Chemours raises Q2 outlook on strong refrigerant demand

Published 18/06/2025, 11:50
Chemours raises Q2 outlook on strong refrigerant demand

WILMINGTON, Del. - The Chemours Company (NYSE:CC), currently trading at $10.74 and showing signs of being undervalued according to InvestingPro analysis, expects second-quarter 2025 sales to be at the high end of its original forecast, now projecting a sequential mid-teens increase, according to a company press release. The chemical manufacturer, with a market capitalization of $1.6 billion, has seen its stock decline by over 52% in the past year.

The chemical manufacturer’s Thermal & Specialized Solutions segment anticipates approximately 25% sequential growth in net sales, driven by strong demand for Opteon refrigerants connected to the U.S. AIM Act’s requirements for low global warming potential refrigerants. This segment also 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.

However, the company’s Titanium Technologies segment faces challenges. While sales are expected to align with high single-digit growth projections, Adjusted EBITDA is projected to decline approximately 15% sequentially due to operational disruptions at U.S. sites. These issues include a rail line service interruption that forced the company to use higher-cost ore feedstock, resulting in approximately $15 million in incremental costs. Other one-time operational disruptions are expected to cost approximately $10 million in the quarter.

Chemours now projects consolidated Adjusted EBITDA between $215 million and $225 million for the second quarter, with positive free cash flow. Corporate costs are expected to be slightly higher than initially forecast due to an ongoing trial in New Jersey.

The company plans to provide a more comprehensive update during its second-quarter earnings announcement, scheduled for July 24, 2025. Eight analysts have recently revised their earnings expectations downward, according to InvestingPro, which offers 10+ additional exclusive insights and a detailed Pro Research Report for Chemours, helping investors make more informed decisions ahead of the earnings release.

In other recent news, The Chemours Company has reported several significant developments. Chemours announced a strategic partnership with DataVolt to enhance data center efficiency through innovative liquid cooling technologies, utilizing their Opteon™ dielectric fluids. Another collaboration with Navin Fluorine aims to manufacture a cooling fluid for data centers, set to commence in 2026, emphasizing sustainable solutions with reduced environmental impact. In leadership changes, Chemours appointed Matthew Conti as Chief Human Resources Officer and Nathan Blom as Vice President of its liquid cooling portfolio, strengthening their executive team.

Analyst firm Truist Securities recently adjusted its price target for Chemours to $20 while maintaining a Buy rating, following the company’s first-quarter earnings report for 2025. The earnings for Chemours’ Titanium Dioxide segment were below consensus estimates, though the company anticipates improvement due to cost reductions later in the year. Despite a dividend cut, Chemours expects to return to positive free cash flow in the second quarter, with continued success in its Opteon product line, which maintains margins above 30%. These developments reflect Chemours’ ongoing efforts to innovate and expand its market presence.

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