It's been a turbulent year for Chemours (CC, Financial), a specialty chemical company, marked by leadership changes and production disruptions due to a

severe drought in Mexico. Despite these challenges, CC reported better-than-expected Q3 results, highlighted by record net sales in its Thermal & Specialized

Solutions (TSS) segment, signaling business stabilization and a promising outlook for FY25.

Key Highlights:

CC had faced year-over-year net sales declines in six of the previous seven quarters, primarily due to price drops and lower volumes, especially in the

Advanced Performance Materials (APM) segment. However, Q3 saw a turnaround with net sales growth of 0.9%, driven by stronger-than-expected volumes

across all segments.

The TSS segment, which includes refrigerants and thermal management products, led the growth. TSS net sales increased by 6% to $460 million, driven by a

21% rise in Opteon Refrigerants. Despite high hydrofluorocarbon (HFC) inventory levels affecting market pricing, strong demand for Opteon mitigated pricing

pressures, resulting in a 2% price decline but an 8% volume increase.

Titanium Technologies (TT) saw a 2% year-over-year decrease in net sales to $679 million, improving from a 5% drop last quarter. This segment, producing

TiO2 pigment for coatings and packaging, was impacted by the Mexico drought but still achieved a 1% volume increase year-over-year, surpassing

expectations. The company anticipates meeting rising market demand as interest rates decline.

The APM segment continues to face challenges in macroeconomically sensitive markets like electronics and communications, with prices falling by 7% in Q3.

Nevertheless, volume growth across the portfolio led to a 1% year-over-year increase in net sales to $348 million.

Under the leadership of new CEO Denise Dignam and CFO Shane Hostetter, who took their roles in March and June 2024, respectively, Chemours is moving in

a positive direction after earlier turbulence. Although the company anticipates a seasonally slow quarter with sequential net sales declines in TT and TSS, the

outlook for FY25 is optimistic as expected rate cuts in the U.S. and Europe support macroeconomic recovery.