Chemours' Earnings Outpace Estimates, Revenues Miss in Q4

The Chemours Company CC reported a net loss of $8 million or 5 cents per share for fourth-quarter 2024 compared with the year-ago quarter's loss of $18 million or 12 cents.

Barring one-time items, earnings came in at 11 cents per share. It beat the Zacks Consensus Estimate of 10 cents.

Find the latest EPS estimates and surprises on Zacks Earnings Calendar.

The company reported fourth-quarter net sales of $1,359 million, reflecting a 1% decline from the previous-year quarter. It fell short of the Zacks Consensus Estimate of $1,359.8 million. A gain in volume largely offset the drop in pricing, while the currency impact remained unchanged.

Adjusted EBITDA rose 2% year over year to $179 million for the quarter. The rise in adjusted EBITDA was primarily due to cost savings obtained through the Titanium Technologies Transformation Plan, favorable inventory adjustments and true-ups in Advanced Performance Materials and greater volumes in Thermal & Specialized Solutions, slightly offset by reduced pricing across all businesses.

CC’s Segment Highlights

The Titanium Technologies division recorded revenues of $632 million in the quarter, marking a 3% decrease from the previous year. This surpassed our estimate of $614.2 million. This decline was primarily due to a 2% decrease in pricing and a 1% fall in volume, while the currency impact remained unchanged.

In the Thermal & Specialized Solutions segment, revenues saw a 3% year-over-year increase, reaching $390 million in the reported quarter, though it fell short of our estimate of $395.5 million. Net sales growth was mainly driven by a 7% increase in volume, slightly offset by a 4% fall in price, while the currency impact was unchanged. Volume growth was driven by increased demand for Opteon Refrigerant blends ahead of the US AIM Act's new low GWP stationary air conditioning equipment transition, which begins in 2025. The pricing decrease was mostly due to lower Freon Refrigerant prices as a result of increased market hydrofluorocarbon (HFC) inventories.

Revenues in the Advanced Performance Materials unit amounted to $324 million, marking a decline of approximately 1% year over year. The figure missed our estimate of $335.6 million. The decline in sales was largely caused by a 3% drop in price, which was partially offset by a 2% increase in volume, while the currency impact was flat. The volume rise was due to a recent capacity expansion in Teflon PFA, which more than offset lower demand in the hydrogen market. The price fall was due to a product mix associated with more economically sensitive end markets across the segment.

CC’s FY24 Results

For full-year 2024, Chemours reported net sales of $5,782 million, reflecting a 4.9% decline from the previous year. Adjusted net income was $182 million, a notable decrease from $425 million in the prior year. This resulted in an adjusted earnings per share of $1.21, down from $2.82 in the previous year. Adjusted EBITDA amounted to $786 million compared with $1,014 million in the prior year.

CC’s Financials

Cash provided by operating activities in the fourth quarter of 2024 was $138 million compared with $482 million in the prior-year quarter due to actions made by previous management a year ago. Capital expenditures for the fourth quarter of 2024 were $109 million compared with $135 million in the previous year's quarter due to higher capital expenditures on APM's Teflon PFA expansion in 2023. During the quarter, the company distributed $36 million in dividends to shareholders.

CC’s Outlook

The company expects full-year 2025 adjusted EBITDA between $825 million and $975 million. Capital expenditures are expected to be between $250 million and $300 million.

CC’s Stock Price Performance

Shares of Chemours are down 39.7% in the past year compared with the industry’s fall of 0.8%.

Image Source: Zacks Investment Research

CC’s Zacks Rank & Key Picks

CC currently carries a Zacks Rank #3 (Hold).

Better-ranked stocks worth a look in the basic materials space include ICL Group Ltd.  ICL, Fortuna Mining Corp. FSM and Kronos Worldwide KRO.

ICL is slated to report fourth-quarter results on Feb. 26. The Zacks Consensus Estimate for fourth-quarter earnings is pegged at 6 cents. ICL beat the Zacks Consensus Estimate in each of the last four quarters, with the average earnings surprise being 18.1%. ICL carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Fortuna is scheduled to release fourth-quarter results on March 5. The Zacks Consensus Estimate for FSM’s fourth-quarter earnings is pegged at 16 cents. FSM, a Zacks Rank #2 stock, has gained around 64.6% in the past year. FSM beat the Zacks Consensus Estimate in two of the last four quarters, while missing twice with the average earnings surprise being 53.5%

Kronos is expected to report fourth-quarter results on March 5. The consensus estimate for KRO’s fourth-quarter earnings is pegged at 11 cents. KRO, carrying a Zacks Rank #2, beat the consensus estimate in three of the last four quarters while missing once, with the average earnings surprise being 41.7%. 

 

5 Stocks Set to Double

Each was handpicked by a Zacks expert as the #1 favorite stock to gain +100% or more in 2024. While not all picks can be winners, previous recommendations have soared +143.0%, +175.9%, +498.3% and +673.0%.

Most of the stocks in this report are flying under Wall Street radar, which provides a great opportunity to get in on the ground floor.

Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report

To read this article on Zacks.com click here.

Zacks Investment Research