The Chemours Company (CC) 2026 Q1 法說會逐字稿

Good morning. My name is Michelle, and I will be your conference operator today. I would like to welcome everyone to the Chemours Company first-quarter 2026 results conference call. (Operator Instructions) I would like to remind everyone that this conference call is being recorded.

早安。我叫 Michelle，今天將擔任本次電話會議的接線員。我謹代表公司歡迎各位參加 Chemours Company 2026 年第一季財報電話會議。（接線員指示）並提醒各位，本次電話會議將被錄音。

I would now like to hand the conference over to Brandon Ontjes, Vice President, Head of Strategy and Investor Relations for Chemours. You may begin your conference.

現在我將把電話會議交給 Chemours 策略與投資人關係部門副總裁暨主管 Brandon Ontjes。您可以開始會議。

Good morning, everybody. Welcome to the Chemours Company first-quarter 2026 earnings conference call. I'm joined today by Denise Dignam, Chemours' President and Chief Executive Officer; and our Senior Vice President and Chief Financial Officer, Shane Hostetter. Before we start, I would like to remind you that comments made on this call as well as in the supplemental information provided on our website contain forward-looking statements that involve risks and uncertainties as described in Chemours' SEC filings.

各位早安。歡迎參加 Chemours Company 2026 年第一季財報電話會議。今天與我一同出席的有 Chemours 總裁兼執行長 Denise Dignam，以及資深副總裁兼財務長 Shane Hostetter。在開始之前，我想提醒各位，本次電話會議中的發言以及我們網站所提供的補充資訊包含前瞻性陳述，涉及風險與不確定性，相關內容已於 Chemours 向美國證券交易委員會（SEC）提交的文件中說明。

These forward-looking statements are not guarantees of future performance and are based on certain assumptions and expectations of future events that may not be realized. Actual results may differ, and Chemours undertakes no duty to update any forward-looking statements as a result of future developments or new information.

這些前瞻性陳述並非對未來績效的保證，且係基於對未來事件的若干假設與預期，而該等事件可能無法實現。實際結果可能有所不同，且 Chemours 不因未來發展或新資訊而負有更新任何前瞻性陳述之義務。

During the course of this call, we will refer to certain non-GAAP financial measures that we believe are useful to investors evaluating the company's performance. A reconciliation of non-GAAP terms and adjustments is included in our press release issued yesterday evening. Additionally, we posted our earnings presentation on our website yesterday evening as well.

在本次電話會議過程中，我們將提及若干非 GAAP 財務衡量指標，我們認為這些指標有助於投資人評估公司的表現。非 GAAP 項目及調整的調節表已包含於我們昨晚發布的新聞稿中。此外，我們也已於昨晚在網站上發布本次財報簡報。

With that, I will turn the call over to Denise Stignnam.

接下來，我將把電話會議交給 Denise Stignnam。

Thank you, Brandon, and thank you, everyone, for joining us. During today's call, I will begin by discussing highlights from our recent performance before turning it over to Shane, who will provide details around our outlook for the second-quarter of 2026 and some commentary on the remainder of the year. Finally, I will provide updates on our meaningful progress against our Pathway to Thrive strategy and current view of our operating environment before taking your questions.

謝謝你，Brandon，也謝謝各位今天加入我們。在今天的電話會議中，我將先討論近期營運表現的重點，接著交由 Shane 說明我們對 2026 年第二季的展望，以及對今年其餘期間的一些評論。最後，我將在回答各位提問之前，更新我們在「Pathway to Thrive」策略上的重要進展，以及我們對目前營運環境的看法。

We started 2026 with strong results, delivering a first-quarter that was well above earnings expectations and showcased the strength of Chemours' disciplined execution and strategic focus across the company. Both Thermal & Specialized Solutions and Titanium Technologies delivered standout performances with TSS not only achieving another quarter of double-digit year-over-year growth in Opteon Refrigerant.

我們以強勁的成果開啟 2026 年，第一季表現大幅優於獲利預期，展現 Chemours 在全公司範圍內嚴謹執行與策略聚焦的實力。Thermal & Specialized Solutions 與 Titanium Technologies 兩大事業部皆有亮眼表現，其中 TSS 不僅在 Opteon 冷媒上再度達成連續一季的兩位數年增成長，

But also excelling in quota execution and capturing additional opportunities in Freon Refrigerants through sharp market focus and agile commercial execution. TT also exceeded our earnings expectations, driven by global pricing actions, strong commercial discipline across all regions and customer segments and continued operational focus.

同時也在配額執行方面表現出色，並透過敏銳的市場聚焦與靈活的商業執行，在 Freon 冷媒上掌握更多額外機會。TT 亦超出我們的獲利預期，主要受惠於全球價格措施、在各區域與客戶細分市場的強勁商業紀律，以及持續的營運聚焦。

In Advanced Performance Materials, the business worked to quickly stabilize operations following the Washington Works outage and is seeing strength in our Performance Solutions order book, especially in high-value data center and semiconductor markets. Adding to the strong performance and aligning with our efforts to improve our balance sheet, we completed the sale of nearly all of our Kuan Yin properties ahead of schedule and promptly used the available proceeds to pay down a meaningful portion of our near-term debt, further strengthening our balance sheet and enhancing Chemours financial flexibility as we look ahead.

在 Advanced Performance Materials 方面，該事業部在 Washington Works 停工事件後迅速致力於穩定營運，並在我們的 Performance Solutions 訂單簿中看到需求強勁，尤其是在高價值的資料中心與半導體市場。除營運表現強勁外，亦配合我們改善資產負債表的努力，我們提前完成出售幾乎所有 Kuan Yin 不動產，並迅速將可用款項用於償還相當部分的短期到期債務，進一步強化資產負債表，並在展望未來之際提升 Chemours 的財務彈性。

We remain on track to complete the sale of the remaining parcel of the land in 2026, which should provide an incremental $60 million of gross proceeds. This development follows the $700 million refinancing completed in March of our 2027 unsecured notes and a portion of our 2028 unsecured notes, extending these maturities out to 2034 and increasing our balance sheet flexibility.

我們仍按計畫於 2026 年完成出售剩餘的一筆土地，預計可帶來額外 6,000 萬美元的總收益。此進展緊接著我們於 3 月完成的 7 億美元再融資，涵蓋 2027 年無擔保票據以及部分 2028 年無擔保票據，將到期日延長至 2034 年，並提升我們的資產負債表彈性。

Let me expand a bit further on the quarter's business activities. Our TSS business delivered a record first-quarter with continued strength in both Freon and Opteon Refrigerants driving double-digit year-over-year growth. Net sales for TSS increased 22% versus the prior year quarter, largely driven by higher pricing, stronger volume growth and a favorable product mix across refrigerant markets.

我再進一步說明本季的業務活動。我們的 TSS 事業部創下第一季歷史新高，Freon 與 Opteon 冷媒持續強勁，帶動年增兩位數成長。TSS 淨銷售額較去年同期增加 22%，主要受惠於較高的價格、更強的銷量成長，以及冷媒市場中有利的產品組合。

Pricing benefited from automotive aftermarket Freon Refrigerant sales in North America and Opteon blends, while overall volume growth was supported by seasonal strength. These top line results translated into record adjusted EBITDA for TSS in the quarter with margins expanding to 33%, reflecting strong pricing realization for Freon and an improved Opteon blend mix.

價格方面受惠於北美汽車售後市場的 Freon 冷媒銷售以及 Opteon 混配產品，而整體銷量成長則由季節性需求強勁所支撐。上述營收表現帶動 TSS 本季調整後 EBITDA 創下新高，利潤率擴大至 33%，反映 Freon 的強勁價格實現以及 Opteon 混配產品組合改善。

While higher input costs, particularly R32, created some offset, these results underscore the power of our commercial execution and disciplined quota management. Sequentially, net sales increased 28%, consistent with the typical seasonal ramp we see across refrigerants and pricing strength in certain products. For our TT business in the first-quarter, the team executed well amid a challenging market environment.

雖然較高的投入成本（特別是 R32）造成部分抵銷，但這些結果凸顯我們商業執行力與嚴謹配額管理的成效。就季比而言，淨銷售額增加 28%，符合我們在冷媒產品上通常看到的季節性拉升，以及部分產品的價格強勢。至於 TT 事業部第一季表現，團隊在具挑戰性的市場環境中執行良好。

We experienced continued global stability and observed solid seasonal demand improvements in North America and Europe. However, lower volumes and less favorable product mix in certain non-Western markets offset these gains, resulting in reduced global volumes overall compared to the prior quarter. While volumes trended down sequentially, net sales finished within our expectations due to disciplined global pricing execution.

我們看到全球市場持續穩定，並觀察到北美與歐洲的季節性需求改善。然而，部分非西方市場的銷量較低且產品組合較不利，抵銷了上述增長，使得全球整體銷量相較前一季下降。儘管銷量季比下滑，淨銷售額仍落在我們預期範圍內，主要歸功於嚴謹的全球定價執行。

Notably, adjusted EBITDA exceeded our expectations, driven by our pricing actions, along with strong cost management and our focus on operational excellence. In line with our efforts to improve security of supply and input optimization, we signed a long-term chlorine supply contract with Olin to service our DeLisle site starting in 2028.

值得注意的是，調整後 EBITDA 超出我們預期，主要由定價措施帶動，並結合強勁的成本管理與對營運卓越的聚焦。配合我們提升供應安全與投入最佳化的努力，我們已與 Olin 簽署長期氯氣供應合約，自 2028 年起為 DeLisle 廠區供應。

This agreement ensures a reliable supply at value-accretive economics, strengthening DeLisle global competitiveness and supporting our operational excellence focus under Pathway to Thrive. It also reinforces Chemours' commitment to being one of the lowest-cost chloride TiO2 producers worldwide. While we had previously announced our intention to pursue an on-site chlorine facility at our DeLisle site with a third party, in March, the supply agreement terminated, and we will not be proceeding with this project.

此協議可在具增值效益的經濟條件下確保可靠供應，強化 DeLisle 的全球競爭力，並支持我們在「Pathway to Thrive」下對營運卓越的聚焦。同時也再次彰顯 Chemours 致力成為全球最低成本氯化法 TiO2 生產商之一的承諾。雖然我們先前曾宣布擬與第三方在 DeLisle 廠區推動廠內氯氣設施，但在 3 月該供應協議已終止，我們將不再推進此專案。

As we look ahead, our team remains agile and responsive to ongoing market changes and economic uncertainty. We continue to keep our manufacturing operations flexible, modifying production levels to meet shifting demand. Our pricing strategy is firmly in place as exemplified in our recent price increase communication, first in December and continued on April 1st across all key end markets.

展望未來，我們的團隊將持續保持敏捷，回應持續的市場變化與經濟不確定性。我們將持續維持製造營運的彈性，調整產量以因應需求變動。我們的定價策略已穩固到位，正如我們近期的漲價溝通所示：先於 12 月啟動，並於 4 月 1 日在所有主要終端市場持續推進。

These announcements demonstrate our ability to adjust prices while consistently delivering outstanding and dependable service and quality. The first-quarter's results with pricing up 3% sequentially reflect the initial impact of implementing these price changes alongside our progress in operational reliability, which strengthens our ability to respond effectively to shifts in market demand.

這些公告展現我們在持續提供卓越且可靠的服務與品質的同時，亦具備調整價格的能力。第一季結果顯示價格季比上升 3%，反映在推動上述價格調整的初步影響，以及我們在營運可靠性方面的進展，進一步強化我們有效回應市場需求變化的能力。

APM results in the first-quarter reflected both operational and portfolio-related headwinds with net sales down year-over-year due primarily to lower volumes. Overall, first-quarter sales were constrained by the Washington Works outage and the prior closure of the Advanced Materials SPS Capstone line. These factors provided a difficult comparison to last year and the outage weighed meaningfully on sales and incremental costs, resulting in a $25 million headwind in adjusted EBITDA.

APM 第一季結果同時反映營運面與產品組合面的逆風，淨銷售額年比下滑主要因銷量較低所致。整體而言，第一季銷售受 Washington Works 停工事件以及先前關閉 Advanced Materials 的 SPS Capstone 產線所限制。這些因素使得與去年相比的基期較為不利，且停工事件對銷售與增量成本造成顯著影響，導致調整後 EBITDA 受到 2,500 萬美元的不利影響。

While our first-quarter performance was not what we believe the business is capable of, with these discrete events now behind us today, APM is building a more effective and efficient foundation for coming quarters. Notably, our Performance Solutions order book is seeing particular strength in high-value markets, positioning APM for continued improvement as we move through 2026.

雖然第一季表現未達我們認為該事業部可達成的水準，但隨著這些一次性事件如今已告一段落，APM 正在為未來幾季建立更有效率且更具效能的基礎。值得注意的是，我們的 Performance Solutions 訂單簿在高價值市場呈現特別強勁的動能，使 APM 在 2026 年推進過程中具備持續改善的良好定位。

Separately, our corporate level performance also showed a significant decrease in expenses compared to the same quarter last year, largely due to lower costs associated with legacy litigation activities. We remain focused on balancing the timely execution of global corporate initiatives with appropriate cash expenditures.

另外，在公司層級的表現方面，費用相較去年同期亦顯著下降，主要由於與歷史訴訟活動相關的成本降低。我們仍專注於在適當的現金支出下，兼顧全球公司層級計畫的及時執行。

With that, I'll turn it over to Shane to walk through our outlook for the quarter ahead and provide thoughts on what remains for 2026.

接下來，我把時間交給 Shane，請他說明下一季的展望，並分享對 2026 年其餘期間的看法。

Thank you, Denise, and good morning, everyone. As shared in the earnings materials available on our investor website, I now would like to discuss our expectations for the second-quarter and provide some updates on our business as we look ahead. Beginning with TSS. For the second-quarter, we project net sales to rise sequentially in the low to mid-teens percent range, primarily attributable to favorable seasonal trends related to the cooling season in the Northern Hemisphere.

謝謝你，Denise，各位早安。如同我們在投資人網站上提供的財報資料所分享的內容，我接下來將討論我們對第二季的預期，並在展望未來時提供一些業務更新。先從 TSS 開始。對第二季而言，我們預估淨銷售額將季比成長約低至中十位數百分比，主要歸因於北半球進入冷房季所帶來的有利季節性趨勢。

It is worth noting that some demand and associated sales having about a $10 million impact on adjusted EBITDA was pulled forward into the first-quarter due to timing, which modestly tempers the sequential progression we would have otherwise expected and added strength to our first-quarter TSS performance. Despite this pull forward, the seasonal uplift we anticipate for TSS will be underpinned by strength across our Opteon and Freon Refrigerant channels.

值得注意的是，由於時點因素，部分需求及其相關銷售（對調整後 EBITDA 約有 1,000 萬美元影響）已提前至第一季認列，這使得我們原本預期的季比增長幅度略為收斂，同時也為第一季 TSS 表現增添動能。儘管有此提前認列，我們預期 TSS 的季節性上行仍將由 Opteon 與 Freon 冷媒通路的強勁表現所支撐。

Adjusted EBITDA for TSS is also expected to grow sequentially, ranging from $210 million to $225 million, primarily driven by seasonality as well as specific opportunities our commercial team is capturing in the Freon aftermarket and continued transition to Opteon Refrigerants. In the first-quarter and into the second, weakness in residential demand was more pronounced than anticipated.

TSS 的調整後 EBITDA 亦預期將按季成長，介於 2.10 億至 2.25 億美元之間，主要受季節性因素帶動，以及我們商務團隊在 Freon 售後市場所掌握的特定機會，並持續轉換至 Opteon 冷媒所致。在第一季並延續至第二季，住宅端需求疲弱的程度較原先預期更為明顯。

This softer demand has been largely driven by a slower start to the reference cooling season, which has delayed equipment installations and associated aftermarket activity and is consistent with what we are hearing more broadly across the residential HVAC value chain. Specific to expectations in the first-quarter and into the second-quarter, overall aftermarket demand has slowed as new equipment demand has decelerated into distribution networks, an important leading indicator for downstream demand.

這股較疲弱的需求主要是由於參考冷卻季節啟動較慢，導致設備安裝及相關售後市場活動延後，且與我們在住宅 HVAC 價值鏈更廣泛聽到的情況一致。就第一季及延伸至第二季的預期而言，隨著新設備需求放緩並進入通路分銷網路（這是下游需求的重要領先指標），整體售後市場需求也已放緩。

Looking to the full year, we continue to expect year-over-year growth in the business, supported by our strong market position, regulatory tailwinds and overall pricing strength. However, we remain appropriately cautious on residential demand signals. One other important factor to consider is that TSS is a quota-driven business.

展望全年，我們仍預期業務將呈現年增成長，並受惠於我們強勁的市場地位、法規帶來的順風以及整體定價力道。然而，我們對住宅端需求訊號仍保持適度審慎。另一個需要考量的重要因素是，TSS 是一項配額驅動的業務。

Our company can drive differentiated value through disciplined execution and allocating our available quota to the most attractive pockets of demand. While we do not expect the same year-over-year double-digit top line growth for the remainder of 2026 as comparisons begin to reflect the regulatory-driven adoption under the US AIM Act that drove robust demand in late 2025, we remain bullish on the opportunity ahead as we allocate our quota to achieve optimal profitability.

本公司可透過嚴謹的執行力，並將可用配額配置至最具吸引力的需求區塊，以創造差異化價值。隨著比較基期開始反映美國《AIM 法案》所推動、於 2025 年下半年帶來強勁需求的法規驅動採用，我們不預期 2026 年剩餘期間仍能維持同樣的年增雙位數營收成長；但我們仍看好未來機會，並將透過配額配置以達成最佳獲利能力。

Overall, demand across our Opteon channels, together with continued momentum in the Freon automotive aftermarket supports the growth profile and consistent margins we outlined last quarter. For our TT business, we expect sequential net sales to increase in the mid- to high teens percentage range in the second-quarter, driven by a more favorable seasonal comparison and related pricing actions.

整體而言，我們 Opteon 各通路的需求，加上 Freon 汽車售後市場持續的動能，支撐了我們在上季所概述的成長輪廓與一致的利潤率。就 TT 業務而言，我們預期第二季淨銷售額將按季增加約中到高十幾個百分點，主要受較有利的季節性比較以及相關定價措施帶動。

This improvement is supported by increased mineral sales following first-quarter timing dynamics related to our mining restructure as well as some strength we are seeing in our TiO2 pigment sales amid actively developing global market conditions. Our guide for the second-quarter anticipates the initial effects of the price increase on April 1st as well as the continuing effects from pricing increases announced in December.

此改善受第一季因採礦重整所致的時點因素影響後，礦產品銷售增加所支撐；同時，在全球市場情勢積極發展之際，我們也在 TiO2 顏料銷售上看到一些強勁表現。我們對第二季的指引預期將反映 4 月 1 日調價的初步效果，以及 12 月宣布的調價所帶來的持續影響。

These adjustments are being applied across our key end markets as contracts allow. Although global geopolitical events continue to affect supply chains and impact the worldwide TiO2 market, both directly and indirectly, we are confident that our TT business is strategically positioned to take advantage of emerging opportunities.

在合約允許的情況下，這些調整將適用於我們的主要終端市場。儘管全球地緣政治事件持續影響供應鏈，並直接與間接地衝擊全球 TiO2 市場，我們仍有信心 TT 業務在策略上已就位，可把握新興機會。

Aligned with the current market environment and the improved agility of our operational circuit, for the second-quarter, we expect TT's adjusted EBITDA to range between $40 million and $50 million. Although geopolitical outcomes remain uncertain and the related market impact is unclear, recent enhancements to our operating circuit and improved visibility of order patterns support the second-quarter earnings.

配合目前的市場環境以及我們營運迴路敏捷度的提升，第二季我們預期 TT 的調整後 EBITDA 將介於 4,000 萬至 5,000 萬美元。雖然地緣政治結果仍不確定、相關市場影響亦不明朗，但近期對營運迴路的強化以及對訂單型態更佳的能見度，支撐了第二季的獲利表現。

As the year develops, consistent with prior messaging, we are controlling what we can control, and we intend to stay true to our commercial strategy, which will be supported by robust pricing efforts that will continue based on our assessment of market conditions. We remain resolute in our belief that this strategy positions our TT business for success regardless of market and demand conditions.

隨著年度推進，依循先前的訊息，我們將專注於可控事項，並將堅守我們的商務策略；該策略將由強勁的定價作為支撐，並會依我們對市場狀況的評估持續推進。我們堅信，無論市場與需求條件如何，此策略都能使 TT 業務取得成功。

Now for our APM business. For the second-quarter, we anticipate net sales to increase within the low to high 30% range on a sequential basis, primarily due to the resumption of normal operations at the Washington Works facility. Adjusted EBITDA is forecasted to be between $12 million and $18 million. While sequential growth in EBITDA is expected, earnings remain below targeted levels as cost pressures and volume limitations related to the Washington Works downtime experienced in the first-quarter continue to weigh on second-quarter profitability.

接著談 APM 業務。第二季我們預期淨銷售額將按季增加約低到高 30% 的區間，主要因華盛頓工廠（Washington Works）恢復正常營運。調整後 EBITDA 預估介於 1,200 萬至 1,800 萬美元。雖然預期 EBITDA 將按季成長，但由於第一季華盛頓工廠停機所造成的成本壓力與產量限制仍持續影響第二季獲利，收益仍低於目標水準。

Although we are facing outage-related constraints, our APM order velocity has reached a level that has not been experienced in the past several years. Within our Performance Solutions portfolio, demand remains strong in the semiconductor and data center end markets, which are driving orders for our Performance Solutions products.

儘管我們面臨與停機相關的限制，APM 的訂單增速已達到過去數年未曾出現的水準。在我們的 Performance Solutions 產品組合中，半導體與資料中心終端市場需求依然強勁，正帶動對我們 Performance Solutions 產品的訂單。

These sectors are tied to growing and sustainable demand for APM's products and are areas where Chemours is uniquely positioned to serve these markets. In addition to our higher-value end market activity, our Advanced Materials portfolio is also experiencing strong order levels. While the industrial end markets that Advanced Materials generally serve remain weak, our commercial team is seeing signs of destocking for specialty materials that may have been overbought in prior years.

這些領域與 APM 產品持續成長且可延續的需求密切相關，也是 Chemours 具備獨特優勢可服務的市場。除高價值終端市場活動外，我們的 Advanced Materials 產品組合也正經歷強勁的訂單水準。雖然 Advanced Materials 一般服務的工業終端市場仍然疲弱，但我們的商務團隊看到一些去庫存跡象，顯示過去幾年可能被過度採購的特殊材料正在回到較正常的庫存水位。

While the impact of these demand tailwinds is limited in our second-quarter outlook, we see direct pathways to achieve significant second half strength while the macroeconomic environment remains tepid. On a consolidated basis, we anticipate our second-quarter net sales to increase in the range of 15% to 20% sequentially, with consolidated adjusted EBITDA expected to range between $220 million to $250 million.

雖然這些需求順風對我們第二季展望的影響有限，但在總體經濟環境仍偏溫和之際，我們看到明確路徑可在下半年實現顯著走強。以合併口徑而言，我們預期第二季淨銷售額將按季增加 15% 至 20%，合併調整後 EBITDA 預期介於 2.20 億至 2.50 億美元。

Also, we anticipate corporate expenses to range between $45 million and $50 million. Our capital expenditures for the second-quarter are expected to be in the range of $50 million, with free cash flow generation of at least $100 million. In connection with the strong free cash flow we anticipate for the second-quarter, we expect to realize interest expense savings in the quarter as we reduced our debt by approximately $160 million in April.

此外，我們預期公司費用介於 4,500 萬至 5,000 萬美元。第二季資本支出預期約為 5,000 萬美元，自由現金流至少 1 億美元。配合我們預期第二季強勁的自由現金流，我們也預期本季將實現利息費用節省，因為我們在 4 月將債務減少約 1.60 億美元。

Also, we remain committed to enhancing our balance sheet flexibility, including the $700 million refinancing completed in March, which builds on the close to $2 billion of near-term debt we have addressed since the fourth-quarter of 2025. We are proud of these efforts, which strengthen our balance sheet and enhanced financial flexibility, key enablers of our Pathway to Thrive strategy.

同時，我們仍致力於提升資產負債表的彈性，包括 3 月完成的 7 億美元再融資；此舉延續了自 2025 年第四季以來，我們已處理近 20 億美元短期到期債務的成果。我們為這些努力感到自豪，這些作為強化了資產負債表並提升財務彈性，亦是我們「Pathway to Thrive」策略的關鍵推動力。

Turning to the full year. Despite a mixed global operating environment that includes challenging commercial end markets and overall raw material and other cost inflation, we still expect our full year consolidated net sales, adjusted EBITDA and capital expenditure forecast to align with our previous guidance. Full year free cash flow conversion is now expected to be above 20%, slightly lower than our prior guide, driven by Kuan Yin land sale tax implications, which impact free cash flow.

接著談全年。儘管全球營運環境好壞參半，包含具挑戰性的商業終端市場，以及原物料與其他成本的整體通膨，我們仍預期全年合併淨銷售額、調整後 EBITDA 與資本支出預測將與先前指引一致。全年自由現金流轉換率目前預期將高於 20%，較先前指引略低，主要因觀音土地出售的稅務影響，進而影響自由現金流。

That said, the earlier-than-anticipated closure of the majority of the Kuan Yin parcels positions Chemours to immediately begin to delever as we pay down approximately $150 million of our outstandin Euro Term Loan B in rating. As we close the final Kuan Yin land parcel and repatriate the remaining proceeds expected this year, we intend to use those proceeds to continue redeeming future debt maturities.

即便如此，觀音多數地塊較預期更早完成交割，使 Chemours 得以立即開始去槓桿化，因為我們將償還約 1.50 億美元未償還的歐元定期貸款 B（Euro Term Loan B）。隨著我們完成最後一筆觀音土地地塊交割，並將今年預期剩餘款項匯回，我們打算運用該等款項持續贖回未來到期債務。

This positive development paired with our diligent cash management activities provides us with confidence towards achieving our liquidity objective of net leverage below three times adjusted EBITDA. For 2026, we now anticipate our net leverage ratio will be below 3.8 times adjusted EBITDA by the end of the year. Additionally, our efforts will provide approximately $9 million in interest expense savings to the company going forward annually by year-end after the reference repayment in April.

此一正面進展，加上我們嚴謹的現金管理活動，使我們對達成流動性目標——淨槓桿低於調整後 EBITDA 的 3 倍——更具信心。對於 2026 年，我們目前預期年底淨槓桿比率將低於調整後 EBITDA 的 3.8 倍。此外，在 4 月完成上述償還後，截至年底，我們的作為預計將使公司往後每年可節省約 900 萬美元的利息費用。

Overall, we started the year out well. And looking ahead, we see strong pricing momentum in TT, robust refrigerant demand and operational reliability improvement across our sites, which gives us confidence to deliver a step-up performance in the second half of the year, enabling us to deliver on our full year guide. Also, we remain front-footed on our assessment of operational and commercial impacts stemming from geopolitical considerations around the globe to ensure we address inflation ahead of any financial impact as well as addressing any potential opportunities as they present themselves.

整體而言，我們今年開局良好。展望未來，我們看到 TT 強勁的定價動能、冷媒需求穩健，以及各據點營運可靠度的改善，這讓我們有信心在下半年交出更上一階的表現，從而達成全年指引。同時，我們也持續以前瞻姿態評估全球地緣政治考量所帶來的營運與商務影響，以確保在任何財務影響發生前先行因應通膨，並在機會出現時把握潛在機會。

We have the right team in place and a strong understanding of our customer base to achieve the goals and outlook we have laid out for the current year.

我們已具備合適的團隊，並對客戶基礎有深刻理解，足以達成我們為本年度所設定的目標與展望。

Given these perspectives on the second-quarter and remaining year, I'd like to now hand the call back over to Denise to share her closing thoughts and perspectives.

基於對第二季與今年剩餘期間的上述觀點，我現在想把電話會議交回給 Denise，請她分享結語與看法。

Thank you, Shane. As I look across our first-quarter performance, we continue to see clear progress against our Pathway to Thrive strategy, which remains the foundation for how we operate, allocate capital and create long-term value. We remain on track and are seeing tangible accomplishments across all pillars, including improved operational reliability, disciplined cost execution, targeted growth investments, continued portfolio improvements and efforts to derisk our balance sheet aimed at strengthening the business over time.

謝謝你，Shane。回顧第一季表現，我們持續看到在「Pathway to Thrive」策略上的明確進展；該策略仍是我們營運方式、資本配置與創造長期價值的基礎。我們仍按計畫推進，並在所有支柱上看到具體成果，包括營運可靠度提升、成本執行更具紀律、聚焦的成長投資、持續的產品組合優化，以及為降低資產負債表風險、以隨時間強化業務所做的努力。

Our teams are performing effectively across all Pathway to Thrive pillars. In the area of operational excellence, we continue to integrate the Chemours business system to implement lean principles, ensuring a high standard of consistency, reliability and cost efficiency. Although CBS was implemented earlier this year, we are already observing positive outcomes.

我們的團隊在「Pathway to Thrive」各支柱上皆有效執行。在營運卓越方面，我們持續整合 Chemours 商業系統（CBS）以導入精實原則，確保一致性、可靠性與成本效率的高標準。雖然 CBS 於今年稍早才導入，但我們已觀察到正面的成果。

For enabling growth, our focus remains on areas that set us apart and provide clear market advantages. This is evidenced by ongoing momentum in Opteon Refrigerants, increased engagement within high-value end markets across TSS and APM and continued efforts to drive value through recent pricing strategies. For portfolio management paired with our disciplined capital allocation approach, we've improved our balance sheet with the nearly completed Kuan Yin land sale and existing cash reserves, enabling a reduction in debt that will continue through the year.

為了促進成長，我們的重點仍放在能讓我們脫穎而出並提供明確市場優勢的領域。這可從 Opteon 冷媒持續的動能、在 TSS 與 APM 的高價值終端市場中更深的客戶互動，以及透過近期定價策略持續推動價值的努力中看出。就投資組合管理搭配我們嚴謹的資本配置方法而言，隨著觀音土地出售案幾近完成以及現有現金儲備的支撐，我們已改善資產負債表，使得我們得以降低負債，且此降債趨勢將持續至今年。

We are dedicated to aggressively reducing our leverage while making steady progress in our strengthening the long-term pillar where we are progressively working to reduce our exposure to legacy matters. These efforts highlight our focus on derisking Chemours to ensure our ability to secure our future in exciting high-value end markets and opportunities.

我們致力於積極降低槓桿，同時在強化長期支柱方面穩步推進，並逐步降低我們對歷史遺留事項的曝險。這些努力凸顯我們專注於為 Chemours 去風險化（derisking），以確保我們有能力在令人振奮的高價值終端市場與機會中把握未來。

In taking a broader view of Chemours, we are closely monitoring the ongoing conflict in the Middle East and the resulting volatility across energy markets and global chemical supply chains, which is adding uncertainty to the broader macro environment with the potential to weigh on demand, particularly in more impacted regions.

從更宏觀的角度來看 Chemours，我們正密切關注中東持續的衝突，以及其所引發的能源市場與全球化學品供應鏈波動。這為整體總體環境增添不確定性，並可能對需求造成壓力，尤其是在受影響較大的地區。

To this, we are focused on actively working to mitigate cost headwinds through core price and other pricing mechanisms. As sulfur markets tighten due to this conflict, sulfate-based TiO2 producers are seeing tangible cost inflation, creating potential opportunities for those positioned to respond. Chemours has decades of leadership in the titanium dioxide market with deep technical, commercial and regional expertise.

針對此情況，我們專注於透過核心產品價格以及其他定價機制，積極緩解成本逆風。隨著衝突導致硫磺市場趨緊，以硫酸鹽法生產 TiO2 的製造商正面臨明顯的成本通膨，這也為具備應對能力的業者創造潛在機會。Chemours 在二氧化鈦市場擁有數十年的領導地位，並具備深厚的技術、商業與區域專業能力。

As conditions evolve and potential tailwinds emerge, we are applying that experience with discipline, remaining selective and deliberate as we monitor the macro environment and act accordingly. In parallel, we are taking a disciplined approach to risk management across the enterprise, prioritizing cost control, supply chain resilience and capital allocation to ensure flexibility in this more uncertain macro environment.

隨著情勢演變且潛在順風浮現，我們將以紀律運用這些經驗，在監測總體環境並據以採取行動時，保持審慎選擇與有意識的決策。同時，我們也在全企業範圍內採取嚴謹的風險管理方法，優先強化成本控管、供應鏈韌性與資本配置，以確保在更不確定的總體環境中保持彈性。

We believe that our positioning considering these market dynamics provide opportunities for Chemours as we move into the second half. Before we move to questions, I want to thank our employees around the world for their continued focus, resilience and commitment. Their execution and adaptability are central to our performance and our progress against Pathway to Thrive.

我們相信，考量這些市場動態後的定位，將在我們進入下半年時為 Chemours 帶來機會。在進入提問之前，我想感謝全球員工持續展現的專注、韌性與投入。他們的執行力與適應力是我們績效表現以及推進「Pathway to Thrive」進展的核心。

I'd also like to thank our customers for their ongoing partnership and trust as we support their needs across critical end markets. With a strong start to the year, the right strategic actions underway and a proven ability to execute through uncertainty, Chemours is well positioned to deliver on our commitments and drive sustained value creation for all of our stakeholders as 2026 progresses.

我也要感謝客戶持續的合作夥伴關係與信任，讓我們能在關鍵終端市場中支持他們的需求。憑藉今年強勁的開局、正在推進的正確策略行動，以及在不確定性中經證實的執行能力，隨著 2026 年推進，Chemours 已具備良好定位以兌現承諾，並為所有利害關係人創造可持續的價值。

With that, I'd like to open the line for your questions.

接下來，我想開放電話線讓各位提問。

(Operator Instructions) Joshua Spector, UBS.

（接線員指示）Joshua Spector，UBS。

I wanted to ask just on TSS and specifically in first-quarter, when you're talking about some of the benefits from the pricing step-up in the Freon products into the auto aftermarket. I was wondering if you can characterize that. Was that more of a step-up in some contract type structure? Or is that more of a tightening of the legacy refrigerant market? And did you expect that, I guess, when you gave your guidance earlier in the year?

我想就 TSS 提問，特別是第一季，當你們談到 Freon 產品在汽車售後市場（auto aftermarket）因提價而帶來的一些效益時。我想請你們描述一下那是什麼情況。那比較像是某種合約結構的階梯式上調（step-up）嗎？還是說更像是傳統冷媒市場的供給收緊？另外，我想問的是，當你們在年初給出指引時，是否已預期會出現這樣的情況？

Question, Josh. Yes, from Freon, we -- first of all, we, as a business, are always looking to optimize our EBITDA by per quota. So we do see strength in the auto aftermarket, but we are uniquely positioned when it comes to the auto aftermarket. We have one of two domestic suppliers of 134A versus other foreign suppliers. We also have a great quota position.

好問題，Josh。是的，關於 Freon——首先，我們作為一個事業部，一直在尋求以配額（quota）為基礎來最佳化我們的 EBITDA。因此我們確實看到汽車售後市場的強勁表現，但在汽車售後市場方面我們具備獨特的定位。我們是 134A 兩家美國本土供應商之一，相較之下其他供應商多為海外供應商。我們也擁有很好的配額部位。

And then also, there are some constraints for other suppliers that are stemming from EPA regulated phasedown of the key raw material that goes into their process of TCE. So we see this as very sticky. I would say going into the quarter, we did anticipate strength going in, maybe not as high as it turned out to be, but we certainly expect that to continue.

此外，其他供應商也面臨一些限制，這些限制源自 EPA 監管下調（phasedown）其製程所需關鍵原料 TCE 的供應。因此我們認為這種態勢非常具有黏著性。我會說在進入本季之前，我們確實預期會有強勁表現，可能沒有實際結果那麼高，但我們當然預期這種趨勢會持續。

Okay. And I guess just sticking with TSS and thinking about 2Q, I think your comments clearly say you expect weaker resi OEM. I think that's the interpretation. So you're being somewhat conservative there. Does that help your view on margins in the quarter? And I guess there's just a bunch of moving parts now with costs moving up, you're trying to get pricing and generally just trying to understand kind of the margin cadence you'd expect as either OEM comes back into the mix or some other factors maybe help on the cost side as you go further through the year?

好的。那我想繼續問 TSS，並思考第二季。我認為你們的評論很清楚地表示你們預期住宅 OEM（resi OEM）會較弱，我想這是合理解讀，所以你們在那裡相對保守。這是否會影響你們對本季毛利率/利潤率的看法？另外，現在有很多變動因素，包括成本上升、你們嘗試取得定價，以及整體上我想了解你們預期的利潤率節奏（margin cadence）會是如何——無論是 OEM 回到組合中，或是隨著時間推進，成本端可能出現其他有利因素？

We always talk about the TSS business to be around the 30%, 30% margin or higher in the low 30s. So that's kind of where we are. When I think about equipment installations in 2026, we're really around the projection at around 7.5 million units, which is really low. And we expect that to grow as there's more optimism around housing and expecting more around the 9 million unit on a longer-term basis.

我們一直談到 TSS 事業的利潤率大約在 30% 左右，低 30% 或更高，這大致就是我們目前的水準。當我看 2026 年的設備安裝量時，我們的預估大約在 750 萬台左右，這其實很低。我們預期隨著房市更樂觀，安裝量會成長，長期而言更接近 900 萬台。

We see a lot of strength in our aftermarket positioning and see a lot of growth that's coming from that. So we anticipate around Opteon still a really good growth year for us.

我們看到我們在售後市場的定位非常強勁，也看到許多成長將由此帶動。因此我們預期 Opteon 對我們而言仍會是非常好的成長年。

Josh, just to add too, I mean, you mentioned about the Q2 guide and a little bit of weak I do want to emphasize in the script, we talked about a $10 million adjusted EBITDA impact that was pulled into the first-quarter. Our commercial team did great executing at the last part of the quarter, and we shifted about $10 million of EBITDA in the first-quarter. So if you normalize the Q2 for that $10 million, I think you would see more seasonal trends.

Josh，我再補充一下。你提到第二季指引以及一些偏弱的部分——我想強調我們在講稿中提到，有 1,000 萬美元的調整後 EBITDA 影響被提前拉到第一季。我們的商務團隊在季末的執行非常出色，我們把大約 1,000 萬美元的 EBITDA 移到了第一季。因此如果你把第二季針對這 1,000 萬美元做常態化（normalize），我認為你會看到更符合季節性的趨勢。

Fabien Jimenez with Mizuho.

Mizuho 的 Fabien Jimenez。

This is Fabien Jimenez on for John. Question on APM. With the Washington Works outage and your closure of SPS Capstone line, what should we expect to see in terms of a sustainable earnings power of the segment? And also, what's the timing of this ramp?

我是 Fabien Jimenez，代替 John 提問。關於 APM 的問題：在 Washington Works 停機以及你們關閉 SPS Capstone 產線之後，我們應該如何看待該事業部可持續的獲利能力（sustainable earnings power）？另外，這個爬坡（ramp）的時程是什麼？

Thanks for the question. Yes, we expect the APM business to be in the $30 million to $40 million EBITDA range, and we definitely expect getting back to that range in the back half of the year. We have a really strong order book when you look at our Performance Solutions portfolio, really centered around semiconductor growth and data center. So you'll start to see that as we get into the back half.

謝謝你的問題。是的，我們預期 APM 事業的 EBITDA 會落在 3,000 萬到 4,000 萬美元區間，而且我們確實預期在今年下半年回到該區間。當你看我們的 Performance Solutions 產品組合時，我們有非常強勁的訂單能見度（order book），主要聚焦在半導體成長與資料中心。因此當我們進入下半年時，你會開始看到這些表現。

And switching gears here. On Corpus Christi, can you share what your playbook is if the city declares a Level 1 water emergency? What levers can you pull here potentially?

另外換個話題。關於 Corpus Christi，如果市政府宣布第 1 級用水緊急狀態（Level 1 water emergency），你們的應對手冊（playbook）是什麼？你們可能可以動用哪些槓桿？

Thanks for the question. This is something that has been on our radar for the better part of 2 years. So we've been very proactive. We actually -- if you -- we don't see -- right now, there's a potential for a 25% curtailment, which is potentially announced for the fourth-quarter. That is already dialed into our outlook. So we do not see any hiccups from that. And we also have a very, very robust supply chain. So if it came to other knobs, we have other partners that we work with that we can supply our customers.

謝謝你的問題。這件事在過去將近 2 年的大部分時間裡一直在我們的雷達上，所以我們一直非常積極。我們其實——如果你——我們目前看到的是，可能會有 25% 的限縮（curtailment），而且可能在第四季宣布。這已經納入我們的展望之中，所以我們不認為會因此出現任何卡關。此外，我們也有非常、非常強韌的供應鏈。因此如果需要動用其他調節手段，我們也有其他合作夥伴可以一起合作，以持續供應我們的客戶。

John McNulty, BMO.

John McNulty，BMO。

So I wanted to dig into one of the points that you were bringing up toward the end around some of the sulfur-related impact on other parts of the TiO2, I guess, producer market. It looked -- we've seen -- because of sulfur constraints, we've seen some really significant price hikes from a lot of the Chinese producers. I guess, how do you think about your playbook as you push through the rest of this year in terms of either going after price and kind of working underneath that higher pricing umbrella that some of your competitors are pushing or going after the volumes that may be left on the table because you don't have to necessarily raise price quite as much.

我想深入探討你們在接近尾聲時提到的、硫磺相關因素對 TiO2 其他生產商市場的影響。我們看到——由於硫磺供應受限，我們看到許多中國生產商大幅調漲價格。我想問的是，當你們推進今年剩餘時間時，你們如何看待你們的應對手冊：是追求價格、在競爭對手推動的較高價格「傘」之下運作；還是去爭取那些可能因為你們不必把價格調得那麼高而留下的量（volumes）？

I guess how is -- how are you thinking about that from a playbook perspective? And can you speak to your ability to address some of the international markets that are starting to see some of that really aggressive pricing pushing through?

我想從應對手冊的角度，你們是如何思考的？另外，你們能否談談你們切入一些國際市場的能力——那些市場正開始看到非常激進的漲價推進？

Great. Our playbook is, as we talked about before, where our strategy is around gaining share in fair trade regions. But along with that is also profitability and prioritizing price. So we came out in December ahead of any disruption with the Iran war and start raising prices, and we're successful. As you can see going into the first-quarter, our pricing is up 3%. So we're going to continue as we see opportunities to raise price.

很好。我們的應對手冊是——如同先前所談——我們的策略是要在公平貿易地區（fair trade regions）提升市占。但與此同時也要兼顧獲利能力，並優先考量價格。因此我們在 12 月、在伊朗戰爭造成任何干擾之前就先行調漲價格，而且很成功。你可以看到進入第一季，我們的價格上漲了 3%。因此只要我們看到有調價機會，就會持續推進。

So we already made an announcement for a price increase of the same order of magnitude in April. One thing just to say is we have great flexibility in our contracting around driving pricing. So I would say we're going to continue around -- our playbook is continuing around driving our share in the fair trade market, but also prioritizing profitability and raising prices. it's clear with sulfur costs increasing, there is an opportunity to go back in history, as sulfur costs increase, there's a one-for-one correlation to what happens in the cost curve of sulfate producers.

因此，我們已在4月宣布了同等幅度的漲價。有一點要說的是，我們在合約安排上對於推動定價具有很大的彈性。所以我會說，我們將持續——我們的作戰手冊仍是持續提升我們在公平貿易市場的市占率，同時也優先考量獲利能力並提高價格。很明顯，隨著硫磺成本上升，回顧歷史可以看到，當硫磺成本上升時，與硫酸鹽生產商成本曲線的變化呈現一比一的相關性。

I would just add too, John, I mean, if market disruption is occurring and there's volume opportunities, you might remember in the third-quarter last year, we talked about bringing capacity down about 10% to 20% just to align with where we thought demand was going to be. And we have flexible operating circuits that we bring that back up to address that as well.

我也補充一下，John，我是說，如果市場出現擾動且有量的機會，你可能記得去年第三季我們談到把產能下調約10%到20%，只是為了與我們認為的需求水準對齊。而我們有彈性的操作迴路，也可以把產能再拉回來以因應這些情況。

Yes. And even in the first-quarter, we saw volumes increasing over what we had expected, we were able to respond.

是的。即使在第一季，我們也看到出貨量高於我們原先預期，我們也能夠做出回應。

Got it. Okay. No, helpful. And then I guess, can you just give us an update on your 2-PIC solution? I think NTT was doing some heavy trials on you. I think you've also got some potential capacity coming up later on this year. I guess, can you give us an update as to how that's progressing?

了解。好的。不，這很有幫助。接著我想問，你能否更新一下你們的2-PIC解決方案？我記得NTT對你們做了一些大規模測試。我也認為你們今年稍晚會有一些潛在產能上線。你能否更新一下目前進展如何？

So yes, we're excited about towards the end of the year, we're going to have the capacity that comes on. And we're going to be using it to sample customers as well as refining our process technology for future scale up. So when it comes to NTT, the 12-month field trial using our fluid was successful. There were no signs of fluid or equipment degradation.

是的，我們很興奮，接近年底時我們將有產能上線。我們會用它來提供客戶樣品，同時也會精進我們的製程技術，以利未來擴產。至於NTT，使用我們流體進行的12個月現場試驗是成功的，沒有出現流體或設備劣化的跡象。

There were over 200 prospective customers and partners that have seen the fluid in action. So we're going to continue working with NTT through 2028 and really continue to expand the visibility of that technology.

已有超過200位潛在客戶與合作夥伴看過該流體的實際運作。因此我們將持續與NTT合作到2028年，並真正持續擴大這項技術的能見度。

Hassan Ahmed, Alembic Global Advisors.

Hassan Ahmed，Alembic Global Advisors。

A question around your Q2 as well as full year guidance. I mean if I sort of take a look at what you guys have guided to, I mean, you're guiding to a first half EBITDA of around $404 million. And if I compare that to what that means or implies for the back half of the year, it's essentially a range of $396 million to $496 million. So I'm just trying to sort of figure out that bridge to the higher end of that EBITDA range.

我想問關於你們第二季以及全年指引的問題。我的意思是，如果我大致看一下你們給出的指引，你們指引上半年EBITDA約為4.04億美元。若我把它與下半年所隱含的數字相比，基本上是3.96億到4.96億美元的區間。所以我想釐清一下，如何銜接到EBITDA區間的高端。

I mean, what gets us to that incremental, call it, almost $100 million on the higher end side of things, I mean, particularly factoring in seasonality and the like?

也就是說，什麼因素能讓我們在高端情境下增加、姑且說接近1億美元的增量？尤其是把季節性等因素也納入考量的話？

Thanks for the question, Hassan. I'll just start by saying coming into 2026, we were very optimistic on growth 2025 to 2026, and we remain very optimistic on that growth. When you think about pricing, we have very strong pricing. When you think about volume, we see very stable volume and our cost actions are really working. So we feel good about the growth year-over-year, but I'm going to turn it over to Shane to get into more of the specifics around your question.

謝謝你的問題，Hassan。我先說，進入2026年時，我們對2025到2026年的成長非常樂觀，而我們仍然對這個成長非常樂觀。談到價格，我們的定價非常強勁。談到量，我們看到非常穩定的出貨量，而我們的成本行動確實在發揮效果。所以我們對年增成長感到良好，但我會把問題交給Shane，讓他更具體回應你的提問。

Yes. Thanks for the question, Hassan. So certainly, as you just put the math to it, it looks as if we're back-end weighted. But you have to remember, we started out the year really slow in ATM with Washington Works outages. We mentioned $25 million in the first-quarter. And then we also had some expense come through as well as constraints on overall sales into the second-quarter as well.

是的。謝謝你的問題，Hassan。確實，如你剛才的計算，看起來我們的表現偏向下半年。但你必須記得，我們今年在ATM的開局非常慢，因為Washington Works停工。我們提到第一季有2,500萬美元的影響。此外，第二季也有一些費用進來，同時整體銷售也受到一些限制。

That normalized for the second half is a good runway to get to that balance. I would say outside of that, right, we talked a bit about TT. We really are looking at strong pricing and some tailwinds according from that side. Denise mentioned the strong adoption in December, and we just announced April as well. So on the backs of a lot of these efforts and controlling what we control as well as operating and then also APM had a really good order book.

這些在下半年正常化後，將提供良好的跑道以達到該平衡。除此之外，我們也談到一些TT。我們確實看到強勁的定價，以及由此帶來的一些順風。Denise提到12月採用情況強勁，而我們也在4月宣布了相關事項。因此，在這些努力的推動下，加上我們控制可控因素、營運執行，另外APM也有非常好的訂單簿。

I mentioned in the script, the best we've seen in several years. So we feel very confident with this guide. And as we think about opportunities within TiO2, I think there's upside here and some tailwinds as well.

我在講稿中提到，這是我們數年來看到最好的。因此我們對這份指引非常有信心。當我們思考TiO2的機會時，我認為這裡也有上行空間與一些順風。

Very helpful. And as a follow-up on the TT side of things, I mean, I know you guys commented on sulfuric acid and some of the price increases we've seen over there. I mean, as you take a look, so the question really is around where cost sit today and also sort of how that impacts the rationalization that we were seeing leading into some of these sort of sulfuric acid price moves.

非常有幫助。接著就TT再追問一下，我知道你們評論了硫酸以及那邊看到的一些漲價。我想問的是，當你們觀察時，問題主要在於目前成本處於什麼水準，以及這如何影響我們在這些硫酸價格變動之前所看到的產能理性化。

I mean, if I've run my numbers correctly, some of the sort of latest rounds of price hikes in TiO2 that we've seen, it just seems barely cover the higher sort of costs coming out of higher sulfuric acid prices and the like. So I mean, the state of affairs for TiO2 cost curve wise was pretty dire even prior to this run-up in sulfuric acid prices. So I mean, where are the cost curves today?

我的意思是，如果我算得沒錯，最近幾輪我們看到的TiO2漲價，似乎只是勉強覆蓋因硫酸價格上升等帶來的更高成本。也就是說，即便在這波硫酸價格上漲之前，TiO2的成本曲線狀況就已相當嚴峻。所以目前成本曲線在哪裡？

Are a large chunk of the producers still losing money despite these price hikes? And how does that impact sort of rationalization, particularly in China on a go-forward basis?

即便有這些漲價，是否仍有很大一部分生產商在虧損？這又會如何影響未來的理性化，特別是在中國？

Yes. Thanks for the question. I mean, first of all, let's just go back to what our strategy is, and it's really to be low-cost chloride producer globally, and we continue on that path. We don't have any sulfate production. So we are very much on the left side of the cost curve. Clearly, for sulfate producers, they're moving to the right. And depending on how much sulfur increases, that's how far they're going to right.

是的。謝謝你的問題。首先，讓我們回到我們的策略：我們的策略是成為全球低成本的氯化法生產商，而我們也持續走在這條路上。我們沒有任何硫酸鹽法產能。因此我們非常明顯位於成本曲線的左側。很清楚地，對硫酸鹽法生產商而言，他們正在往右移。而硫磺上漲多少，就決定他們會往右移多遠。

Can I say what kind of decisions they're going to make around their capacity? No. But what I can say is we are clearly focused on our strategy of gaining share in the fair trade markets, continuing our advocacy and being reliable suppliers to our customers.

我能說他們會對產能做出什麼決策嗎？不能。但我能說的是，我們明確聚焦於我們的策略：在公平貿易市場提升市占、持續倡議，並成為客戶可靠的供應商。

Arun Viswanathan, RBC Capital Markets.

Arun Viswanathan，RBC Capital Markets。

Congrats on the results here. So I guess I just wanted to follow up on the last point. So for TT, I think you're guiding to about $40 million to $50 million for Q2 EBITDA. How does that evolve as you kind of move through the year? Are there any discrete items like cost reductions or maybe something on the ore supply side that would lift that in Q3? Or is it going to be mainly dependent on demand?

恭喜這次的業績。我想就上一點再追問一下。就TT而言，我想你們對第二季EBITDA的指引大約是4,000萬到5,000萬美元。隨著你們在一年中往後推進，這會如何演變？是否有任何明確的項目，例如成本降低，或是礦石供應端的因素，能在第三季把它拉高？還是主要取決於需求？

Yes, I would say that we definitely see improvement as we go through the year, and I would point to two primary factors. We are not building any volume upside into our outlook. It's really pricing and continuing our cost out work, which we definitely see evidence every -- we saw it in the first-quarter, we see it coming through the rest of the year.

是的，我會說我們確實看到隨著一年推進而改善，我會指出兩個主要因素。我們的展望中沒有納入任何量的上行；主要是定價以及持續的降本工作，而我們確實看到證據——第一季已經看到，並且會在今年剩餘時間持續反映出來。

Okay. And another question on TSS, I guess, if I could. When you think about the last year, and you did have a pretty big step-up because of the step down in the quota. How are you seeing growth play out this year in TSS in absence of that? Do you still have a strong backlog that's going to catch up to prior orders? And also, maybe if you could comment on the pricing environment and the mix environment. Will we be selling any more Freon? And would that affect the mix in a positive or negative way? Or is that destocking all done?

好的。再問一個關於TSS的問題，如果可以的話。回顧去年，由於配額下調，你們確實有一個相當大的躍升。在沒有那個因素的情況下，你們今年在TSS的成長會如何展開？你們是否仍有強勁的積壓訂單，會去消化先前的訂單？另外，也請你們評論一下定價環境與產品組合環境。我們是否會再賣更多Freon？那會對組合帶來正面或負面的影響？還是去庫存已經全部結束？

Great. Thanks for that. Yes. So as it evolves, as we've said, first of all, we still expect year-over-year growth in Opteon and in TSS. We -- as we get to the second half of the year, you're going to see more of a slowdown as we've talked about, because of the transition. But we see a lot of upside in the aftermarket as new equipment gets installed, and we have a really, really strong position in the aftermarket.

好的，謝謝。是的。隨著情況演進，如我們所說，首先，我們仍預期Opteon與TSS都會年增成長。我們——當進入下半年時，你會看到更多的放緩，正如我們談到的，因為轉換期的關係。但我們在售後市場看到很大的上行空間，因為新設備持續安裝，而我們在售後市場擁有非常、非常強的地位。

When you think about Freon, as I said earlier, we see stickiness in our pricing and in our volumes because of our position in the auto aftermarket. So we feel very optimistic about the growth and our position for the rest of the year.

談到Freon，如我先前所說，因為我們在汽車售後市場的地位，我們看到定價與出貨量具有黏著性。因此我們對今年剩餘時間的成長以及我們的市場地位感到非常樂觀。

And as it relates to the margins, Arun, talked about a 30-plus margins in this business, and we feel very confident with that. Seasonally, Q2, Q3 tend to be seasonally the strongest margins, and we anticipate such again.

至於與利潤率相關的部分，Arun 談到這項業務的利潤率可達 30% 以上，我們對此非常有信心。從季節性來看，第二季、第三季通常是利潤率最強的季度，我們預期今年也會如此。

Pete Osterland, Truist Securities.

Pete Osterland，Truist Securities。

I just wanted to start on TT. So you called out the lower TiO2 sales in North America in the first-quarter. It looks like sales were down 12% year-over-year in the region. Was that a reflection of underlying market demand, I guess, or anything to note from a customer inventory perspective? And just going forward over the next couple of quarters, what's your outlook for the North American market?

我想先從 TT 談起。你提到第一季北美的 TiO2 銷售較低。看起來該地區銷售年減 12%。這反映的是基本面市場需求，還是客戶庫存角度有什麼需要注意的？另外，展望未來幾季，你對北美市場的看法是什麼？

Yes. I mean going into -- actually coming into the year, we had projected this -- the volume actually, we and particularly in North America than we had anticipated. As we go into second-quarter, we definitely see a step-up with the coating season.

是的。我的意思是，在——其實在進入今年時，我們就已經預測到這點——實際的出貨量，尤其是在北美，低於我們原先的預期。進入第二季後，隨著塗料旺季到來，我們確實看到需求會有一個明顯的回升。

Okay. And then just as a clarification on your free cash flow guidance being lowered to 20% from 25%. Does that represent anything other than the tax outflow from the Kuan Yin proceeds? I guess, any other cash headwinds that you hadn't previously incorporated?

好的。再確認一下，你們將自由現金流指引從 25% 下修到 20%。這是否除了與 Kuan Yin（觀音）土地出售所得相關的稅金流出之外，還代表其他你們先前未納入的現金逆風？

Thanks, Pete. Yes, I appreciate you bringing this up. As you mentioned, yes, this is really just specific to the Kuan Yin land sale. We had taxes that are forecasted to be in operating cash flow, whereas the Kuan Yin proceeds going to be outside of free cash flow. So it's really just a presentation of those. But I will make sure to emphasize that 20% is a floor, right? We're confident in really generating upside here, and we'll continue to focus on that free cash flow generation of the company.

謝謝你，Pete。是的，我很感謝你提出這點。如你所說，這確實只與觀音土地出售有關。我們預估會有稅金在營運現金流中反映，而觀音出售所得將列在自由現金流之外。所以這主要是呈現方式的差異。不過我也要強調，20% 是底線（floor），對吧？我們有信心在此基礎上創造上行空間，並會持續聚焦公司自由現金流的產生。

Duffy Fischer, Goldman Sachs.

Duffy Fischer，Goldman Sachs。

Question on the new chlorine contract. One, is it more of a cost plus? Or is it a market minus type contract? And then two, if you look at it versus what you've paid over the last two or three years, is it a meaningful cost advantage for you when that rolls through?

關於新的氯氣合約有兩個問題。第一，它比較像成本加成（cost plus）嗎？還是市場價減成（market minus）型的合約？第二，若與你們過去兩三年支付的價格相比，當這份合約開始反映時，是否能為你們帶來顯著的成本優勢？

Yes. Thanks for the question, Duffy. Yes, we can't talk about specifics of the contractual terms. But all I can say is this provides secure, reliable supply of chlorine at a very attractive rate. It secures our competitive position and it's very aligned with our drive to the left side of the cost curve.

是的，謝謝你的問題，Duffy。我們無法談論合約條款的細節。但我能說的是，這份合約以非常具吸引力的價格，提供安全、可靠的氯氣供應。它鞏固了我們的競爭地位，也非常符合我們推動成本曲線左移的方向。

Okay. And then on the Q1 slide deck, you called out $17 million of kind of onetime impacts that you thought were going to happen in TT. With that quarter now done, what was that -- did it come in at $17 million? Was it higher? Was it lower? Did some of that get pushed into Q2? Can you just talk about that?

好的。然後在第一季的簡報中，你們提到 TT 會有約 1,700 萬美元的一次性影響。現在該季度已結束，實際上是 1,700 萬美元嗎？更高或更低？其中有沒有部分延後到第二季？可以談談嗎？

Yes. Thanks, Duffy. Yes, I appreciate you bringing that up. That was really related to some ore mix items within the cold season at some of our plants. I would say the $17 million we saw come through. However, we did have some onetime benefits that came through as well. So we had less than the $17 million that we saw come through, but not too much of a quantum less.

是的，謝謝你，Duffy。我也很感謝你提到這點。那主要與我們部分工廠在寒冷季節的礦石配比（ore mix）項目有關。我會說，確實看到了那 1,700 萬美元的影響。不過，我們同時也有一些一次性的正面效益出現。因此，淨影響低於 1,700 萬美元，但差距不算太大。

Laurence Alexander, Jefferies.

Laurence Alexander，Jefferies。

This is Dan Rizzo on for Laurence. You mentioned that Freon is sticky. When you say sticky, is it for this year where it's some sort of restock? Or is it like a multiyear growth story? And I guess more importantly, can it provide some tailwind when the Opteon adoption kind of slows a little bit?

我是 Dan Rizzo，代 Laurence 提問。你提到 Freon 的需求很「黏著」（sticky）。你所說的黏著，是指今年因補庫存而維持，還是屬於多年期的成長故事？更重要的是，當 Opteon 的採用增速稍微放緩時，Freon 能否提供一些順風（tailwind）？

I'm sorry, can you ask the second part of that question again?

抱歉，你可以再把問題的第二部分問一次嗎？

Well, I was wondering if Freon is going to be a multiyear growth story because as -- I mean, Opteon is still very strong, it will eventually peter out -- not peter out, but it will slow to a more, I guess, longer pace. And I was wondering if Freon could kind of augment that.

我想問的是，Freon 是否會是一個多年期的成長故事。因為——我的意思是，Opteon 目前仍然很強，但最終它會——不是說會消退（peter out），而是會放緩到一個更長期、較平穩的成長速度。我想知道 Freon 是否能在某種程度上補強那部分。

Yes. I mean we see a multiyear trajectory around Freon strength. So as we said, we always -- the way we run this business is managing quota and getting the best margins for CO2 equivalent. As I said, we have a very advantaged position in the US relative to this product. And we have a good quota position. And we have -- our process is not impacted by some of the EPA actions. So definitely see this persistent.

是的。我們確實看到 Freon 的強勁表現具有多年期的走勢。如同我們所說，我們經營這項業務的方式，一直是管理配額並在每單位 CO2 當量上取得最佳利潤率。正如我提到的，我們在美國相對於這項產品具有非常有利的地位；我們也有良好的配額位置；而且我們的製程不受部分 EPA 行動的影響。因此，我們確實認為這種強勢會持續。

And is the demand -- I mean -- and maybe a simple question, but is the demand coming almost entirely from auto aftermarket? Or are there other factors or other areas contributing?

那需求——我的意思是——也許是個很簡單的問題，但需求幾乎完全來自汽車售後市場嗎？還是有其他因素或其他領域也在貢獻？

Yes, it's really auto aftermarket. And I would say, if you look at even the trajectory of like ICE vehicles, there's a long tail for that. So that's how you can kind of think about that on sales.

是的，主要就是汽車售後市場。我會說，如果你看像內燃機（ICE）車輛的發展軌跡，它會有很長的尾端需求（long tail）。所以你可以用這個角度來理解我們的銷售。

Vincent Andrews, Morgan Stanley.

Vincent Andrews，Morgan Stanley。

I'm just wondering if you could comment a little bit on the TiO2 market and what you think the impact to the market as well as to you will be from the restarts of the Venator assets. I guess there's one in Italy that's restarting and then LB seems to have gotten approval for the one in the United Kingdom. It's not clear exactly when that might restart.

我想請你們談談 TiO2 市場，以及你們認為 Venator 資產重啟對市場、以及對你們本身會造成什麼影響。我理解義大利有一座正在重啟，另外 LB 似乎也已取得英國那座的核准，但不太清楚何時會重啟。

But what will -- I know Europe is not necessarily the biggest market for you, but what do you think it will do to the market? And how will you play around that?

我知道歐洲不一定是你們最大的市場，但你們認為這會對市場造成什麼影響？你們會如何因應？

Yes. I mean I think -- thanks for the question. I think there's definitely -- will be a small impact. We'll see how those assets start up. They definitely need some work to get started. So I think if anything, we would start seeing something maybe next year. But we feel, especially around, say, the UK asset, there's going to be -- I would say our biggest concern there is can that asset be used for pull-through of other Chinese volume, and we see the risk of that low.

是的，謝謝你的問題。我認為確實會有一些小幅影響。我們會觀察那些資產的啟動情況；它們確實需要做一些工作才能重新開起來。所以如果真有影響，我認為可能要到明年才會開始看到。不過，特別是就英國那座資產而言，我會說我們最大的擔憂是：它是否可能被用來帶動（pull-through）其他中國的供應量；而我們認為這種風險很低。

We have a lot of trade advocacy going on, making sure we're not -- there's no circumvention of antidumping tariffs and also really strengthening -- working with authorities to strengthen the rule of origin definition. So I would just say it's really not something that we see as a big impact. These are also very high cost to operate facilities.

我們正在進行大量的貿易倡議（trade advocacy），確保不會出現反傾銷關稅的規避（circumvention），同時也與主管機關合作，強化原產地規則（rule of origin）的定義。因此我會說，這並不是我們認為會造成重大影響的事情。而且這些設施的營運成本也非常高。

Okay. And then, Shane, if I could just follow up on the cash flow. The fourth-quarter, when you put out the 25% number, you obviously had announced the sale of the land. At the time, did you just think there was going to be a way to not incur taxes on that and then that didn't play out? Or just what happened there?

好的。接著，Shane，如果我可以追問一下現金流。第四季你們提出 25% 這個數字時，當時你們顯然已宣布出售土地。那時候你們是否認為有辦法不產生相關稅負，但後來沒有實現？還是當中發生了什麼？

Yes. Thanks, I appreciate the question. I would say, as we announced that, I think we were fine-tuning the overall distribution plan out of Taiwan. We are going to carry with it. That said, we are -- we've announced net proceeds of $290 million here way ahead of time, right, as well as we're seeing net-net, probably more than we expected. We said net roughly around $300 million.

是的，謝謝，我很感謝這個問題。我會說，在我們宣布時，我們仍在微調從台灣匯出/分配的整體分配方案，而我們會照計畫執行。話雖如此，我們很早就已宣布此案的淨收益（net proceeds）為 2.9 億美元，對吧？而且我們現在看到的淨中之淨（net-net）可能比原先預期更高。我們當時說淨額大約在 3 億美元左右。

I would say net, we're roughly in the $310 million range. So yes, the original 25% did not take into account that tax item. but it was more presentation. We anticipated that net item being kind of netted to the proceeds instead of being presented in operating cash flow.

我會說，以淨額來看，我們大約在 3.1 億美元的區間。所以，是的，原先的 25% 並未納入那個稅務項目；但那更多是呈現方式的問題。我們原本預期該淨項目會在出售所得中抵減呈現，而不是在營運現金流中呈現。

Thank you. And I'm showing no further questions at this time. Ladies and gentlemen, this will conclude today's question-and-answer session as well as today's conference call. Thank you for participating, and you may now disconnect. Everyone, have a great day.

謝謝。目前我這邊顯示沒有其他問題。各位女士、先生，今天的問答環節以及今天的電話會議到此結束。感謝各位參與，現在可以掛線。祝各位有美好的一天。