Chemours Q3 adjusted profit misses estimates despite titanium pricing gains

Overview

• US specialty chemicals maker's Q3 sales rose 3% yr/yr, slightly beating analyst expectations

• Adjusted EPS for Q3 missed analyst expectations

• Q3 adjusted EBITDA beat analyst expectations

Outlook

• Chemours expects Q4 net sales to decline 5%-10% sequentially

• Company forecasts Q4 adjusted EBITDA between $160 mln and $185 mln

• Company forecasts 2026 adjusted EBITDA between $775 mln and $800 mln

Result Drivers

• PRICING AND MIX - Higher Titanium Technologies pricing and a favorable mix shift toward Advanced Performance Materials' Performance Solutions drove sales growth

• WEAK TSS VOLUMES - Lower North American stationary AC aftermarket sales in Thermal & Specialized Solutions weighed on volumes

• DATA CENTER DEMAND - Growth in Performance Solutions was supported by demand from data center and semiconductor markets

Company press release:

Key Details

Analyst Coverage

• The current average analyst rating on the shares is "hold" and the breakdown of recommendations is 4 "strong buy" or "buy", 7 "hold" and 1 "sell" or "strong sell"

• The average consensus recommendation for the diversified chemicals peer group is "buy."

• Wall Street's median 12-month price target for The Chemours Company is $17.00, about 25.6% above its October 30 closing price of $13.53

• The stock recently traded at 8 times the next 12-month earnings vs. a P/E of 9 three months ago

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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)