Chemours Company

This Management’s Discussion and Analysis of Financial Condition and Results of Operations (“MD&A”) supplements the unaudited Interim Consolidated Financial Statements and the related notes thereto included elsewhere herein to help provide an understanding of our financial condition, changes in our financial condition, and the results of our operations for the periods presented. Unless the context otherwise requires, references herein to “The Chemours Company”, “Chemours”, “the Company”, “our Company”, “we”, “us”, and “our” refer to The Chemours Company and its consolidated subsidiaries. References herein to “EID” refer to EIDP, Inc., formerly known as E. I. du Pont de Nemours and Company, which is our former parent company and is now a subsidiary of Corteva, Inc. (“Corteva”), a Delaware corporation. References herein to “DuPont” refer to DuPont de Nemours, Inc., a Delaware Corporation.

This MD&A should be read in conjunction with the unaudited Interim Consolidated Financial Statements and the related notes thereto included in Item 1 of this Quarterly Report on Form 10-Q, as well as our audited Consolidated Financial Statements and the related notes thereto included in our Annual Report on Form 10-K for the year ended December 31, 2025.

This section and other parts of this Quarterly Report on Form 10-Q contain forward-looking statements, within the meaning of the federal securities laws, that involve risks and uncertainties. Forward-looking statements provide current expectations of future events based on certain assumptions and include any statement that does not directly relate to any historical or current fact. The words “believe”, “expect”, “anticipate”, “plan”, “estimate”, “target”, “project”, and similar expressions, among others, generally identify “forward-looking statements”, which speak only as of the date the statements were made. The matters discussed in these forward-looking statements are subject to risks, uncertainties, and other factors that could cause actual results to differ materially from those set forth in the forward-looking statements.

Our forward-looking statements are based on certain assumptions and expectations of future events that may not be accurate or realized. These statements, as well as our historical performance, are not guarantees of future performance. Forward-looking statements also involve risks and uncertainties that are beyond our control. Additionally, there may be other risks and uncertainties that we are unable to identify at this time or that we do not currently expect to have a material impact on our business. Factors that could cause or contribute to these differences include, but are not limited to, the risks, uncertainties, and other factors discussed in the Forward-looking Statements and the Risk Factors sections in our Annual Report on Form 10-K for the year ended December 31, 2025, and as otherwise discussed in this report. We assume no obligation to revise or update any forward-looking statement for any reason, except as required by law.

Overview

We are a leading, global provider of performance chemicals that are key inputs in end-products and processes in a variety of industries. We deliver customized solutions with a wide range of industrial and specialty chemical products for markets, including refrigeration and air conditioning, paints and coatings, plastics, transportation, semiconductor and consumer electronics, general industrial, and oil and gas. Our principal products include refrigerants, titanium dioxide (“TiO2”) pigment and industrial fluoropolymer resins. We manage and report our operating results through three principal reportable segments: Thermal & Specialized Solutions, Titanium Technologies, and Advanced Performance Materials. Our Thermal & Specialized Solutions segment is a leading, global provider of refrigerants, thermal management solutions, propellants, blowing agents, and specialty solvents. Our Titanium Technologies segment is a leading, global provider of TiO2 pigment, a premium white pigment used to deliver whiteness, brightness, opacity, and protection in a variety of applications. Our Advanced Performance Materials segment is a leading, global provider of high-end polymers and advanced materials that deliver unique attributes, including low friction coefficients, extreme temperature resistance, weather resistance, ultraviolet and chemical resistance, and electrical insulation.

Our world-class product portfolio enables the performance and convenience of everyday products, processes, and technologies people rely on in their daily lives, making our products and the solutions they enable both vital and essential. We are committed to creating value for our customers and stakeholders by leveraging strengths that we use to create competitive advantage: our innovation and technical expertise, our ability to operate complex manufacturing sites safely, our deep customer relationships based on trust and reliability, and our talented workforce. Every day our people bring our chemistry to life, guided by five core values that form the bedrock foundation for how we operate: (i) Safety – we are committed to protecting people and the environment; (ii) Integrity – we do what's right; (iii) Partnership – we win through collaboration with the right internal and external partners; (iv) Ownership – we are each accountable for the Company's success; (v) Respect – we treat people well, include others, and value diverse perspectives.

Our core values, in unison with our company vision of Trusted Chemistry, helping people live better lives and communities thrive, underpin our commitment to our stakeholders. Our values and vision cannot be separated from our business strategy.

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The Chemours Company

At Chemours, our approach to Sustainability begins with our vision to deliver Trusted Chemistry that helps people live better lives and communities to thrive. In 2018, we set forth ambitious Corporate Responsibility Commitment ("CRC") goals that we aim to achieve by 2030. These goals are designed to promote accountability and enable us to measure and transparently report the progress and impact of our sustainability commitment. Leveraging a robust governance framework, we are working to integrate sustainability across our organization and our business management processes. Our work in sustainability creates value for our shareholders by protecting our right to operate, meeting the needs of our customers, and advancing our corporate strategy, Pathway to Thrive. We understand that maintaining safe, sustainable operations has an impact on us, our communities, the environment, and our collective future. We deliver for our customers and society by designing sustainable offerings that perform at the highest level while minimizing impact on the environment. We are a leader in responsible manufacturing and we value partnership and collaboration to drive change. We are committed to continue working with policymakers, our value chain, and other organizations to find solutions that meet science-based regulations and address community needs.

Recent Developments

Tariffs

The chemicals sector has been and continues to be impacted by changes in U.S. and foreign trade policies, particularly the introduction and adjustment of tariffs by the United States as well as foreign retaliatory tariffs. We actively monitor changes and adjust our operations accordingly to enhance supply chain flexibility, including taking certain pricing actions and evaluating opportunities to source products not directly impacted by existing or potential tariffs. After the U.S. Supreme Court ruled in February 2026 that the International Emergency Economic Powers Act (“IEEPA”) does not authorize the President of the United States (the “President”) to impose tariffs, U.S. Customs and Border Protection established a process to return paid IEEPA tariffs to importers. The Company began receiving IEEPA refunds during the second quarter of 2026. In July 2026, the President imposed additional tariffs under Section 301 of the Trade Act of 1974 and Section 338 of the Tariff Act of 1930, which apply to the vast majority of U.S. imports. The President also has imposed additional tariffs on certain products under Section 232 of the Trade Expansion Act of 1962. The long-term impact of tariffs, including potential changes to existing tariffs or the imposition of further retaliatory trade measures, as well as possible tariff refunds, on our business, financial condition and results of operations remains uncertain.

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The Chemours Company

Results of Operations and Business Highlights

Results of Operations

The following table sets forth our results of operations for the three and six months ended June 30, 2026 and 2025.

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The Chemours Company

Net Sales

The following table sets forth the impacts of price, volume, currency, and portfolio changes on our net sales for the three and six months ended June 30, 2026.

Our net sales were relatively flat at $1.6 billion for the three months ended June 30, 2026 and 2025, as a decrease in volume of 4% was offset by an increase in price of 2% and favorable currency movements of 1%. The decrease in volume was primarily driven by lower volumes in Thermal & Specialized Solutions ("TSS") and Advanced Performance Materials ("APM") segments, while the increase in price was attributable to our TSS and Titanium Technologies ("TT") segments.

Our net sales were relatively flat at $3 billion for the six months ended June 30, 2026 and 2025, as a 4% decrease in volume was offset by a 2% increase in price and favorable currency movements adding a 2% tailwind to the segment’s net sales as compared to the same period in the prior year. The decrease in volume was primarily driven by lower volumes in our APM and TT segment, while the increase in price was attributable to our TSS segment.

The key drivers of these changes for each of our reportable segments are discussed further under the “Segment Reviews” section within this MD&A.

Cost of Goods Sold

Our cost of goods sold (“COGS”) was relatively flat at $1.3 billion and $2.5 billion for the three and six months ended June 30, 2026, respectively, compared with COGS of $1.3 billion and $2.5 billion for the same periods in 2025.

Selling, General, and Administrative Expense

Our selling, general, and administrative (“SG&A”) expense increased by $45 million (or 11%) and $69 million (or 13%) to $469 million and $616 million for the three and six months ended June 30, 2026, respectively, compared with SG&A expense of $424 million and $547 million for the same periods in 2025. The increase in our SG&A expense for the three months ended June 30, 2026 was primarily attributable to an increase of approximately $120 million related to adjustments to environmental reserves, as well as a decrease of approximately $10 million in the MOU benefit related to litigation costs. This was partially offset by lower corporate litigation related charges and legacy legal fees in the period of approximately $90 million. The increase in our SG&A expense for the six months ended June 30, 2026 was primarily attributable to an increase of approximately $120 million related to adjustments to environmental reserves, and a decrease of approximately $20 million in the MOU benefit related to litigation costs. This was partially offset by lower corporate litigation related charges and legacy legal fees in the period of approximately $60 million.

Research and Development Expense

Our research and development (“R&D”) expense was largely unchanged at $27 million and $53 million for the three and six months ended June 30, 2026, respectively, compared with R&D expense of $28 million and $55 million for the same periods in 2025.

Restructuring, Asset-Related, and Other Charges

Our restructuring, asset-related, and other charges decreased by $15 million (or 83%) and $35 million (or 69%) to $3 million and $16 million for the three and six months ended June 30, 2026, respectively, compared with restructuring, asset-related, and other charges of $18 million and $51 million for the same periods in 2025. Our restructuring, asset-related, and other charges for the three and six months ended June 30, 2026 were attributable to $2 million and $6 million, respectively, of charges related to our decision to exit our SPS CapstoneTM business, along with $1 million and $1 million, respectively, of decommissioning and other charges related to the Titanium Technologies Transformation Program. Additionally, for the six months ended June 30, 2026, our restructuring, asset-related, and other charges were attributable to employee separation charges of $9 million related to the 2026 Restructuring Program. Our restructuring, asset-related, and other charges for the three and six months ended June 30, 2025 were primarily attributable to $17 million and $45 million, respectively, of charges related to our decision to exit our SPS CapstoneTM business, along with $1 million and $5 million, respectively, of decommissioning and other charges related to the Titanium Technologies Transformation Program.

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Equity in Earnings of Affiliates