The Chemours Company (CC) | The Buildout — AI Infrastructure
The Verdict
The Chemours Company is a global performance chemicals maker organized into Thermal & Specialized Solutions, Titanium Technologies, and Advanced Performance Materials. In the AI buildout, its Advanced Performance Materials fluoropolymers go into semiconductor and data-center equipment, and its Opteon refrigerants serve data-center chiller systems. A two-phase immersion-cooling fluid is in trials. Titanium Technologies is not an AI story.
| Market Cap | — |
| Revenue (TTM) | $5.8B |
| Revenue Growth | +0.1% |
| EBITDA Margin (TTM) | 3.8% |
| Net Debt | $3.8B |
| Earnings Beats | 4 of 7 |
| P/E (TTM) | — |
| EV/EBITDA (TTM) | — |
What We Like
- TSS is the profit engine: Q1 2026 adjusted EBITDA margin was 33%, and Freon 134a is one of two domestic suppliers.
- APM order velocity reached a multi-year high; Performance Solutions Q2 net sales grew 8% Y/Y, with more than 40% of Performance Solutions sales in data-center, semiconductor, AI, and advanced-electronics markets.
- TT delivered three TiO2 price increases since December 2025 and roughly 5% YTD realized pricing; Q3 TT adjusted EBITDA is guided to $70–80M, up from Q2's $40–50M guide.
- Balance-sheet derisking ran ahead: Q2 repaid close to $270M of the 2028 euro term loan, $103M more than communicated on the Q1 call.
- Two-phase liquid-cooling trials rose 70% Y/Y, with the NTT field trial successful and Samsung qualification previously announced.
What We’re Watching
- TSS aftermarket normalization is expected by the end of Q1 2027; Q3 TSS net sales are guided down mid-teens to 20% sequentially.
- TT pricing gains are price-led, not volume-led: Q2 volumes were lower across most key end markets except Asia ex-China and Latin America, and management said the sulfur-driven TiO2 pricing umbrella is “not per se” fundamental rationalization.
- APM recovery timing: Q3 APM adjusted EBITDA is guided to $20–30M, below the prior $30–40M back-half framing after a ~$5M Q2 pull-forward.
- Two-phase cooling remains pre-commercial: nominal sales were recorded, and management says there is no current commercial market share.
The broad thesis is intact but scored: the TSS stationary aftermarket deterioration forced FY2026 adjusted EBITDA guidance lower, while TT pricing, APM order-book momentum, and faster debt reduction strengthened. The open question is whether TSS destocking normalizes by the end of Q1 2027 as management expects.
Earnings Beat
On the August 5, 2026 call, Chemours said Q2 net sales were slightly below expectations while adjusted EBITDA exceeded expectations. Thermal & Specialized Solutions net sales were slightly down year over year as lower North America Opteon aftermarket volumes offset growing Opteon OEM and data-center sales. Titanium Technologies net sales increased slightly on global pricing. Advanced Performance Materials fell year over year on the SPS Capstone line closure, partially offset by pricing, while Performance Solutions grew 8% year over year.
| Metric | Q1 FY2026 | Q4 FY2025 | Q1 FY2025 | YoY |
|---|---|---|---|---|
| Revenue | $1.4B | $1.3B | $1.4B | +1.0% |
| Gross margin | 15.6% | 11.5% | 17.3% | -170bps |
| EBITDA | $143M | −$259M | $166M | −13.9% |
| EPS | $-0.19 | $-0.41 | $-0.03 | +624.0% |
| APM Performance Solutions net sales | 8% Y/Y | n/a | n/a | +8% Y/Y |
Liquid cooling has taken off in data centers, right? And — but it’s not two-phase. What you see today is the single-phase. So there is not any — today any share in the commercial market. So that’s all upside.— Management, August 5, 2026
Management tone: Management shifted from Q1's execution-focused confidence to a more measured stance on the TSS stationary aftermarket, while becoming more assertive on portfolio optionality. It was candid and numerical about the aftermarket decline, quantifying the issue rather than downplaying it.
Management Guidance
For FY2026, management cut net sales growth to 1%–5% and adjusted EBITDA to $775–825 million, lowered capex to $250–280 million, raised FCF conversion guidance to above 25%, and now targets net leverage around 3.8x by year-end. The cut is concentrated in TSS stationary aftermarket destocking, which management quantified as roughly a 25% Y/Y volume drop and about $65 million of Q2/Q3 prebuy distortion.
Trajectory
The trailing financial picture is decelerating: Q1 FY2026 revenue was $1,381 million, up 1% year over year, while gross margin compressed to 15.6% from 17.3% a year earlier. The Q2 call showed the split. TSS net sales were slightly down and Q3 is guided down mid-teens to 20% sequentially on aftermarket destocking, while TT pricing and APM Performance Solutions order momentum are the offsets.
The Model
The model projects FY+1 revenue of $6,100 million with EBITDA of $860 million, a 14.1% EBITDA margin, and FY+2 revenue of $6,400 million with EBITDA of $966 million, a 15.1% margin. The FY+1 projection is anchored by management's FY2026 adjusted EBITDA guidance of $775–825 million and a recovery in TSS aftermarket mix; FY+2 builds on TT pricing and structural cost benefits plus APM order-book conversion.
| Metric | FY2025 | Next FY (E) | Following FY (E) |
|---|---|---|---|
| Revenue | $5.8B | $6.1B | $6.4B |
| YoY Growth | — | +5.0% | +4.9% |
| EBITDA | $242M | $860M | $966M |
| EBITDA Margin | 4.2% | 14.1% | 15.1% |
Projections are the median of 5 independent model runs. The model’s revenue sits 0.3% above analyst consensus.
For FY2026, management cut net sales growth to 1%–5% and adjusted EBITDA to $775–825 million, lowered capex to $250–280 million, raised FCF conversion guidance to above 25%, and now targets net leverage around 3.8x by year-end. The cut is concentrated in TSS stationary aftermarket destocking, which management quantified as roughly a 25% Y/Y volume drop and about $65 million of Q2/Q3 prebuy distortion.
What Could Go Right — and Wrong
- TSS aftermarket restocks ahead of the 2027 cooling season as management expects, restoring the 30-plus margin mix in the company's highest-margin segment.
- TT pricing compounds and holds into 2027 with volume recovery outside China, converting the second-half step-up into a multi-year reset.
- APM's order book converts to sustained back-half earnings, pushing the segment past the $30–40 million adjusted EBITDA range.
- A named commercial two-phase liquid-cooling order or license moves the program from sampling to a revenue line not in the base case.
- A portfolio action is announced, changing the structure of the businesses rather than just their near-term trajectory.
- TSS aftermarket destocking proves structural: the ~25% volume drop is not followed by restocking ahead of the 2027 season.
- Chinese TiO2 supply breaks into fair-trade markets and reverses TT's realized pricing gains.
- Two-phase liquid-cooling program stalls at trial stage, leaving the AI exposure at a high single-digit slice of APM+TSS without a new earnings driver.
- APM recovery slips further after Q3 guidance of $20–30 million, delaying the move past $30–40 million.
- Environmental or legal liabilities escalate beyond recorded reserves, consuming cash and weakening the derisking story.
Looking Ahead
The next 12 months turn on whether the TSS stationary-aftermarket air pocket clears by the end of Q1 2027, with a near-term trough guided for Q3 2026. Meanwhile, TT is expected to show year-over-year volume growth in 2H 2026 outside China and Q4 cost improvements; APM expects Washington Works recovery and order-book fulfillment beyond Q3; and two-phase liquid-cooling capacity for customer sampling comes online at year-end 2026.
- Q3 2026Q3 2026 earnings — Tests TSS aftermarket decline and TT adjusted EBITDA step-up.
- Late Q3 2026Plant turnaround payments — ~$65M Q3 capex includes turnaround payments commencing late Q3.
- Q4 2026TT cost improvements — Management has line of sight into TT input and operational cost improvements.
- End 2026Two-phase cooling sampling capacity — Year-end 2026 capacity comes online for customer sampling and process refinement.
- End 2026Remaining Kuan Yin parcel — Expected to close in 2026 for ~$60M gross proceeds.
- End of Q1 2027TSS aftermarket normalization — Inventory clears and seasonal restocking begins ahead of the 2027 cooling season.
Financials
Annual Summary
| Metric | FY2024 | FY2025 | TTM | YoY |
|---|---|---|---|---|
| Revenue | $5.8B | $5.8B | $5.8B | -0.1% |
| Gross Margin | 19.9% | 15.4% | 15.1% | 443bps |
| EBITDA | $741M | $242M | $8.7B | -67.3% |
| EBITDA Margin | 12.8% | 4.2% | 3.8% | 859bps |
| Net Income | $79M | −$386M | −$411M | -588.6% |
| Free Cash Flow | −$993M | $51M | $2.0B | — |
| Net Cash | — | — | — | — |
Key Ratios (Trailing)
- P/E TTM—
- EV/EBITDA TTM—
- EV/Revenue TTM—
- Price/FCF TTM—
- Gross Margin (TTM)15.1%
- EBITDA Margin (TTM)3.8%
- Net Margin (TTM)-7.1%
- ROIC-0.4%
- FCF Conversion70.3%
- SBC / Revenue0.3%
The Company
The Chemours Company is a global performance chemicals maker with three reporting segments: Thermal & Specialized Solutions (Freon and Opteon refrigerants), Titanium Technologies (Ti-Pure TiO2 pigment), and Advanced Performance Materials (Teflon, Viton, Krytox, and Nafion fluoropolymers). The 10-K describes these as key inputs into refrigeration, paints and coatings, plastics, transportation, semiconductor and consumer electronics, and oil and gas. In AI infrastructure, the relevant strands are APM Performance Solutions fluoropolymers for semiconductor and data-center applications and TSS Opteon refrigerants for data-center chillers.
The company operates production and mining sites across North America and Europe. Titanium is integrated through mining and mineral separation, and APM runs fluoropolymer production at sites including Washington Works and Fayetteville Works. The DeLisle on-site chlorine project was terminated in March 2026 and replaced by a long-term chlorine supply contract starting 2028, which management describes as value-accretive economics supporting a low-cost chloride TiO2 position.
Business Segments
Competitive Landscape
Management describes Freon 134a as one of two domestic suppliers and says the stationary AC technology transition reduced suppliers “from many to just 2.”
Supply Chain
Chemours sits between raw-material and energy inputs and downstream HVAC, coatings, plastics, and semiconductor customers. The intel file treats several downstream relationships as inferred.
More on CC: Earnings recap