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Chemours opened 2026 with first-quarter results that the company said were “well above earnings expectations,” driven by strong execution in its Thermal & Specialized Solutions (TSS) and Titanium Technologies (TT) segments. Advanced Performance Materials (APM) continued to recover from an outage at the company’s Washington Works facility.
President and Chief Executive Officer Denise Dignam said the quarter reflected “disciplined execution and strategic focus across the company,” with TSS delivering a record first quarter and TT exceeding earnings expectations despite a challenging market backdrop. Chemours also reported progress on its balance sheet, including the sale of nearly all of its Kuan Yin properties ahead of schedule.
Chemours said its TSS business delivered a record first quarter, with net sales up 22% year over year. The company attributed the increase to higher pricing, stronger volumes and favorable product mix across refrigerant markets.
Dignam highlighted strength in both Freon and Opteon refrigerants. Opteon posted another quarter of double-digit year-over-year growth, while Freon benefited from automotive aftermarket demand in North America. She also cited “disciplined quota management,” and said TSS margins expanded to 33% in the quarter.
Chemours’ Chief Financial Officer Shane Hostetter said the company expects TSS second-quarter net sales to rise sequentially in the low- to mid-teens percentage range, reflecting seasonal cooling demand in the Northern Hemisphere. Adjusted EBITDA for the segment is expected to range from $210 million to $225 million.
Hostetter noted that roughly $10 million of adjusted EBITDA was pulled forward into the first quarter due to timing, which he said modestly tempers the expected sequential progression in the second quarter. He also said residential demand has been weaker than anticipated, with a slower start to the cooling season delaying equipment installations and aftermarket activity.
During the Q&A, Dignam said Chemours views Freon strength as “very sticky,” particularly in the automotive aftermarket. She said the company is one of two domestic suppliers of 134a and has an advantaged quota position, adding that Freon demand is largely tied to the auto aftermarket with a “long tail” linked to internal combustion engine vehicles.
Chemours said TT performed well in the first quarter despite difficult market conditions. Dignam said the segment saw global stability and seasonal demand improvement in North America and Europe, while lower volumes and less favorable product mix in some non-Western markets weighed on global volumes.
Despite volume pressure, the company reported that TT adjusted EBITDA exceeded expectations due to pricing actions, cost management and operational discipline. Dignam said TT pricing rose 3% sequentially in the first quarter, reflecting pricing initiatives announced in December and continued on April 1 across key end markets.
For the second quarter, Hostetter said Chemours expects TT net sales to increase sequentially in the mid- to high-teens percentage range, supported by seasonal factors, mineral sales timing and TiO2 pigment demand amid evolving global conditions. Adjusted EBITDA for TT is expected to range from $40 million to $50 million.
Chemours also announced a long-term chlorine supply agreement with Olin to support its DeLisle site beginning in 2028. Dignam said the agreement provides reliable supply at “value-accretive economics” and supports the company’s goal of being one of the lowest-cost chloride TiO2 producers globally. She added that Chemours will not proceed with a previously planned on-site chlorine facility at DeLisle after that supply agreement was terminated in March.
On analyst questions about sulfur-related cost inflation affecting sulfate-based TiO2 producers, Dignam said Chemours has no sulfate production and remains focused on being a low-cost chloride producer. She said sulfur cost increases could create opportunities for Chemours, while emphasizing that the company’s strategy remains centered on fair trade regions, pricing and profitability.
APM posted weaker first-quarter results, with net sales down year over year, primarily due to lower volumes. Dignam said results were constrained by the Washington Works outage and the prior closure of the Advanced Materials SPS Capstone line, and that the outage created a $25 million headwind to adjusted EBITDA.
Hostetter said second-quarter APM net sales are expected to increase sequentially in the low- to high-30% range as Washington Works resumes normal operations. Adjusted EBITDA is forecast between $12 million and $18 million, though cost pressures and volume limitations tied to first-quarter downtime are expected to continue to weigh on profitability.
Dignam said Chemours expects APM to return to a $30 million to $40 million EBITDA range in the back half of the year, pointing to a stronger order book in Performance Solutions, particularly in semiconductor and data center markets. Hostetter said APM’s order velocity has reached levels not seen in several years.
Chemours also discussed its two-phase immersion cooling technology. Dignam said a 12-month field trial with NTT using Chemours’ fluid was successful, with no signs of fluid or equipment degradation. She said more than 200 prospective customers and partners have seen the fluid in action, and Chemours expects capacity to come online toward the end of the year for customer sampling and process refinement.
On a consolidated basis, Chemours expects second-quarter net sales to rise 15% to 20% sequentially, with adjusted EBITDA in the range of $220 million to $250 million. Corporate expenses are expected between $45 million and $50 million, capital expenditures around $50 million, and free cash flow generation of at least $100 million.
Hostetter said Chemours still expects full-year consolidated net sales, adjusted EBITDA and capital expenditures to align with prior guidance, despite a mixed operating environment, soft commercial end markets and raw material and cost inflation. However, full-year free cash flow conversion is now expected above 20%, down from the prior outlook, due to tax implications related to the Kuan Yin land sale.
The company said it reduced debt by approximately $160 million in April and completed a $700 million refinancing in March, extending maturities tied to its 2027 unsecured notes and a portion of its 2028 unsecured notes out to 2034. Hostetter said Chemours has addressed close to $2 billion of near-term debt since the fourth quarter of 2025.
Chemours now expects its net leverage ratio to be below 3.8 times adjusted EBITDA by year-end 2026. Hostetter said the company remains focused on achieving its longer-term liquidity objective of net leverage below 3 times adjusted EBITDA.
Dignam said Chemours continues to make progress under its Pathway to Thrive strategy, citing operational reliability, cost discipline, targeted growth investments, portfolio actions and balance sheet de-risking. She said the company is integrating the Chemours Business System to apply lean principles across operations.
Management also said it is monitoring geopolitical risk, including conflict in the Middle East and related volatility in energy markets and chemical supply chains. Dignam said Chemours is working to mitigate cost pressures through pricing and supply chain actions while remaining selective in responding to possible market opportunities.
“With a strong start to the year, the right strategic actions underway, and a proven ability to execute through uncertainty, Chemours is well positioned to deliver on our commitments,” Dignam said.
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