Chemours stock rises on strong refrigerant demand, raises Q2 outlook

Published 18/06/2025, 12:40
Chemours stock rises on strong refrigerant demand, raises Q2 outlook

The Chemours Company (NYSE:CC), whose stock has declined over 36% in the past six months according to InvestingPro data, raised its second-quarter 2025 outlook on Wednesday, citing stronger-than-expected performance in its refrigerant business and cost improvements in its advanced materials segment. The company, currently trading below its Fair Value based on InvestingPro’s analysis, maintains a market capitalization of $1.6 billion.

The global chemistry company now expects consolidated second-quarter net sales to increase by mid-teens sequentially, reaching the high end of its original forecast range. Consolidated adjusted EBITDA is projected to range between $215 and $225 million, with positive free cash flow for the quarter. This outlook comes as the company operates with a significant debt burden, with a debt-to-equity ratio of 7.57x as of Q1 2025.

Chemours’ Thermal & Specialized Solutions segment anticipates approximately 25% sequential growth in net sales, driven by strong demand for Opteon refrigerants as the U.S. transitions to low global warming potential options under the AIM Act. The segment projects a sequential increase in adjusted EBITDA of nearly 40%.

The Advanced Performance Materials segment expects adjusted EBITDA to increase nearly 25% sequentially due to stronger cost performance, while maintaining its original net sales growth expectation in the low teens. The Titanium Technologies segment anticipates meeting its high single-digit sales growth target but projects a 15% sequential decline in adjusted EBITDA.

The adjusted EBITDA decline in Titanium Technologies stems from operational disruptions at U.S. sites, primarily a rail line service interruption that forced the company to use higher-cost ore feedstock, resulting in approximately $15 million in incremental costs. Other operational disruptions added approximately $10 million in costs for the quarter. With an overall Financial Health score of "FAIR" from InvestingPro, which offers 10+ additional exclusive insights and a comprehensive Pro Research Report for this stock, investors should closely monitor these operational challenges and their impact on future performance.

In other recent news, The Chemours Company has raised its second-quarter 2025 sales outlook, anticipating a mid-teens increase, driven by strong demand for Opteon refrigerants. The Thermal & Specialized Solutions segment projects a 25% sequential growth in net sales and a nearly 40% rise in Adjusted EBITDA. However, the Titanium Technologies segment faces challenges, with expected high single-digit sales growth but a 15% decline in Adjusted EBITDA due to operational disruptions. Chemours forecasts consolidated Adjusted EBITDA between $215 million and $225 million for the second quarter, with positive free cash flow.

In leadership changes, Matthew Conti has been appointed as Chief Human Resources Officer, bringing over 20 years of HR experience. Additionally, Nathan Blom has been named Vice President of the liquid cooling portfolio, a strategic move to support growth in this market. Chemours has also partnered with DataVolt to enhance data center efficiency with innovative liquid cooling technologies. Truist Securities has lowered Chemours’ stock price target to $20 but maintains a Buy rating, noting the company’s expected financial improvements and continued success with its Opteon product line.

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