The Chemours Company (CC) Gabelli Funds' 16th Annual Specialty Chemicals Symposium summary

Conference introduction and company overview

• Event hosted by GAMCO Investors, focusing on core competencies in investment research.

• Chemours, spun off from DuPont in 2015, operates in three main segments: Titanium Technologies (TT), Thermal & Specialized Solutions (TSS), and Advanced Performance Materials (APM).

• Company has 150 million shares, a $2.2 billion market cap, $3.4 billion net debt, and $5.6 billion enterprise value.

Business segment performance and strategy

• 2023 sales totaled $6 billion with $800 million EBITDA; TSS had a 31% margin, TT and APM each at 12%.

• TSS is transitioning from Freon to Opteon, a low global warming potential refrigerant, with double-digit growth expected in 2025.

• TT is in a cyclical trough but has implemented $190 million in cost reductions over two years.

• APM focuses on performance solutions for semiconductors, EV batteries, and hydrogen, with delayed investments in green hydrogen.

• Portfolio optimization and capital allocation prioritize growth in EV, semiconductor, and electronics markets.

Financial results and operational initiatives

• Q4 sales reached $1.4 billion, with adjusted EBITDA of $179 million, exceeding expectations.

• TSS (Opteon) grew 23% YoY in Q4; TT and APM both saw 20% EBITDA growth in the quarter.

• New management team in place since 2024, with a renewed focus on executing the corporate strategy.

• Launched a $250 million cost-out program over three years, targeting $125 million in 2024.

• Strategic review led to the shutdown of two APM lines in Europe to optimize the asset footprint.