Chemours Reports Slight Increase in Net Sales but Posts $4 Million Net Loss in Q1 2025

The Chemours Company reported a slight increase in net sales for the first quarter of 2025, reaching $1.368 billion, compared to $1.362 billion in the same period of 2024. However, the company experienced a net loss of $4 million, or $(0.03) per share, contrasting with a net income of $54 million, or $0.36 per share, from the previous year. The increase in sales was primarily driven by a 5% rise in volume, which offset a 4% decrease in pricing and a 1% negative impact from currency fluctuations. The cost of goods sold also rose by 5% to $1.132 billion, attributed mainly to higher raw material costs.

Chemours undertook significant restructuring efforts, particularly in its Advanced Performance Materials segment, leading to restructuring and asset-related charges of $33 million in the first quarter, a substantial increase from $4 million in the prior year. This included $27 million related to the exit of its SPS Capstone business, which was prompted by regulatory changes and reduced market demand. The company also reported a decrease in selling, general, and administrative expenses, which fell to $123 million from $137 million, largely due to lower costs associated with an internal audit review.

Operationally, Chemours saw a notable increase in accounts receivable, which rose by 11% to $858 million, reflecting higher sales activity. Inventories also increased by 6% to $1.550 billion, driven by seasonal inventory builds and rising raw material costs. Current liabilities decreased to $1.673 billion from $1.817 billion, primarily due to a reduction in accounts payable, which fell by 13% to $1.006 billion, attributed to the timing of vendor payments.

Looking ahead, Chemours has expressed confidence in its liquidity, with $464 million in unrestricted cash and cash equivalents as of March 31, 2025. The company anticipates generating positive cash flows from operations throughout 2025 and has secured a revolving credit facility with increased commitments totaling $1 billion. However, it remains cautious about potential legal and environmental liabilities, particularly related to ongoing PFAS litigation and regulatory compliance, which could impact future financial performance. The company is committed to addressing these challenges while continuing to focus on its strategic growth initiatives.