Customer Concentration - The company reported that its ten largest third-party customers represented 36%, 37%, and 39% of consolidated net sales for the years 2025, 2024, and 2023, respectively [434]. - The company has significant exposure to credit risk in industries affected by cyclical economic fluctuations, with no single customer accounting for 10% of consolidated net sales during 2025, 2024, and 2023 [434]. Interest Rate Risk - A hypothetical 1% increase in interest rates would result in a net decrease to pre-tax income of approximately $7 million on an annualized basis, based on a sensitivity analysis as of December 31, 2025 [435]. - The company maintains a total of $950 million of interest rate swaps, with $450 million maturing in March 2028 and $500 million maturing in September 2031, aimed at stabilizing interest expense [445]. - The company entered into two SOFR-indexed forward starting interest rate swaps effective from June 2023, maturing in March 2028, to align with the maturity date of the Term Loan Facility [438]. - The company has entered into amendments with existing interest rate swap agreements, terminating contracts indexed to LIBOR and replacing them with SOFR-indexed swaps [437]. Market and Economic Risks - The company is subject to various market risks, including fluctuations in titanium dioxide (TiO2) prices, which may impact profitability due to changes in supply and demand fundamentals [433]. - The company’s ability to generate sufficient cash to service its debt and fund capital needs is a significant risk factor, particularly in a competitive and rapidly changing environment [434]. - The company’s operations are affected by geopolitical risks, including ongoing conflicts in regions where it operates, such as Russia and Ukraine [434]. Environmental and Operational Risks - The company is exposed to risks from environmental and industrial accidents, which could lead to production delays and additional expenses [434]. Currency Risk - A significant portion of the company's Adjusted EBITDA is derived from jurisdictions exposed to currency risk, with Australia, Europe, and South Africa being the largest contributors [446]. - The company manufactures and markets products globally, facing foreign currency exchange rate fluctuations, particularly in South Africa, Australia, Brazil, China, the Netherlands, France, and the UK [446]. - As of December 31, 2025, the company had no outstanding amounts to hedge the exposure of its Australian subsidiaries' cost of sales and SG&A expenses to currency fluctuations [448]. - The company entered into foreign currency contracts for the South African Rand, Australian Dollar, Euro, Pound Sterling, and Saudi Riyal to mitigate balance sheet exposure to currency fluctuations [449]. - As of December 31, 2025, the notional amounts of outstanding foreign currency contracts included 572 million South African Rand (approximately $35 million), 161 million Australian dollars (approximately $108 million), 213 million Pound Sterling (approximately $286 million), 50 million Euro (approximately $59 million), and 83 million Saudi Riyal (approximately $22 million) [449].

Financial Data and Key Metrics Changes - For the full year 2025, the company generated revenue of $2.9 billion, reflecting a year-over-year decline driven by unfavorable pricing and mix, and lower volumes in both TiO2 and zircon [12] - Loss from operations was $253 million, and net loss attributable to Tronox was $470 million, including $233 million of restructuring and other charges [13] - Adjusted EBITDA was $336 million, with an adjusted EBITDA margin of 11.6% [13] Business Line Data and Key Metrics Changes - TiO2 volumes in Q4 reached their highest point of the year, with a 9% increase in volumes, partially offset by a 4% decline in price [14] - Zircon revenues increased 32% sequentially, driven by a 42% increase in volumes, although zircon price was down 7% quarter to quarter [15] - Revenue from other products increased 10% compared to the prior year, mainly driven by higher pig iron volumes [15] Market Data and Key Metrics Changes - The company experienced market share gains in India, Latin America, and the Middle East, supported by anti-dumping measures [14] - North America and Europe saw lower volumes consistent with normal fourth quarter demand patterns [14] - The company noted a structural change in global TiO2 trade flows, particularly benefiting from anti-dumping duties [7] Company Strategy and Development Direction - The company announced the closure of two pigment plants to streamline operations and improve cost structure over the long term [9] - A sustainable cost improvement program is in place, with more than $90 million of run rate savings achieved, significantly exceeding the original target [10] - The company is cautiously optimistic about market dynamics improving, with expectations for TiO2 prices to rise due to recent price increase announcements [11] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the recovery in TiO2 and zircon pricing, indicating an inflection point in both markets [60] - The company is focused on cash generation while balancing the impact on EBITDA, with expectations for positive free cash flow in 2026 [21] - Management highlighted the importance of maintaining liquidity and managing costs amid market fluctuations [20] Other Important Information - The company ended the year with total debt of $3.2 billion and net debt of $3 billion, with a weighted average interest rate of approximately 6% [17] - Liquidity as of December 31st increased to $674 million, including $199 million in cash and cash equivalents [17] - Capital expenditures totaled $341 million for the year, with a focus on maintenance and safety [18] Q&A Session Summary Question: Free cash flow guidance and EBITDA expectations - The company indicated that to reach breakeven, approximately $350 million in EBITDA is needed, with a focus on cash generation and working capital improvement [28][29] Question: Production costs and mining operations - Management expects improvement in operations from Q4 to Q1, with a significant focus on sustainable cost improvement programs [36][67] Question: Volume changes in TiO2 and market dynamics - The company noted a slight decline in TiO2 volumes year-over-year, with the global TiO2 industry experiencing similar trends [57] Question: Pricing discipline in the industry - Management expressed confidence in industry-wide price increases, indicating that many companies are announcing price hikes [84][86]

Tronox (NYSE:TROX) Q4 2025 Earnings call February 19, 2026 09:00 AM ET Company ParticipantsAaron Rosenthal - Executive Director of Credit ResearchCaleb Boehnlein - Equity Research Senior AssociateDavid Begleiter - DirectorFrank Mitsch - PresidentJennifer Guenther - Chief Sustainability Officer and Head of Investor Relations and External AffairsJohn Romano - CEOJohn Srivisal - SVP and CFOJosh Spector - Executive Director of Chemicals Equity ResearchJustin Pellegrino - Equity Research AssociateConference Call ...

Tronox (NYSE:TROX) Q4 2025 Earnings call February 19, 2026 09:00 AM ET Speaker13Good morning, ladies and gentlemen, and welcome to Tronox Holdings Q4 2025 earnings call. I note that all participants are in the listen-only mode. Following the presentation, we will conduct a question-and-answer session. If at any time during this call you require immediate assistance, please press star zero for the operator. Also, note that this call is being recorded on Thursday, February 19, 2026. I would like to turn the c ...

Chief Executive Officer Senior Vice President, Chief Financial Officer Fourth Quarter and Full Year 2025 Conference Call Tronox Holdings plc February 19, 2026 Tronox Holdings plc | tronox.com | Confidential & Proprietary | © 2026 1 Presenters John Romano John Srivisal Tronox Holdings plc | tronox.com | Confidential & Proprietary | © 2026 2 Safe Harbor Statement and Non-U.S. GAAP Financial Terms Cautionary Statement about Forward-Looking Statements Statements in this presentation that are not historical are ...

Core Insights - Tronox reported revenue of $730 million for the quarter ended December 2025, reflecting an 8% increase year-over-year, but EPS was -$0.60 compared to $0.03 in the same quarter last year [1] - The revenue was slightly below the Zacks Consensus Estimate of $730.22 million, resulting in a surprise of -0.03%, while the EPS surprise was -38.38% against a consensus estimate of -$0.43 [1] Financial Performance - Key metrics indicate that Tronox's revenue from TiO2 was $577 million, exceeding the estimated $556.4 million [4] - Revenue from other products reached $75 million, surpassing the average estimate of $68.67 million [4] - Zircon revenue was reported at $78 million, also above the average estimate of $65.49 million [4] Stock Performance - Over the past month, Tronox shares have returned +37.2%, contrasting with a -1.3% change in the Zacks S&P 500 composite [3] - The stock currently holds a Zacks Rank 5 (Strong Sell), suggesting potential underperformance relative to the broader market in the near term [3]

Tronox (TROX) came out with a quarterly loss of $0.6 per share versus the Zacks Consensus Estimate of a loss of $0.43. This compares to earnings of $0.03 per share a year ago. These figures are adjusted for non-recurring items.This quarterly report represents an earnings surprise of -38.38%. A quarter ago, it was expected that this producer of titanium ore and titanium dioxide would post a loss of $0.21 per share when it actually produced a loss of $0.46, delivering a surprise of -119.05%.Over the last four ...

Financial Performance - For Q4 2025, the company reported revenue of $730 million, with a loss from operations of $114 million and a net loss attributable to Tronox of $176 million, which includes $80 million in restructuring and other charges related to plant closures [1] - The adjusted net loss for Q4 2025 was $96 million, with an adjusted EBITDA of $57 million, resulting in an adjusted EBITDA margin of 7.8% [1] - For the full year 2025, revenue totaled $2,898 million, with a loss from operations of $253 million and a net loss attributable to Tronox of $470 million, including $233 million in restructuring and other charges [1] - The adjusted net loss for the full year was $237 million, with an adjusted EBITDA of $336 million and an adjusted EBITDA margin of 11.6% [1] - Capital expenditures for 2025 were reported at $341 million [1] Outlook - The company expects to generate positive free cash flow in 2026, driven by improving TiO2 pricing and volumes, lower capital expenditures, and targeted actions on working capital [1] - TiO2 and zircon volumes for Q1 2026 are anticipated to be in line with strong Q4 2025 levels, with TiO2 pricing expected to improve in Q1 2026 and zircon pricing expected to improve in Q2 2026 [1] - The expected adjusted EBITDA for Q1 2026 is projected to be between $55 million and $65 million [1]

Core Viewpoint - Tronox Holdings plc has declared a quarterly dividend of $0.05 per share, payable on April 2, 2026, to shareholders of record as of February 23, 2026 [1]. Company Overview - Tronox Holdings plc is a leading integrated manufacturer of titanium dioxide pigment and other titanium products, including specialty-grade titanium dioxide and high-purity titanium chemicals [1]. - The company operates in the mining of titanium-bearing mineral sands and has facilities that produce high-grade titanium feedstock materials, pig iron, and other minerals, including monazite [1]. - Tronox employs approximately 6,500 individuals across six continents, highlighting its operational scale and diversity [1]. Product Applications - The products manufactured by Tronox contribute brightness and durability to various everyday items such as paints, plastics, and paper [1].

Company Overview - Tronox Holdings plc operates as a vertically integrated manufacturer of titanium dioxide (TiO2) pigment, essential for various industries including paint, plastics, and cosmetics, with a strong presence in North America and internationally [2] - The company owns six titanium mines in Australia and South Africa, along with eight pigment processing plants globally, providing a cost advantage and positioning it in the first quartile of the global cost curve [2] Competitive Positioning - Tronox's vertical integration allows it to effectively compete with Chinese producers and maintain strong margins despite global competition [3] - The company also benefits from byproducts such as zircon and monazite, which contain rare earth elements like neodymium and praseodymium, offering additional growth opportunities in the rare earths market [3] Market Demand and Growth Potential - Demand for titanium is expected to grow significantly, driven by traditional markets and emerging applications in aerospace, robotics, and drone technology, enhancing Tronox's pricing power [4] - The company has a substantial debt load of $3.2 billion, but its historical cash flows indicate strong earnings potential during economic upswings, supported by favorable macroeconomic indicators [4] Valuation and Investment Thesis - Tronox's current valuation features a price-to-sales ratio of 0.42x, indicating significant upside potential with a medium-term target price of $15, and even higher if management successfully reduces debt and expands into rare earths [5] - The combination of cost leadership, growth optionality, and rare earth exposure presents an appealing risk/reward profile for investors in the context of a global commodity supercycle [5]