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Sep 30, 2024
Chemours Q3 2024 Earnings Report
Chemours delivered strong results, meeting net sales expectations and exceeding adjusted EBITDA expectations, driven by record net sales in TSS and progress in APM.
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
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.