6 Warning Signs with CC. Is CC fairly valued? Test your thesis with our free DCF calculator. Q: Can you elaborate on the strategic portfolio comments made during the call, and whether there is any inbound interest or momentum on efforts driven by Chemours? A: Denise Dignam (CEO) explained that the comments were a reflection on the halfway point of the "Pathway to Thrive" strategy, which was designed to solidify the company's foundation and create optionality. She emphasized that no portfolio action is off the table where it could unlock a step change in value for shareholders, including product lines, assets, or strategic partnerships. She declined to speculate on specific actions but stressed that the strategy is about creating the flexibility to make such decisions. Q: What has changed in the TSS aftermarket outlook, and why has the guidance shifted so materially from initial expectations of EBITDA growth? A: Denise Dignam (CEO) noted a significant change in market size, with aftermarket volumes down about 25% year-over-year due to a colder spring, macroeconomic uncertainty, and consumer affordability concerns. Distributors are holding back on premium products, and the company adjusted its forecast as the second quarter evolved. Shane Hostetter (CFO) added that while TT outperformed expectations, the delay in the aftermarket start was not fully offset, leading to a flatter outlook for TSS. Q: How should we view the third-quarter TSS margin guidance, and is this a one-quarter occurrence or a reset of the baseline? A: Shane Hostetter (CFO) stated that the lower margins are primarily driven by mix, specifically weaker residential and light commercial aftermarket demand for Opteon blends. He noted that Q4 margins are seasonally lower, but the company still believes TSS is a 30%-plus margin business. He expects a snapback in 2027 as aftermarket restocking occurs, which will improve mix and growth. Q: Can you size the impact of the aftermarket destocking on TSS, and how long will it take to correct? A: Shane Hostetter (CFO) quantified that there is approximately $65 million of aftermarket sales that were pulled forward into 2025 due to the AIM Act transition, which will not repeat this year. Denise Dignam (CEO) added that the correction should normalize by the end of Q1 2027, as the technology transition completes and seasonal restocking begins ahead of the next cooling season. Q: What is driving the price strength in Freon refrigerants, and is it a mix shift or like-for-like price increases? A: Shane Hostetter (CFO) clarified that the strength is due to a mix shift toward higher-priced automotive aftermarket products, which continued into Q2. He noted that the company is taking advantage of pricing opportunities in that segment, rather than raising like-for-like prices across the board. Q: What gives you confidence in a sequential step-up in EBITDA from Q3 to Q4, despite Q4 being seasonally weak? A: Shane Hostetter (CFO) pointed to strength in TT from pricing tailwinds and cost improvements, as well as APM's strong order book and improved operational performance. He noted that APM's first three quarters were impacted by higher inventory costs and the Washington Works outage, which will not repeat in Q4, leading to improved earnings. Q: How are cost curves, particularly sulfuric acid prices, impacting the TT market and facilitating price hikes? A: Denise Dignam (CEO) acknowledged that rising sulfur input costs are increasing costs for sulfate-produced TiO2, a trend that predates the war and has been exacerbated. While this hasn't led to fundamental rationalization, it is supportive of pricing. She reiterated that Chemours focuses on fair-trade markets where customers value their offerings and face less competition from Chinese producers. Q: Can you provide a bridge to the $1 billion adjusted EBITDA target, including the contribution from data center and liquid cooling opportunities? A: Shane Hostetter (CFO) highlighted that AI infrastructure end markets currently represent about 9% of TSS and APM sales, with significant growth expected. He cited continued pricing execution, volume recovery in cyclical businesses, and cost-out initiatives as key bridge items. Denise Dignam (CEO) added that liquid cooling and next-generation refrigerants are upside opportunities not yet included in the base case. Q: What is the route to market for liquid cooling products, and how will Chemours sell into the data center ecosystem? A: Denise Dignam (CEO) explained that the value chain is complex, requiring sales across multiple players. Chemours must get specified into the architecture of data center designs, work with hyperscalers, and collaborate with OEMs, similar to its approach in the refrigeration market. Sales will ultimately be made to OEMs but pulled through via specifications across the ecosystem. Q: What is driving the increase in free cash flow guidance despite lower EBITDA, and what limits the 40% conversion target? A: Shane Hostetter (CFO) noted that one-time items, such as large customer collections, are boosting free cash flow this year, but he expects the company to maintain strong conversion into 2027. He clarified that 40% is not a ceiling but a floor, with ongoing litigation payments, interest costs, taxes, and CapEx weighing on conversion. The company is focused on improving these areas to exceed the target. For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Our analysts just identified a stock with the potential to be the next Nvidia. Tell us how you invest and we'll show you why it's our #1 pick. Tap here. Management attributed the second quarter's mixed results to disciplined commercial execution and pricing strength in Titanium Technologies (TT) and Advanced Performance Materials (APM), which offset softer demand in the Thermal and Specialized Solutions (TSS) stationary aftermarket. The TSS business faced significant volume pressure as the residential and light commercial aftermarket worked through elevated inventory levels following a massive channel fill in 2025 ahead of the U.S. AIM Act transition. In APM, the Performance Solutions portfolio grew 8% year-over-year, driven by a backlog of orders for high-value specialty applications in the data center and semiconductor end markets. Management highlighted that sales into AI infrastructure—including data centers, semiconductors, and advanced electronics—now represent a high single-digit percentage of total sales across APM and TSS. The TT segment achieved approximately 5% year-to-date price increases through three global announcements, successfully outpacing inflationary headwinds and higher input costs. Operational performance in APM was impacted by the now-resolved Washington Works outage, though the business is returning to normal operating levels with a strong order book. The 'Pathway to Thrive' strategy has reached its halfway point, focusing on derisking the balance sheet through debt reduction and resolving legacy litigation with the EPA and West Virginia DEP. Third quarter guidance assumes a sequential net sales decline of mid-teens to 20% in TSS due to continued destocking and seasonal cooling trends in the Northern Hemisphere. Management expects the stationary aftermarket to begin normalizing in late 2026 as seasonal restocking commences ahead of the 2027 cooling season, eventually returning to mid- to high single-digit annual growth. Full-year 2026 adjusted EBITDA is projected between $775 million and $825 million, supported by pricing momentum in TT and operational resilience in APM's high-value end markets. The company is targeting a net leverage ratio of approximately 3.8x by year-end 2026, with a long-term goal of sustaining leverage below 3x through organic cash flow and asset sale proceeds. Strategic narrative emphasizes that 'no portfolio action is off the table,' as management explores transformational partnerships and portfolio reshaping to unlock shareholder value. The closure of the SPS Capstone line in Q3 2025 drove year-over-year volume declines in APM, though the business is shifting toward higher-margin Performance Solutions. Management noted that the stationary aftermarket volume for Opteon blends dropped approximately 25% this year compared to the prior year's pre-buy activity. Input cost inflation, particularly for sulfur and chlorine, continues to pressure the TiO2 cost curve, though management believes their optimized manufacturing circuit provides necessary flexibility. Free cash flow conversion is expected to exceed 25% for the full year, despite ongoing payments for legacy environmental settlements and plant turnaround activities. One stock. Nvidia-level potential. 30M+ investors trust Moby to find it first. Get the pick. Tap here. Management explained that the projected Q3 margin decline to the high 20s is primarily a result of unfavorable product mix due to lower high-margin aftermarket sales. They reaffirmed that TSS remains a 30%-plus margin business long-term, with recovery expected as the aftermarket restocks in 2027. Management asserted they have good visibility due to their market leadership position but noted that a colder spring and consumer affordability concerns led distributors to hold back on premium products. The volume drop was characterized as a 25% market-wide decline rather than a loss of share, following an anomalous 2025 'pre-buy' period. Current AI infrastructure exposure is high single digits of total sales, but two-phase liquid cooling represents entirely new 'upside' not yet in commercial market share. The route to market involves spec-in architecture with hyperscalers and direct sales to OEMs, with trials for two-phase products increasing 70% year-over-year. The bridge includes a mid-cycle floor for TT above $400 million, operational recovery in APM, and high single-digit growth in the TSS aftermarket. Management noted that structural cost benefits from new ore and chlorine contracts in the TT segment are not yet visible in current earnings but will contribute to this target.

WILMINGTON, Del., Aug. 4, 2026 /PRNewswire/ -- The Chemours Company ("Chemours" or "the Company") (NYSE: CC), a global chemistry company with leading market positions in Thermal & Specialized Solutions ("TSS"), Titanium Technologies ("TT"), and Advanced Performance Materials ("APM"), today announced its financial results for the second quarter 2026. Key Second Quarter 2026 Results & Recent Highlights1 Net Sales of $1.6 billion, approximately flat compared to the corresponding prior-year quarter reflecting pricing increases across all businesses Net Loss attributable to Chemours of $274 million, or $1.81 per diluted share, compared with Net Loss attributable to Chemours of $380 million, or $2.53 per diluted share, in the corresponding prior-year quarter Adjusted Net Income2 of $64 million, or $0.42 per diluted share, compared to Adjusted Net Income of $91 million, or $0.61 per diluted share, in the corresponding prior-year quarter Adjusted EBITDA2,3 of $247 million compared to $260 million in the corresponding prior-year quarter, reflecting a strong prior-year comparison from TSS aftermarket performance Free Cash Flows improved 128% year-over-year, with Free Cash Flow Conversion of 46% and net leverage declining to 4.4x, advancing Chemours toward its long-term target of sustaining leverage below 3x Announced an additional global TiO2 price increase effective June 1, 2026, contributing to an approximately 5% year-to-date TiO2 price increase in Net Sales APM Performance Solutions Net Sales grew 8% year-over-year, underscoring momentum and mix shift towards high-value specialty products serving data center and semiconductor end market "Our second quarter results reflect disciplined execution across our portfolio, with Adjusted EBITDA near the high end of our guidance range and Free Cash Flows above our expectations despite a dynamic macroeconomic environment," said Denise Dignam, Chemours President and CEO. "Progress on pricing actions in Titanium Technologies to drive value, and increased sales in APM's high-value Performance Solutions portfolio supporting our momentum serving data center and semiconductor applications, and continued traction in our liquid cooling solutions, highlight our efforts to drive commercial excellence and growth." Dignam continued, "Chemours also made meaningful progress strengthening its balance sheet through improved cash generation and reduced gross debt, while advancing resolution of notable legacy litigation. Looking ahead to the second half of the year, we remain focused on the actions within our control and committed to executing against our Pathway to Thrive strategy." Total Chemours Second quarter 2026 Net Sales were approximately $1.6 billion, a decrease of approximately 1% compared to the prior-year quarter. The year-over-year decrease in Net Sales was driven by a 4% decrease in volumes, partially offset by a 2% increase in price and a 1% currency tailwind. The volume decline was primarily driven by lower TSS Opteon™ blends aftermarket refrigerant sales, compared with elevated demand in Q2 2025 driven by the initial aftermarket channel fill associated with stationary technology AC transition under the U.S. AIM Act, as well as lower volumes associated with the APM SPS Capstone™ line closure completed in the third quarter of 2025. These volume headwinds were partially offset by pricing strength across all three segments, including price increases in TT. Second quarter 2026 Net Loss attributable to Chemours was ($274) million, or ($1.81) per diluted share, compared to Net Loss attributable to Chemours of ($380) million, or ($2.53) per diluted share, in the prior-year quarter. The prior-year second quarter loss includes the impact of the announced settlement with the State of New Jersey and related legal and environmental reserves recognized and corresponding tax impacts, while the current-year second quarter loss includes the impact of legal and environmental reserves related to the announced settlement with the EPA and WVDEP as well as ongoing litigation, and corresponding tax impacts, partially offset by a gain on the Kuan Yin property sales. Second quarter Adjusted Net Income decreased compared with the prior-year quarter, primarily due to additional income tax impacts related to the Kuan Yin property sales completed during the second quarter of 2026. Adjusted EBITDA for the second quarter of 2026 was $247 million, compared to $260 million in the prior-year quarter. The decrease was driven by the anticipated higher APM costs associated with the recently resolved outage at the Washington Works site, as well as lower sales from APM's SPS Capstone™ line closure completed in the third quarter of 2025, partially offset by pricing increases across all segments. Thermal & Specialized Solutions TSS segment second quarter 2026 Net Sales were $591 million, a decrease of 1% versus the prior-year quarter, driven by a 4% decrease in volumes, partially offset by a 2% increase in price and a slight currency tailwind. The decrease in volumes was primarily attributable to lower stationary AC aftermarket refrigerant sales of TSS Opteon™ blends in North America, compared with elevated demand in Q2 2025 driven by the initial aftermarket channel fill associated with the stationary technology AC transition under the U.S. AIM Act, partially offset by higher Freon™ prices, primarily in automotive applications. Adjusted EBITDA for the quarter increased 3% to $213 million, while Adjusted EBITDA Margin increased one point to 36%. The increase in Adjusted EBITDA was driven by higher pricing, aided by the timing of certain costs in the quarter. Sequentially, TSS Net Sales increased 4%, driven by a 5% seasonal volume increase, partially offset by mix-related pricing and currency headwinds. Titanium Technologies TT segment second quarter 2026 Net Sales were $661 million, a 1% increase compared to the prior-year quarter. The increase was driven by a 2% increase in global pricing and a 1% currency tailwind, more than offsetting a 2% decline in global volumes. Pricing increased across all regions, while the volume decline was driven by lower TiO2 sales across key end markets, with the exception of Asia, excluding China, and Latin America. TT segment second quarter 2026 Adjusted EBITDA increased to $48 million from $47 million in the prior-year quarter, while Adjusted EBITDA Margin was flat. The increase in Adjusted EBITDA was primarily driven by the global pricing strength noted above, partially offset by higher costs due to inflation. Sequentially, TT segment second quarter 2026 Net Sales increased 18%, driven by a 15% increase in global volumes and a 3% increase in price, reflecting continued execution of recent TiO2 pricing actions. Sequential price and volume increases were reflected across all regions. Advanced Performance Materials APM segment second quarter 2026 Net Sales were $326 million, a 6% decrease compared to the prior-year quarter. The decrease was driven by a 9% decrease in volumes, partially offset by a 2% increase in price and a slight currency tailwind. The volume decline was primarily driven by the APM SPS Capstone™ line closure completed in the third quarter of 2025. Performance Solutions Net Sales increased 8% year-over-year, supported by order book strength and continued momentum in high-value specialty products serving data center and semiconductor end markets. APM segment second quarter 2026 Adjusted EBITDA decreased 48% to $26 million compared to the prior-year quarter, while Adjusted EBITDA Margin decreased six percentage points to 8%. The decrease in Adjusted EBITDA was primarily driven by lower sales associated with the SPS Capstone™ line closure, as well as higher costs from the now-resolved outage at the Washington Works site. Sequentially, APM segment second quarter 2026 Net Sales increased approximately 34%, driven by a 31% increase in volumes reflecting more normalized operations at the Washington Works site and a 4% pricing uplift, partially offset by a slight currency headwind. Performance Solutions Net Sales increased 42% sequentially, reflecting continued order book strength and momentum in high-value specialty products serving data center and semiconductor end markets. Other Non-Reportable Segment The Performance Chemicals and Intermediates business in the Company's Other Non-Reportable Segment had Net Sales and Adjusted EBITDA for the second quarter 2026 of $13 million and $2 million, respectively. Corporate Expenses Corporate Expenses were $42 million in the second quarter of 2026, a decrease of approximately $4 million compared to the prior-year quarter. This was primarily due to lower costs associated with legacy litigation activities. Liquidity and Capital Allocation As of June 30, 2026, consolidated gross debt was $3.9 billion. Debt, net of $671 million in unrestricted cash and cash equivalents, was $3.2 billion, resulting in a net leverage ratio of approximately 4.4x on a trailing twelve-month Adjusted EBITDA basis. Total liquidity was $1.6 billion, comprised of $671 million in unrestricted5 cash and cash equivalents and $953 million of revolving credit facility capacity, net of outstanding letters of credit. During the quarter, the Company paid down €230 million of the outstanding tranche of the B-3 Euro-denominated Term Loan due August 2028, using a mixture of proceeds from the previously announced Kuan Yin land sale and organic cash. The Company anticipates further debt repayments in 2026. Operating cash flows for the second quarter of 2026 were $158 million, compared to $93 million in the prior-year quarter, highlighting improvements in net working capital performance. Capital expenditures for the second quarter of 2026 amounted to $44 million, an increase compared to $43 million in the prior-year quarter. Free Cash Flows for the second quarter of 2026 were $114 million, compared to $50 million in the second quarter of 2025. Third Quarter 2026 Outlook In the third quarter, the Company expects consolidated Net Sales to decrease in the range of 5% to flat, sequentially, driven by weaker Opteon™ blends aftermarket refrigerant demand in TSS, with consolidated Adjusted EBITDA expected to range between $175 million and $205 million. Corporate Expenses are expected to approximate $40 million to $45 million. The Company also anticipates capital expenditures to approximate $65 million, with Free Cash Flows of at least $50 million, reflecting the timing of payments for plant turnaround activities commencing later in the third quarter. TSS expects Net Sales will sequentially decrease in the mid-teens to 20% range, driven by less favorable seasonality in connection with the 2026 cooling season in the Northern Hemisphere and weaker Opteon™ blends aftermarket refrigerant demand in North America due to elevated market inventory levels from the initial channel fill in mid-2025. Adjusted EBITDA is expected to be between $125 million and $140 million. TT expects a sequential Net Sales increase in the low-to-mid single-digit percentage range, driven by recent pricing announcements, with stable volumes. Adjusted EBITDA is expected to range between $70 million and $80 million. APM expects a sequential Net Sales increase in the mid-to-high single digit percentage range, driven by a return to normal operating levels at the Washington Works facility and continued strength in the Performance Solutions order book in high-value specialty products primarily serving data center and semiconductor end markets. Adjusted EBITDA for APM is expected to be between $20 million and $30 million. Full Year 2026 Outlook The Company continues to expect 2026 Net Sales to grow in the range of 1% to 5% over 2025, with Adjusted EBITDA between $775 million and $825 million. Moving later into the second half, this outlook is supported by broader pricing momentum in TT with seasonal volume declines offset by anticipated cost improvements, APM's demand strength in high-value end markets supported by operational improvements driving earnings above near-term levels, and TSS aftermarket weakness driving slightly weaker earnings to end the year. Capital expenditures are anticipated to be between $250 million and $280 million, with overall Free Cash Flow Conversion above 25%, due to increased earnings and improvements in working capital throughout the year. The Company continues to anticipate achieving a net leverage ratio of around 3.8x by the end of 2026. Conference Call As previously announced, Chemours will hold a conference call and webcast on August 5, 2026, at 8:00 AM Eastern Daylight Time. The webcast and materials can be accessed by visiting the Events & Presentations page of Chemours' investor website, investors.chemours.com. A webcast replay of the conference call will be available on Chemours' investor website. 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 5,700 employees and 28 manufacturing sites and serves approximately 2,400 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 may make reference to Adjusted Net Income, Adjusted EPS, Adjusted EBITDA, Free Cash Flows, Free Cash Flow Conversion, Total Debt Principal, Net and Net Leverage Ratio 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 Net Income, Adjusted EPS and Adjusted EBITDA, which adjust 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 Flows, Free Cash Flow Conversion, Total Debt Principal, Net and Net Leverage Ratio are 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 certain 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. For more information on the non-GAAP financial measures, please refer to the attached schedules or the table, "Reconciliation of GAAP Financial Measures to Non-GAAP Financial Measures (Unaudited)" and materials posted to the Company's website at investors.chemours.com. 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 on Company and segment performance for the third quarter of 2026, the full year 2026 and the Company's corporate strategy. Forward-looking statements are based on certain assumptions and expectations of future events that may not be accurate or realized, such as guidance relying on models based upon management assumptions regarding future events that are inherently uncertain. These statements are not guarantees of future performance. Forward-looking statements also involve risks and uncertainties including the outcome or resolution of any pending or future environmental liabilities, the commencement, outcome or resolution of any regulatory inquiry, investigation or proceeding, the initiation, outcome or settlement of any litigation, our ability to maintain an effective internal control over financial reporting and disclosure controls and procedures, changes in environmental regulations in the United States or other jurisdictions that affect demand for or adoption of our products, changes in regulations in the United States or other jurisdictions that could impose tariffs or additional costs on products we either sell or need to purchase, anticipated future operating and financial performance for our segments individually and our company as a whole, business plans, prospects, targets, goals and commitments, capital investments and projects and target capital expenditures, efforts to resolve outstanding or potential litigation, including claims related to legacy PFAS liabilities, plans for dividends, sufficiency or longevity of intellectual property protection, cost reductions or savings targets, plans to increase profitability and growth, our ability to develop and commercialize new products or technologies and obtain necessary regulatory approvals, our ability to make acquisitions, integrate acquired businesses or assets into our operations, and achieve anticipated synergies or cost savings, all of which are subject to substantial risks and uncertainties that could cause actual results to differ materially from those expressed or implied by such statements. These statements also may involve risks and uncertainties that are beyond Chemours' control. Matters outside our control, including general economic conditions, geopolitical conditions, global conflicts, changes in laws and regulations in the United States or other jurisdictions in which we operate, and global health events and weather events, 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, 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 Quarterly Report on Form 10-Q for the quarter ended June 30, 2026 and the Annual Report on Form 10-K for the year ended December 31, 2025. Chemours assumes no obligation to revise or update any forward-looking statement for any reason, except as required by law. CONTACTS: INVESTORS Brandon Ontjes Vice President, Head of Strategy & Investor Relations [email protected] NEWS MEDIA Cassie OlszewskiMedia Relations & Reputation Leader [email protected] Short-term and current maturities of long-term debt3442Current environmental remediation12488Other accrued liabilities683506Total current liabilities1,8611,686Long-term debt, net3,8384,099Operating lease liabilities191191Long-term environmental remediation671530Deferred income taxes6437Other liabilities573588Total liabilities7,1987,131Commitments and contingent liabilitiesEquityCommon stock (par value $0.01 per share; 810,000,000 shares authorized; 199,276,562 shares issued and 150,463,268 shares outstanding at June 30, 2026; 198,720,786 shares issued and 149,893,993 shares outstanding at December 31, 2025)22Treasury stock, at cost (48,813,294 shares at June 30, 2026 and 48,826,793 at December 31, 2025)(1,801)(1,802)Additional paid-in capital1,0881,074Retained earnings8911,220Accumulated other comprehensive loss(229)(244)Total Chemours stockholders' equity(49)250Non-controlling interests11Total equity(48)251Total liabilities and equity$7,150$7,382 The Chemours CompanyReconciliation of GAAP Financial Measures to Non-GAAP Financial Measures (Unaudited)(Dollars in millions) GAAP Net Loss Attributable to Chemours to Adjusted Net Income and Adjusted EBITDA Reconciliation GAAP Net Leverage Ratio to Non-GAAP Net Leverage Ratio Reconciliation1 Adjusted earnings before interest, taxes, depreciation, and amortization ("Adjusted EBITDA") is defined as income (loss) before income taxes, excluding the following items: interest expense, depreciation, and amortization; non-operating pension and other post-retirement employee benefit costs, which represents the components of net periodic pension costs excluding the service cost component; exchange (gains) losses included in other income (expense), net; restructuring, asset-related, and other charges; (gains) losses on sales of businesses or assets; and, other items not considered indicative of the Company's ongoing operational performance and expected to occur infrequently, including certain litigation related and environmental charges and Qualified Spend reimbursable by DuPont and/or Corteva as part of the Company's cost-sharing agreement under the terms of the MOU that were previously excluded from Adjusted EBITDA. Adjusted Net Income is defined as net income (loss) attributable to Chemours, adjusted for items excluded from Adjusted EBITDA, except interest expense, depreciation, amortization, and certain provision for (benefit from) income tax amounts. Net Leverage Ratio is defined as our total debt principal, net, or our total debt principal outstanding less unrestricted cash and cash equivalents, divided by Adjusted EBITDA. The Chemours CompanyReconciliation of GAAP Financial Measures to Non-GAAP Financial Measures (Unaudited)(Dollars in millions, except per share amounts) GAAP Earnings per Share to Adjusted Earnings per Share Reconciliation1 Adjusted earnings per share ("Adjusted EPS") is calculated by dividing Adjusted Net Income by the weighted-average number of common shares outstanding. Diluted Adjusted EPS accounts for the dilutive impact of stock-based compensation awards, which include unvested restricted shares. Diluted Adjusted EPS considers the impact of potentially-dilutive securities, except in periods in which there is a loss because the inclusion of the potentially-dilutive securities would have an anti-dilutive effect. The Chemours CompanyReconciliation of GAAP Financial Measures to Non-GAAP Financial Measures (Unaudited)(Dollars in millions, except per share amounts) GAAP Cash Flow Provided by Operating Activities to Free Cash Flows and Free Cash Flow Conversion Reconciliation Free Cash Flows is defined as cash flows provided by (used for) operating activities, less purchases of property, plant and equipment as shown in the consolidated statements of cash flows. Free Cash Flow Conversion is calculated as the percentage of Free Cash Flows to Adjusted EBITDA. 2026 Estimated GAAP Cash Flow Provided by Operating Activities to Estimated Free Cash Flows and Estimated Free Cash Flow Conversion Reconciliation (1) Free Cash Flows is defined as cash flows provided by operating activities, less purchases of property, plant and equipment as shown in the consolidated statements of cash flows. Free Cash Flow Conversion is calculated as the percentage of Free Cash Flows to Adjusted EBITDA. View original content to download multimedia:https://www.prnewswire.com/news-releases/the-chemours-company-reports-second-quarter-results-302842961.html

Chemours (CC) reported $1.59 billion in revenue for the quarter ended June 2026, representing a year-over-year decline of 1.5%. EPS of $0.42 for the same period compares to $0.58 a year ago. The reported revenue compares to the Zacks Consensus Estimate of $1.67 billion, representing a surprise of -4.97%. The company delivered an EPS surprise of -2.33%, with the consensus EPS estimate being $0.43. While investors scrutinize revenue and earnings changes year-over-year and how they compare with Wall Street expectations to determine their next move, some key metrics always offer a more accurate picture of a company's financial health. Since these metrics play a crucial role in driving the top- and bottom-line numbers, comparing them with the year-ago numbers and what analysts estimated about them helps investors better project a stock's price performance. Here is how Chemours performed in the just reported quarter in terms of the metrics most widely monitored and projected by Wall Street analysts: Net Sales- Thermal & Specialized Solutions: $591 million versus $666.16 million estimated by four analysts on average. Compared to the year-ago quarter, this number represents a -1% change. Net Sales- Titanium Technologies: $661 million compared to the $661.68 million average estimate based on four analysts. The reported number represents a change of +0.6% year over year. Net Sales- Other Non-Reportable Segment: $13 million compared to the $12.89 million average estimate based on four analysts. Net Sales- Advanced Performance Materials: $326 million versus $333.42 million estimated by four analysts on average. Compared to the year-ago quarter, this number represents a -5.8% change. Adjusted EBITDA- Titanium Technologies: $48 million versus the four-analyst average estimate of $45.65 million. Adjusted EBITDA- Thermal & Specialized Solutions: $213 million versus the four-analyst average estimate of $224.96 million. Adjusted EBITDA- Advanced Performance Materials: $26 million versus $15.08 million estimated by four analysts on average. Adjusted EBITDA- Other Non-Reportable Segment: $2 million versus the three-analyst average estimate of $2.69 million. View all Key Company Metrics for Chemours here>>> Shares of Chemours have returned -5.9% over the past month versus the Zacks S&P 500 composite's +1.7% change. The stock currently has a Zacks Rank #2 (Buy), indicating that it could outperform the broader market in the near term. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report The Chemours Company (CC) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

Chemours (CC) came out with quarterly earnings of $0.42 per share, missing the Zacks Consensus Estimate of $0.43 per share. This compares to earnings of $0.58 per share a year ago. These figures are adjusted for non-recurring items. This quarterly report represents an earnings surprise of -2.33%. A quarter ago, it was expected that this chemical company would post a loss of $0.05 per share when it actually produced earnings of $0.05, delivering a surprise of +200%. Over the last four quarters, the company has surpassed consensus EPS estimates two times. Chemours, which belongs to the Zacks Chemical - Diversified industry, posted revenues of $1.59 billion for the quarter ended June 2026, missing the Zacks Consensus Estimate by 4.97%. This compares to year-ago revenues of $1.62 billion. The company has topped consensus revenue estimates just once over the last four quarters. The sustainability of the stock's immediate price movement based on the recently-released numbers and future earnings expectations will mostly depend on management's commentary on the earnings call. Chemours shares have added about 45.1% since the beginning of the year versus the S&P 500's gain of 11%. While Chemours has outperformed the market so far this year, the question that comes to investors' minds is: what's next for the stock? There are no easy answers to this key question, but one reliable measure that can help investors address this is the company's earnings outlook. Not only does this include current consensus earnings expectations for the coming quarter(s), but also how these expectations have changed lately. Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions. Investors can track such revisions by themselves or rely on a tried-and-tested rating tool like the Zacks Rank, which has an impressive track record of harnessing the power of earnings estimate revisions. Ahead of this earnings release, the estimate revisions trend for Chemours was favorable. While the magnitude and direction of estimate revisions could change following the company's just-released earnings report, the current status translates into a Zacks Rank #2 (Buy) for the stock. So, the shares are expected to outperform the market in the near future. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here. It will be interesting to see how estimates for the coming quarters and the current fiscal year change in the days ahead. The current consensus EPS estimate is $0.49 on $1.58 billion in revenues for the coming quarter and $1.18 on $6.05 billion in revenues for the current fiscal year. Investors should be mindful of the fact that the outlook for the industry can have a material impact on the performance of the stock as well. In terms of the Zacks Industry Rank, Chemical - Diversified is currently in the top 40% of the 250 plus Zacks industries. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1. One other stock from the same industry, Kronos Worldwide (KRO), is yet to report results for the quarter ended June 2026. The results are expected to be released on August 5. This maker of titanium dioxide pigments is expected to post quarterly loss of $0.04 per share in its upcoming report, which represents a year-over-year change of +50%. The consensus EPS estimate for the quarter has remained unchanged over the last 30 days. Kronos Worldwide's revenues are expected to be $520.34 million, up 5.3% from the year-ago quarter. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report The Chemours Company (CC) : Free Stock Analysis Report Kronos Worldwide Inc (KRO) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research