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 [3] - The company operates mining and upgrading facilities for titanium-bearing mineral sands, producing high-grade titanium feedstock materials, pig iron, and rare earth minerals like monazite [3] - Tronox employs approximately 6,500 people globally, showcasing a diverse workforce and a strong vertical integration model [3] Board of Directors Update - Julie Beck has been appointed to the Board of Directors effective March 1, 2025, increasing the Board to 11 directors, with 7 being independent [1] - Beck brings over 30 years of finance and accounting expertise, having held senior leadership roles in various industrial and manufacturing sectors [2] - Prior to joining Tronox, Beck served as CFO of Terex Corporation and Nova Chemicals, and has extensive experience in finance-related positions at multiple companies [2]

Market Risks - The company is exposed to various market risks, including fluctuations in titanium dioxide (TiO2) prices, which are expected to vary over the next few years due to changes in ore and pigment prices [425]. - The company operates in a competitive environment, with risks related to geopolitical instability and fluctuations in currency exchange rates [14]. - The company has significant exposure to credit risk in industries affected by cyclical economic fluctuations, with ongoing credit evaluations of customers to mitigate this risk [426]. Financial Performance - For the year ended December 31, 2024, net sales were $3,074 million, an increase of 7.9% compared to $2,850 million in 2023 [458]. - The cost of goods sold for 2024 was $2,559 million, up from $2,388 million in 2023, resulting in a gross profit of $515 million [458]. - Income from operations increased to $219 million in 2024, compared to $186 million in 2023 [458]. - The company reported a net loss of $54 million for 2024, a significant improvement from a net loss of $314 million in 2023 [458]. - Basic and diluted loss per share for 2024 was $0.31, compared to a loss of $2.02 per share in 2023 [458]. - Total comprehensive loss for 2024 was $128 million, compared to a loss of $356 million in 2023 [461]. - Cash provided by operating activities increased to $300 million in 2024, up from $184 million in 2023 [466]. Tax and Deferred Tax Assets - As of December 31, 2024, the company had $960 million in net deferred tax assets, with valuation allowances of $1,951 million [452]. - Deferred tax assets totaled $2,911 million as of December 31, 2024, with a valuation allowance of $1,951 million [531]. - The company recorded a non-cash charge of $16 million for Brazil and $33 million for the Netherlands due to uncertainty in realizing deferred tax assets [533]. - The total tax loss carryforwards amounted to $9,493 million, with significant contributions from the U.S. Federal ($4,245 million) and Australia ($675 million) [539]. Debt and Interest Rates - A hypothetical 1% increase in interest rates would result in a net decrease to pre-tax income of approximately $8 million on an annualized basis, due to the company's exposure to floating rate debt totaling $824 million [427]. - The company entered into interest rate swap agreements to convert variable rates to fixed rates, with a notional value of $200 million maturing in March 2028 [431]. - As of December 31, 2024, the company maintains a total of $950 million in interest rate swaps, with $450 million maturing in March 2028 and $500 million maturing in September 2031 [436]. - Long-term debt, net, was $2,759 million in 2024, slightly down from $2,786 million in 2023 [464]. - The average effective interest rate for the Term Loan Facility was 5.9% for the year ended December 31, 2024, compared to 6.6% in 2023 [566]. Assets and Liabilities - Total assets decreased to $6,038 million in 2024 from $6,134 million in 2023 [464]. - Current liabilities rose to $874 million in 2024, compared to $753 million in 2023 [464]. - The company reported a decrease in inventories to $1,551 million in 2024 from $1,421 million in 2023 [464]. - Property, plant and equipment, net was reported at $1,927 million as of December 31, 2024, up from $1,835 million in 2023 [556]. - Total accrued liabilities increased to $247 million as of December 31, 2024, from $230 million in 2023, primarily due to changes in employee-related costs and sales rebates [563]. Shareholder Equity and Dividends - The total shareholders' equity decreased from $2,403 million at the end of 2022 to $1,980 million at the end of 2024, reflecting a decline of approximately 17.6% [468]. - Tronox's ordinary share dividends remained consistent at $0.50 per share for the years 2022, 2023, and 2024, with total dividends of $80 million each year [468]. - Dividends paid in 2024 amounted to $80 million, compared to $89 million in 2023 [466]. Research and Development - Research and development costs were $14 million in 2024, $12 million in 2023, and $12 million in 2022, indicating a 17% increase from 2023 to 2024 [479]. Currency and Foreign Contracts - The company is exposed to currency risk primarily in jurisdictions such as Australia, Europe, and South Africa, impacting its Adjusted EBITDA [437]. - The company had 516 million Australian dollars (approximately $319 million) in outstanding foreign currency contracts to hedge against currency fluctuations for its Australian subsidiaries [438]. - The notional amount of outstanding foreign currency contracts included 1.4 billion South African Rand (approximately $73 million) and 113 million Australian dollars (approximately $70 million) as of December 31, 2024 [439]. Operational Risks - The company is subject to various risks, including environmental liabilities, production delays, and cybersecurity incidents, which could materially impact financial performance [14]. - The company anticipates that ESG issues and increased regulatory requirements may subject it to additional costs and restrictions [17]. Revenue Generation - The company generates revenue primarily from selling TiO pigment products and related co-products, with contracts typically lasting one year or less [513]. - Revenue from TiO2 products was $2,407 million in 2024, up from $2,248 million in 2023, indicating a growth of 7.1% [522]. - Net sales in North America increased to $796 million in 2024 from $754 million in 2023, while sales in South and Central America rose to $208 million from $159 million [522].

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 [2] - The company operates mining and upgrading facilities for titanium-bearing mineral sands, producing high-grade titanium feedstock materials, pig iron, and rare earth minerals like monazite [2] - With approximately 6,500 employees across six continents, Tronox boasts a diverse workforce and a strong vertical integration model, enhancing its operational and technical expertise [2] Financial Highlights - The Board of Directors declared a quarterly dividend of $0.125 per share, payable on April 4, 2025, to shareholders of record by the close of business on March 3, 2025 [1]

Financial Data and Key Metrics Changes - The company generated revenue of $3.1 billion, an increase of 8% compared to the prior year, driven primarily by higher TiO2 and zircon sales volumes, partially offset by unfavorable price and product mix [13] - A net loss attributable to Tronox Holdings plc of $48 million was reported, with full-year adjusted EBITDA at $564 million and an adjusted EBITDA margin of 18.3% [13] - Free cash flow for the year was a use of $70 million, with fourth-quarter revenue of $676 million, a decrease of 1% year-over-year [14][15] Business Line Data and Key Metrics Changes - TiO2 revenues increased by 3% year-over-year, with sales volumes improving by 4%, but were partially offset by a 1% decline due to price and product mix [16] - Zircon revenues increased by 32% over Q4 2023, driven by a 43% increase in sales volumes, although there was an 11% headwind from price and product mix [18] - Revenue from other products decreased by 38% compared to the prior year due to opportunistic sales that did not repeat in Q4 2024 [19] Market Data and Key Metrics Changes - Stronger TiO2 commercial performance in Asia Pacific and Latin America mitigated lagging demand in Europe, while North America performed in line with expectations [8] - The company expects 2025 revenue to be in the range of $3 to $3.4 billion, with adjusted EBITDA projected between $525 to $625 million [27] Company Strategy and Development Direction - The company launched a new business strategy focused on enhancing cost efficiency, optimizing asset reliability, and driving operational excellence [11] - A cost improvement program was initiated, identifying $125 to $175 million of additional cost improvement opportunities achievable by the end of 2026 [11][32] - The company remains focused on sustainability projects, including converting 40% of power in South Africa to solar, which avoided $17 million in electricity costs in 2024 [10] Management Comments on Operating Environment and Future Outlook - Management noted that pricing is expected to be a headwind in the first half of 2025, with a recovery anticipated in the second half [29] - The company is seeing an uplift in Europe and Brazil due to antidumping measures, with expectations for similar benefits in India [28] - Management expressed confidence in achieving sustainable long-term improvements through the cost improvement program, emphasizing operational excellence and technology [35] Other Important Information - The company ended the year with total debt of $2.9 billion and net debt of $2.7 billion, with a net leverage ratio of 4.8 times [21] - Capital expenditures totaled $370 million, with 45% allocated to maintenance and safety, and 55% to strategic mining extension and growth projects [23] Q&A Session Summary Question: Pricing environment and competitive issues - Management indicated that competitive activity in certain regions is affecting pricing, but they expect upward movement in the second half of the year as market conditions improve [40][44] Question: Cost-cutting initiatives and volume reliance - The cost improvement program is primarily focused on cost-related efficiencies rather than volume, with expectations of achieving $25 to $30 million in 2025 [46][47] Question: Mining costs and transition impacts - The anticipated $50 to $60 million negative impact from mining costs is expected to recover in 2026, with improvements linked to the transition to new mines [55][58] Question: Working capital and cash flow - Management expects working capital to continue being a use of cash, but improvements are anticipated throughout 2026 [61][63] Question: SG&A and layoffs - The SG&A portion of the cost improvement program does not anticipate significant cash costs or layoffs in the first year [78][79] Question: Volume growth assumptions for TiO2 and zircon - Management expects high single-digit percentage growth in volumes for both TiO2 and zircon in 2025 [85][87] Question: Market share recovery - The company anticipates regaining market share lost to Chinese competitors, particularly in Europe and Brazil [93][95]

Fourth Quarter and Full Year 2024 Conference Call Tronox Holdings plc February 13, 2025 Tronox Holdings plc | tronox.com | Confidential & Proprietary | © 2025 1 Presenters John Romano John Srivisal Chief Executive Officer Senior Vice President, Chief Financial Officer Tronox Holdings plc | tronox.com | Confidential & Proprietary | © 2025 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 ...

Revenue Performance - Fourth quarter 2024 revenue was $676 million, a decrease of 1% year-over-year, with TiO2 sales contributing $533 million and zircon sales increasing by 32% to $75 million [3][9][11]. - Full year 2024 total revenue reached $3,074 million, an 8% increase compared to the previous year, with adjusted EBITDA of $564 million and an adjusted EBITDA margin of 18.3% [3][16]. - Net sales for Q4 2024 were $676 million, a decrease of 1.5% from $686 million in Q4 2023, while total net sales for the year increased by 7.9% to $3,074 million from $2,850 million in 2023 [28]. - Net sales for the year ended December 31, 2024, were $3,074 million, an increase from $2,850 million in 2023, representing a 7.9% growth [38]. Profitability and Earnings - The company reported a net loss of $30 million for Q4 2024, improving from a net loss of $56 million in Q4 2023, with adjusted diluted earnings per share of $0.03 [3][13]. - Adjusted EBITDA for Q4 2024 was $129 million, a 37% increase year-over-year, with a margin of 19.1% [3][14]. - Gross profit for Q4 2024 was $117 million, up 50% from $78 million in Q4 2023, contributing to a total gross profit of $515 million for the year, compared to $462 million in 2023 [28]. - Adjusted net income attributable to Tronox Holdings plc for Q4 2024 was $4 million, contrasting with an adjusted net loss of $60 million in Q4 2023 [29]. - Adjusted EBITDA for the year ended December 31, 2024, was $564 million, compared to $524 million in 2023, reflecting a 7.6% increase [38]. - Net loss for the year ended December 31, 2024, was $54 million, improving from a net loss of $314 million in 2023, a reduction of 82.8% [38]. - Net loss as a percentage of net sales for the year ended December 31, 2024, was (1.8)%, improving from (11.0)% in 2023 [38]. Future Projections - For 2025, the company expects revenue between $3.0 billion and $3.4 billion and adjusted EBITDA between $525 million and $625 million [6][19]. - Capital expenditures for 2025 are projected to be between $375 million and $395 million, with free cash flow expected to remain relatively flat [6][19]. - The company has identified $125 million to $175 million in sustainable cost improvements achievable by the end of 2026 [6][19]. Cash Flow and Capital Expenditures - Cash provided by operating activities for the year was $300 million, compared to $184 million in 2023, reflecting improved operational efficiency [36]. - Capital expenditures for the year totaled $370 million, significantly higher than $261 million in 2023, indicating increased investment in growth initiatives [28]. Debt and Liquidity - Total debt at the end of 2024 was $2.9 billion, with available liquidity of $578 million [3][17]. - Long-term debt remained relatively stable at $2,759 million as of December 31, 2024, compared to $2,786 million in 2023 [34]. - Net debt as of December 31, 2024, was $2,708 million, an increase from $2,551 million in 2023 [38]. - Net debt to trailing-twelve month Adjusted EBITDA ratio improved to 4.8x from 4.9x [38]. - Interest expense for the year ended December 31, 2024, was $167 million, compared to $158 million in 2023, an increase of 5.7% [38]. Shareholder Returns - The company returned $80 million to shareholders in the form of dividends during 2024 [3][18]. Operational Efficiency - The company achieved $75 million in production cost improvements compared to Q4 2023, reflecting operational efficiencies [7][14]. - Total assets decreased to $6,038 million as of December 31, 2024, down from $6,134 million in 2023, primarily due to a reduction in cash and cash equivalents [34]. - The company’s weighted average shares outstanding increased to 158,262 thousand in Q4 2024 from 156,818 thousand in Q4 2023 [29]. - Long-term debt, net, as of December 31, 2024, was $2,759 million, slightly down from $2,786 million in 2023 [38].

Company Performance - Tronox reported quarterly earnings of $0.03 per share, missing the Zacks Consensus Estimate of $0.05 per share, compared to a loss of $0.38 per share a year ago, indicating an earnings surprise of -40% [1] - The company posted revenues of $676 million for the quarter ended December 2024, missing the Zacks Consensus Estimate by 1.39%, and down from $686 million year-over-year [2] - Over the last four quarters, Tronox has not surpassed consensus EPS estimates and has topped consensus revenue estimates only twice [2] Stock Outlook - Tronox shares have lost about 1.2% since the beginning of the year, while the S&P 500 has gained 3.2% [3] - The current consensus EPS estimate for the coming quarter is $0.16 on revenues of $788.95 million, and for the current fiscal year, it is $0.76 on revenues of $3.24 billion [7] - The estimate revisions trend for Tronox is currently unfavorable, resulting in a Zacks Rank 5 (Strong Sell), indicating expected underperformance in the near future [6] Industry Context - The Chemical - Diversified industry, to which Tronox belongs, is currently in the bottom 11% of over 250 Zacks industries, suggesting a challenging environment for stock performance [8] - Empirical research indicates a strong correlation between near-term stock movements and trends in earnings estimate revisions, which can impact investor sentiment [5]

Core Viewpoint - Tronox Holdings plc reported its fourth quarter financial results for 2024, showing a mixed performance with a slight decline in revenue but significant improvements in operational efficiency and cost management [1][4][6]. Financial Performance - Fourth quarter revenue was $676 million, a decrease of 1% year-over-year, primarily due to unfavorable average selling prices and product mix impacts on TiO2 and zircon [3][8]. - TiO2 revenue increased by 3% to $533 million, driven by a 4% increase in volumes, despite a 1% decline in average selling prices [9]. - Zircon revenue surged by 32% to $75 million, supported by a 43% increase in volumes, although offset by an 11% decrease in average selling prices [10]. - The company reported a net loss of $30 million for the quarter, an improvement from a net loss of $56 million in the same period last year [12][15]. - Adjusted EBITDA for the quarter was $129 million, reflecting a 37% increase year-over-year, with an adjusted EBITDA margin of 19.1% [13][18]. Operational Highlights - The company achieved $75 million in production cost improvements compared to Q4 2023, contributing to the improved adjusted EBITDA [4][6]. - Tronox launched a cost improvement plan targeting sustainable savings of $125-175 million by the end of 2026, focusing on enhancing cost efficiency and optimizing asset performance [7][18]. Full Year Overview - For the full year 2024, Tronox reported total revenue of $3,074 million, an 8% increase year-over-year, with an adjusted EBITDA of $564 million, also up 8% from the previous year [15][18]. - The company returned $80 million to shareholders in the form of dividends during the year [17]. Outlook - For 2025, Tronox expects revenue to be in the range of $3.0-3.4 billion, driven by improving TiO2 and zircon volumes, with adjusted EBITDA projected between $525-625 million [6][18]. - Capital expenditures for 2025 are anticipated to be between $375-395 million, with free cash flow expected to remain relatively flat [18].

Tronox (TROX) is expected to deliver a year-over-year increase in earnings on lower revenues when it reports results for the quarter ended December 2024. This widely-known consensus outlook gives a good sense of the company's earnings picture, but how the actual results compare to these estimates is a powerful factor that could impact its near-term stock price.The stock might move higher if these key numbers top expectations in the upcoming earnings report, which is expected to be released on February 12. O ...

STAMFORD, Conn., Jan. 23, 2025 /PRNewswire/ -- Tronox Holdings plc (NYSE: TROX) announced today the following schedule for its fourth quarter 2024 earnings release and webcast conference call:Earnings Release: Wednesday, February 12, 2025, after the market close via PR Newswire and the Tronox Holdings plc website: tronox.comWebcast Conference Call: Thursday, February 13, 2025, at 9:00 AM ET (New York). The live call is open to the public and can be accessed via live webcast and teleconference. Please visit ...