v3.26.1
Segment Information
 3 Months Ended
Mar. 31, 2026
Segment Reporting [Abstract]  
Segment Information 23. Segment Information

 

Chemours operates through its three principal reportable segments, which were organized based on their similar economic characteristics, the nature of products and production processes, end-use markets, channels of distribution, and regulatory environments: Thermal & Specialized Solutions, Titanium Technologies, and Advanced Performance Materials. Other non-reportable segment includes the Company’s Performance Chemicals and Intermediates business.

 

The Company's Chief Operating Decision Maker ("CODM"), which is the Company's President and Chief Executive Officer, is regularly provided adjusted earnings before interest, taxes, depreciation, and amortization ("Adjusted EBITDA") which is the primary measure of segment profitability, by segment and on a consolidated basis. The CODM uses Segment Adjusted EBITDA as the primary basis to measure segment performance relative to expectations set during the Company's annual budget process, which is where decisions regarding allocation of the Company's capital expenditures, employees and financial resources predominately occurs. This regular review of segment and consolidated Adjusted EBITDA, which takes place in monthly Business Operating Reviews (BORs), includes budget-to-actual and various period-over-period variances, which allows the CODM to modify resource allocation accordingly. Adjusted EBITDA is defined as income (loss) before income taxes, excluding the following:

•
interest expense, depreciation, and amortization;
•
non-operating pension and other post-retirement employee benefit costs, which represents the non-service cost component of net periodic pension costs;
•
exchange (gains) losses included in other income (expense), net;
•
restructuring, asset-related, and other charges;
•
(gains) losses on sales of assets and businesses; and,
•
other items not considered indicative of the Company’s ongoing operational performance and expected to occur infrequently, including certain litigation related and environmental charges and Qualified Spend reimbursable by DuPont and/or Corteva as part of the Company’s cost-sharing agreement under the terms of the MOU that were previously excluded from Adjusted EBITDA.

The following table sets forth certain summary financial information for the Company’s reportable segments for the periods presented.

 

 

 

Thermal & Specialized Solutions

 

 

Titanium Technologies

 

 

Advanced Performance Materials

 

Three Months Ended March 31, 2026

 

 

 

 

 

 

 

 

 

Segment information from Interim Consolidated Statements of Operations:

 

 

 

 

 

 

 

 

Net sales to external customers (1)

 

$

568

 

 

$

559

 

 

$

243

 

Segment cost of goods sold

 

 

364

 

 

 

538

 

 

 

238

 

Segment selling, general and administrative expense

 

 

29

 

 

 

28

 

 

 

34

 

Segment research and development expense

 

 

7

 

 

 

7

 

 

 

11

 

Add back: Depreciation and amortization (2)

 

 

18

 

 

 

33

 

 

 

23

 

Equity in earnings of affiliates

 

 

3

 

 

 

—

 

 

 

5

 

Other segment items (3)

 

 

(1

)

 

 

1

 

 

 

(17

)

Segment Adjusted EBITDA

 

$

190

 

 

$

18

 

 

$

5

 

 

 

 

 

 

 

 

 

 

 

March 31, 2026

 

 

 

 

 

 

 

 

 

Segment information from Interim Consolidated Balance Sheets:

 

 

 

 

 

 

 

 

Total assets

 

$

1,799

 

 

$

2,333

 

 

$

1,674

 

Investments in affiliates

 

 

73

 

 

 

—

 

 

 

93

 

 

 

 

 

 

 

 

 

 

 

Three Months Ended March 31, 2026

 

 

 

 

 

 

 

 

 

Segment information from Interim Consolidated Statements of Cash Flow:

 

 

 

 

 

 

 

 

Purchases of property, plant and equipment

 

 

20

 

 

 

15

 

 

 

12

 

 

 

 

 

 

 

 

 

 

 

 

 

Thermal & Specialized Solutions

 

 

Titanium Technologies

 

 

Advanced Performance Materials

 

Three Months Ended March 31, 2025

 

 

 

 

 

 

 

 

 

Segment information from Interim Consolidated Statements of Operations:

 

 

 

 

 

 

 

 

Net sales to external customers (1)

 

$

466

 

 

$

597

 

 

$

294

 

Segment cost of goods sold

 

 

312

 

 

 

544

 

 

 

250

 

Segment selling, general and administrative expense

 

 

25

 

 

 

28

 

 

 

33

 

Segment research and development expense

 

 

7

 

 

 

7

 

 

 

12

 

Add back: Depreciation and amortization (2)

 

 

16

 

 

 

31

 

 

 

35

 

Equity in earnings of affiliates

 

 

2

 

 

 

—

 

 

 

6

 

Other segment items (3)

 

 

(1

)

 

 

(1

)

 

 

8

 

Segment Adjusted EBITDA

 

$

141

 

 

$

50

 

 

$

32

 

 

 

 

 

 

 

 

 

 

 

December 31, 2025

 

 

 

 

 

 

 

 

 

Segment information from Consolidated Balance Sheets:

 

 

 

 

 

 

 

 

Total assets

 

$

1,694

 

 

$

2,399

 

 

$

1,677

 

Investments in affiliates

 

 

73

 

 

 

—

 

 

 

87

 

 

 

 

 

 

 

 

 

 

 

Three Months Ended March 31, 2025

 

 

 

 

 

 

 

 

 

Segment information from Interim Consolidated Statements of Cash Flow:

 

 

 

 

 

 

 

 

Purchases of property, plant and equipment

 

 

33

 

 

 

37

 

 

 

13

 
(1)
Segment net sales to external customers are provided by product group in "Note 3 – Net Sales".
(2)
Segment depreciation and amortization expense is included as a component of cost of goods sold; selling, general, and administrative expense; and research and development expense in the amounts regularly provided to the CODM and are therefore added back to arrive at Segment Adjusted EBITDA.
(3)
Other segment items includes segment other (income) expense, net.

The following table sets forth a reconciliation for instances in which the above financial information for the Company's reportable segments does not sum to consolidated amounts.

 

 

 

Segment Total

 

 

Other Non-Reportable Segment

 

 

Corporate

 

 

Total Consolidated

 

Three Months Ended March 31, 2026

 

 

 

 

 

 

 

 

 

 

 

 

Net sales to external customers

$

 

1,370

 

$

 

11

 

$

 

—

 

$

 

1,381

 

Depreciation and amortization

$

 

74

 

$

 

1

 

$

 

4

 

$

 

79

 

Purchases of property, plant, and equipment

$

 

47

 

$

 

1

 

$

 

1

 

$

 

49

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Three Months Ended March 31, 2025

 

 

 

 

 

 

 

 

 

 

 

 

Net sales to external customers

$

 

1,357

 

$

 

11

 

$

 

—

 

$

 

1,368

 

Depreciation and amortization

$

 

82

 

$

 

1

 

$

 

5

 

$

 

88

 

Purchases of property, plant, and equipment

$

 

83

 

$

 

1

 

$

 

—

 

$

 

84

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total Assets (1)

 

 

 

 

 

 

 

 

 

 

 

 

March 31, 2026

$

 

5,806

 

$

 

94

 

$

 

1,367

 

$

 

7,267

 

December 31, 2025

$

 

5,770

 

$

 

95

 

$

 

1,517

 

$

 

7,382

 
(1)
Corporate assets primarily includes cash and cash equivalents, property, plant and equipment associated with the Chemours Discovery Hub, pension assets and deferred tax assets.

 

The following table sets forth a reconciliation of Segment Adjusted EBITDA to the Company’s consolidated income before income taxes for the three months ended March 31, 2026 and 2025.

 

 

 

Three Months Ended March 31,

 

 

 

2026

 

 

2025

 

Thermal & Specialized Solutions

 

$

190

 

 

$

141

 

Titanium Technologies

 

 

18

 

 

 

50

 

Advanced Performance Materials

 

 

5

 

 

 

32

 

Segment Adjusted EBITDA

 

 

213

 

 

 

223

 

Other non-reportable segment Adjusted EBITDA

 

 

3

 

 

 

1

 

Corporate expenses (1)

 

 

(47

)

 

 

(57

)

Unallocated Items:

 

 

 

 

 

 

Interest expense, net

 

 

(69

)

 

 

(66

)

Depreciation and amortization

 

 

(79

)

 

 

(88

)

Non-operating pension and other post-retirement employee benefit income

 

 

2

 

 

 

2

 

Exchange gains (losses), net

 

 

1

 

 

 

(3

)

Restructuring, asset-related, and other charges (Note 4)

 

 

(13

)

 

 

(21

)

Loss on extinguishment of debt (2)

 

 

(9

)

 

 

—

 

Gain on sales of assets and businesses, net

 

 

—

 

 

 

1

 

Transaction costs

 

 

(2

)

 

 

(1

)

Qualified spend recovery (3)

 

 

5

 

 

 

9

 

Litigation-related charges

 

 

(20

)

 

 

—

 

Environmental charges

 

 

(7

)

 

 

—

 

(Loss) income before income taxes

 

$

(22

)

 

$

—

 
(1)
Includes corporate costs and certain legal and environmental expenses, and stock-based compensation expenses excluding unallocated items as listed above.
(2)
For the three months ended March 31, 2026, loss on extinguishments of debt includes $9, associated with our senior unsecured notes which is discussed in further detail in "Note 15 - Debt".
(3)
Qualified spend recovery represents costs and expenses that were previously excluded from the determination of segment Adjusted EBITDA, reimbursable by DuPont and/or Corteva as part of the Company's cost-sharing agreement under the terms of the MOU. Terms of the MOU are discussed in further detail in "Note 17 – Commitments and Contingent Liabilities".