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Dec 31, 2022

Chemours Q4 2022 Earnings Report

Chemours reported a challenging fourth quarter due to higher raw material costs and demand weakness in Europe and Asia, leading to lower operating rates, while annual results in TSS and APM were driven by strong secular tailwinds.

Key Takeaways

Chemours' Q4 2022 results reflect a challenging quarter with net sales down 15% year-over-year and a net loss of $(97) million. Adjusted EBITDA decreased by 61% to $120 million. Despite the weak quarter, the company highlighted record annual results in TSS and APM segments.

Net Sales of $1.3 billion, down (15)% year-over-year.

Net Loss of $(97) million with EPS of $(0.65), down $(2.05) year-over-year.

Adjusted Net Income* of less than $1 million with Adjusted EPS* of $0.00, down $(0.81) year-over-year.

Adjusted EBITDA*of $120 million, down (61)% year-over-year

Total Revenue
$1.34B
Previous year: $1.58B
-15.0%
EPS
-$0.646
Previous year: $0.81
-179.8%
Gross Profit
$202M
Previous year: $393M
-48.6%
Cash and Equivalents
$1.1B
Previous year: $1.45B
-24.2%
Free Cash Flow
$94M
Previous year: $131M
-28.2%
Total Assets
$7.64B
Previous year: $7.55B
+1.2%

Chemours

Chemours

Chemours Revenue by Segment

Forward Guidance

The Company expects to deliver 2023 Adjusted EBITDA within a range of $1.20 billion to $1.30 billion. Adjusted EPS is projected to be between $3.80 and $4.29. The Company expects Free Cash Flow of greater than $350 million, inclusive of approximately $400 million of capital expenditures.

Positive Outlook

  • Adjusted EBITDA* between $1.20 billion and $1.30 billion
  • Adjusted EPS* between ~$3.80 and $4.29
  • Free Cash Flow* of greater than $350 million, including CAPEX of approximately $400 million to support TSS and APM growth investments
  • conditions improving in the second half of the year
  • continued secular growth in key parts of our TSS and APM businesses

Challenges Ahead

  • weaker start to 2023
  • higher raw material costs
  • demand weakness in Europe and Asia
  • lower operating rates
  • improve the earnings profile of our TT business

Revenue & Expenses

Visualization of income flow from segment revenue to net income