Core Insights - Kronos Worldwide, Inc. (KRO) reported a net loss of $37 million or 32 cents per share for Q3 2025, a significant decline from a profit of $71.8 million or 62 cents per share in the same quarter last year [1] - Adjusted loss was 18 cents per share, which was worse than the Zacks Consensus Estimate of a loss of 6 cents [1] Financial Performance - Net sales decreased approximately 6% year over year to $456.9 million, primarily due to lower titanium dioxide (TiO2) selling prices and reduced sales volumes in European and export markets, partially offset by higher sales volumes in North America [2] - The top line fell short of the Zacks Consensus Estimate of $478.5 million [2] - TiO2 production volumes were down roughly 11% year over year to 126 thousand metric tons, while TiO2 sales volumes declined around 3% to 126 thousand metric tons [4] Segment Performance - The TiO2 segment reported a loss of $15.3 million compared to a profit of $43.4 million in the previous year, attributed to reduced income from operations and unfavorable fixed cost absorption due to lower operating rates [5] Cash Flow and Debt - Kronos ended the quarter with cash and cash equivalents of $27.7 million, an increase of about 47% from the prior quarter, while long-term debt rose to $626.2 million, up approximately 25% sequentially [6] Future Outlook - The company does not expect a meaningful improvement in sales volumes in the near term and plans to reduce inventory levels by lowering operating rates to align with current demand [7] - Operating results for Q4 are anticipated to be lower than Q3, with expectations of reduced year-over-year operating results for the full year 2025 due to lower demand, pricing pressure, and reduced fixed cost absorption [8]

Core Insights - Kronos Worldwide reported a quarterly loss of $0.18 per share, significantly worse than the Zacks Consensus Estimate of a loss of $0.06, marking an earnings surprise of -200.00% [1] - The company's revenues for the quarter ended September 2025 were $456.9 million, missing the Zacks Consensus Estimate by 4.52% and down from $484.7 million a year ago [2] - Kronos Worldwide's stock has declined approximately 51.5% year-to-date, contrasting with a 15.6% gain in the S&P 500 [3] Financial Performance - Over the last four quarters, Kronos Worldwide has consistently failed to meet consensus EPS estimates [2] - The current consensus EPS estimate for the upcoming quarter is -$0.08 on revenues of $399.82 million, and for the current fiscal year, it is -$0.06 on revenues of $1.86 billion [7] Market Outlook - The company's earnings outlook is uncertain, and future stock performance will depend on management's commentary during the earnings call [3][4] - The Zacks Industry Rank places the Chemical - Diversified sector in the bottom 9% of over 250 Zacks industries, indicating potential challenges ahead [8] Estimate Revisions - The trend for estimate revisions for Kronos Worldwide was mixed prior to the earnings release, resulting in a Zacks Rank 3 (Hold) for the stock, suggesting it is expected to perform in line with the market [6]

Financial Performance - Kronos Worldwide reported a net loss of $37.0 million, or $0.32 per share, in Q3 2025, compared to a net income of $71.8 million, or $0.62 per share, in Q3 2024[1]. - Net sales for Q3 2025 were $456.9 million, a decrease of $27.8 million, or 6%, compared to Q3 2024; for the first nine months of 2025, net sales were $1.4 billion, down $22.9 million, or 2%, from the same period in 2024[1]. - EBITDA for Q3 2025 was $0.6 million, a significant decrease from $123.3 million in Q3 2024; for the first nine months of 2025, EBITDA was $74.0 million, down from $211.2 million in the same period in 2024[3]. - Gross margin improved to $101.2 million in Q3 2024 from $47.0 million in Q3 2025, reflecting a significant operational efficiency[11]. - Net income for Q3 2024 was $71.8 million, compared to a net loss of $37.0 million in Q3 2025, indicating a strong recovery[11]. - EBITDA for Q3 2024 was $123.3 million, significantly higher than $0.6 million in Q3 2025, showcasing improved profitability[13]. Sales and Pricing - Average TiO2 selling prices declined by 6% in Q3 2025 compared to Q3 2024 and by 2% in the first nine months of 2025 compared to the same period in 2024[1]. - TiO2 sales volume decreased by 3% in Q3 2025 compared to Q3 2024, while total net sales saw a 6% decline[14]. - Currency fluctuations, primarily the euro, increased net sales by approximately $14 million in Q3 2025 and by approximately $11 million in the first nine months of 2025 compared to the same prior year periods[1]. Segment Performance - The TiO2 segment reported a loss of $15.3 million in Q3 2025, compared to a profit of $43.4 million in Q3 2024; for the first nine months of 2025, segment profit was $37.2 million, down from $107.9 million in the same period in 2024[2]. - Unabsorbed fixed production costs related to decreased production volumes in Q3 2025 were approximately $27 million, contributing to the segment loss[2]. - Production volumes for TiO2 remained stable at 141,000 metric tons in Q3 2024, compared to 126,000 metric tons in Q3 2025[11]. Operational Efficiency - The company operated its production facilities at an average capacity utilization of 85% in the first nine months of 2025, down from 93% in the same period in 2024[2]. - Selling, general and administrative expenses increased slightly to $62.3 million in Q3 2024 from $61.6 million in Q3 2025[11]. Strategic Developments - The company acquired the remaining 50% interest in Louisiana Pigment Company, L.P. in July 2024, which is now a wholly-owned subsidiary[1]. - The company reported a gain of $64.5 million on the remeasurement of its investment in TiO2 manufacturing joint venture[11]. Risks and Challenges - The company faces risks including supply and demand fluctuations, geopolitical tensions, and changes in raw material costs that could impact future performance[5]. - The company experienced a 3% increase in currency exchange rates, positively impacting overall sales[14].

Financial Performance - The company reported a net loss of $37.0 million, or $0.32 per share, in Q3 2025, compared to a net income of $71.8 million, or $0.62 per share, in Q3 2024[75]. - For the first nine months of 2025, the company reported a net loss of $28.1 million, or $0.24 per share, compared to a net income of $99.4 million, or $0.86 per share, in the same period of 2024[75]. - Segment profit decreased by $58.7 million to a segment loss of $15.3 million in Q3 2025, compared to a profit of $43.4 million in Q3 2024, with currency exchange rates increasing the segment loss by approximately $4 million[98]. - Segment profit decreased by $70.7 million to $37.2 million in the first nine months of 2025 compared to $107.9 million in the same period of 2024[111]. - Income from operations rose by $5 million, but customer demand remained weak, with expectations of no meaningful improvement in sales volumes in the near term[125]. Sales and Pricing - Average TiO2 selling prices declined by 6% during the first nine months of 2025, and were 2% lower than the average prices in the first nine months of 2024[82]. - Sales volumes decreased by 3% in Q3 2025 compared to Q3 2024, primarily due to lower sales in European and export markets[93]. - Net sales for the first nine months of 2025 decreased by 2%, or $22.9 million, primarily due to a 2% decrease in average TiO2 selling prices[104]. - Net sales increased by $11 million due to a weakening of the U.S. dollar relative to the euro, translating euro-denominated sales into more U.S. dollars in 2025 compared to 2024[124]. Costs and Expenses - Cost of sales increased by $26.4 million, or 7%, in Q3 2025 compared to Q3 2024, primarily due to unfavorable fixed cost absorption and higher inventory costs[94]. - Cost of sales increased by $33.4 million, or 3%, in the first nine months of 2025, with cost of sales as a percentage of net sales rising to 85% from 81% in the same period of 2024[106][107]. - Gross margin as a percentage of net sales decreased to 10% in Q3 2025 from 21% in Q3 2024, driven by lower average TiO2 selling prices and reduced production volumes[96]. - Gross margin as a percentage of net sales decreased to 15% in the first nine months of 2025 from 19% in the same period of 2024[108]. - Selling, general and administrative expense in Q3 2025 was $2.2 million lower than in Q3 2024, remaining consistent at 13% of net sales for both periods[97]. - Selling, general and administrative expense increased by $10.9 million, or 6%, in the first nine months of 2025, with the expense as a percentage of net sales rising to 13%[110]. Liquidity and Debt - As of September 30, 2025, the company had total cash, cash equivalents, and restricted cash of $36.4 million, with $34.6 million held by non-U.S. subsidiaries[152]. - The company expects to have sufficient liquidity to meet short-term obligations for the twelve-month period ending September 30, 2026, and long-term obligations for the five-year period ending September 30, 2030[152]. - The Global Revolver has total borrowing availability of approximately $342 million as of September 30, 2025, with maturity in July 2029[152]. - Outstanding debt obligations included €426.174 million on 9.50% Senior Secured Notes due March 2029, with a carrying amount of $502.3 million[146]. - The company is in compliance with all debt covenants as of September 30, 2025, and expects to maintain compliance unless future operating results differ materially from expectations[147]. Operational Efficiency - The company operated its production facilities at 85% practical capacity utilization in the first nine months of 2025, down from 93% in the same period of 2024[83]. - Capital expenditures were $32.7 million in the first nine months of 2025, up from $17.2 million in the same period of 2024, aimed at improving manufacturing cost-effectiveness[141]. - The company plans to invest approximately $45 million in capital expenditures for 2025, with $32.7 million spent through September 30, 2025[153]. - The company is implementing targeted workforce reductions to improve long-term cost structure and capitalize on market share opportunities[127]. Market Outlook - The company anticipates long-term demand growth for TiO2 of 2% to 3% per year, consistent with GDP growth expectations[73]. - The company expects fourth quarter operating results to be lower than the third quarter due to weaker demand and continued pricing pressure[128]. - The TiO2 industry is cyclical, and changes in pricing, production volumes, and customer demand significantly impact the company's earnings and operating cash flows[150]. - The company routinely evaluates liquidity requirements and may seek to refinance or restructure indebtedness, raise additional capital, or engage in acquisitions in the TiO2 industry[151]. - The company may delay planned capital projects based on market conditions, including expected demand and availability of necessary materials[153]. Taxation - Income tax expense decreased to $7.9 million in Q3 2025 from $22.7 million in Q3 2024, primarily due to lower earnings[100]. - Income tax expense for the first nine months of 2025 was $19.0 million, down from $34.7 million in the same period of 2024, reflecting lower earnings and jurisdictional mix[113]. Interest and Other Income - Interest expense in Q3 2025 increased by $2.3 million due to higher average debt balances and interest rates, while an unrealized loss of $0.1 million was recognized compared to a gain of $2.2 million in Q3 2024[99].

Core Insights - Kronos Worldwide, Inc. reported a net loss of $37.0 million in Q3 2025, a significant decline from a net income of $71.8 million in Q3 2024, primarily due to changes in German corporate tax legislation and lower production volumes [1][2][3] Financial Performance - Net sales for Q3 2025 were $456.9 million, down $27.8 million or 6% from Q3 2024, and for the first nine months of 2025, net sales totaled $1.4 billion, a decrease of $22.9 million or 2% compared to the same period in 2024 [2][12] - The decline in net sales was attributed to lower average TiO2 selling prices and reduced sales volumes in European and export markets, partially offset by increased sales volumes in North America [2][3] - Average TiO2 selling prices decreased by 7% in Q3 2025 compared to Q3 2024 and by 2% in the first nine months of 2025 compared to the same period in 2024 [2][19] Operational Metrics - The TiO2 segment reported a loss of $15.3 million in Q3 2025, compared to a profit of $43.4 million in Q3 2024, with a segment profit of $37.2 million for the first nine months of 2025, down from $107.9 million in the same period in 2024 [3][4][11] - Unabsorbed fixed production costs due to reduced operating rates were approximately $27 million in Q3 2025, contributing to the segment loss [3][4] EBITDA Analysis - EBITDA for Q3 2025 was $0.6 million, a sharp decline from $123.3 million in Q3 2024, and for the first nine months of 2025, EBITDA was $74.0 million compared to $211.2 million in the same period in 2024 [5][17] Acquisition Impact - The acquisition of the 50% joint venture interest in Louisiana Pigment Company, L.P. was completed on July 16, 2024, and its results have been included in the company's operations since the acquisition date [1][2]

Group 1 - The article does not provide any relevant content regarding company or industry insights [1]

Core Viewpoint - Kronos Worldwide, Inc. is set to announce its third quarter 2025 earnings on November 6, 2025, after market close, pending the completion of quarter-end closing procedures [1] Company Overview - Kronos Worldwide, Inc. is a significant international producer of titanium dioxide products [1] Investor Relations - The contact for investor relations is Bryan A. Hanley, Senior Vice President and Treasurer, reachable at 972-233-1700 [1]

Core Viewpoint - Kronos Worldwide, Inc. is set to announce its third quarter 2025 earnings on November 6, 2025, after market close, pending the completion of quarter-end closing procedures [1] Company Overview - Kronos Worldwide, Inc. is a significant international producer of titanium dioxide products [1] Investor Relations - The contact for investor relations is Bryan A. Hanley, Senior Vice President and Treasurer, reachable at 972-233-1700 [1]

Core Viewpoint - Kronos Worldwide, Inc. announced the sale of €75 million in additional 9.50% Senior Secured Notes due 2029 through an institutional private placement, which will be issued as additional notes to existing notes previously issued [1][3] Group 1: Notes Issuance - The additional notes will have the same terms as the existing notes, except for the issuance date and price [1] - The notes were oversubscribed and priced at a premium of 105%, with expected proceeds of approximately €78.8 million (around $91.9 million) before fees and expenses [3] - The closing of this offering is anticipated to occur on or about September 15, 2025, subject to customary closing conditions [3] Group 2: Use of Proceeds - The company intends to use the proceeds to pay amounts due under its 3.75% Senior Secured Notes maturing on September 15, 2025, or to repay any amounts drawn under its global revolving credit facility with Wells Fargo [3] - Any remaining net proceeds will be allocated for general corporate purposes [3] Group 3: Company Overview - Kronos Worldwide, Inc. is a leading global producer and marketer of titanium dioxide pigments, serving approximately 3,000 customers in 100 countries, primarily in Europe, North America, and the Asia Pacific region [6] - The company has developed considerable expertise in the manufacture, sale, shipment, and service of its products in both domestic and international markets [6]

Core Viewpoint - Kronos Worldwide, Inc. is raising €75 million through a private offering of additional 9.50% Senior Secured Notes due 2029, which will be issued by its subsidiary, Kronos International, Inc. [1] Group 1: Offering Details - The new Notes will be offered as additional notes to the existing €351,174,000 aggregate principal amount of 9.50% Senior Secured Notes due 2029 issued earlier in 2024 [1] - The Notes will have the same terms as the Existing Notes, except for the issuance date and issue price, and will initially trade under different ISIN and Common Code numbers [1] - The offering is subject to market conditions and the proceeds will be used to pay off existing 3.75% Senior Secured Notes due September 15, 2025, or to repay amounts drawn from a revolving credit facility [3] Group 2: Guarantees and Security - The Notes will be fully guaranteed on a senior basis by the Company and its domestic, wholly-owned subsidiaries, secured by first-priority security interests in certain assets [2] Group 3: Company Overview - Kronos Worldwide, Inc. is a leading global producer of titanium dioxide pigments, serving approximately 3,000 customers in 100 countries, with a significant presence in Europe, North America, and the Asia Pacific region [6]