CC Sees Gains From Opteon Growth in Q2, Navigates Disruptions in TT

The Chemours Company CC updated its second-quarter 2025 outlook ending June 30. CC expects consolidated net sales for the second quarter to be at the high end of the original range, expecting a sequential mid-teens increase.

Thermal & Specialized Solutions (“TSS”) segment anticipates around a 25% sequential increase in net sales due to stronger demand for Opteon Refrigerants from the transition to low global warming potential refrigerants under the U.S. AIM Act. Based on higher demand, it also expects a sequential increase of roughly 40% in adjusted EBITDA.

In contrast to this, the Titanium Technologies (“TT”) segment projects a 15% sequential decline in its adjusted EBITDA. Overall net sales are expected to be in line with high single-digit growth expectations. The expected decline in adjusted EBITDA can be attributed to operational disruptions at its U.S. site that resulted in incremental costs of approximately $15 million in the second quarter from higher-cost ore feedstock to fulfill customer orders due to the rail line disruption. Other one-time operational disruptions are expected to cost approximately $10 million in the quarter.

Advanced Performance Materials (“APM”) segment’s net sales are predicted to be within the original expectations of low teens sequential growth, while adjusted EBITDA is expected to increase around 25% sequentially due to stronger overall cost performance.

CC’s focus on resolving legacy litigation, under the Strengthening the Long-Term pillar, is anticipated to result in a modestly higher expectation of corporate costs in connection with the ongoing New Jersey trial. Consolidated adjusted EBITDA is now expected to be in the range of $215 million to $225 million, with consolidated free cash flow projected to remain positive in the second quarter.

CC stock has lost 51.5% over the past year compared with the industry’s 24.7% decline.

CC’s Zacks Rank & Key Picks

CC currently carries a Zacks Rank #5 (Strong Sell).

Some better-ranked stocks in the Basic Materials space are Akzo Nobel N.V. AKZOY, Newmont Corporation NEMand Balchem Corporation BCPC. While AKZOY and NEM currently sport a Zacks Rank #1 (Strong Buy), BCPC carries a Zacks Rank #2 (Buy) each. You can see the complete list of today’s Zacks #1 Rank stocks here.

The Zacks Consensus Estimate for Akzo Nobel’s current-year earnings is pegged at $1.67 per share, implying a 19.3% year-over-year increase. Its earnings beat the Zacks Consensus Estimate in three of the trailing four quarters while missing once.

The Zacks Consensus Estimate for NEM’s current-year earnings is pegged at $4.18 per share, indicating a 20.1% year-over-year rise.Its earnings beat the Zacks Consensus Estimate in three of the trailing four quarters and missed once, with an average surprise of 32.41%. NEM’s shares have gained 39.6% in the past year.

The Zacks Consensus Estimate for BCPC’s 2025 earnings is pegged at $5.15 per share, indicating a rise of 31% from year-ago levels. The company’s earnings beat the consensus estimate in two of the trailing four quarters while missing the rest. Its shares have gained 3.5% in the past year.

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