The Chemours 2025 Q1 Earnings Misses Targets with Net Income Down 107.4%

The Chemours Company (CC) reported its fiscal 2025 Q1 earnings on May 6th, 2025. The company missed analyst expectations, reporting a net loss of $4 million compared to a net income of $54 million in Q1 2024. The company's revenue was slightly up by 0.4% to $1.37 billion. Despite the earnings miss, Chemours maintains its forecast for improved operational performance throughout 2025. The company anticipates ongoing demand for its Opteon Refrigerants and plans to navigate macroeconomic pressures while focusing on long-term growth and shareholder value.

Revenue

The Chemours Company achieved a modest increase in total revenue for Q1 2025, with figures reaching $1.37 billion compared to $1.36 billion in the same period last year. The Thermal & Specialized Solutions division generated $466 million, while Titanium Technologies contributed $597 million. Advanced Performance Materials had a revenue of $294 million. The Other Segment accounted for $11 million, collectively supporting the overall revenue growth.

Earnings/Net Income

Chemours experienced a significant decline in earnings this quarter, swinging to a loss of $0.03 per share from a profit of $0.36 per share in Q1 2024. The net income showed a dramatic downturn, marking a 107.4% deterioration. This indicates a challenging quarter for the company, reflecting unfavorable earnings performance.

Price Action

The stock price of The Chemours edged up 0.92% during the latest trading day, dropped 3.12% during the most recent full trading week, and climbed 5.95% month-to-date.

Post-Earnings Price Action Review

Chemours has historically seen revenue drops quarter-over-quarter, yet holding its stock for 30 days after such declines has yielded positive returns over the past five years. Between May 2020 and April 2025, this strategy generated a total return of 23.4%, averaging an annual return of 4.7%. This pattern suggests that a wait-and-see approach following revenue dips can lead to moderate gains, particularly appealing to risk-averse investors seeking stability over extended periods. The consistent returns indicate the strategy's effectiveness, offering a viable option for investors prioritizing long-term value over immediate gains despite the recent earnings miss.

CEO Commentary

"We made important progress against the key pillars of our Pathway to Thrive strategy with notable advancements in our Enabling Growth pillar, driving year-over-year Opteon growth," said Denise Dignam, President and CEO of Chemours. She highlighted a 40% year-over-year growth in Opteon Refrigerants and noted strong demand, despite facing macroeconomic headwinds across all businesses. Dignam emphasized the company's commitment to executing its strategy while focusing on long-term shareholder value, even amid challenges related to business performance and restructuring charges from the Capstone business shutdown.

Guidance

Chemours anticipates ongoing demand for Opteon Refrigerants, bolstered by recent capacity expansions and strategic investments. The company expects to navigate current macroeconomic pressures while maintaining a focus on long-term growth and shareholder value. Management is committed to adapting to pricing dynamics and regional challenges, aiming to foster resilience in its operational performance moving forward.

Additional News

Chemours has announced a strategic partnership with Navin Fluorine to manufacture Opteon™ two-phase immersion cooling fluid, starting in 2026. This collaboration is part of Chemours' expanded Liquid Cooling Venture, aimed at addressing growing cooling demands in advanced data centers and AI hardware. The company also appointed Leslie M. Turner to its Board of Directors, bringing extensive legal and governance expertise. Additionally, Chemours declared a dramatic reduction in its quarterly dividend by 65%, setting it at $0.0875 per share, effective June 16 for shareholders recorded by May 17.