The Chemours Company

Chemours said Q2 2026 net sales were slightly below expectations, while adjusted EBITDA exceeded expectations. The company did not provide a consolidated revenue or EPS figure in the call transcript. By segment, TSS net sales were slightly down year over year, TT net sales increased slightly, and APM net sales were down year over year; TSS adjusted EBITDA increased year over year with margin expansion, TT adjusted EBITDA improved year over year with flat margin, and APM adjusted EBITDA declined year over year. For the third quarter, Chemours expects consolidated net sales to decline 5% to flat sequentially and consolidated adjusted EBITDA of $175 million to $205 million, with corporate expenses of approximately $40 million to $45 million, capital expenditures of about $65 million, and free cash flow of at least $50 million. For full-year 2026, management guided to net sales growth of 1% to 5%, adjusted EBITDA of $775 million to $825 million, capital expenditures of $250 million to $280 million, free cash flow conversion above 25%, and net leverage around 3.8x adjusted EBITDA by year-end.

Denise Dignam emphasized that Pathway to Thrive is halfway complete and is already strengthening the company through better operating discipline, a stronger balance sheet, and more strategic flexibility. Her tone was constructive and confident, especially around higher-value growth areas like data center, semiconductor, AI, advanced electronics, and liquid cooling, which she said are expanding Chemours’ opportunity set. She also said no portfolio action is off the table if it can create a step-change in value.

Shane Hostetter focused on the financial bridge from Q2 into the rest of the year: Q3 EBITDA guidance is $125 million to $140 million for TSS, $70 million to $80 million for TT, and $20 million to $30 million for APM, with consolidated Q3 EBITDA of $175 million to $205 million. He said full-year 2026 EBITDA is expected to be $775 million to $825 million, with capex of $250 million to $280 million, free cash flow conversion above 25%, and net leverage around 3.8x. He also noted Chemours repaid close to $270 million of its 2028 euro term loan in Q2, which was $103 million more than previously communicated, and said the company is prioritizing debt reduction and expects free cash flow conversion to be 40% plus over time, despite ongoing legal, tax, interest, and capex drags.

Analysts pressed management on why TSS margins implied a step-down in Q3 and whether the stationary aftermarket weakness is a one-quarter issue or a reset in the baseline. Management said the main driver is mix from a softer residential and light commercial aftermarket, with normalization expected as inventory clears and restocking begins, and pointed to a return to GDP-plus growth longer term. Questions also focused on whether Chemours had underestimated the aftermarket downturn; management said the market has changed materially, with about a 25% drop in aftermarket volume this year, and that the decline evolved during Q2 as cooler weather, affordability pressure, and distributor caution hit demand. On TT, analysts asked about Chinese exports and cost-curve pressure; management said sulfur cost inflation is supporting pricing and that Chemours is focused on fair-trade markets, not making claims about broad rationalization. Questions on liquid cooling and strategic portfolio actions led management to say that sales will be pulled through specifications across the ecosystem and that portfolio options, including partnerships or asset actions, remain open.