-- CFRA, an independent research provider, has providedwith the following research alert. Analysts at CFRA have summarized their opinion as follows:
Chemours posted mixed Q1 results, with sales of $1.381B (+1% Y/Y), $20M below expectations, while adjusted EPS of $0.05 beat by $0.09 but declined from $0.13 prior year. Net loss widened to $29M from $5M due to higher financing costs and increased SG&A expenses. The results reflected significant segment divergence, with record TSS performance (+22% Y/Y to $568M) offsetting TT weakness (-6% Y/Y) and APM disruptions (-17% Y/Y). Management guided Q2 sequential sales growth of 15%-20% and full-year 2026 growth of 3%-5% Y/Y, with adjusted EBITDA of $800M-$900M. We view TSS's performance favorably due to Opteon refrigerant adoption and strong automotive Freon sales, achieving 33% adjusted EBITDA margin. However, we remain concerned about TT's margin compression to 3% from competitive pressures by lower-cost Asian producers and APM's operational challenges from Washington Works plant outage. We believe the deleveraging target to reduce net leverage from 4.9x to below 3.8x by year-end 2026 will be important.