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Financial Performance - Net sales for Q3 2025 were $699 million, a decrease of 13% from $804 million in Q3 2024, primarily due to lower sales volumes and average selling prices of TiO2 [119]. - TiO2 revenue decreased by 11% or $66 million compared to the prior year quarter, driven by a $47 million decrease in sales volumes and a $29 million decrease in average selling prices [119]. - Zircon revenue decreased by 20% from Q3 2024 to Q3 2025, primarily due to a 16% decline in average selling prices and a 4% decrease in sales volumes [115]. - Gross profit for Q3 2025 was $52 million, representing a gross margin of 7.4%, down from 15.9% in the prior year [118]. - The company reported a net loss of $100 million for Q3 2025, compared to a net loss of $25 million in Q3 2024, reflecting a significant increase in restructuring charges [118]. - Adjusted EBITDA for Q3 2025 was $74 million, down from $143 million in Q3 2024, with adjusted EBITDA as a percentage of net sales decreasing to 10.6% from 17.8% [118]. - For the nine months ended September 30, 2025, net sales were $2,168 million, a decrease of 10% compared to $2,398 million for the same period in 2024 [128]. - For the nine months ended September 30, 2025, total net sales decreased by 10% to $2,168 million compared to $2,398 million in the prior year [129]. - TiO2 revenue decreased by 8% or $153 million, primarily due to a $126 million decrease in sales volumes and a $41 million decrease in average selling prices [129]. - Gross margin for the nine months ended September 30, 2025 was $230 million, representing 10.6% of net sales, down from 16.6% in the prior year [129]. - Loss from operations was $139 million for the nine months ended September 30, 2025, a decrease of $310 million compared to income from operations of $171 million in the prior year [131]. - Adjusted EBITDA as a percentage of net sales was 12.9% for the nine months ended September 30, 2025, a decrease of 5.2 points from 18.1% in the prior year [137]. - The company reported a net loss of $296 million for the nine months ended September 30, 2025, compared to a net loss of $24 million for the same period in 2024, representing an increase in net loss of $272 million year-over-year [162]. Liquidity and Debt - Total available liquidity as of September 30, 2025, was $664 million, including $185 million in cash and cash equivalents [116]. - Total debt as of September 30, 2025, was $3.2 billion, with a net debt to trailing twelve months adjusted EBITDA ratio of 7.5x [116]. - Cash and cash equivalents increased to $185 million as of September 30, 2025, up from $151 million at December 31, 2024 [140]. - Working capital was $1.5 billion at September 30, 2025, compared to $1.3 billion at December 31, 2024 [141]. - Short-term and long-term debt increased to $3.2 billion as of September 30, 2025, compared to $2.9 billion at December 31, 2024 [155]. - The company’s long-term debt, net, increased to $3,136 million as of September 30, 2025, up from $2,759 million as of December 31, 2024 [172]. - The company’s net debt to trailing twelve months Adjusted EBITDA ratio increased to 7.5x as of September 30, 2025, compared to 4.8x as of December 31, 2024 [172]. - The company issued $400 million of 9.125% senior secured notes due 2030 on September 26, 2025 [153]. Cash Flow - Cash used in operating activities was $61 million for the nine months ended September 30, 2025, a decrease from cash provided by operating activities of $218 million in the prior year, primarily due to a decrease in income-related cash generation [162]. - Net cash used in investing activities increased to $255 million in the nine months ended September 30, 2025, compared to $226 million in the same period of 2024, driven by higher capital expenditures of $273 million [163]. - The company generated net cash provided by financing activities of $345 million for the nine months ended September 30, 2025, compared to cash used in financing activities of $97 million in the prior year, primarily from net proceeds of long-term debt of $379 million [164]. Restructuring and Charges - Restructuring and other charges for Q3 2025 amounted to $25 million, primarily related to the idling of the Botlek plant [119]. - The company incurred restructuring and other charges of $25 million for the three months ended September 30, 2025, and $150 million for the nine months ended September 30, 2025 [183]. - Interest expense for the three months ended September 30, 2025, was $48 million, with a total of $176 million for the trailing twelve months [178]. Environmental and Compliance Costs - The company is subject to significant environmental compliance costs, which are expected to continue to be substantial in the foreseeable future [188]. Currency Risk and Hedging - The company is exposed to currency risk primarily in South Africa and Australia, where revenues are earned in U.S. dollars while expenses are incurred in local currencies [200]. - The company enters into foreign currency contracts to hedge forecasted non-functional currency sales and costs for its subsidiaries in South Africa and Australia [201]. - As of September 30, 2025, the company had notional amounts of 136 million Australian dollars (approximately $90 million) in foreign currency contracts to hedge against fluctuations in currency rates for its Australian subsidiaries' cost of sales [201]. - The company had notional amounts of 975 million South African Rand (approximately $56 million) to reduce exposure of its South African subsidiaries' third-party sales to currency fluctuations [201]. - As of September 30, 2025, the company had outstanding foreign currency contracts totaling 470 million South African Rand (approximately $27 million) and 161 million Australian dollars (approximately $106 million) [202]. - The company utilized a combination of zero-cost collars, put options, and forward contracts to manage currency exposure, designating these as cash flow hedges [201]. - As of September 30, 2025, the company had notional amounts of 61 million Pound Sterling (approximately $82 million) and 40 million Euro (approximately $47 million) in outstanding foreign currency contracts [202]. - 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 [193]. - The company recorded a net unrealized gain of $1 million related to interest rate swaps as of September 30, 2025 [198]. - The company recorded a net unrealized gain of $6 million recorded in "Accumulated other comprehensive loss" on the balance sheet, expected to be fully recognized in earnings over the next twelve months [201]. - The company recorded a net loss of $14 million in "Accumulated other comprehensive loss" at December 31, 2024 [201].

Financial Data and Key Metrics Changes - Revenue for Q3 2025 was $699 million, a decrease of 13% year-over-year, driven by lower sales volumes and unfavorable pricing for TiO2 and zircon [8][9] - Loss from operations was $43 million, with a net loss attributable to Tronox of $99 million, including $27 million in restructuring charges [8][9] - Adjusted EBITDA was $74 million, representing a 48% decline year-on-year, with an adjusted EBITDA margin of 10.6% [8][11] - Free cash flow was a use of $137 million, including $80 million in capital expenditures [8][9] Business Line Data and Key Metrics Changes - TiO2 revenues decreased by 11% year-over-year, driven by an 8% decrease in volumes and a 5% decline in average selling prices [9][10] - Zircon revenues decreased by 20% compared to the prior year, due to a 16% decrease in price and a 4% decline in volumes [10] - Revenue from other products decreased by 21% year-over-year, but increased by 18% sequentially due to higher sales of pig iron and heavy mineral concentrate tailings [10] Market Data and Key Metrics Changes - The zircon market faced unexpected headwinds, particularly in China, where both pricing and volumes continued to decline [3][4] - Europe, the Middle East, and North America experienced sharper seasonal declines amid market weakness and competitive pressures [9] - Latin America saw typical seasonal uplift, although weaker than expected, while Asia-Pacific growth was muted by competition and a temporary stay on India anti-dumping duties [10] Company Strategy and Development Direction - The company is focused on cost improvement programs, targeting over $60 million in annualized savings by the end of 2025 and $125-$175 million by the end of 2026 [4][20] - Tronox is reinforcing its operational foundation and cash flow management through temporary idling of certain plants and adjusting production rates [4][21] - The company is also advancing its rare earth strategy, with mining operations in Australia and South Africa containing substantial amounts of monazite [7][18] Management's Comments on Operating Environment and Future Outlook - Management noted ongoing challenges from weaker demand, downstream destocking, and heightened competition, but expressed optimism about future sales volumes due to competitors' insolvency proceedings [3][4] - The company expects Q4 2025 revenue and adjusted EBITDA to be relatively flat compared to Q3, driven by weaker pricing but improving volumes [19][20] - Management remains confident in the ability to navigate the current downturn and deliver long-term shareholder value [23] Other Important Information - The company raised $400 million in senior secured notes to enhance liquidity and repay borrowings [5][12] - Liquidity as of September 30 was $664 million, with $185 million in cash and cash equivalents [12][13] - The company returned $20 million to shareholders in the form of dividends in Q3 [14] Q&A Session Summary Question: Impact of anti-dumping measures and market size - Management acknowledged that the Brazil and Saudi Arabia markets are lower than India, but expressed confidence that India's duties will be reinstated soon, which would stabilize volumes [25][27] Question: Rare earths opportunity and refining capabilities - Management confirmed ongoing mining of monazite in Australia and South Africa, with plans for further development in refining and separation through partnerships [30][32] Question: Duration of idling plants and potential permanence - The Fuzhou plant is idled to preserve cash, with decisions on its future dependent on market conditions, while Stallingborough is expected to return to full rates in Q4 [37][39] Question: 2026 earnings potential and cost savings impact - Management indicated that the Sustainable Cost Improvement Program is expected to yield significant savings in 2026, with a focus on operational efficiencies [40][42] Question: Destocking and inventory rebuilding expectations - Management noted that destocking occurred earlier than expected, but anticipated a return to normal buying patterns in Q4, indicating a potential recovery [51][53]

Financial Performance - Revenue decreased by 13% year-over-year, from $804 million in Q3 2024 to $699 million in Q3 2025[11, 16] - Adjusted EBITDA decreased by 48% year-over-year, from $143 million in Q3 2024 to $74 million in Q3 2025[11, 25] - Adjusted EBITDA margin decreased by 720 basis points year-over-year, from 17.8% in Q3 2024 to 10.6% in Q3 2025[11, 25] - Free cash flow was a use of $137 million in Q3 2025, compared to a use of $14 million in Q3 2024[11] - Net loss attributable to Tronox was $99 million in Q3 2025, compared to a net loss of $25 million in Q3 2024[11, 13] Operational Highlights - TiO2 volumes decreased by 8% year-over-year and 4% quarter-over-quarter[16, 21] - Zircon volumes decreased by 4% year-over-year and 7% quarter-over-quarter[16, 21] - The company is on track to deliver sustainable run-rate cost improvements of more than $60 million in 2025 and $125-$175 million by the end of 2026[10] Liquidity and Capital Allocation - The company raised $400 million of secured notes in Q3 2025[10, 33] - Total debt was $3.2 billion as of September 30, 2025, with a net leverage ratio of 7.5x on a trailing twelve-month basis[33] - Total available liquidity was $664 million as of September 30, 2025, including $185 million in cash and cash equivalents[33]

Financial Performance - Revenue for Q3 2025 was $699 million, a 13% decrease year-over-year and a 4% decrease quarter-over-quarter[3]. - Net loss attributable to Tronox was $99 million, or a loss of $0.63 per diluted share, compared to a net loss of $25 million, or a loss of $0.16 per diluted share in Q3 2024[12]. - Adjusted EBITDA was $74 million, representing a 48% decrease year-over-year, with an adjusted EBITDA margin of 10.6%[13]. - Net sales for Q3 2025 were $699 million, a decrease of 13.1% compared to $804 million in Q3 2024[28]. - Gross profit for Q3 2025 was $52 million, down from $128 million in Q3 2024, reflecting a gross margin of 7.4% compared to 15.9%[28]. - Adjusted net loss attributable to Tronox Holdings plc for Q3 2025 was $72 million, compared to $21 million in Q3 2024[29]. - Net loss for the nine months ended September 30, 2025, was $296 million, compared to a net loss of $24 million for the same period in 2024[36]. - Adjusted EBITDA for the nine months ended September 30, 2025, was $279 million, down from $435 million in 2024, representing a decrease of approximately 36%[37]. - Net sales for the three months ended September 30, 2025, were $699 million, compared to $804 million in 2024, reflecting a decline of about 13%[37]. - Adjusted EBITDA as a percentage of net sales for the three months ended September 30, 2025, was 10.6%, down from 17.8% in 2024[37]. Revenue Breakdown - TiO2 revenue was $550 million, down 11% year-over-year, driven by an 8% decline in volumes and a 5% decline in average selling prices[9]. - Zircon revenue decreased 20% to $59 million, impacted by a 16% decrease in average selling prices and a 4% decline in sales volumes[10]. Cash Flow and Liquidity - Free cash flow for Q3 2025 was a use of $137 million, with expectations for positive free cash flow in Q4 2025 and 2026[17][19]. - Free cash flow for the nine months ended September 30, 2025, was $(334) million, compared to $(197) million for the six months ended June 30, 2025[43]. - Cash provided by financing activities for the nine months ended September 30, 2025, was $345 million, contrasting with cash used in financing activities of $(97) million in 2024[36]. - Tronox raised $400 million in senior secured notes, increasing available liquidity to $664 million[16]. Capital Expenditures - Capital expenditures for the quarter were $80 million, focusing on key capital projects to sustain vertical integration[17]. - Capital expenditures for Q3 2025 were $80 million, down from $101 million in Q3 2024[28]. - Capital expenditures for the nine months ended September 30, 2025, were $273 million, compared to $253 million in 2024[36]. Debt and Assets - Long-term debt increased to $3,136 million as of September 30, 2025, compared to $2,759 million at the end of 2024[34]. - Total assets as of September 30, 2025, were $6,303 million, an increase from $6,038 million as of December 31, 2024[34]. - Net debt to trailing-twelve month Adjusted EBITDA ratio increased to 7.5x as of September 30, 2025, compared to 4.8x at the end of 2024[37]. Strategic Initiatives - The company is advancing its rare earth strategy, taking a 5% equity interest in Lion Rock Minerals to support resource development[18]. - The company reported a restructuring charge of $153 million for the nine months ended September 30, 2025, with no such charges reported in 2024[36]. - Tronox Holdings plc's restructuring and other charges amounted to $25 million in Q3 2025, with no such charges reported in Q3 2024[28].

Financial Performance - Tronox reported a quarterly loss of $0.46 per share, which was worse than the Zacks Consensus Estimate of a loss of $0.21, and compared to a loss of $0.13 per share a year ago, indicating a significant earnings surprise of -119.05% [1] - The company posted revenues of $699 million for the quarter ended September 2025, missing the Zacks Consensus Estimate by 5.28%, and down from $804 million in the same quarter last year [2] - Over the last four quarters, Tronox has not surpassed consensus EPS estimates and has consistently missed revenue estimates [2] Stock Performance - Tronox shares have declined approximately 68.3% since the beginning of the year, contrasting with the S&P 500's gain of 15.1% [3] - The current Zacks Rank for Tronox is 5 (Strong Sell), indicating expectations of underperformance in the near future [6] Earnings Outlook - The current consensus EPS estimate for the upcoming quarter is -$0.11 on revenues of $729.64 million, and for the current fiscal year, it is -$0.75 on revenues of $2.94 billion [7] - The trend of estimate revisions for Tronox was unfavorable prior to the earnings release, which may impact future stock movements [6] Industry Context - The Chemical - Diversified industry, to which Tronox belongs, is currently ranked in the bottom 8% of over 250 Zacks industries, suggesting a challenging environment for stocks in this sector [8] - Comparatively, Chemours, another company in the same industry, is expected to report a quarterly earnings decline of 40% year-over-year, with revenues projected at $1.49 billion, down 0.6% from the previous year [9][10]

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Core Viewpoint - Tronox Holdings plc reported a significant decline in financial performance for Q3 2025, with a net loss of $99 million, driven by weaker demand, competitive pressures, and operational challenges in the titanium dioxide (TiO2) and zircon markets [2][5][6]. Financial Performance - Revenue for Q3 2025 was $699 million, a decrease of 13% year-over-year and a 4% decline from Q2 2025 [2][5]. - TiO2 revenue was $550 million, down 11% year-over-year, attributed to an 8% decline in sales volumes and a 5% decrease in average selling prices [6][7]. - Zircon revenue decreased by 20% to $59 million, driven by a 16% drop in average selling prices and a 4% decline in sales volumes [7]. - Adjusted EBITDA was $74 million, representing a 48% decrease from the previous year, with an adjusted EBITDA margin of 10.6% [8][9]. Operational Challenges - The company faced challenges from weaker-than-expected demand and aggressive inventory liquidation by competitors, impacting pricing and sales volumes [3][4]. - A restructuring charge of $27 million was included in the net loss, primarily related to the closure of the Botlek pigment plant [5][6]. Cost Management and Cash Flow - Tronox is implementing a cost improvement program expected to yield over $60 million in annualized savings by the end of 2025, with a longer-term goal of $125–$175 million by the end of 2026 [3][4]. - Free cash flow for Q3 2025 was a use of $137 million, with capital expenditures of $80 million [11][12]. Market Outlook - The company anticipates a 3-5% increase in TiO2 volumes and a 15-20% increase in zircon volumes for Q4 2025, despite pricing headwinds [4][12]. - Anti-dumping measures in various countries are expected to improve market conditions and sales volumes in the future [4][12]. Strategic Positioning - Tronox is positioned to benefit from the global shift away from reliance on Chinese rare earths, with significant mineral deposits in Australia and South Africa [11][12]. - The company has taken a 5% equity interest in Lion Rock Minerals, enhancing its rare earth strategy [11].

Core Viewpoint - Tronox Holdings plc is facing a class action securities lawsuit due to alleged securities fraud that negatively impacted investors between February 12, 2025, and July 30, 2025 [1][2] Company Performance - The lawsuit claims that Tronox provided overly positive statements while concealing material adverse facts about its commercial division and forecasting processes, which ultimately led to declining sales and increased costs [2] - On July 30, 2025, Tronox reported a significant reduction in TiO2 sales for the second quarter of fiscal 2025, attributing the decline to a softer coatings season and heightened competition [2] - Following the announcement, Tronox revised its 2025 financial outlook, lowering full-year revenue guidance and reducing its dividend by 60% [2] - The stock price of Tronox plummeted from $5.14 per share on July 30, 2025, to $3.19 per share on July 31, 2025, marking a decline of approximately 38% in one day [2] Legal Proceedings - Investors who suffered losses during the specified timeframe have until November 3, 2025, to request appointment as lead plaintiff in the class action [3] - Participation in the lawsuit does not require serving as a lead plaintiff, and there are no out-of-pocket costs for class members [3] Firm Background - Levi & Korsinsky, LLP has a strong track record in securities litigation, having secured hundreds of millions of dollars for shareholders over the past 20 years [4] - The firm has been recognized in ISS Securities Class Action Services' Top 50 Report for seven consecutive years as one of the leading securities litigation firms in the United States [4]

Core Points - Tronox Holdings plc is under investigation for potential claims related to a federal securities class action [1] - The deadline for investors to seek the role of lead plaintiff in this action is November 3, 2025 [1] - The investigation is being conducted by Faruqi & Faruqi, LLP, a prominent national securities law firm [1]