WILMINGTON, Del.–(BUSINESS WIRE)–$CC–The Chemours Company (“Chemours” or “the Company”) (NYSE: CC), a global chemistry company with leading market positions in Thermal & Specialized Solutions (“TSS”), Titanium Technologies (“TT”), and Advanced Performance Materials (“APM”), today announced its financial results for the fourth quarter and full year 2024.
Key Fourth Quarter 2024 Results & Highlights
- Net Sales of $1.4 billion, in line with the corresponding prior-year quarter, with TSS achieving record fourth quarter Net Sales, driven by year-over-year growth of 23% in Opteon™ Refrigerants
- Net Loss attributable to Chemours of $8 million, or $0.05 per diluted share, compared with a Net Loss attributable to Chemours of $18 million, or $0.12 per diluted share, in the corresponding prior-year quarter
- Adjusted Net Income1 of $16 million, or $0.11 per diluted share, compared with $46 million, or $0.31 per diluted share, in the corresponding prior-year quarter
- Adjusted EBITDA1,2 of $179 million compared to $176 million in the corresponding prior-year quarter
- Cash returned to shareholders through dividends of $36 million in the quarter
Key Full Year 2024 Results & Highlights
- Net Sales of $5.8 billion compared to $6.1 billion in the prior year
- Net Income attributable to Chemours of $86 million, or $0.57 per diluted share, compared with a Net Loss attributable to Chemours of $238 million, or $1.60 per diluted share, in the prior year3
- Adjusted Net Income1 of $182 million, or $1.21 per diluted share, compared to $425 million, or $2.82 per diluted share, in the prior year3
- Adjusted EBITDA1,2 of $786 million compared to $1.0 billion in the prior year
- Cash returned to shareholders through dividends of $148 million in the year
- Established new executive leadership team and announced Chemours’ Pathway to Thrive strategy to drive shareholder value
- Announced PCC Group’s plans to build a chlor-alkali facility at Chemours’ TiO2 plant in DeLisle, Mississippi and completed our planned Opteon™ YF expansion at Corpus Christi, Texas
- Fully remediated all four material weaknesses in internal control previously identified in the 2023 Form 10-K
Full Year 2025 Outlook4
- Adjusted EBITDA between $825 million and $975 million
- Capital expenditures between $250 million to $300 million
“In the fourth quarter, we delivered a strong earnings performance, exceeding our Adjusted EBITDA expectations across all our businesses. For TSS5, we set another quarterly Net Sales record, with 23% year-over-year growth in Opteon™ Refrigerants. In parallel, we continued to drive strong commercial performance while executing our transformation efforts in TT, and we took advantage of cost opportunities in APM,” said Denise Dignam, Chemours President and CEO. “We are well underway executing our Pathway to Thrive strategy, as evidenced by our recent strong performance, leadership announcements, partner agreement for on-site chlorine production at our DeLisle TiO2 facility, and the recent completion of the neat Opteon™ capacity expansion at our Corpus Christi, Texas site. While 2024 was a year of transition for Chemours, with a refreshed management team and strategy, we have the right pieces in place to move forward. Our Pathway to Thrive strategy is the key to driving long-term shareholder value, and our progress through the end of the year reinforces that confidence for 2025 and beyond.”
Total Chemours
|
Q4 2024 |
Q4 2023 |
Y-o-Y % ∆ |
Q3 2024 |
Q-o-Q % ∆ |
FY 2024 |
FY 2023 |
Y-o-Y % ∆ |
||||||||
|
Net Sales (millions) |
$1,359 |
$1,368 |
(1)% |
$1,508 |
(10)% |
$5,782 |
$6,078 |
(5)% |
|||||||
|
Adjusted EBITDA (millions) |
$179 |
$176 |
2% |
$208 |
(14)% |
$786 |
$1,014 |
(22)% |
Fourth quarter 2024 Net Sales of $1.4 billion decreased 1% compared to the prior-year quarter. A 3% decrease in pricing was partially offset by a 2% increase in volume, while currency impact remained flat.
Fourth quarter 2024 Net Loss attributable to Chemours was $8 million, or $0.05 per diluted share, compared to a Net Loss attributable to Chemours of $18 million, or $0.12 per diluted share, in the prior-year quarter. Adjusted EBITDA for the fourth quarter of 2024 was $179 million, compared to $176 million in the prior-year quarter. The increase in Adjusted EBITDA was primarily driven by cost savings realized through the TT Transformation Plan, favorable inventory adjustments and true-ups in APM, and increased volumes in TSS, partially offset by lower pricing across all businesses.
Full year 2024 Net Sales of $5.8 billion decreased 5% compared to the prior year, driven by a 4% pricing decrease and a 1% decrease due to portfolio changes made during 2023. Increases in volume from TSS and TT were offset by weaker volumes in APM with the impact from currency flat year-over-year.
Full year 2024 Net Income attributable to Chemours was $86 million, or $0.57 per diluted share, compared to a Net Loss attributable to Chemours of $238 million, or $1.60 per diluted share, in the prior year3. Adjusted EBITDA for the full year 2024 was $786 million, compared to $1.0 billion in the prior year. The decrease in Adjusted EBITDA was primarily driven by pricing decreases across all businesses, unfavorable impacts from currency, and portfolio changes, in addition to higher costs in TSS and Corporate Expenses related to the Audit Committee’s internal review and remediation, which were more than offset by cost savings realized through the TT Transformation Plan.
Thermal & Specialized Solutions
|
Q4 2024 |
Q4 2023 |
Y-o-Y % ∆ |
Q3 2024 |
Q-o-Q % ∆ |
FY 2024 |
FY 2023 |
Y-o-Y % ∆ |
||||||||
|
Net Sales (millions) |
$390 |
$380 |
3% |
$468 |
(17)% |
$1,830 |
$1,851 |
(1)% |
|||||||
|
Opteon™ Refrigerants |
$178 |
$145 |
23% |
$205 |
(13)% |
$810 |
$710 |
14% |
|||||||
|
Freon™ Refrigerants |
$124 |
$141 |
(12)% |
$146 |
(15)% |
$614 |
$722 |
(15)% |
|||||||
|
Foam, Propellants & Other (FP&O) |
$88 |
$94 |
(6)% |
$117 |
(25)% |
$406 |
$419 |
(3)% |
|||||||
|
Adjusted EBITDA (millions) |
$123 |
$124 |
(1)% |
$141 |
(13)% |
$576 |
$685 |
(16)% |
|||||||
|
Adjusted EBITDA Margin |
32% |
33% |
(1) ppt |
30% |
2 ppts |
31% |
37% |
(6) ppts |
TSS segment fourth quarter 2024 Net Sales were $390 million, a 3% increase compared to the fourth quarter 2023. Net Sales growth was primarily driven by a volume increase of 7%, partially offset by a price decrease of 4%, while currency impact remained flat. Volume growth was driven by stronger demand for Opteon™ Refrigerant blends in advance of the new low GWP stationary air conditioning equipment transition starting in 2025 under the U.S. AIM Act. The decrease in pricing was largely attributed to softer Freon™ Refrigerant prices due to elevated market hydrofluorocarbon (HFC) inventory levels.
TSS segment fourth quarter 2024 Adjusted EBITDA decreased 1% to $123 million compared to the prior-year quarter, while Adjusted EBITDA Margin also decreased 1 percentage point to 32%. This decrease was driven primarily by price, partially offset by lower costs, which are not anticipated to recur in the first quarter of 2025.
On a sequential basis, Net Sales decreased by 17%, driven by a volume decrease of 13% and a price decrease of 4%. Overall volume and price decreases were primarily related to typical seasonal trends across refrigerant portfolios combined with lower demand for FP&O products in the fourth quarter.
TSS segment full year 2024 Net Sales were $1.8 billion, a 1% decrease compared to the full year 2023. The change in Net Sales was primarily driven by a price decrease of 3%, partially offset by a volume increase of 2%, while currency impact remained flat. The decrease in price was primarily related to softer Freon™ Refrigerant prices, partially offset by stronger Opteon™ Refrigerant prices due to mix. Volume growth was driven by higher demand within the Opteon™ Refrigerants portfolio as a result of continued stationary and automotive end-market adoption, partially offset by a volume decrease in the Freon™ Refrigerant portfolio in connection with the HFC step downs under the U.S. AIM Act and EU F-Gas regulation.
TSS segment full year 2024 Adjusted EBITDA decreased 16% to $576 million compared to the prior year, while Adjusted EBITDA Margin decreased 6 percentage points to 31%. This decrease was primarily driven by the previously mentioned softer Freon™ Refrigerant prices, higher costs associated with purchasing non-Corpus based low GWP refrigerant, near-term quota allowances, lower fixed cost absorption in TSS’s HFC production line, and other input costs.
Titanium Technologies
|
Q4 2024 |
Q4 2023 |
Y-o-Y % ∆ |
Q3 2024 |
Q-o-Q % ∆ |
FY 2024 |
FY 2023 |
Y-o-Y % ∆ |
||||||||
|
Net Sales (millions) |
$632 |
$651 |
(3)% |
$672 |
(6)% |
$2,572 |
$2,680 |
(4)% |
|||||||
|
Adjusted EBITDA (millions) |
$77 |
$64 |
20% |
$85 |
(9)% |
$312 |
$290 |
8% |
|||||||
|
Adjusted EBITDA Margin |
12% |
10% |
2 ppts |
13% |
(1) ppt |
12% |
11% |
1 ppt |
TT segment fourth quarter 2024 Net Sales were $632 million, a 3% decrease compared to the fourth quarter 2023. This decrease was primarily driven by a 2% decrease in pricing and a 1% decrease in volume, while currency impact remained flat.
TT segment fourth quarter 2024 Adjusted EBITDA increased 20% to $77 million compared to the prior-year quarter, while Adjusted EBITDA Margin increased by 2 percentage points to 12%. The TT earnings increase was driven by incremental cost savings realized through the TT Transformation Plan, partially offset by the previously mentioned decreases in pricing and volume.
On a sequential basis, TT segment fourth quarter 2024 Net Sales decreased 6%, driven by a 4% decrease in volume and a 2% decrease in price.
TT segment full year 2024 Net Sales were $2.6 billion, a decrease of 4% compared to the full year 2023. This decrease was primarily driven by a 5% decrease in pricing, partially offset by a 1% increase in volume.
TT segment full year 2024 Adjusted EBITDA increased 8% to $312 million compared to the prior year, while Adjusted EBITDA Margin also increased by 1 percentage point to 12%. The TT earnings increase was primarily driven by cost savings realized from the TT Transformation Plan, which was partially offset by the impact of the previously mentioned decrease in pricing as well as $26 million of costs across the second and third quarters related to the unplanned weather-related downtime at our Altamira, Mexico manufacturing site. During the full year 2024, the TT Transformation Plan achieved approximately $140 million of cost savings, exceeding the original commitment of $125 million.
Advanced Performance Materials
|
Q4 2024 |
Q4 2023 |
Y-o-Y % ∆ |
Q3 2024 |
Q-o-Q % ∆ |
FY 2024 |
FY 2023 |
Y-o-Y % ∆ |
||||||||
|
Net Sales (millions) |
$324 |
$326 |
(1)% |
$354 |
(8)% |
$1,326 |
$1,462 |
(9)% |
|||||||
|
Advanced Materials |
$191 |
$192 |
(1)% |
$214 |
(11)% |
$808 |
$916 |
(12)% |
|||||||
|
Performance Solutions |
$133 |
$134 |
(1)% |
$140 |
(5)% |
$518 |
$546 |
(5)% |
|||||||
|
Adjusted EBITDA (millions) |
$48 |
$40 |
20% |
$39 |
23% |
$161 |
$273 |
(41)% |
|||||||
|
Adjusted EBITDA Margin |
15% |
12% |
3 ppts |
11% |
4 ppts |
12% |
19% |
(7) ppts |
APM segment fourth quarter 2024 Net Sales were $324 million, a 1% decrease compared to the fourth quarter 2023. The change in Net Sales was primarily driven by a 3% decrease in price, partially offset by a 2% increase in volume, while currency impact remained flat. The volume increase was related to the recent capacity expansion in Teflon™ PFA, which more than offset weaker demand in the hydrogen market. The price decrease was attributed to product mix connected to more economically sensitive end markets across the segment.
APM segment fourth quarter 2024 Adjusted EBITDA increased 20% to $48 million, while Adjusted EBITDA Margin also increased by 3 percentage points to 15%. This increase was primarily due to favorable inventory adjustments and true-ups, which are not anticipated to recur in the first quarter of 2025, partially offset by the previously mentioned decrease in price driven by product mix.
On a sequential basis, APM segment fourth quarter 2024 Net Sales decreased by 8%, driven by a 6% volume decrease and a 2% decrease in price, while currency impact remained flat.
APM segment full year 2024 Net Sales were $1.3 billion, a 9% decrease compared to the full year 2023. The change in Net Sales was primarily driven by a 5% decrease in pricing as well as a 3% decrease in volumes, with currency a slight 1% headwind. Volumes decreased primarily due to weaker demand in the hydrogen market and lower volumes in more economically sensitive end markets, while the price decrease was primarily due to product mix connected to more economically sensitive end markets across the broad segment.
APM segment full year 2024 Adjusted EBITDA decreased 41% to $161 million, while Adjusted EBITDA Margin decreased by 7 percentage points to 12%. This decrease was primarily due to the previously mentioned decreases in pricing and volumes, further impacted by lower fixed cost absorption due to lower overall volumes.
In January 2025, under the Portfolio Management pillar of Pathway to Thrive, as a part of a broader strategic review of our APM European asset footprint, APM management approved a restructuring program to exit its Surface Protection Solutions (“SPS”) Capstone™ business. This action was taken due to regulatory changes and uncertainty that have caused reduced demand and market deselection of telomer-based chemistries, making SPS economics unfavorable going forward. Manufacturing of SPS Capstone™ products is expected to end by the end of the second quarter of 20256, pending local regulatory approval. Based on current information, the total cost impact of the restructuring program is expected to be approximately $60 million7. These costs, and where applicable cash payments, which are expected to represent half of the total costs, are expected to be incurred throughout late 2025 and 2026.
Other Segment
The Performance Chemicals and Intermediates business in the Company’s Other Segment had Net Sales and Adjusted EBITDA for the fourth quarter 2024 of $13 million and breakeven, respectively, and $54 million and $8 million, respectively, for the full year 2024.
Corporate Expenses8
Corporate Expenses were a $69 million offset to Adjusted EBITDA in the fourth quarter 2024, an increase of $20 million versus the prior-year quarter, and a $255 million offset to Adjusted EBITDA for the full year 2024. The increase of $43 million versus the prior year was primarily due to costs associated with the Audit Committee’s internal review and remediation9 in addition to changes in reserves related to legacy asbestos matters recorded in the fourth quarter.
Liquidity
As of December 31, 2024, consolidated gross debt was $4.2 billion. Debt, net of $713 million in unrestricted cash and cash equivalents, was $3.4 billion, resulting in a net leverage ratio of approximately 4.4x on a trailing twelve-month Adjusted EBITDA basis. Total liquidity was $1.4 billion, comprised of $713 million in unrestricted cash and cash equivalents and $640 million of revolving credit facility capacity, net of outstanding letters of credit.
Cash provided by operating activities for the fourth quarter of 2024 was $138 million, compared to $482 million in the prior-year quarter due to actions taken in Q4 2023 specific to previous management. Capital expenditures for the fourth quarter of 2024 amounted to $109 million, compared to $135 million in the prior-year quarter driven by additional capital expenditures on APM’s Teflon™ PFA expansion in 2023. During the quarter, the Company paid $36 million in dividends to shareholders.
Operating cash usage for the full year 2024 totaled $633 million, an increased usage of $1.2 billion compared to the prior year. The higher usage of operating cash flow reflects the release of the $592 million of restricted cash and cash equivalents deposited in the qualified settlement fund per the terms of the U.S. Public Water System Class Action Suit Settlement agreement following final judgment10, along with cash impacts due to the unwinding of 2023 year end net working capital actions. Capital expenditures for the full year 2024 amounted to $360 million, compared to $370 million in the prior year. During the year, the Company paid $148 million in dividends to shareholders.
First Quarter 2025 Outlook
In the first quarter, TSS anticipates an overall sequential Net Sales increase driven by double-digit sequential growth expected in Opteon™ Refrigerants, partially offset by a sequential decrease in Freon™ Refrigerants in connection with the ongoing transitions under the U.S. AIM Act and EU F-Gas regulation. TSS Adjusted EBITDA is expected to increase slightly sequentially, with increased costs expected from a forced outage at our Corpus Christi, Texas site and additional input costs associated with the site’s ramp-up of the new Opteon™ capacity expansion.
TT expects a sequential Net Sales decrease driven by the segment’s projected regional sales mix, with volumes expected to remain stable. Adjusted EBITDA is expected to decrease sequentially driven by the referenced regional sales mix, with operational headwinds related to cold weather downtime at our U.S. sites in January 2025 further contributing to the decline.
APM expects a sequential Net Sales decrease with softer demand across the segment driven by continued weakness in cyclical end markets and products serving hydrogen and semiconductor markets. Adjusted EBITDA is anticipated to decrease sequentially due to lower Net Sales, an unfavorable product mix, and additional costs as a result of an outage from scheduled major plant maintenance that extended into the beginning of 2025. The fourth quarter comparison period for APM also included favorable inventory adjustments and true-ups that are not anticipated to recur in the first quarter.
The Company anticipates consolidated Net Sales to be flat to slightly down sequentially, with consolidated Adjusted EBITDA also expected to be slightly down sequentially. Corporate Expenses, as an offset to Adjusted EBITDA, are expected to decline by approximately 30% compared with the fourth quarter, which included costs associated with legacy asbestos matters. Operating cash flow in the first quarter is expected to reflect a net usage, consistent with traditional seasonality, paired with capital expenditures in the range of $80 million.
Full Year 2025 Outlook
The Company expects to deliver 2025 Adjusted EBITDA of $825 million to $975 million. Operating cash flow is expected to improve as the year progresses and more than fund anticipated capital expenditures ranging from $250 million to $300 million, while also ensuring dividend funding, subject to Board approval quarterly.
Conference Call
As previously announced, Chemours will hold a conference call and webcast on February 18, 2025, at 8:00 AM Eastern Standard Time. Access to the webcast and materials can be accessed by visiting the Events & Presentations page of Chemours’ investor website, investors.chemours.com. A webcast replay of the conference call will be available on Chemours’ investor website.
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1 Non-GAAP measures, including Adjusted Net Income, Adjusted EPS and Adjusted EBITDA referred to throughout, principally exclude the impact of recent litigation settlements for legacy environmental matters and associated fees, in addition to other unallocated items – please refer to the attached “Reconciliation of GAAP Financial Measures to Non-GAAP Financial Measures (Unaudited)”. |
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2 Adjusted EBITDA excludes net income attributable to noncontrolling interests, net interest expense, depreciation and amortization, and all remaining provision for income taxes from Adjusted Net Income. See the corresponding reconciliation referenced in footnote #1. |
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3 In 2023, Chemours recorded litigation-related charges pertaining to litigation settlements, PFOA drinking water treatment accruals, and other related legal fees. These charges included a $592 million accrual related to the U.S. Public Water System Class Action Suit Settlement plus $24 million of third-party legal fees directly related to the settlement, $55 million of charges related to the Company’s portion of Chemours, DuPont, Corteva, EID and the State of Ohio’s agreement entered into in November 2023, $13 million related to the Company’s portion of the supplemental payment to the State of Delaware, $76 million for other PFAS litigation matters, and $4 million of other litigation matters. |
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4 For information on our outlooked non-GAAP measures, please refer to the attached “Reconciliation of GAAP Measures to Non-GAAP Financial Measures (Unaudited)”. |
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5 For the fourth quarter as a segment. |
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6 Sales of SPS Capstone™ products were $88 million, $97 million and $104 million in the years ended December 31, 2024, 2023 and 2022, respectively. |
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7 Includes non-cash accelerated depreciation related to the SPS Capstone™ manufacturing assets remaining useful life of approximately $30 million, cash payments of approximately $20 million for severance and retention, contract termination costs and external spending to support various site closure activities, as well as approximately $10 million for deconstruction and ongoing decommissioning expenses which will be expensed as incurred. |
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8 2024 consolidated Adjusted EBITDA also reflect additional unallocated costs of $1 million and $16 million in Q4 2024 and FY 2024, respectively. These costs are reflected in consolidated Adjusted EBITDA results only. |
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9 As of the end of 2024, all four material weaknesses identified in connection with the 2023 Form 10-K have been fully remediated. |
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10 As defined in the U.S. Public Water System Class Action Suit Settlement agreement. |
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About The Chemours Company
The Chemours Company (NYSE: CC) is a global leader in providing industrial and specialty chemicals products for markets, including coatings, plastics, refrigeration and air conditioning, transportation, semiconductor and advanced electronics, general industrial, and oil and gas. Through our three businesses – Thermal & Specialized Solutions, Titanium Technologies, and Advanced Performance Materials – we deliver application expertise and chemistry-based innovations that solve customers’ biggest challenges. Our flagship products are sold under prominent brands such as Opteon™, Freon™, Ti-Pure™, Nafion™, Teflon™, Viton™, and Krytox™. Headquartered in Wilmington, Delaware and listed on the NYSE under the symbol CC, Chemours has approximately 6,000 employees and 28 manufacturing sites and serves approximately 2,500 customers in approximately 110 countries.
For more information, visit chemours.com or follow us on X (formerly Twitter) @Chemours or LinkedIn.
Non-GAAP Financial Measures
We prepare our financial statements in accordance with Generally Accepted Accounting Principles (GAAP). Within this press release, we may make reference to Adjusted Net Income, Adjusted EPS, Adjusted EBITDA, Total Debt Principal, Net and Net Leverage Ratio which are non-GAAP financial measures. The Company includes these non-GAAP financial measures because management believes they are useful to investors in that they provide for greater transparency with respect to supplemental information used by management in its financial and operational decision making. Management uses Adjusted Net Income, Adjusted EPS and Adjusted EBITDA, which adjust for (i) certain non-cash items, (ii) certain items we believe are not indicative of ongoing operating performance or (iii) certain nonrecurring, unusual or infrequent items to evaluate the Company’s performance in order to have comparable financial results to analyze changes in our underlying business from period to period. Additionally, Total Debt Principal, Net and Net Leverage Ratio are utilized as liquidity measures to assess the cash generation of our businesses and on-going liquidity position.
Accordingly, the Company believes the presentation of these non-GAAP financial measures, when used in conjunction with GAAP financial measures, is a useful financial analysis tool that can assist investors in assessing the Company’s operating performance and underlying prospects.
Contacts
INVESTORS
Brandon Ontjes
Vice President, Head of Strategy & Investor Relations
+1.302.773.3309
investor@chemours.com
NEWS MEDIA
Cassie Olszewski
Media Relations & Reputation Leader
+1.302.219.7140
media@chemours.com
