# The Chemours Company (CC) — Financial Analysis

**Exchange:** NYSE  
**Coverage as of:** 2026-Q2  
**Updated:** 2026-05-29  
**Tier:** Free primer (step 2 of 19)  
**Sibling pages:** /stocks/CC/thesis · /stocks/CC/memo

## Financial Snapshot

---
source: coverage-next-full
ticker: CC
step: "04"
title: Financial Snapshot — 3-Year P&L and Key Metrics
created: 2026-05-29
---

### Step 04: Financial Snapshot

#### Income Statement Summary (FY2021-FY2023)

| Metric | FY2021 | FY2022 | FY2023 |
|--------|--------|--------|--------|
| Revenue | $6.3B | $6.8B | ~$5.2B |
| Gross Profit | ~$1.9B | ~$2.0B | ~$1.1B |
| Gross Margin | ~30% | ~29% | ~21% |
| Adj. EBITDA | ~$1.3B | ~$1.4B | ~$700-800M |
| Adj. EBITDA Margin | ~21% | ~21% | ~13-15% |
| EBIT (Operating Income) | ~$950M | ~$1.0B | ~$300-400M |
| EBIT Margin | ~15% | ~15% | ~6-8% |
| Net Interest Expense | ~$200M | ~$220M | ~$250M |
| Adj. Net Income | ~$600M | ~$700M | ~$100-200M |
| GAAP Net Income | ~$400M | ~$500M | ~($100-200M) loss |
| Adj. EPS (diluted) | ~$3.70 | ~$4.30 | ~$0.70-1.20 |

*Note: FY2023 figures are approximate due to ongoing accounting restatement; actual restated figures may differ. FY2024 data not yet fully available at time of analysis.*

#### Key Drivers of FY2022 → FY2023 Decline

The collapse in reported earnings from FY2022 to FY2023 was driven by:

1. **TiO2 Volume Decline**: Approximately 20-25% volume reduction as paint/coatings customers aggressively destocked post-COVID. Volumes fell from ~860 kMT (FY2022) to approximately 680-700 kMT (FY2023).

2. **TiO2 Price Decline**: Average selling prices fell approximately 15-20% from FY2022 peaks as Chinese import pressure intensified and customers pushed back on price.

3. **PFAS Settlement Charge**: Recognition of the $592M water utility settlement contribution created a significant one-time charge in FY2023.

4. **Fixed Cost Deleverage**: TiO2 plants have high fixed cost bases; volume declines translate to significant operating leverage losses.

5. **Raw Material / Energy Costs**: Energy and feedstock (TiO2 ore / ilmenite and rutile) costs remained elevated even as selling prices fell.

#### Margin Bridge: FY2022 → FY2023

| Bridge Item | EBITDA Impact |
|------------|---------------|
| TiO2 volume decline | -$400 to -$500M |
| TiO2 price decline | -$250 to -$350M |
| TSS (Opteon) growth offset | +$100 to +$150M |
| Cost reductions / restructuring | +$50 to +$100M |
| PFAS settlement | -$150 to -$200M (partial-year recognition) |
| **Net Change** | **-$600 to -$700M** |

#### Key Margin Analysis

##### Gross Margin

Chemours' gross margin is heavily TiO2-cycle dependent. During the 2021-2022 upcycle, blended gross margins reached 28-30%. During the 2023-2024 down-cycle trough, margins fell toward 18-22%. The margin floor reflects: (1) TSS segment (Opteon) maintaining healthy margins, (2) partial fixed cost absorption even at low TiO2 volumes.

**TSS Gross Margin**: Estimated 35-45% (not separately disclosed; inferred from segment EBITDA margins)
**TiO2 Gross Margin**: Estimated 15-25% at mid-cycle; compressed to <10% at trough volumes/prices
**PS Gross Margin**: Estimated 20-30% (stable, niche positions)

##### EBITDA Margin

Adj. EBITDA margin is the most relevant operating metric for Chemours given its significant D&A from capital-intensive fluorochemical and TiO2 plants. Through-the-cycle EBITDA margin target (management guidance) is approximately 18-22%, achievable only with TiO2 recovery + Opteon growth.

##### Net Margin

Net margin is highly distorted by (1) interest expense on $3.5-4B net debt, (2) PFAS charges, and (3) accounting restatement items. GAAP net income is not a reliable earnings metric at this stage.

#### Free Cash Flow

| Metric | FY2021 | FY2022 | FY2023 |
|--------|--------|--------|--------|
| Adj. EBITDA | ~$1.3B | ~$1.4B | ~$750M |
| CapEx | ~$300M | ~$350M | ~$350M |
| Cash Interest | ~$180M | ~$200M | ~$230M |
| Cash Taxes | ~$150M | ~$180M | ~$50M |
| Working Capital Change | +/- varies | +$50M | -$50M |
| **Levered FCF (approx)** | **~$620M** | **~$620M** | **~$70-120M** |
| PFAS / Settlement Cash Payments | Minimal | Minimal | ~$100-150M |
| **Net FCF after PFAS** | **~$620M** | **~$620M** | **~($30-80M)** |

FCF generation collapsed in FY2023 primarily due to EBITDA compression, not capital structure changes. At mid-cycle EBITDA levels ($1.0-1.2B), Chemours can generate $500-700M in levered FCF — sufficient to service debt, fund PFAS settlements, and begin returning capital.

#### Balance Sheet Snapshot (FY2023)

| Item | Amount |
|------|--------|
| Total Assets | ~$5.5-6.0B |
| Cash & Equivalents | ~$750-900M |
| Total Debt | ~$4.0-4.5B |
| Net Debt | ~$3.0-3.5B |
| Shareholders' Equity | ~$0-200M (near-zero due to PFAS charges + buybacks in prior years) |

**Leverage**: Net Debt / Adj. EBITDA was approximately 4.0-5.0x at the FY2023 trough — elevated and near stress territory for a commodity chemicals company.

#### Accounting Restatement Impact

Chemours disclosed in 2023 that certain accounting irregularities related to supplier agreements and working capital timing required financial restatement. The restatement:
- Primarily affected timing of certain revenue and expense recognition
- Did not materially alter segment-level economics
- Led to CFO departure and increased scrutiny from auditors
- Created delays in SEC filings and investor uncertainty

The restatement impact on reported EBITDA is estimated at a few tens of millions of dollars — significant for credibility but not indicative of fundamental fraud at scale. The new CFO (Shane Hostetter) and audit committee overhaul are intended to address control weaknesses.

#### Credit Profile

| Metric | Status |
|--------|--------|
| Moody's Rating | B1 (Speculative Grade) |
| S&P Rating | BB- (Sub-Investment Grade) |
| Primary Covenants | Net Leverage covenant (~4.5-5.0x ceiling) |
| Maturity Profile | Laddered 2026-2031; Term Loan B + Senior Notes |
| Liquidity | ~$1.5-2.0B (cash + revolver availability) |

The credit rating reflects elevated leverage, PFAS liability uncertainty, and TiO2 cyclicality. Chemours is currently investment-grade-aspiring but dependent on TiO2 recovery and Opteon cash flow growth to sustain covenant compliance.

## Deeper Financial Analysis

The fundamental tier ($1.00) adds 8 dimensions not included here:

- Revenue Breakdown — segment revenue, geographic mix, product-line margins
- Financial Trends — QoQ momentum, leading indicators, inflection points
- Balance Sheet — debt structure, dilution risk, working capital dynamics
- Capital Allocation — ROIC, buyback cadence, reinvestment efficiency
- Earnings Analysis — beats/misses, guidance vs actuals, transcript highlights
- Competitive Positioning — market share, pricing power, peer benchmarks
- Industry Context — TAM, sector tailwinds/headwinds, regulatory backdrop

**API endpoint:** GET /api/v1/research/CC/fundamental

## Navigation

- Overview: /stocks/CC
- Financials (this page): /stocks/CC/financials
- Thesis: /stocks/CC/thesis
- Investment Memo: /stocks/CC/memo
- Coverage universe: /stocks