Chemours (NYSE:CC) said its second-quarter results reflected pricing gains, operational improvements and continued execution under its Pathway to Thrive strategy, while softer residential air-conditioning aftermarket demand weighed on sales in its Thermal & Specialized Solutions business.
President and Chief Executive Officer Denise Dignam said second-quarter net sales came in slightly below the company’s expectations, primarily because of softer residential stationary air-conditioning demand in Thermal & Specialized Solutions, or TSS. However, adjusted EBITDA exceeded expectations, helped by stronger operations and product mix in Advanced Performance Materials, lower corporate costs and pricing gains in Titanium Technologies.
Aftermarket destocking pressures TSS outlook
TSS net sales were slightly lower than a year earlier, as lower North American aftermarket sales of Opteon refrigerant blends offset year-over-year growth in OEM volumes and continued growth in data-center-related markets. Higher prices, including strength in Freon refrigerants used primarily in automotive applications, partly mitigated the volume decline.
Dignam said the prior-year period benefited from distributor channel filling connected to the U.S. AIM Act transition in stationary air conditioning. That inventory build left the aftermarket with elevated stock entering 2026.
The company said residential demand has also been constrained by higher interest rates, affordability pressures and slower housing activity. A colder spring in the Northeast and broader macroeconomic uncertainty contributed to weaker order activity, executives said.
For the third quarter, Chemours expects TSS net sales to decline sequentially by the mid-teens to 20% range, with adjusted EBITDA of $125 million to $140 million. CFO Shane Hostetter said the outlook reflects seasonal factors and a less favorable mix from lower Opteon aftermarket sales.
Hostetter said the company still views TSS as a business capable of margins above 30% over time. He said the company expects seasonal restocking to begin ahead of the 2027 cooling season, while the expanding installed base of newer residential and light-commercial systems should support longer-term growth.
Chemours expects the stationary aftermarket to grow at a mid- to high-single-digit annual percentage rate over the longer term, supported by equipment replacement activity, heat-pump adoption in Europe and data-center chiller demand.
Titanium Technologies pricing offsets inflation
In Titanium Technologies, second-quarter net sales increased slightly from the prior-year quarter, driven primarily by global pricing gains. Volumes declined in key end markets, except in Asian markets excluding China and in Latin America, where demand was more resilient following antidumping duties in Brazil.
Adjusted EBITDA improved year over year, while adjusted EBITDA margin was flat. Chemours said higher pricing more than offset inflation-related costs.
The company has announced three titanium dioxide price increases since December 2025, including a global increase effective June 1. Together, the actions have resulted in an approximately 5% year-to-date increase in pricing compared with the start of the year, according to management.
For the third quarter, Chemours expects Titanium Technologies net sales to rise sequentially in the low- to mid-single-digit percentage range and adjusted EBITDA to total $70 million to $80 million. The company expects volumes to be higher year over year in the second half across all end markets outside China.
Dignam said rising sulfur costs are increasing costs for sulfate-produced titanium dioxide, a trend that predated the war and has since intensified. She said the company remains focused on “fair trade markets” where it believes customers value supply reliability and its product offering.
APM sees data center and semiconductor momentum
Advanced Performance Materials sales declined year over year in the second quarter, largely because of the SPS Capstone line closure completed in the third quarter of 2025. Higher prices partially offset the volume impact. Adjusted EBITDA also declined, reflecting the line closure and costs related to the now-resolved Washington Works outage.
Within APM, Performance Solutions sales increased 8% from the prior-year period. Dignam said the business is benefiting from order-book strength in data center and semiconductor applications. More than 40% of Performance Solutions sales are tied to targeted markets including data centers, semiconductors, artificial intelligence and advanced electronics, management said.
Chemours recorded nominal sales of two-phase liquid-cooling products for customer sampling during the quarter. Product trials increased 70% year over year, according to the company. Dignam said commercial liquid cooling today is primarily single-phase, while two-phase liquid cooling represents a potential future opportunity.
For the third quarter, Chemours expects APM sales to increase sequentially in the mid- to high-single-digit percentage range, supported by normalized operations at Washington Works and Performance Solutions order fulfillment. Adjusted EBITDA is expected to be $20 million to $30 million, including about $5 million of sales performance pulled forward into the second quarter.
Full-year outlook and debt reduction
Chemours expects third-quarter consolidated net sales to range from down 5% sequentially to flat, with adjusted EBITDA of $175 million to $205 million. Corporate expenses are expected to be approximately $40 million to $45 million, capital expenditures are expected to be about $65 million, and free cash flow is projected to be at least $50 million.
- Full-year 2026 net sales are expected to grow 1% to 5% from 2025.
- Full-year adjusted EBITDA is projected at $775 million to $825 million.
- Capital expenditures are expected to total $250 million to $280 million.
- Free-cash-flow conversion is expected to exceed 25%.
- Net leverage is expected to be about 3.8 times adjusted EBITDA by year-end 2026.
The company repaid nearly $270 million of its 2028 euro term loan during the second quarter, including $103 million beyond the amount discussed on its first-quarter call. Hostetter said Chemours intends to continue prioritizing debt repayment through organic cash flow and proceeds received from the Kuan Yin land sale.
Looking beyond 2026, Dignam said Chemours is pursuing strategic and portfolio optionality, including potential partnerships and actions involving product lines or assets. She said no portfolio action is off the table if it could create a “step change” in shareholder value, though she declined to discuss specific potential transactions.
The company said its core businesses could ultimately support at least $1 billion in annual adjusted EBITDA and free-cash-flow conversion exceeding 40%, while it continues to reduce balance-sheet risk.
About Chemours (NYSE:CC)
Chemours Company, established in 2015 as a spin-off from E. I. du Pont de Nemours and Company, is a global chemistry organization headquartered in Wilmington, Delaware. Since its formation, Chemours has focused on delivering performance chemicals that help customers lower their carbon footprint, increase energy efficiency and conserve water. The company operates with a commitment to safety, environmental stewardship and innovation.
Chemours’ principal business activities are organized into three core segments.
