The Chemours Company Reports Strong Fourth Quarter and Full Year 2024 Results: Driving Long-Term Value Through Strategic Initiatives
Introduction
The Chemours Company (“Chemours” or “the Company”) (NYSE: CC), a global leader in chemical solutions, recently announced its financial results for the fourth quarter and full year of 2024. The company, which operates in three core segments—Thermal & Specialized Solutions (TSS), Titanium Technologies (TT), and Advanced Performance Materials (APM)—reported solid financial performance, despite challenges in certain areas. This article delves into the key highlights, strategic initiatives, and outlook for the coming year, providing a comprehensive overview of Chemours’ financial health and future prospects.
Key Fourth Quarter 2024 Results & Highlights
Revenue and Earnings
For the fourth quarter of 2024, Chemours reported net sales of $1.4 billion, in line with the corresponding prior-year quarter. Despite the challenging market conditions, the company managed to achieve record-breaking performance in its Thermal & Specialized Solutions segment, driven by a 23% year-over-year growth in Opteon™ Refrigerants.
The company posted a net loss of $8 million, or $0.05 per diluted share, compared to a net loss of $18 million, or $0.12 per diluted share, in the corresponding prior-year quarter. However, adjusted net income improved to $16 million, or $0.11 per diluted share, from $46 million, or $0.31 per diluted share, in the previous year. Adjusted EBITDA for the quarter stood at $179 million, up slightly from $176 million in the same period last year.
Dividend Payments
Chemours continued to return value to its shareholders through dividends, distributing $36 million in the quarter. This consistent payout reflects the company’s commitment to maintaining a healthy balance sheet and rewarding its investors.
Key Full Year 2024 Results & Highlights
Revenue and Profitability
For the full year 2024, Chemours reported net sales of $5.8 billion, down from $6.1 billion in the prior year. However, the company swung from a net loss of $238 million, or $1.60 per diluted share, in 2023, to a net income of $86 million, or $0.57 per diluted share, in 2024. Adjusted net income for the year was $182 million, or $1.21 per diluted share, compared to $425 million, or $2.82 per diluted share, in the previous year.
Adjusted EBITDA for the full year was $786 million, down from $1.0 billion in 2023. This decline was primarily driven by pricing decreases across all businesses, unfavorable impacts from currency, and portfolio changes, partially offset by cost savings realized through the TT Transformation Plan.
Operational Milestones
Chemours made significant strides in its operational efficiency and strategic positioning. Notably, the company fully remediated all four material weaknesses in internal control previously identified in the 2023 Form 10-K. Additionally, the company established a new executive leadership team and introduced the Pathway to Thrive strategy to drive shareholder value.
Chemours also announced plans to build a chlor-alkali facility at its TiO2 plant in DeLisle, Mississippi, and completed the planned Opteon™ YF expansion at Corpus Christi, Texas. These strategic investments position Chemours for long-term growth and competitive advantage.
Segmental Performance
Thermal & Specialized Solutions (TSS)
Fourth Quarter 2024
- Net Sales: $390 million, a 3% increase compared to the fourth quarter of 2023.
- Opteon™ Refrigerants: $178 million, a 23% increase year-over-year.
- Freon™ Refrigerants: $124 million, a 12% decrease year-over-year.
- Foam, Propellants & Other (FP &O): $88 million, a 6% decrease year-over-year.
- Adjusted EBITDA: $123 million, a 1% decrease compared to the prior-year quarter.
The segment’s performance was driven by strong demand for Opteon™ Refrigerants, particularly in anticipation of the new low GWP stationary air conditioning equipment transition starting in 2025 under the U.S. AIM Act. However, pricing pressures in Freon™ Refrigerants and lower volumes in Foam, Propellants & Other products weighed on overall performance.
Full Year 2024
- Net Sales: $1.8 billion, a 1% decrease compared to the full year 2023.
- Opteon™ Refrigerants: $810 million, a 14% increase year-over-year.
- Freon™ Refrigerants: $614 million, a 15% decrease year-over-year.
- Foam, Propellants & Other (FP &O): $406 million, a 3% decrease year-over-year.
- Adjusted EBITDA: $576 million, a 16% decrease compared to the prior year.
Despite the decline in overall net sales, the TSS segment maintained its leadership position in the market, driven by the continued adoption of Opteon™ Refrigerants in both stationary and automotive applications. However, the segment faced challenges due to softer Freon™ Refrigerant prices and higher costs associated with purchasing non-Corpus based low GWP refrigerants.
Titanium Technologies (TT)
Fourth Quarter 2024
- Net Sales: $632 million, a 3% decrease compared to the fourth quarter of 2023.
- Adjusted EBITDA: $77 million, a 20% increase compared to the prior-year quarter.
- Adjusted EBITDA Margin: 12%, a 2 percentage point improvement compared to the prior-year quarter.
The TT segment’s improved profitability was primarily driven by cost savings realized through the TT Transformation Plan, which offset decreases in pricing and volume. The segment’s adjusted EBITDA margin expanded by 2 percentage points, reflecting the company’s ongoing efforts to enhance operational efficiency.
Full Year 2024
- Net Sales: $2.6 billion, a 4% decrease compared to the full year 2023.
- Adjusted EBITDA: $312 million, an 8% increase compared to the prior year.
- Adjusted EBITDA Margin: 12%, a 1 percentage point improvement compared to the prior year.
The TT segment achieved significant cost savings through the TT Transformation Plan, which contributed to its improved profitability. However, the segment faced challenges due to a 5% decrease in pricing and $26 million of costs related to unplanned weather-related downtime at the Altamira, Mexico manufacturing site.
Advanced Performance Materials (APM)
Fourth Quarter 2024
- Net Sales: $324 million, a 1% decrease compared to the fourth quarter of 2023.
- Adjusted EBITDA: $48 million, a 20% increase compared to the prior-year quarter.
- Adjusted EBITDA Margin: 15%, a 3 percentage point improvement compared to the prior-year quarter.
The APM segment’s improved profitability was driven by favorable inventory adjustments and true-ups, which are not anticipated to recur in the first quarter of 2025. Despite the decline in net sales, the segment’s adjusted EBITDA margin expanded by 3 percentage points, reflecting the company’s focus on cost optimization and operational efficiency.
Full Year 2024
- Net Sales: $1.3 billion, a 9% decrease compared to the full year 2023.
- Adjusted EBITDA: $161 million, a 41% decrease compared to the prior year.
- Adjusted EBITDA Margin: 12%, a 7 percentage point decline compared to the prior year.
The APM segment faced significant challenges due to weaker demand in the hydrogen market and lower volumes in more economically sensitive end markets. Pricing pressures and lower fixed cost absorption further contributed to the decline in adjusted EBITDA.
Strategic Initiatives and Future Outlook
Pathway to Thrive Strategy
Chemours’ Pathway to Thrive strategy is central to driving long-term shareholder value. The company has implemented several key initiatives, including the establishment of a new executive leadership team, the introduction of the TT Transformation Plan, and strategic investments in its facilities and technology. These efforts are aimed at enhancing operational efficiency, reducing costs, and improving profitability across all segments.
2025 Outlook
Chemours expects to deliver adjusted EBITDA of $825 million to $975 million in 2025. The company anticipates capital expenditures in the range of $250 million to $300 million, with operating cash flow improving as the year progresses. The company remains committed to ensuring dividend funding, subject to Board approval quarterly.
First Quarter 2025 Outlook
- TSS: Anticipated to see an overall sequential net sales increase, driven by double-digit sequential growth in Opteon™ Refrigerants, partially offset by a sequential decrease in Freon™ Refrigerants.
- TT: Expected to experience a sequential net sales decrease due to regional sales mix, with volumes remaining stable. Adjusted EBITDA is expected to decrease sequentially due to operational headwinds related to cold weather downtime at U.S. sites.
- APM: Projected to see a sequential net sales decrease due to 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 from scheduled major plant maintenance.
