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CC's Q3 Earnings Miss Estimates on Weak TSS Volumes
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Key Takeaways
Chemours' Q3 adjusted EPS of 21 cents missed estimates by 19.2%, while sales rose 3% to $1.54 billion.
TSS revenues fell 9% on weak refrigerant volumes, while stronger titanium dioxide pricing lifted TT sales.
Chemours sees 2026 adjusted EBITDA of $775-$800 million and net sales growth of roughly 2% year over year.
The Chemours Company (CC - Free Report) reported a net income of $196 million or $1.29 per share for the third quarter of 2026. This compares favorably with the year-ago quarter’s net income of $46 million or 31 cents per share.
Barring one-time items, earnings were 21 cents per share, which missed the Zacks Consensus Estimate of 26 cents by 19.2%.
Net sales rose 3% year over year to $1,540 million but missed the consensus estimate of $1,541.6 million by 0.1%. Higher titanium dioxide pricing and strength in Performance Solutions supported sales, while lower refrigerant volumes weighed on results.
Adjusted EBITDA increased 6% year over year to $200 million from $189 million. The improvement was driven by stronger Titanium Technologies (TT) pricing and growth in Advanced Performance Materials (APM) Performance Solutions, partially offset by lower Thermal & Specialized Solutions (TSS) volumes and higher costs across the businesses.
The Chemours Company Price, Consensus and EPS Surprise
The TSS segment recorded revenues of $510 million in the third quarter, declining 9% year over year. The figure beat our estimate of $502.6 million. The decrease was primarily attributable to a 9% decline in volumes, reflecting weaker North American stationary air-conditioning aftermarket sales of Opteon blends against elevated demand in the prior-year quarter.
TSS adjusted EBITDA declined 30% year over year to $136 million. Adjusted EBITDA margin contracted eight percentage points to 27%, reflecting lower Opteon stationary aftermarket sales and higher costs.
The TT division generated revenues of $680 million, increasing 11% from the prior-year quarter. The figure missed our estimate of $694.9 million. The improvement was driven by a 10% increase in global pricing and a 1% rise in volumes, partly offset by a slight currency headwind. Pricing improved across all regions following recent price announcements. Volume growth in North America, Latin America and Asia-Pacific excluding China more than offset weakness in Europe, the Middle East and Africa, and China.
TT adjusted EBITDA surged 240% year over year to $85 million. Adjusted EBITDA margin expanded nine percentage points to 13%, supported by higher pricing and volumes, partially offset by modest cost inflation.
The APM segment recorded revenues of $337 million, up 8% year over year. The figure fell behind our estimate of $347.5 million. The increase reflected a 6% improvement in pricing and a 2% rise in volumes, partially offset by a slight currency headwind.
APM adjusted EBITDA increased 71% year over year to $24 million. Adjusted EBITDA margin improved two percentage points to 7%, aided by a favorable product mix, partially offset by higher operating costs.
CC's Cash Flow and Liquidity Position
Operating cash flow in the third quarter was $149 million compared with $146 million in the year-ago quarter. The figure included $150 million in PFAS insurance proceeds, partially offset by approximately $100 million in settlement payments and $25 million in taxes related to the Kuan Yin property sale.
Capital expenditures increased to $51 million from $41 million a year earlier. Free cash flow declined to $98 million from $105 million.
As of Sept. 30, 2026, Chemours had consolidated gross debt of $3.9 billion. Debt, net of $698 million in unrestricted cash and cash equivalents, was $3.2 billion. Total liquidity was $1.7 billion, with a net leverage ratio of approximately 4.3.
Chemours' Outlook for Q4 and FY26
For the fourth quarter, Chemours expects consolidated net sales to decline 5-10% sequentially, primarily due to seasonal weakness in TSS and TT. Adjusted EBITDA is projected at $160-$185 million, with corporate expenses of $40-$45 million.
TSS adjusted EBITDA is expected at $105-$115 million, while TT adjusted EBITDA is projected at $60-$65 million. APM adjusted EBITDA is anticipated at $40-$45 million, supported by continued Performance Solutions demand.
For 2026, Chemours expects net sales to grow approximately 2% year over year, with adjusted EBITDA of $775-$800 million. Capital expenditures are projected at $220-$230 million, with free cash flow conversion above 15%. The company now expects its net leverage ratio to fall below 4.2 by year-end.
CC's shares have remained flat over the past year compared with the industry’s 18.5% growth.
Image Source: Zacks Investment Research
CC’s Zacks Rank & Key Picks
CC currently carries a Zacks Rank #5 (Strong Sell).
Some better-ranked stocks in the Basic Materials space are Reliance, Inc. (RS - Free Report) , Element Solutions Inc. (ESI - Free Report) and Avino Silver & Gold Mines Ltd. (ASM - Free Report) .
The Zacks Consensus Estimate for RS’ 2026 earnings is pegged at $23.70 per share, indicating a 66.2% year-over-year surge. RSshares have gained 53.3% over the past year.
The Zacks Consensus Estimate for ESI’s 2026 earnings is pegged at $1.85 per share, indicating a year-over-year rise of 24.2%. Its earnings beat the Zacks Consensus Estimate in each of the trailing four quarters, with the average surprise being 6%.
The Zacks Consensus Estimate for ASM’s current fiscal-year earnings is pinned at 28 cents per share. Its earnings beat the Zacks Consensus Estimate in each of the trailing four quarters, with the average surprise being 75%.
View the Zacks #1 Rank List
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CC's Q3 Earnings Miss Estimates on Weak TSS Volumes
Key Takeaways
The Chemours Company (CC - Free Report) reported a net income of $196 million or $1.29 per share for the third quarter of 2026. This compares favorably with the year-ago quarter’s net income of $46 million or 31 cents per share.
Barring one-time items, earnings were 21 cents per share, which missed the Zacks Consensus Estimate of 26 cents by 19.2%.
Net sales rose 3% year over year to $1,540 million but missed the consensus estimate of $1,541.6 million by 0.1%. Higher titanium dioxide pricing and strength in Performance Solutions supported sales, while lower refrigerant volumes weighed on results.
Adjusted EBITDA increased 6% year over year to $200 million from $189 million. The improvement was driven by stronger Titanium Technologies (TT) pricing and growth in Advanced Performance Materials (APM) Performance Solutions, partially offset by lower Thermal & Specialized Solutions (TSS) volumes and higher costs across the businesses.
The Chemours Company Price, Consensus and EPS Surprise
The Chemours Company price-consensus-eps-surprise-chart | The Chemours Company Quote
Chemours' Segment Highlights
The TSS segment recorded revenues of $510 million in the third quarter, declining 9% year over year. The figure beat our estimate of $502.6 million. The decrease was primarily attributable to a 9% decline in volumes, reflecting weaker North American stationary air-conditioning aftermarket sales of Opteon blends against elevated demand in the prior-year quarter.
TSS adjusted EBITDA declined 30% year over year to $136 million. Adjusted EBITDA margin contracted eight percentage points to 27%, reflecting lower Opteon stationary aftermarket sales and higher costs.
The TT division generated revenues of $680 million, increasing 11% from the prior-year quarter. The figure missed our estimate of $694.9 million. The improvement was driven by a 10% increase in global pricing and a 1% rise in volumes, partly offset by a slight currency headwind. Pricing improved across all regions following recent price announcements. Volume growth in North America, Latin America and Asia-Pacific excluding China more than offset weakness in Europe, the Middle East and Africa, and China.
TT adjusted EBITDA surged 240% year over year to $85 million. Adjusted EBITDA margin expanded nine percentage points to 13%, supported by higher pricing and volumes, partially offset by modest cost inflation.
The APM segment recorded revenues of $337 million, up 8% year over year. The figure fell behind our estimate of $347.5 million. The increase reflected a 6% improvement in pricing and a 2% rise in volumes, partially offset by a slight currency headwind.
APM adjusted EBITDA increased 71% year over year to $24 million. Adjusted EBITDA margin improved two percentage points to 7%, aided by a favorable product mix, partially offset by higher operating costs.
CC's Cash Flow and Liquidity Position
Operating cash flow in the third quarter was $149 million compared with $146 million in the year-ago quarter. The figure included $150 million in PFAS insurance proceeds, partially offset by approximately $100 million in settlement payments and $25 million in taxes related to the Kuan Yin property sale.
Capital expenditures increased to $51 million from $41 million a year earlier. Free cash flow declined to $98 million from $105 million.
As of Sept. 30, 2026, Chemours had consolidated gross debt of $3.9 billion. Debt, net of $698 million in unrestricted cash and cash equivalents, was $3.2 billion. Total liquidity was $1.7 billion, with a net leverage ratio of approximately 4.3.
Chemours' Outlook for Q4 and FY26
For the fourth quarter, Chemours expects consolidated net sales to decline 5-10% sequentially, primarily due to seasonal weakness in TSS and TT. Adjusted EBITDA is projected at $160-$185 million, with corporate expenses of $40-$45 million.
TSS adjusted EBITDA is expected at $105-$115 million, while TT adjusted EBITDA is projected at $60-$65 million. APM adjusted EBITDA is anticipated at $40-$45 million, supported by continued Performance Solutions demand.
For 2026, Chemours expects net sales to grow approximately 2% year over year, with adjusted EBITDA of $775-$800 million. Capital expenditures are projected at $220-$230 million, with free cash flow conversion above 15%. The company now expects its net leverage ratio to fall below 4.2 by year-end.
CC's shares have remained flat over the past year compared with the industry’s 18.5% growth.
Image Source: Zacks Investment Research
CC’s Zacks Rank & Key Picks
CC currently carries a Zacks Rank #5 (Strong Sell).
Some better-ranked stocks in the Basic Materials space are Reliance, Inc. (RS - Free Report) , Element Solutions Inc. (ESI - Free Report) and Avino Silver & Gold Mines Ltd. (ASM - Free Report) .
RS and ESI currently sport a Zacks Rank #1 (Strong Buy) each, while ASM carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here
The Zacks Consensus Estimate for RS’ 2026 earnings is pegged at $23.70 per share, indicating a 66.2% year-over-year surge. RSshares have gained 53.3% over the past year.
The Zacks Consensus Estimate for ESI’s 2026 earnings is pegged at $1.85 per share, indicating a year-over-year rise of 24.2%. Its earnings beat the Zacks Consensus Estimate in each of the trailing four quarters, with the average surprise being 6%.
The Zacks Consensus Estimate for ASM’s current fiscal-year earnings is pinned at 28 cents per share. Its earnings beat the Zacks Consensus Estimate in each of the trailing four quarters, with the average surprise being 75%.