Chemours Q1 2022 Earnings Report
Key Takeaways
Chemours reported a strong first quarter with net sales of $1.8 billion, up 23% year-over-year. The company's TSS and APM segments delivered exceptional results, reflecting strong pricing and demand. As a result, Chemours raised its full-year Adjusted EBITDA guidance by 12% at the midpoint.
Net Sales increased by 23% year-over-year, reaching $1.8 billion.
Net Income was $234 million, with an EPS of $1.43, an increase of $0.86 year-over-year.
Adjusted EBITDA increased by 50% year-over-year, reaching $403 million.
The company raised its full-year Adjusted EBITDA guidance to between $1.475 billion and $1.575 billion.
Chemours
Chemours
Chemours Revenue by Segment
Forward Guidance
Chemours now expects full year Adjusted EBITDA to be between $1.475 billion and $1.575 billion, and Free Cash Flow is expected to be greater than $550 million.
Positive Outlook
- Full year Adjusted EBITDA is now expected to be between $1.475 billion and $1.575 billion vs. prior guidance of between $1.3 billion and $1.425 billion.
- Free Cash Flow is expected to be greater than $550 million vs. prior guidance of greater than $500 million.
- Secular strength in TSS
- Secular strength in APM
- Strong customer demand
Challenges Ahead
- Ore constraints in TT will continue in the second half of the year.
- Persistent supply chain challenges
- Global economic uncertainties
- Conflict in Ukraine
- Ongoing COVID-19 related lockdowns in China