WILMINGTON, DE — The Chemours Company (NYSE: CC) reported stronger second-quarter sales and adjusted earnings but swung to a net loss after booking charges tied to a $250 million settlement with the State of New Jersey over PFAS-related environmental claims.
Net sales for the quarter reached $1.6 billion, up 4% from a year earlier, driven by higher volumes of Opteon™ refrigerants in its Thermal & Specialized Solutions (TSS) unit and firm pricing in Advanced Performance Materials (APM). Adjusted EBITDA rose 22% to $253 million, while adjusted net income climbed to $87 million, or $0.58 per share, from $58 million, or $0.38, last year.
The GAAP bottom line was weighed down by litigation costs, with Chemours posting a $381 million net loss, or $2.54 per share, compared with a $60 million profit in the prior-year period. The settlement, announced August 4 with DuPont and Corteva, resolves all statewide environmental claims in New Jersey, including those involving PFAS, and covers four current and former operating sites. Payments will be spread over 25 years, with funding largely secured through insurance proceeds and released escrow accounts.
Segment Performance
- TSS: Sales jumped 15% to $597 million, fueled by an 11% rise in volumes and 4% higher prices, as the U.S. AIM Act’s stationary AC transition drove strong Opteon™ demand. Adjusted EBITDA surged 29% to $207 million, with margins improving to 35%.
- Titanium Technologies (TT): Sales slipped 3% to $657 million on softer pricing, though volumes held steady. Adjusted EBITDA dropped 43% to $47 million, as pricing pressure, operational disruptions, and higher ore costs offset currency gains.
- APM: Sales were flat at $346 million, as a 6% price increase balanced a 6% volume decline amid weakness in cyclical and hydrogen markets. Adjusted EBITDA rose 11% to $50 million, supported by stronger pricing in high-value applications.
Chemours ended the quarter with $1.5 billion in liquidity, including $502 million in cash, and a net leverage ratio of 4.7x trailing 12-month adjusted EBITDA. Operating cash flow swung to a positive $93 million from a $620 million outflow last year, boosted by the release of restricted cash linked to a prior water-system settlement.
The board declared a quarterly dividend of $0.0875 per share, payable September 12 to shareholders of record on August 15.
Outlook
For the third quarter, Chemours expects sales to decline 4–6% sequentially, with adjusted EBITDA between $175 million and $195 million. Operational issues in TT and a site outage in APM are expected to cut Q3 earnings by about $35 million but should be resolved in the fourth quarter.
For the full year, the company reaffirmed guidance for $5.9–$6.0 billion in sales and $775–$825 million in adjusted EBITDA, with capital spending near $250 million and free cash flow conversion of 60–80% in the second half.
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