• Consolidated Net Sales (Q4 2024): Approximately $1.4 billion, down 1% year-over-year.
• Adjusted EBITDA (Q4 2024): Increased to $179 million from $176 million in the prior year.
• Net Loss (Q4 2024): $8 million or $0.05 per diluted share, compared to a net loss of $18 million or $0.12 per diluted share in the prior year.
• Adjusted Net Income (Q4 2024): $16 million or $0.11 per diluted share, down from $46 million or $0.31 per diluted share in the prior year.
• Consolidated Net Sales (Full Year 2024): Approximately $5.8 billion, down 5% year-over-year.
• Adjusted EBITDA (Full Year 2024): $786 million, down from $1 billion in the prior year.
• Net Income (Full Year 2024): $86 million or $0.57 per diluted share, compared to a net loss of $238 million or $1.60 per diluted share in the prior year.
• Adjusted Net Income (Full Year 2024): $182 million or $1.21 per diluted share, down from $425 million or $2.82 per diluted share in the prior year.
• TSS Net Sales (Q4 2024): $390 million, a 3% increase year-over-year.
• TT Net Sales (Q4 2024): $632 million, a 3% decrease year-over-year.
• APM Net Sales (Q4 2024): $324 million, a 1% decline year-over-year.
• Cash Provided by Operating Activities (Q4 2024): $138 million, compared to $482 million in the prior year quarter.
• Capital Expenditures (Q4 2024): $109 million, compared to $135 million in the prior year.
• Dividends Paid (Q4 2024): $36 million.
• Gross Debt (as of Dec 31, 2024): $4.2 billion.
• Total Liquidity (as of Dec 31, 2024): Approximately $1.4 billion.

• Warning! GuruFocus has detected 5 Warning Signs with CC.

Release Date: February 18, 2025

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Positive Points

• The Chemours Co (NYSE:CC) exceeded its adjusted EBITDA expectations for the fourth quarter, demonstrating strong operational performance.
• The TSS business achieved a quarterly sales record, driven by 23% year-over-year growth in Opteon refrigerants.
• The company completed an expansion at its Corpus Christi site to support increased demand for Opteon refrigerants.
• The TT Transformation Plan yielded approximately $140 million in annual savings, exceeding the initial target of $125 million.
• The Chemours Co (NYSE:CC) fully remediated its four material weaknesses in internal control, marking significant progress in strengthening its long-term strategic pillar.

Negative Points

• Consolidated net sales for the fourth quarter were down 1% compared to the prior year, driven by a 3% decline in pricing.
• The company reported a net loss of $8 million for the fourth quarter, compared to a net loss of $18 million in the prior year.
• Full-year consolidated net sales decreased by 5% compared to the prior year, impacted by pricing decreases and portfolio changes.
• Adjusted EBITDA for the full year decreased to $786 million from $1 billion in the prior year, due to pricing decreases and higher costs.
• The APM segment experienced a 9% decline in net sales for the full year, driven by weaker demand in economically sensitive end markets.

Q & A Highlights

Q: Can you explain the bridge from 2024 to 2025 EBITDA guidance, considering the one-time costs in 2024? A: Denise Dignam, President and CEO, highlighted the transition to low GWP technology and green shoots in the TT business as key drivers for 2025. Shane Hostetter, CFO, noted that while there were one-time costs in 2024, operational headwinds are expected in Q1 2025. However, these are not anticipated to recur, and the company is focused on cost reduction and Opteon adoption.

Q: What are the expectations for the TT business, given the mention of green shoots despite no volume improvement? A: Denise Dignam explained that the green shoots refer to share gains in Europe and a decline in Chinese exports of high-purity TiO2. The regional mix impact is temporary, and the company expects improvement as the seasonal coatings market in the US picks up.

Q: How does Chemours view the supply picture for TiO2, especially regarding potential capacity additions in China? A: Denise Dignam stated that Chemours does not anticipate significant supply increases and is cautiously optimistic about demand. The company expects utilization rates to depend on macroeconomic conditions and does not foresee large capacity additions.

Q: Can you provide insights into the cost savings from the TT transformation plan and potential upside in the new cost savings plan? A: Shane Hostetter noted that the TT transformation plan exceeded targets due to manufacturing cost reductions. The Pathway to Thrive strategy aims for $250 million in cost savings, and the company is focused on achieving and potentially exceeding these targets.

Q: What are the expectations for free cash flow in 2025, and will it be positive even at the low end of EBITDA guidance? A: Shane Hostetter confirmed that Chemours expects positive free cash flow, sufficient to cover CapEx and dividends. The company is committed to balancing spending and optimizing working capital to ensure positive cash flow even at the lower end of guidance.

For the complete transcript of the earnings call, please refer to the full earnings call transcript.