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Dec 31, 2023
Chemours Q4 2023 Earnings Report
Chemours reported mixed results for Q4 2023, with increased net sales and Adjusted EBITDA offset by a net loss.
Key Takeaways
Chemours reported Q4 2023 net sales of $1.4 billion, a 2% increase year-over-year. The company experienced a net loss of $18 million, or a loss of $0.12 per diluted share. Adjusted EBITDA improved 47% year-over-year to $176 million, driven by favorable demand in TSS and lower input costs.
Net sales increased by 2% year-over-year to $1.4 billion.
Net loss attributable to Chemours was $18 million, or a loss of $0.12 per diluted share.
Adjusted EBITDA improved 47% year-over-year to $176 million.
Growth was driven by Thermal & Specialized Solutions and Titanium Technologies segments.
Chemours
Chemours
Forward Guidance
The Company expects an approximate 10% sequential decline in TT Net Sales for first quarter 2024 due to weaker demand for TiO2 driven by some regional seasonality and a discrete, now resolved production challenge, resulting in an expected decline in TT Adjusted EBITDA of approximately 15% vs. the fourth quarter of 2023. TSS is expected to grow approximately 20% sequentially in both Net Sales and Adjusted EBITDA in first quarter 2024, driven by seasonality and demand for Opteon™ Blend products, attributable to the regulatory transition and continued growth in low global warming potential solutions. For APM, the Company projects a sequential decline of approximately 10% in Net Sales for first quarter 2024, driven by softness in economically-sensitive end markets and the tail impact of an extended outage at a manufacturing site that is now resolved.
Positive Outlook
- Positive trends in order book from existing levels as we exit the first quarter.
- TSS is expected to grow approximately 20% sequentially in both Net Sales and Adjusted EBITDA in first quarter 2024, driven by seasonality and demand for Opteon™ Blend products, attributable to the regulatory transition and continued growth in low global warming potential solutions.
- The Company anticipates continued growth in our TSS business.
- APM is nearing typical cycle lows
- Performance Solutions portfolio remains the growth engine for APM.
Challenges Ahead
- The Company expects an approximate 10% sequential decline in TT Net Sales for first quarter 2024 due to weaker demand for TiO2 driven by some regional seasonality and a discrete, now resolved production challenge, resulting in an expected decline in TT Adjusted EBITDA of approximately 15% vs. the fourth quarter of 2023.
- This is expected to be partially offset by higher input costs from non-Corpus Christi sourced materials as well as investment in next generation refrigerants and immersion cooling.
- For APM, the Company projects a sequential decline of approximately 10% in Net Sales for first quarter 2024, driven by softness in economically-sensitive end markets and the tail impact of an extended outage at a manufacturing site that is now resolved.
- Adjusted EBITDA for first quarter 2024 is anticipated to be approximately 20% lower sequentially.
- Corporate expenses impacting Adjusted EBITDA for first quarter 2024 are expected to be higher by approximately $30 million sequentially.