Chemours Q3 2024 Earnings Report
Key Takeaways
Chemours reported third quarter 2024 results with net sales of $1.5 billion, in line with the prior-year quarter. Net loss attributable to Chemours was $27 million, or $0.18 per diluted share. Adjusted net income was $61 million, or $0.40 per diluted share. Adjusted EBITDA was $208 million. The company also outlined a refreshed corporate strategy focused on sustainable growth and long-term value creation.
Net Sales of $1.5 billion, in line with the corresponding prior-year quarter, with TSS achieving record third quarter Net Sales, driven by year-over-year growth of 21% in Opteon™ Refrigerants.
Net Loss attributable to Chemours of $27 million or $0.18 per diluted share reflecting a non-cash impairment charge of $56 million, compared with a Net Income attributable to Chemours of $12 million, or $0.08 per diluted share, in the corresponding prior-year quarter.
Adjusted Net Income of $61 million, or $0.40 per diluted share, compared with $65 million, or $0.43 per diluted share, in the corresponding prior-year quarter.
Adjusted EBITDA of $208 million compared to $211 million in the corresponding prior-year quarter.
Chemours
Chemours
Chemours Revenue by Segment
Forward Guidance
The Company anticipates a consolidated Net Sales decrease in the mid to high-single digits sequentially, with consolidated Adjusted EBITDA down in the high teens to low 20% range compared with third quarter 2024 results.
Positive Outlook
- TSS expects to maintain overall double-digit year-over-year growth in Opteon™ Refrigerants.
- APM expects a low-single digit Net Sales decline in the fourth quarter, driven by macro weakness in Advanced Materials end markets slightly offsetting increases in Performance Solutions.
- APM Adjusted EBITDA is anticipated to be broadly flat sequentially due to the favorable contribution from Performance Solutions sales and cost reduction efforts across the business.
- Overall unrestricted cash in the fourth quarter is anticipated to remain generally in line with the third quarter, generating a positive operating cash flow.
Challenges Ahead
- TSS anticipates a sequential low-teens Net Sales decline driven by refrigerant seasonality.
- TSS Adjusted EBITDA is expected to decrease in the low-20% range sequentially due to refrigerant seasonality.
- TT expects a mid- to high-single digit sequential Net Sales decline, with seasonality driving lower volumes, as well as impacts from mix of regional sales.
- TT Adjusted EBITDA is expected to decrease between mid-to-high teens, consistent with the referenced sequentially-lower volumes and mix.
Revenue & Expenses
Visualization of income flow from segment revenue to net income