Chemours sees adjusted EPS growing 15% or greater CAGR through 2020
Chemours hosted its first Investor Day, as part of which the company updated its 2017 outlook, provided a 2018 outlook and 2020 key financial targets, and unveiled a new capital allocation strategy. Chemours President and CEO Mark Vergnano said: "I am pleased to announce the completion of our five-point transformation plan and the beginning of a new chapter at Chemours. We successfully delivered on our plan, which is expected to result in improved Adjusted EBITDA of over $800 million over 2015 levels and reduced our net leverage down to approximately 2 times...The strength of our portfolio is now expected to deliver full-year 2017 Adjusted EBITDA of approximately $1.4B and more than $100M in Free Cash Flow. "We believe that 2018 will be another great year for Chemours with Adjusted EBITDA expected to be between $1.7B-$1.85B... We also expect to increase our Free Cash Flow to be within a range of $500M-$600M, even after investing in our two new manufacturing facilities...Collectively through 2020, we expect revenue to grow at a rate of 1 to 2 times GDP, which combined with an approximate 500 basis point expansion in Adjusted EBITDA margin, will provide a magnified return on the bottom line. Together with our announced capital allocation strategy, we expect to grow our Adjusted EPS by 15 percent or greater through 2020 on a compounded annual basis over 2017. Further, our strong financial performance is expected to generate cumulative Free Cash Flow within a range of $2B-$2.75B through 2020."