Chemours’ third-quarter 2026 earnings fell short of Wall Street estimates, although adjusted EBITDA reached the top of management’s guidance range. The company reported earnings of $0.21 per share, compared with analysts’ expectations of $0.27, and revenue of $1.5 billion versus a $1.53 billion forecast. Sales increased 3% from a year earlier.

Adjusted EBITDA was $200 million, with the company saying all three business segments contributed above expectations. Management attributed the sales growth to pricing gains in Titanium Technologies (TT) and stronger demand in Advanced Performance Materials (APM), which offset anticipated weakness in Thermal & Specialty Solutions (TSS).

APM Performance Solutions sales rose 26% year over year and 8% sequentially. Chemours said demand linked to data centers, semiconductors and AI infrastructure supported the business. In TT, global pricing increased 10% from a year earlier and about 4% from the previous quarter, despite a challenging market that included weak housing activity and uneven regional demand.

TSS faced softer North American demand for stationary air-conditioning aftermarket products as the cooling season ended. Chemours said lower aftermarket volumes and higher input costs weighed on the segment. For the fourth quarter, the company expects TSS sales to decline sequentially by a high-teens to low-20s percentage, while TT sales are forecast to fall by a high-single-digit to low-teens percentage. APM sales are expected to rise by a low- to mid-teens percentage.

Management noted that third-quarter results included about $5 million in earnings benefit from the timing of sales and costs between the third and fourth quarters. The company maintained its 2026 outlook, which calls for net sales growth of about 2% and adjusted EBITDA of $775 million to $800 million. It expects free cash flow conversion of 15% to 20% and capital spending of $220 million to $230 million for the year.

Chemours also expects net leverage to finish 2026 below 4.2 times adjusted EBITDA. During the quarter, it prepaid a further €50 million on its euro term loan B and completed the sale of its final parcel of land in Kuan Yin, generating about $56 million. Management said legal settlements, transaction taxes and working-capital timing are weighing on cash conversion.

The company said it expects earnings growth in 2027, while acknowledging uncertainty in the macroeconomic outlook. It also said it remains on track to achieve $250 million in run-rate cost savings by the end of 2026. Chemours introduced Faizeon, its first branded product line, for two-phase liquid cooling fluids used in AI infrastructure and data centers. Management described the offering as a long-term opportunity, rather than an immediate source of substantial sales growth.

Shares fell 2.73% during the regular session to $13.16 before recovering 1.9% after hours to $13.41. The trading response followed the earnings release and management’s discussion of pricing, segment performance and the company’s longer-term outlook.

Sources: Investing.com News.