Chemours' Q1 Earnings Miss Estimates, Revenues Increase Y/Y

The Chemours Company CC reported a net loss of $4 million or 3 cents per share for first-quarter 2025 in contrast to the year-ago quarter's net income of $54 million or 36 cents.

Barring one-time items, earnings were 13 cents per share. The metric fell short of the Zacks Consensus Estimate of 19 cents per share.

The company reported first-quarter net sales of $1,368 million, reflecting a 1.3% rise from the previous-year quarter. It also beat the Zacks Consensus Estimate of $1,355.2 million. A gain of 5% in volume largely offset the 4% drop in pricing and a negative currency impact of 1%.

Adjusted EBITDA declined 13% year over year to $166 million for the quarter. The slump in adjusted EBITDA was primarily due to lower pricing across business segments caused by Freon weakness in Thermal & Specialized Solutions and regional pricing dynamics in Titanium Technologies.

(Find the latest EPS estimates and surprises on Zacks Earnings Calendar.)

The Chemours Company Price, Consensus and EPS Surprise

The Chemours Company price-consensus-eps-surprise-chart | The Chemours Company Quote

CC’s Segment Highlights

The Titanium Technologies division recorded revenues of $597 million in the quarter, marking a 1% increase from the previous year. The figure surpassed our estimate of $579.2 million. This increase was primarily due to a 6% increase in volumes, partially offset by a 4% decrease in price, with a slight 1% headwind in currency.

In the Thermal & Specialized Solutions segment, revenues saw a 3% year-over-year increase, reaching $466 million in the reported quarter. The figure missed our estimate of $479.2 million. Net sales growth was mainly driven by a 10% increase in volume, slightly offset by a 6% fall in price, while the currency was impacted by a headwind of 1%. Volume growth was driven by increased demand for Opteon Refrigerant blends in connection with the US AIM Act's new low-GWP stationary air conditioning equipment transition. The pricing decrease was mostly due to lower Freon Refrigerant prices as a result of increased market hydrofluorocarbon inventories.

Revenues in the Advanced Performance Materials unit amounted to $294 million, marking a decline of approximately 3% year over year. However, the figure beat our estimate of $289.4 million. The decline in sales was largely caused by a 1% drop in volume, partly due to weakness in cyclical end markets and 2% currency headwind, while the pricing impact was flat.

CC’s Financials

Cash used by operating activities in the first quarter of 2025 was $112 million compared with $290 million in the prior-year quarter. Capital expenditures for the first quarter of 2025 were $84 million compared with $102 million in the previous-year quarter due to lower capital expenditures in each business. The company has reduced its dividend by 65% to $0.0875 per share to align with its capital allocation strategy.

CC’s Outlook

The company expects consolidated net sales to increase in the low to mid-teens sequentially in the second quarter. Adjusted EBITDA is also expected to increase within a range of 40% to 45%. Free cash flow is expected to be positive and capital expenditures are forecasted to be $50 million.

The company expects full-year 2025 adjusted EBITDA between $825 million and $950 million. Capital expenditures are expected to be between $225 million and $275 million.

CC Stock’s Price Performance

Shares of Chemours have lost 61.4% in the past year compared with the industry’s decline of 28.3%.

CC’s Zacks Rank & Key Picks

CC currently carries a Zacks Rank #4 (Sell).

Some better-ranked stocks in the Basic Materials space are Brenntag SE BNTGY, Contango Ore, Inc. CTGO and Avino Silver & Gold Mines Ltd. ASM. While BNTGY and CTGO sport a Zacks Rank #1 (Strong Buy) each, ASM carries a Zacks Rank #2 (Buy) at present. You can see the complete list of today’s Zacks #1 Rank stocks here.

BNTGY is slated to report first-quarter results on May 14. The Zacks Consensus Estimate for Brenntag’sfirst-quarter earnings is pegged at 24 cents per share.

Contango is scheduled to report first-quarter results on May 14. The Zacks Consensus Estimate for CTGO’s first-quarter earnings is pegged at a loss of 32 cents per share. CTGO’s earnings beat the Zacks Consensus Estimate in three of the trailing four quarters while missing in one, with the average surprise being 213.7%.

Avino Silver & Gold Mines is slated to release first-quarter results on May 13. The consensus estimate for ASM’s first-quarter earnings is pegged at 3 cents per share. ASM delivered a trailing four-quarter earnings surprise of 94.4%, on average. 

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