Chemours said the current-quarter net loss included legal and environmental reserves related to its announced settlement with the U.S. Environmental Protection Agency and West Virginia Department of Environmental Protection, as well as ongoing litigation. Those effects were partially offset by a gain related to sales of property at the company’s former Kuan Yin site.

President and CEO Denise Dignam said the results reflected progress on pricing in Titanium Technologies, growth in higher-value Advanced Performance Materials applications and improved cash generation as the company continues executing its Pathway to Thrive strategy.

Titanium Technologies Pricing Offsets Lower Volumes

For the coatings industry, the Titanium Technologies segment was a key part of the quarter. Segment sales increased 1% year over year to $661 million, while titanium dioxide pigment sales increased 2% to $639 million. Adjusted EBITDA increased to $48 million from $47 million.

Chemours said a 2% increase in global pricing and a 1% currency benefit more than offset a 2% decline in global Titanium Technologies volumes. Pricing increased across all regions, while TiO₂ volumes declined across most major end markets, with Asia excluding China and Latin America identified as exceptions.

Sequentially, Titanium Technologies sales increased 18% from the first quarter. Global volumes increased 15% and price increased 3%, which Chemours attributed to continued execution of its recent TiO₂ pricing actions.

The company implemented three global TiO₂ pricing actions over an approximately eight-month period, including its latest increase effective June 1. Those actions resulted in an approximately 5% year-to-date TiO₂ price improvement in net sales, according to Chemours.

Chemours expects Titanium Technologies sales to increase sequentially in the low- to mid-single-digit percentage range during the third quarter, driven by the recent pricing actions and stable volumes. Segment adjusted EBITDA is expected to range from $70 million to $80 million.

Advanced Markets Continue to Grow

Advanced Performance Materials reported second-quarter sales of $326 million, down 6% from the prior-year period. However, the segment’s Performance Solutions portfolio increased sales 8% year over year to $142 million. Sequentially, Performance Solutions sales increased 42%.

Chemours said growth in that portfolio was supported by demand for specialty materials serving semiconductor and data center applications. The company’s investor presentation shows that data center, semiconductor and advanced-electronics applications now represent a high-single-digit percentage of combined Thermal & Specialized Solutions and Advanced Performance Materials sales. More than 40% of APM Performance Solutions sales are concentrated in those targeted markets.

The presentation identifies applications ranging from thermal management and semiconductor fabrication to specialty coatings and component materials. Chemours said these markets are becoming a larger focus for its portfolio as demand associated with AI infrastructure and advanced computing expands.

Cash Flow Improves as Debt Declines

Chemours generated $158 million in operating cash flow during the quarter, up from $93 million a year earlier. Free cash flow increased to $114 million from $50 million, representing a 128% year-over-year improvement and free cash flow conversion of 46%.

At June 30, the company had $3.9 billion in gross debt and $671 million in unrestricted cash and cash equivalents. Net debt was approximately $3.2 billion, and net leverage declined to approximately 4.4 times trailing 12-month adjusted EBITDA. Chemours paid down €230 million of a euro-denominated term loan during the quarter and said it anticipates making additional debt repayments during 2026.

For full-year 2026, Chemours continues to expect net sales growth of 1% to 5% compared with 2025 and adjusted EBITDA of $775 million to $825 million. Capital expenditures are expected to range from $250 million to $280 million, with free cash flow conversion above 25%. The company is targeting a net leverage ratio of approximately 3.8 times by year-end.

For coatings manufacturers and formulators, Chemours’ pricing and volume trends provide a direct indicator of changing supply-and-demand conditions for titanium dioxide, a major raw material affecting opacity, whiteness, formulation economics and finished-coating costs.