Core Concept - The article discusses investment strategies focusing on identifying companies with strong potential for growth while avoiding those likely to decline, particularly in the context of the basic materials sector and the impact of the AI revolution. Group 1: Investment Strategies - The concept of avoiding poorly rated companies can lead to better investment returns, as evidenced by the performance of S&P 500 companies rated by Moody's in 2020 [3][10]. - Eric Fry's presentation emphasizes the importance of selecting stocks that are expected to rise while avoiding those that are likely to fall, particularly in an era characterized by rapid changes in the market [4][31]. Group 2: Basic Materials Sector Analysis - Tronox Holdings PLC (TROX) is highlighted as a key player in the titanium dioxide market, which is cyclical and dependent on demand from industries like automotive and construction [7][8]. - Despite current low trading prices for Tronox shares, there is optimism for recovery due to ongoing demand for titanium dioxide, supported by recent insider buying [9][12][13]. - The article contrasts Tronox with Alliance Resource Partners LP (ARLP), which is facing challenges due to high extraction costs in the coal industry and declining earnings [22][25][29]. Group 3: Market Trends and Future Outlook - The demand for lithium-ion batteries is expected to rise significantly due to advancements in AI technology and the shift from traditional energy sources [18][21]. - Albemarle Corp. is positioned to benefit from this trend, with a strong balance sheet and low-cost assets, while ARLP is likely to struggle against cheaper competitors and market dynamics [21][30].

Core Insights - Tronox Holdings plc is under investigation for potential securities fraud and unlawful business practices [1] - The company reported a revenue of $731 million for Q2 2025, which is a 10.9% decline year-over-year and fell short of consensus estimates by $53.45 million [2] - The decline in sales was attributed to delays in Brazil's anti-dumping investigation [2] - Following the financial results announcement, Tronox's stock price dropped by $1.95, or 37.94%, closing at $3.19 per share on July 31, 2025 [3] Financial Performance - Q2 2025 revenue: $731 million, down 10.9% year-over-year [2] - Missed consensus estimates by $53.45 million [2] - Stock price decline of 37.94% following the earnings report [3] Company Actions - Tronox revised its 2025 financial outlook and is adjusting capital allocation priorities to enhance long-term shareholder value [2]

Core Viewpoint - The Schall Law Firm is investigating Tronox Holdings plc for potential violations of securities laws, particularly regarding misleading statements and undisclosed information that may have affected investors [1][2]. Financial Performance - Tronox reported a 10.9% year-over-year decline in revenues for Q2 2025, which was below consensus estimates [2]. - The company attributed the revenue decline to delays in Brazil's anti-dumping investigation, which negatively impacted sales in that region [2]. - Following the announcement of these results, Tronox's shares fell by more than 37.9% the next day [2].

Core Viewpoint - Pomerantz LLP is investigating potential securities fraud or unlawful business practices by Tronox Holdings plc and its officers or directors, following disappointing financial results and a significant stock price drop [1][3]. Financial Performance - Tronox reported revenue of $731 million for Q2 2025, which is a 10.9% decline year-over-year and fell short of consensus estimates by $53.45 million [3]. - The company attributed the revenue decline to delays in Brazil's anti-dumping investigation affecting sales in that region [3]. Stock Market Reaction - Following the release of the financial results, Tronox's stock price decreased by $1.95 per share, or 37.94%, closing at $3.19 per share on July 31, 2025 [4]. Company Response - Tronox has revised its 2025 financial outlook and is taking proactive measures, including adjusting capital allocation priorities to enhance long-term shareholder value [3].

Core Viewpoint - Pomerantz LLP is investigating potential securities fraud or unlawful business practices by Tronox Holdings plc and its officers or directors, following disappointing financial results and a significant stock price drop [1][3]. Financial Performance - Tronox reported revenue of $731 million for Q2 2025, which is a 10.9% decline year-over-year and fell short of consensus estimates by $53.45 million [3]. - The company attributed the revenue decline to delays in Brazil's anti-dumping investigation affecting sales in that region [3]. Stock Market Reaction - Following the release of the financial results, Tronox's stock price decreased by $1.95 per share, or 37.94%, closing at $3.19 per share on July 31, 2025 [4]. Company Response - Tronox has revised its 2025 financial outlook and is taking proactive measures, including adjusting capital allocation priorities to enhance long-term shareholder value [3].

On July 30, 2025, Tronox issued a press release reporting its financial results for the second quarter of 2025. Among other items, Tronox reported revenue of $731 million, representing a 10.9% year-over-year decline and missing consensus estimates by $53.45 million. Tronox advised investors that "delays in Brazil's anti-dumping investigation impacted our sales in the region[.]" Tronox also said that "we revised our 2025 financial outlook and are taking proactive steps, including adjusting our capital alloca ...

Core Viewpoint - Tronox Holdings PLC is under investigation for possible securities fraud following disappointing financial results for Q2 2025, which led to a significant decline in stock price [3][4]. Financial Performance - Tronox reported revenue of $731 million for Q2 2025, a decline of 10.9% compared to the same quarter in the previous year, and fell short of consensus estimates by $53.45 million [3]. - The company attributed the revenue decline to delays in Brazil's anti-dumping investigation, which negatively impacted sales in that region [3]. Stock Market Reaction - Following the financial results announcement, Tronox's stock price dropped by $1.95 per share, approximately 37.94%, closing at $3.19 per share on July 31, 2025 [4]. Legal Actions - The Portnoy Law Firm has initiated an investigation into Tronox and may file a class action on behalf of investors who suffered losses [1][2].

Financial Data and Key Metrics Changes - Revenue for Q2 2025 was $731 million, a decrease of 11% year-over-year, driven by lower sales volumes and unfavorable zircon pricing [9][10] - Loss from operations was $35 million, with a net loss of $84 million, including $39 million of restructuring charges [9][10] - Adjusted EBITDA was $93 million, representing a 42% decline year-over-year, with an adjusted EBITDA margin of 12.7% [10][12] - Free cash flow was a use of $55 million, including $83 million of capital expenditures [10][12] Business Line Data and Key Metrics Changes - TiO2 revenues decreased by 10% year-over-year, driven by an 11% decrease in sales volume, partially offset by a 1% favorable exchange rate impact [10][11] - Zircon revenues decreased by 20% compared to the prior year, driven by a 10% decrease in both sales volumes and pricing [11][12] - Revenue from other products decreased by 7% year-over-year, primarily due to lower sales volumes of pig iron [11] Market Data and Key Metrics Changes - Volumes in Q2 were 2% lower sequentially and 11% lower year-over-year, reflecting weaker than usual seasonality [6][7] - North America saw a slight uptick in volume, but not in line with the normal coating season, while Europe, Middle East, and Africa experienced a volume decline due to a weaker market [35][36] - India showed early sales momentum following the implementation of duties, presenting a significant opportunity for sales volume growth [7][20] Company Strategy and Development Direction - The company is executing a disciplined strategy to manage the downturn and optimize earnings and cash, including a cost improvement program expected to deliver $125 million to $175 million in sustainable run rate savings by 2026 [8][19] - Capital expenditures are being further reduced, with a focus on maintaining critical investments while ensuring financial strength and long-term shareholder value [19][24] - The company aims to maintain market leadership and improve top-line performance while bolstering liquidity and enhancing financial flexibility [19][25] Management's Comments on Operating Environment and Future Outlook - Management noted that the second quarter was impacted by weaker demand across most end markets, with macroeconomic pressures including elevated interest rates and tariff-related uncertainties [6][7] - The company updated its 2025 financial outlook, expecting revenue to be between $3 billion and $3.1 billion, with adjusted EBITDA projected at $410 million to $460 million [20][21] - Management expressed confidence in the company's ability to weather the downturn and emerge as a stronger competitor [25] Other Important Information - The company ended the quarter with total debt of $3.1 billion and net debt of $2.9 billion, with a net leverage ratio of 6.1 times [14][15] - Liquidity as of June 30 was $397 million, including $132 million in cash and cash equivalents [15][16] - The Board of Directors declared a $0.05 per share dividend for the third quarter, a reduction of 60% [19][24] Q&A Session Summary Question: What are the drivers for the full-year guidance range? - Management indicated that volume and price will largely determine whether they come at the higher or lower end of the guidance range [28][29] Question: Can you provide an update on rare earth activities? - Management confirmed ongoing work on rare earth opportunities, with potential sales in the fourth quarter [30][31] Question: What drove the sequential decline in TiO2 volumes? - The decline was attributed to a muted coating season in North America, with slight volume increases but not in line with expectations [35][36] Question: What are the implications of the capital expenditure reductions? - Management clarified that strategic investments in mining projects remain on track, while discretionary capital expenditures are being reduced [39][41] Question: How does the company view the competitive landscape in Europe and India? - Management noted competitive pressures in Europe but highlighted strength in India due to favorable trade agreements [110][111]

[PART I – FINANCIAL INFORMATION](index=3&type=section&id=PART%20I%20%E2%80%93%20FINANCIAL%20INFORMATION) [Item 1. Financial Statements (Unaudited)](index=3&type=section&id=Item%201.%20Financial%20Statements%20(Unaudited)) This section presents Tronox's unaudited condensed consolidated financial statements for Q2 2025 and 2024, including operations, comprehensive income, balance sheets, cash flows, and shareholders' equity, with detailed notes [Unaudited Condensed Consolidated Statements of Operations](index=4&type=section&id=Unaudited%20Condensed%20Consolidated%20Statements%20of%20Operations) This section details the company's unaudited condensed consolidated statements of operations, highlighting net sales, gross profit, and net income (loss) for the three and six months ended June 30, 2025 and 2024 | Metric (Millions of U.S. dollars) | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :-------------------------------- | :------------------------------- | :------------------------------- | :----------------------------- | :----------------------------- | | Net sales | $731 | $820 | $1,469 | $1,594 | | Gross profit | $79 | $150 | $178 | $270 | | Restructuring and other charges | $42 | — | $128 | — | | (Loss) Income from operations | $(35) | $76 | $(96) | $117 | | Net (loss) income | $(85) | $10 | $(196) | $1 | | Net (loss) income attributable to Tronox Holdings plc | $(84) | $16 | $(195) | $7 | | Basic (Loss) Income per share | $(0.53) | $0.10 | $(1.23) | $0.04 | | Diluted (Loss) Income per share | $(0.53) | $0.10 | $(1.23) | $0.04 | - Net sales decreased by **11%** for the three months ended June 30, 2025, and by **8%** for the six months ended June 30, 2025, compared to the respective prior year periods[10](index=10&type=chunk) - The company reported a net loss of **$85 million** for the three months and **$196 million** for the six months ended June 30, 2025, a significant decline from net income in the prior year periods[10](index=10&type=chunk) [Unaudited Condensed Consolidated Statements of Comprehensive Income (Loss)](index=5&type=section&id=Unaudited%20Condensed%20Consolidated%20Statements%20of%20Comprehensive%20Income%20(Loss)) This section presents the unaudited condensed consolidated statements of comprehensive income (loss), including net income (loss) and other comprehensive income (loss) components | Metric (Millions of U.S. dollars) | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :-------------------------------- | :------------------------------- | :------------------------------- | :----------------------------- | :----------------------------- | | Net (loss) income | $(85) | $10 | $(196) | $1 | | Foreign currency translation adjustments | $68 | $14 | $119 | $(27) | | Other comprehensive income (loss) | $75 | $12 | $115 | $(20) | | Total comprehensive (loss) income | $(10) | $22 | $(81) | $(19) | | Comprehensive (loss) income attributable to Tronox Holdings plc | $(11) | $32 | $(84) | $(8) | - Foreign currency translation adjustments significantly contributed to other comprehensive income in 2025, with **$68 million** for the three months and **$119 million** for the six months, reversing a loss in the prior year[13](index=13&type=chunk) [Unaudited Condensed Consolidated Balance Sheets](index=6&type=section&id=Unaudited%20Condensed%20Consolidated%20Balance%20Sheets) This section provides the unaudited condensed consolidated balance sheets, detailing assets, liabilities, and equity as of June 30, 2025, and December 31, 2024 | Metric (Millions of U.S. dollars) | June 30, 2025 | December 31, 2024 | | :-------------------------------- | :------------ | :---------------- | | Total current assets | $2,238 | $2,155 | | Total assets | $6,186 | $6,038 | | Total current liabilities | $1,068 | $874 | | Total liabilities | $4,507 | $4,247 | | Total equity | $1,679 | $1,791 | - Total assets increased to **$6,186 million** at June 30, 2025, from **$6,038 million** at December 31, 2024, primarily driven by increases in inventories and property, plant and equipment[15](index=15&type=chunk) - Total liabilities increased to **$4,507 million** at June 30, 2025, from **$4,247 million** at December 31, 2024, largely due to an increase in short-term debt[15](index=15&type=chunk) [Unaudited Condensed Consolidated Statements of Cash Flows](index=8&type=section&id=Unaudited%20Condensed%20Consolidated%20Statements%20of%20Cash%20Flows) This section outlines the unaudited condensed consolidated statements of cash flows, categorizing cash activities into operating, investing, and financing for the six months ended June 30, 2025 and 2024 | Metric (Millions of U.S. dollars) | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :-------------------------------- | :----------------------------- | :----------------------------- | | Cash (used in) provided by operating activities | $(4) | $131 | | Cash used in investing activities | $(176) | $(136) | | Cash provided by (used in) financing activities | $156 | $(63) | | Net decrease in cash and cash equivalents and restricted cash | $(19) | $(72) | | Cash and cash equivalents and restricted cash at end of period | $133 | $201 | - Operating activities shifted from providing **$131 million** in cash in H1 2024 to using **$4 million** in H1 2025[18](index=18&type=chunk) - Financing activities provided **$156 million** in H1 2025, a significant improvement from using **$63 million** in H1 2024, primarily due to proceeds from short-term debt[18](index=18&type=chunk) [Unaudited Condensed Consolidated Statement of Shareholders' Equity](index=9&type=section&id=Unaudited%20Condensed%20Consolidated%20Statement%20of%20Shareholders'%20Equity) This section presents the unaudited condensed consolidated statement of shareholders' equity, showing changes in equity due to net loss, other comprehensive income, and dividends | Metric (Millions of U.S. dollars) | Balance at December 31, 2024 | Balance at June 30, 2025 | | :-------------------------------- | :--------------------------- | :----------------------- | | Total Tronox Holdings plc Shareholders' Equity | $1,761 | $1,646 | | Net loss | $(111) | $(84) | | Other comprehensive income | $38 | $73 | | Ordinary share dividends | $(19) | $(20) | - Total shareholders' equity decreased from **$1,791 million** at December 31, 2024, to **$1,679 million** at June 30, 2025, primarily due to net losses and dividend payments, partially offset by other comprehensive income[19](index=19&type=chunk)[21](index=21&type=chunk) [Notes to Unaudited Condensed Consolidated Financial Statements](index=11&type=section&id=Notes%20to%20Unaudited%20Condensed%20Consolidated%20Financial%20Statements) This section provides detailed notes explaining the accounting policies, significant transactions, and financial positions underlying the unaudited condensed consolidated financial statements [Note 1. The Company](index=11&type=section&id=Note%201.%20The%20Company) Tronox Holdings plc is a vertically integrated producer of titanium dioxide (TiO2) pigment and other titanium-bearing mineral sands products, including zircon, pig iron, and monazite. The company operates mines and beneficiation operations in Australia and South Africa and eight TiO2 pigment facilities globally. The financial statements are unaudited and prepared under U.S. GAAP, with management making estimates and assumptions that could be materially affected by macroeconomic conditions - Tronox's strategy is vertical integration to achieve low-cost, high-quality TiO2 pigment production, aiming for self-sufficiency in feedstock materials[23](index=23&type=chunk) - The company also supplies zircon, pig iron, and rare-earth bearing mineral monazite to global customers[23](index=23&type=chunk) - New accounting pronouncements, ASU 2023-09 (Income Tax Disclosures) and ASU 2024-03 (Income Statement Expense Disaggregation), are being evaluated for their potential impact on future financial statements[28](index=28&type=chunk)[29](index=29&type=chunk) [Note 2. Restructuring and Other Charges](index=12&type=section&id=Note%2

Financial Performance - Revenue decreased by 11% year-over-year, from $820 million in Q2 2024 to $731 million in Q2 2025[11, 16] - Adjusted EBITDA decreased by 42% year-over-year, from $161 million in Q2 2024 to $93 million in Q2 2025[11, 24] - Adjusted EBITDA margin decreased by 690 basis points year-over-year, from 19.6% in Q2 2024 to 12.7% in Q2 2025[11, 24] - Free cash flow was a use of $55 million in Q2 2025, compared to a generation of $84 million in Q2 2024[11] - Net loss attributable to Tronox was $84 million in Q2 2025, compared to a net income of $16 million in Q2 2024[11] Operational Highlights - TiO2 volumes decreased by 11% year-over-year and 2% sequentially[10, 20] - Zircon volumes decreased by 10% year-over-year and increased 1% sequentially[10, 20] - The company is executing a cost improvement program targeting $125-$175 million in run-rate savings by the end of 2026[10] - Capital expenditures were $83 million in Q2 2025, with approximately 56% allocated to maintenance and safety, and 44% to mining extensions[13, 35] - The company reduced the dividend by 60% to $0.05 per share for Q3 2025[36, 37, 38]