Chemours (CC) continues to face TiO2 weakness despite cost reduction benefits amid challenges in construction and coatings, while headwinds in its Thermal and Specialized Solutions segment could persist through year-end, RBC Capital Markets said in a note Monday.
Although the company has made notable progress on its Titanium Technologies Transformation Plan and cost saving initiatives, the brokerage expects TT EBITDA running well below mid-cycle.
RBC expects weak demand in building and construction and architectural coatings, along with higher supply from China, to pressure TT utilization rates, keeping the segment near the bottom of cycle, according to the note.
Macro factors, including softer HVAC installation activity, have limited inventory normalization, which could create headwinds in H2. As the Thermal & Specialized Solutions segment has driven most of the earnings strength for several quarters, any weakness in refrigerants extending beyond 2026 could trigger a further negative reaction in the stock, the brokerage said.
The brokerage lowered its Q3, 2026 and 2027 EBITDA estimates of $185 million, $760 million, and $900 million, below consensus of $194 million, $792 million and $930 million, respectively.
RBC downgraded Chemours to sector perform from outperform and lowered its price target to $14 from $22.
Price: 13.03, Change: -0.36, Percent Change: -2.69
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