Shares of Chemours (CC) tumbled 5.87% in trading on Tuesday following the release of the company's disappointing first-quarter 2025 earnings report. The chemical manufacturer's results presented a mixed picture, with an earnings miss overshadowing a revenue beat, while management decisions to cut dividends and lower guidance further dampened investor sentiment.
Chemours reported adjusted earnings per share (EPS) of $0.13, significantly below the analyst consensus estimate of $0.21. This substantial miss of nearly 38% compared to expectations was a primary driver behind the stock's sharp decline. The company's adjusted EBITDA came in at $166 million, falling short of the projected $171.3 million. Despite these misses, Chemours did manage to outperform on the top line, reporting Q1 sales of $1.4 billion, surpassing the analyst estimate of $1.35 billion.
Adding to investor concerns, Chemours announced a drastic 65% reduction in its quarterly dividend to $0.0875 per share, citing the need to better align its capital allocation and achieve balance sheet flexibility. The company also lowered the top-end of its full-year adjusted EBITDA forecast, now projecting between $825 million and $950 million, down from the previous upper range of $975 million. Management attributed the revised outlook to macroeconomic uncertainty and business-related headwinds across all three of its main segments. The stark contrast between the current quarter's net loss of $4 million and the $54 million profit from the same period last year further highlights the challenges Chemours is facing in the current economic environment.