[Second Quarter 2025 Overview](index=1&type=section&id=Second%20Quarter%202025%20Overview) Tronox reported Q2 revenue of $731 million, experiencing declines in both revenue and profitability, resulting in an operating loss and net loss [1.1 Financial Highlights](index=1&type=section&id=1.1%20Financial%20Highlights) Tronox reported Q2 revenue of $731 million, a 1% sequential and 11% year-over-year decrease, with an operating loss of $35 million, net loss of $85 million, and adjusted EBITDA of $93 million **Q2 2025 Financial Highlights:** | Metric | Amount/Ratio | | :-------------------------- | :---------- | | Revenue | $731 million | | Revenue Q-o-Q Change | -1% | | Revenue Y-o-Y Change | -11% | | Operating Loss | $35 million | | Net Loss | $85 million | | Adjusted Net Loss (Non-GAAP) | $45 million | | GAAP Diluted Loss Per Share | $0.53 | | Adjusted Diluted Loss Per Share (Non-GAAP) | $0.28 | | Adjusted EBITDA (Non-GAAP) | $93 million | | Adjusted EBITDA Margin (Non-GAAP) | 12.7% | | Capital Expenditures | $83 million | [1.2 Updated Outlook](index=1&type=section&id=1.2%20Updated%20Outlook) The company updated its full-year 2025 outlook, projecting revenue between $3.0-$3.1 billion, adjusted EBITDA between $410-$460 million, and negative free cash flow of $100-$170 million **Full-Year 2025 Outlook:** | Metric | Expected Range | | :---------------- | :---------------- | | Revenue | $3.0-$3.1 billion | | Adjusted EBITDA | $410-$460 million | | Free Cash Flow | Use $100-$170 million | | Capital Expenditures | Less than $330 million | - The company cut its dividend by **60%** to provide near-term balance sheet flexibility[3](index=3&type=chunk) [1.3 Summary of Select Financial Results](index=2&type=section&id=1.3%20Summary%20of%20Select%20Financial%20Results) This section summarizes key financial metrics for Q2 2025 compared to Q2 2024 and Q1 2025, highlighting significant year-over-year and sequential changes in revenue, profitability, and volume/price mix **Q2 2025 Select Financial Results:** | ($M unless otherwise noted) | Q2 2025 | Q2 2024 | Y-o-Y % ∆ | Q1 2025 | Q-o-Q % ∆ | | :-------------------------- | :------ | :------ | :-------- | :------ | :-------- | | Revenue | $731 | $820 | (11)% | $738 | (1)% | | TiO2 | $587 | $653 | (10)% | $584 | 1% | | Zircon | $68 | $85 | (20)% | $69 | (1)% | | Other products | $76 | $82 | (7)% | $85 | (11)% | | (Loss) Income from operations | $(35) | $76 | n/m | $(61) | n/m | | Net (Loss) Income attributable to Tronox | $(84) | $16 | n/m | $(111) | n/m | | GAAP diluted (loss) earnings per share | $(0.53) | $0.10 | n/m | $(0.70) | n/m | | Adjusted diluted (loss) earnings per share | $(0.28) | $0.07 | n/m | $(0.15) | n/m | | Adjusted EBITDA | $93 | $161 | (42)% | $112 | (17)% | | Adjusted EBITDA Margin % | 12.7% | 19.6% | (690) bps | 15.2% | (250) bps | | Free cash flow | $(55) | $84 | n/m | $(142) | n/m | **Volume and Price/Mix Changes (Q2 2025 vs. Q2 2024 / Q1 2025):** | Product | Y-o-Y Volume Change | Y-o-Y Price/Mix Change | Q-o-Q Volume Change | Q-o-Q Price/Mix Change | | :--- | :----------- | :---------------- | :----------- | :---------------- | | TiO2 | (11)% | 0% | (2)% | 1% | | Zircon | (10)% | (10)% | 1% | (2)% | [CEO's Commentary and Strategic Actions](index=2&type=section&id=CEO's%20Commentary%20and%20Strategic%20Actions) CEO John D. Romano discusses market conditions, Q2 performance, cost management, and capital allocation adjustments, including a dividend cut to enhance balance sheet flexibility [2.1 Market Conditions and Q2 Performance](index=2&type=section&id=2.1%20Market%20Conditions%20and%20Q2%20Performance) CEO John D. Romano noted Q2 performance was negatively impacted by soft demand across most end markets, leading to a weak coatings season and increased competition - Q2 performance was impacted by soft end-market demand, a weak coatings season, and increased competition[5](index=5&type=chunk) - **TiO2 volumes decreased by 2% sequentially and 11% year-over-year**, reflecting seasonal weakness and macroeconomic pressures[5](index=5&type=chunk) - Delayed anti-dumping investigations in Brazil affected sales in that region, while India showed early growth momentum after tariff implementation[5](index=5&type=chunk) [2.2 Cost Management and Operational Optimization](index=2&type=section&id=2.2%20Cost%20Management%20and%20Operational%20Optimization) Tronox is executing a rigorous strategy to address prolonged market softness, with its cost improvement program ahead of schedule in mitigating rising raw material and operating costs - The cost improvement program is ahead of schedule, effectively mitigating rising raw material and operating costs[6](index=6&type=chunk) - The company aims to achieve **$125 million to $175 million** in sustainable, recurring savings by the end of 2026[6](index=6&type=chunk) - The company is adjusting operating rates and deploying targeted commercial initiatives to maintain market share[6](index=6&type=chunk) [2.3 Capital Allocation Adjustments and Dividend](index=3&type=section&id=2.3%20Capital%20Allocation%20Adjustments%20and%20Dividend) Tronox revised its 2025 financial outlook and adjusted capital allocation priorities, further reducing capital expenditures while ensuring critical investments remain unaffected - The 2025 financial outlook was revised, and capital allocation priorities were adjusted, further reducing capital expenditures[7](index=7&type=chunk) - The Board declared a **Q3 cash dividend of $0.05 per share**, a **60% reduction** from the prior dividend, payable on October 3, 2025[7](index=7&type=chunk)[8](index=8&type=chunk) - The dividend cut aims to enhance balance sheet flexibility and will be re-evaluated upon market recovery[7](index=7&type=chunk) [Detailed Second Quarter 2025 Financial Performance](index=3&type=section&id=Detailed%20Second%20Quarter%202025%20Financial%20Performance) This section provides a detailed breakdown of Tronox's financial performance in Q2 2025, covering revenue by product, net loss, adjusted EBITDA, and operating expenses [3.1 Revenue Breakdown](index=3&type=section&id=3.1%20Revenue%20Breakdown) Total revenue for Q2 2025 was $731 million, an 11% year-over-year decrease, primarily driven by lower TiO2 and zircon volumes and reduced zircon average selling prices - Total revenue for Q2 was **$731 million**, an **11% year-over-year decrease**[9](index=9&type=chunk) - The decrease was primarily driven by lower TiO2 and zircon volumes and reduced zircon average selling prices[9](index=9&type=chunk) [3.1.1 TiO2 Sales](index=3&type=section&id=3.1.1%20TiO2%20Sales) TiO2 sales revenue was $587 million, a 10% year-over-year decrease, primarily due to an 11% volume decline, partially offset by a 1% favorable foreign exchange impact - **TiO2 revenue was $587 million**, a **10% year-over-year decrease**[10](index=10&type=chunk) - The year-over-year decrease was primarily driven by an **11% volume decline**, partially offset by a **1% favorable foreign exchange impact**[10](index=10&type=chunk) - Sequential sales increased by **1%**, positively impacted by average selling prices and foreign exchange, despite a **2% volume decrease**[10](index=10&type=chunk) [3.1.2 Zircon Sales](index=3&type=section&id=3.1.2%20Zircon%20Sales) Zircon revenue decreased by 20% year-over-year to $68 million, mainly due to a 10% volume decline and a 10% decrease in average selling prices - **Zircon revenue decreased by 20% year-over-year to $68 million**[11](index=11&type=chunk) - The year-over-year decrease was primarily driven by a **10% volume decline** and a **10% decrease in average selling prices**[11](index=11&type=chunk) - Sequential zircon revenue decreased by **1%**, impacted by lower average selling prices, partially offset by a **1% volume increase**[11](index=11&type=chunk) [3.1.3 Other Products Sales](index=3&type=section&id=3.1.3%20Other%20Products%20Sales) Other products revenue was $76 million, a 7% year-over-year decrease, primarily due to lower pig iron volumes - **Other products revenue was $76 million**, a **7% year-over-year decrease**[11](index=11&type=chunk) - This was primarily due to lower pig iron volumes[11](index=11&type=chunk) - Sequential revenue for other products decreased by **11%**[11](index=11&type=chunk) [3.2 Net Loss and Earnings Per Share](index=3&type=section&id=3.2%20Net%20Loss%20and%20Earnings%20Per%20Share) In Q2 2025, Tronox reported a net loss attributable to the company of $84 million, or $0.53 diluted loss per share, contrasting with a net income of $16 million ($0.10 diluted EPS) in the prior year - In Q2 2025, net loss attributable to Tronox was **$84 million**, or **$0.53 diluted loss per share**[12](index=12&type=chunk) - This contrasts with a net income of **$16 million**, or **$0.10 diluted earnings per share**, in the prior year period[12](index=12&type=chunk) - After non-recurring adjustments of **$39 million**, adjusted net loss was **$45 million**, or **$0.28 diluted loss per share**[12](index=12&type=chunk) [3.3 Adjusted EBITDA and Margin](index=4&type=section&id=3.3%20Adjusted%20EBITDA%20and%20Margin) Adjusted EBITDA decreased by 42% year-over-year to $93 million, primarily due to lower volumes, higher production and freight costs, and reduced average selling prices, partially offset by favorable foreign exchange and lower corporate costs - Adjusted EBITDA was **$93 million**, a **42% year-over-year decrease**[13](index=13&type=chunk) - The year-over-year decrease was primarily due to lower volumes, higher production and freight costs, and reduced average selling prices, partially offset by favorable foreign exchange and lower corporate costs[13](index=13&type=chunk) - Adjusted EBITDA margin was **12.7%**[13](index=13&type=chunk) - Sequential adjusted EBITDA decreased by **17%**, mainly due to higher production costs, reduced non-recurring insurance benefits, lower volumes, and increased freight costs[14](index=14&type=chunk) [3.4 Operating Expenses](index=4&type=section&id=3.4%20Operating%20Expenses) Selling, general, and administrative expenses for the quarter were $72 million, a 3% year-over-year decrease, with net interest expense at $44 million and depreciation, depletion, and amortization at $74 million - Selling, general, and administrative expenses were **$72 million**, a **3% year-over-year decrease**[15](index=15&type=chunk) - Net interest expense was **$44 million**[15](index=15&type=chunk) - Depreciation, depletion, and amortization expenses were **$74 million**[15](index=15&type=chunk) [Balance Sheet, Cash Flow, and Capital Allocation](index=4&type=section&id=Balance%20Sheet,%20Cash%20Flow,%20and%20Capital%20Allocation) This section reviews Tronox's debt, liquidity, free cash flow, and capital expenditures, highlighting the company's financial position and strategic investments [4.1 Debt and Liquidity](index=4&type=section&id=4.1%20Debt%20and%20Liquidity) As of Q2 2025 end, Tronox's total debt was $3.1 billion, with net debt at $2.9 billion, and a net leverage ratio of 6.1x for the trailing twelve months - As of the end of Q2, total debt was **$3.1 billion**, and net debt was **$2.9 billion**[16](index=16&type=chunk) - The net leverage ratio for the trailing twelve months was **6.1x**[16](index=16&type=chunk) - Available liquidity was **$397 million**, comprising **$132 million** in cash and cash equivalents and **$265 million** in revolving credit facility availability[16](index=16&type=chunk) - The next significant debt maturity is in **2029**, and there are no financial covenants on its term loans or bonds[16](index=16&type=chunk) [4.2 Free Cash Flow and Capital Expenditures](index=4&type=section&id=4.2%20Free%20Cash%20Flow%20and%20Capital%20Expenditures) Free cash flow for Q2 2025 was negative $55 million, with capital expenditures totaling $83 million, including investments in critical projects to replace existing mines and maintain vertical integration - Free cash flow for Q2 was **negative $55 million**[17](index=17&type=chunk) - Capital expenditures were **$83 million**, including investments for mine replacement and maintaining vertical integration advantages[17](index=17&type=chunk) [Revised Full-Year 2025 Outlook](index=4&type=section&id=Revised%20Full-Year%202025%20Outlook) Tronox adjusted its full-year 2025 guidance, projecting revenue between $3.0-$3.1 billion and adjusted EBITDA between $410-$460 million, reflecting lower-than-expected pigment and zircon volumes and prices **Revised FY 2025 Guidance:** | Metric | Expected Range | | :---------------- | :---------------- | | Revenue | $3.0-$3.1 billion | | Adjusted EBITDA | $410-$460 million | | Free Cash Flow | Use $100-$170 million | | Capital Expenditures | Less than $330 million | - The guidance adjustment is based on lower-than-expected pigment and zircon volumes and prices, partially offset by strategic sales growth in other products and improved production costs in the second half[18](index=18&type=chunk) - The company remains on track to achieve **$125 million to $175 million** in sustainable, recurring cost improvements by the end of 2026[18](index=18&type=chunk) [Corporate Information](index=5&type=section&id=Corporate%20Information) This section provides details on Tronox's webcast conference call and an overview of the company's business as a leading global producer of titanium products [6.1 Webcast Conference Call Details](index=5&type=section&id=6.1%20Webcast%20Conference%20Call%20Details) Tronox will host a webcast conference call on July 31, 2025, at 10:00 AM ET to discuss its results, with public access available via its investor relations website - The webcast conference call will be held on **July 31, 2025, at 10:00 AM ET**[19](index=19&type=chunk) - Registration for the live webcast and accompanying slides is available via investor.tronox.com[19](index=19&type=chunk) - A replay of the conference call will be available on investor.tronox.com after the call[20](index=20&type=chunk) [6.2 About Tronox Holdings plc](index=5&type=section&id=6.2%20About%20Tronox%20Holdings%20plc) Tronox Holdings plc is a leading global producer of high-quality titanium products, including TiO2 pigments, specialty-grade TiO2 products, high-purity titanium chemicals, and zircon - Tronox Holdings plc is a leading global producer of high-quality titanium products, including TiO2 pigments, specialty-grade TiO2 products, high-purity titanium chemicals, and zircon[21](index=21&type=chunk) - The company operates a vertically integrated business model, mining titanium-bearing mineral sands and operating upgrading facilities to produce high-grade titanium feedstock, pig iron, and other minerals[21](index=21&type=chunk) - The company has approximately **6,500 employees** and operations across six continents[21](index=21&type=chunk) [Disclosures and Non-GAAP Information](index=5&type=section&id=Disclosures%20and%20Non-GAAP%20Information) This section outlines cautionary statements regarding forward-looking information and explains the use of non-GAAP financial measures, including their purpose and reconciliation to GAAP results [7.1 Cautionary Statement about Forward-Looking Statements](index=5&type=section&id=7.1%20Cautionary%20Statement%20about%20Forward-Looking%20Statements) This section warns that non-historical statements in the report are forward-looking and subject to known and unknown risks, uncertainties, and assumptions - Non-historical statements in the report are forward-looking and subject to known and unknown risks, uncertainties, and assumptions[22](index=22&type=chunk) - Actual results may differ materially due to factors such as macroeconomic conditions, policy changes, inflation, currency fluctuations, geopolitical events, supply chain disruptions, and market volatility[22](index=22&type=chunk) - The company undertakes no obligation to update or revise any forward-looking statements[23](index=23&type=chunk) [7.2 Use of Non-GAAP Information](index=6&type=section&id=7.2%20Use%20of%20Non-GAAP%20Information) Tronox uses non-GAAP financial measures like EBITDA, Adjusted EBITDA, Adjusted EBITDA Margin, Adjusted Net Income, Free Cash Flow, and Net Leverage Ratio (Trailing Twelve Months) to provide additional information - The company uses non-GAAP financial measures such as EBITDA, Adjusted EBITDA, Adjusted EBITDA Margin, Adjusted Net Income, Free Cash Flow, and Net Leverage Ratio (Trailing Twelve Months)[24](index=24&type=chunk) - These non-GAAP measures supplement, rather than replace, GAAP results and exclude costs and expenses not representative of core operating results[24](index=24&type=chunk) - Reconciliations to U.S. GAAP results for non-GAAP financial measures are included in the report[24](index=24&type=chunk) [Condensed Consolidated Financial Statements (U.S. GAAP)](index=8&type=section&id=Condensed%20Consolidated%20Financial%20Statements%20(U.S.%20GAAP)) This section presents Tronox's condensed consolidated financial statements under U.S. GAAP, including statements of operations, balance sheets, and cash flows [8.1 Statements of Operations](index=8&type=section&id=8.1%20Statements%20of%20Operations) The condensed consolidated statements of operations show a net loss of $85 million for Q2 2025, compared to a net income of $10 million in Q2 2024, with net sales decreasing from $820 million to $731 million **Condensed Consolidated Statements of Operations (Three Months Ended June 30):** | (Millions of USD) | 2025 | 2024 | | :------------------------- | :--- | :--- | | Net Sales | $731 | $820 | | Cost of Sales | $652 | $670 | | Gross Profit | $79 | $150 | | Restructuring and Other (Income) Expense | $42 | — | | Selling, General and Administrative Expenses | $72 | $74 | | (Loss) Income from Operations | $(35) | $76 | | Net (Loss) Income | $(85) | $10 | | Net (Loss) Income Attributable to Tronox Holdings plc | $(84) | $16 | | Diluted (Loss) Earnings Per Share | $(0.53) | $0.10 | - Capital expenditures for Q2 were **$83 million** (2025) compared to **$76 million** (2024)[26](index=26&type=chunk) - Depreciation, depletion, and amortization expenses for Q2 were **$74 million** (2025) compared to **$72 million** (2024)[26](index=26&type=chunk) [8.2 Balance Sheets](index=10&type=section&id=8.2%20Balance%20Sheets) The condensed consolidated balance sheets show total assets of $6.186 billion as of June 30, 2025, an increase from $6.038 billion on December 31, 2024, with total liabilities rising to $4.507 billion and total equity decreasing to $1.679 billion **Condensed Consolidated Balance Sheets (Millions of USD):** | Metric | 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 | - Cash and cash equivalents: **$132 million** (June 30, 2025) compared to **$151 million** (December 31, 2024)[32](index=32&type=chunk) - Short-term debt: **$266 million** (June 30, 2025) compared to **$65 million** (December 31, 2024)[32](index=32&type=chunk) [8.3 Statements of Cash Flows](index=11&type=section&id=8.3%20Statements%20of%20Cash%20Flows) For the six months ended June 30, 2025, cash used in operating activities was $4 million, a significant decrease from $131 million cash provided in the prior year, while cash used in investing activities increased to $176 million **Consolidated Statements of Cash Flows (Six Months Ended June 30):** | (Millions of USD) | 2025 | 2024 | | :------------------------------------ | :--- | :--- | | Net Cash (Used in) Provided by Operating Activities | $(4) | $131 | | Net Cash Used in Investing Activities | $(176) | $(136) | | Net Cash Provided by (Used in) Financing Activities | $156 | $(63) | | Net Decrease in Cash, Cash Equivalents, and Restricted Cash | $(19) | $(72) | | Cash, Cash Equivalents, and Restricted Cash at End of Period | $133 | $201 | - Capital expenditures for the six months were **$193 million** (2025) compared to **$152 million** (2024)[34](index=34&type=chunk) - Dividends paid for the six months were **$20 million** (2025) compared to **$41 million** (2024)[34](index=34&type=chunk) [Reconciliation of Non-U.S. GAAP Financial Measures](index=9&type=section&id=Reconciliation%20of%20Non-U.S.%20GAAP%20Financial%20Measures) This section provides detailed reconciliations of non-U.S. GAAP financial measures to their most directly comparable U.S. GAAP financial measures, including adjusted net income, EBITDA, adjusted EBITDA, free cash flow, and trailing twelve-month adjusted EBITDA [9.1 Adjusted Net (Loss) Income Reconciliation](index=9&type=section&id=9.1%20Adjusted%20Net%20(Loss)%20Income%20Reconciliation) The reconciliation shows Tronox's GAAP net loss attributable to the company of $84 million for Q2 2025 was adjusted to a net loss of $45 million after accounting for restructuring and other expenses, tax valuation allowances, and other non-recurring items **Net (Loss) Income to Adjusted Net (Loss) Income Reconciliation (Three Months Ended June 30):** | (Millions of USD) | 2025 | 2024 | | :---------------------------------------------------- | :--- | :--- | | Net (Loss) Income Attributable to Tronox Holdings plc (U.S. GAAP) | $(84) | $16 | | Restructuring and Other (Income) Expense (a) | $38 | — | | Tax Valuation Allowance (b) | — | $16 | | Sales Royalty Interest (c) | — | $(21) | | Other (d) | $1 | $1 | | Adjusted Net (Loss) Income Attributable to Tronox Holdings plc (Non-U.S. GAAP) | $(45) | $12 | | Diluted Net (Loss) Income Per Share (U.S. GAAP) | $(0.53) | $0.10 | | Adjusted Diluted Net (Loss) Income Per Share Attributable to Tronox Holdings plc (Non-U.S. GAAP) | $(0.28) | $0.07 | - Restructuring and other expenses (a) are related to the Botlek facility idling[28](index=28&type=chunk) [9.2 EBITDA and Adjusted EBITDA Reconciliation](index=12&type=section&id=9.2%20EBITDA%20and%20Adjusted%20EBITDA%20Reconciliation) Q2 2025 EBITDA was $37 million, which, after adjustments for share-based compensation, accrued expenses, accounts receivable securitization programs, foreign currency revaluation, and restructuring costs, resulted in an Adjusted EBITDA of $93 million, a significant decrease from $161 million in Q2 2024 **Net (Loss) Income to EBITDA and Adjusted EBITDA Reconciliation (Three Months Ended June 30):** | (Millions of USD) | 2025 | 2024 | | :------------------------------------------------------------------------------------------------ | :--- | :--- | | Net (Loss) Income (U.S. GAAP) | $(85) | $10 | | Interest Expense | $45 | $42 | | Provision for Income Taxes | $4 | $45 | | Depreciation, Depletion and Amortization Expense | $74 | $72 | | EBITDA (Non-U.S. GAAP) | $37 | $167 | | Share-based Compensation (a) | $4 | $4 | | Accrued Expenses and Other Adjustments for Asset Retirement Obligations and Environmental Liabilities (b) | $7 | $7 | | Accounts Receivable Securitization Program (c) | $3 | $4 | | Foreign Currency Revaluation (d) | $(2) | $4 | | Restructuring and Other (Income) Expense (f) | $42 | — | | Adjusted EBITDA (Non-U.S. GAAP) | $93 | $161 | - Adjusted EBITDA as a percentage of net sales: **12.7%** (2025) compared to **19.6%** (2024)[37](index=37&type=chunk) - Net debt to trailing twelve months adjusted EBITDA ratio: **6.1x** (June 30, 2025) compared to **4.8x** (December 31, 2024)[37](index=37&type=chunk) [9.3 Free Cash Flow Reconciliation](index=13&type=section&id=9.3%20Free%20Cash%20Flow%20Reconciliation) In Q2 2025, cash provided by operating activities was $28 million, but after deducting $83 million in capital expenditures, free cash flow was negative $55 million, with free cash flow for the six months ended June 30, 2025, at negative $197 million **Free Cash Flow Reconciliation (Millions of USD):** | Metric | Six Months Ended June 30, 2025 | Three Months Ended March 31, 2025 | Three Months Ended June 30, 2025 | | :----------------------------- | :----------------------------- | :-------------------------------- | :------------------------------- | | Net Cash Used in Operating Activities | $(4) | $(32) | $28 | | Capital Expenditures | $(193) | $(110) | $(83) | | Free Cash Flow (Non-U.S. GAAP) | $(197) | $(142) | $(55) | [9.4 Trailing Twelve Month Adjusted EBITDA Reconciliation](index=14&type=section&id=9.4%20Trailing%20Twelve%20Month%20Adjusted%20EBITDA%20Reconciliation) As of June 30, 2025, trailing twelve-month adjusted EBITDA was $477 million, a decrease from $564 million as of December 31, 2024, with this reconciliation detailing adjustments made to net loss over the past four quarters - As of June 30, 2025, trailing twelve-month adjusted EBITDA was **$477 million**[37](index=37&type=chunk)[44](index=44&type=chunk) - This represents a decrease from **$564 million** as of December 31, 2024[37](index=37&type=chunk) **Trailing Twelve Month Adjusted EBITDA (Millions of USD):** | Metric | September 30, 2024 | December 31, 2024 | March 31, 2025 | June 30, 2025 | Trailing Twelve Month Adjusted EBITDA | | :----- | :----------- | :----------- | :----------- | :----------- | :------------------------------------ | | Net Loss (U.S. GAAP) | $(25) | $(30) | $(111) | $(85) | $(251) | | EBITDA (Non-U.S. GAAP) | $110 | $126 | $5 | $37 | $278 | | Adjusted EBITDA (Non-U.S. GAAP) | $143 | $129 | $112 | $93 | $477 |

Core Viewpoint - Tronox reported a quarterly loss of $0.28 per share, significantly worse than the Zacks Consensus Estimate of a loss of $0.04, marking an earnings surprise of -600% [1] - The company has consistently missed consensus EPS estimates over the last four quarters, with revenues of $731 million for the quarter ended June 2025, falling short of the Zacks Consensus Estimate by 5.98% [2] Financial Performance - The quarterly loss of $0.28 per share compares to earnings of $0.07 per share a year ago, indicating a substantial decline in profitability [1] - Revenues decreased from $820 million in the same quarter last year to $731 million, reflecting a year-over-year decline [2] Stock Performance - Tronox shares have declined approximately 45.2% since the beginning of the year, contrasting with the S&P 500's gain of 8.3% [3] - The stock currently holds a Zacks Rank of 4 (Sell), indicating expectations of underperformance in the near future [6] Earnings Outlook - The current consensus EPS estimate for the upcoming quarter is $0.12 on revenues of $779.62 million, while the estimate for the current fiscal year is $0.04 on $3 billion in revenues [7] - The trend of estimate revisions for Tronox has been unfavorable leading up to the earnings release, which may impact future stock performance [6] Industry Context - The Chemical - Diversified industry, to which Tronox belongs, is currently ranked in the bottom 5% of over 250 Zacks industries, suggesting a challenging environment for the company [8] - The performance of Tronox's stock may be influenced by the overall outlook for the industry, as research indicates that the top 50% of Zacks-ranked industries outperform the bottom 50% by more than 2 to 1 [8]

Financial Performance - Tronox reported second quarter 2025 revenue of $731 million, a decrease of 11% year-over-year, primarily due to lower TiO2 and zircon sales volumes and lower average selling prices of zircon [3][8] - TiO2 revenue was $587 million, down 10% year-over-year, driven by an 11% decline in volumes, slightly offset by a 1% favorable impact from exchange rates [9] - Zircon revenue decreased 20% to $68 million, attributed to a 10% decline in sales volumes and a 10% decrease in average selling prices [10] - The company recorded a net loss of $84 million, or a loss of $0.53 per diluted share, compared to net income of $16 million, or income of $0.10 per diluted share in the prior year [13][26] Operational Insights - The second quarter results were impacted by weaker demand across most end markets, leading to a softer coatings season and heightened competitive dynamics [4] - TiO2 volumes were lower by 2% sequentially and 11% year-over-year, reflecting weaker than usual seasonality across all regions [4] - Broader macroeconomic pressures, including elevated interest rates and tariff-related uncertainties, continued to affect consumer discretionary spending [4] Cost Management and Strategic Initiatives - The company is executing a disciplined strategy to manage through the downturn, aiming to optimize earnings and cash flow [5] - Tronox is targeting $125–$175 million in sustainable, run-rate savings by the end of 2026 through a cost improvement program [5] - Capital expenditures have been reduced to less than $330 million for the year to enhance balance sheet flexibility [11][19] Dividend and Shareholder Value - The Board of Directors declared a quarterly cash dividend of $0.05 per share, a reduction of 60%, to provide enhanced balance sheet flexibility [6][7] - The company plans to reevaluate its dividend strategy as the market recovers to ensure a competitive dividend yield [6] Future Outlook - Tronox revised its 2025 financial outlook, expecting revenue to be between $3.0 billion and $3.1 billion and Adjusted EBITDA to be between $410 million and $460 million [19] - The company anticipates free cash flow to be a use of $100-$170 million due to lower pigment and zircon sales [19]

Core Viewpoint - Tronox Holdings plc is set to release its second quarter 2025 earnings on July 30, 2025, followed by a webcast conference call on July 31, 2025, at 10:00 AM ET [1]. Company Overview - Tronox Holdings plc is a leading global producer of high-quality titanium products, including titanium dioxide pigment and specialty-grade titanium dioxide products [3]. - 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 rare earth-bearing mineral monazite [3]. - 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 [3].

Financial Performance & Projections - 2023 Revenue was $2.9 billion[9], with Adjusted EBITDA of $524 million[9] and an Adjusted EBITDA margin of 18.4%[29] - Q1 2024 revenue is expected to be $774 million[22], a 9% increase year-over-year[22], with TiO2 revenue at $605 million[22] and Zircon revenue at $88 million[22] - Q1 2024 Adjusted EBITDA is expected to be $131 million[22], a 10% decrease year-over-year[22], but a 39% increase quarter-over-quarter[22], with an Adjusted EBITDA margin of approximately 17%[25] - Full year 2023 saw a net loss of $316 million[29] and a free cash flow use of $77 million[29] Sales & Market Dynamics - In FY2023, TiO2 sales accounted for 79% of total sales, Zircon for 9%, and other products for 12%[9] - In FY2023, EMEA accounted for 40% of sales, Asia Pacific for 28%, North America for 26%, and Latin America for 6%[9] - Q1 2024 saw an 18% increase in TiO2 volumes quarter-over-quarter[25] and a 54% increase in zircon volumes quarter-over-quarter[25] Capital Projects & Investments - The company is investing in key projects to sustain vertical integration, with total estimated capital expenditures of approximately $130 million in 2024 for the Fairbreeze Expansion Project and Namakwa East OFS Project[18] - These projects are expected to generate Internal Rates of Return (IRRs) in excess of 30%[18] Sustainability Goals - The company aims for a 35% reduction in Scope 1 and 2 GHG emissions intensity by 2030 and net zero emissions by 2050[12] - The company aims for a 9% reduction in Scope 3 emissions in the supply chain by 2025[12]

Core Insights - Tronox Holdings plc has published its 2024 sustainability report, highlighting significant progress towards sustainability targets and reinforcing its commitment to responsible operations and investments in people and products [1][2]. Sustainability Achievements - The company reduced Scope 1 and 2 greenhouse gas (GHG) emissions intensity by 21% in 2024 compared to the 2019 baseline, primarily through increased use of renewable energy and process automation [4]. - Waste sent to external landfills decreased by 13% in 2024 from the 2019 baseline, achieved by producing less waste, recycling more materials, and exploring circular economy opportunities [4]. - Tronox achieved one of the lowest total recordable injury rates in decades, enhancing workplace safety for employees [4]. Community and Environmental Engagement - The company is engaging top-emitting suppliers to collaborate on reducing their GHG emissions as part of its Scope 3 emissions reduction strategy [4]. - Water management initiatives are being piloted at three locations to improve water consumption measurement and enhance stewardship [4]. - Tronox is leveraging rare earth concentrates from tailings to provide essential metals for the clean energy transition [4]. - The company is actively engaging with communities, executing key action items from its Reconciliation Action Plan in Australia, and has received approval for its next Social and Labor Plan in South Africa [4].

Group 1 - Tronox Holdings is one of the largest vertically integrated producers of TiO2 pigment globally [1] - The company operates mineral sands operations and smelting facilities in Australia and South Africa, producing feedstock material [1]

Core Viewpoint - Tronox (NYSE:TROX) stock is deemed unattractive at its current price of approximately $5.70 due to multiple significant issues affecting its operational performance and financial health [2][10]. Financial Performance - Tronox's revenues have declined over the past few years, with an average annual decrease of 5.6% over the last three years, contrasting with a 5.5% increase for the S&P 500 [5][6]. - The company's revenues increased by 4.2% from $2.9 billion to $3.1 billion in the last 12 months, while the S&P 500 experienced a growth of 5.5% [6]. - Quarterly revenues decreased by 4.7% to $676 million in the latest quarter from $686 million a year prior, compared to a 4.8% increase for the S&P 500 [6]. Profitability Metrics - Tronox's operating income over the last four quarters was $203 million, resulting in a poor operating margin of 6.7%, compared to 13.2% for the S&P 500 [6]. - The operating cash flow (OCF) during this period was $297 million, indicating an OCF margin of 9.8%, versus 14.9% for the S&P 500 [6]. - The company's price-to-sales (P/S) ratio is 0.3, significantly lower than the S&P 500's ratio of 3.0, and the price-to-free cash flow (P/FCF) ratio stands at 2.7 compared to 20.5 for the S&P 500 [6]. Financial Stability - Tronox's debt amounted to $3.1 billion at the end of the most recent quarter, with a market capitalization of $898 million, leading to a debt-to-equity ratio of 384.7%, in stark contrast to the S&P 500's 19.9% [7]. - The cash (including cash equivalents) of $138 million represents only 2.3% of total assets of $6.1 billion, compared to 13.8% for the S&P 500 [7]. Downturn Resilience - TROX stock has underperformed significantly compared to the S&P 500 during recent downturns, including a 61.2% drop from a peak of $26.24 on October 25, 2021, to $10.19 on October 27, 2023, while the S&P 500 saw a peak-to-trough decline of 25.4% [9]. - During the COVID-19 pandemic, TROX stock fell 66.7% from a high of $12.11 on January 14, 2020, to $4.03 on April 1, 2020, compared to a 33.9% decline for the S&P 500 [9]. Overall Assessment - Tronox's performance across various parameters is summarized as very weak, indicating that despite its low valuation, the stock remains unattractive for investment [10][12].

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 minerals like monazite [2] - Tronox employs approximately 6,500 people across six continents, showcasing its operational and technical expertise and vertical integration model [2] Financial Highlights - The Board of Directors declared a quarterly dividend of $0.125 per share, payable on July 2, 2025, to shareholders of record by May 19, 2025 [1]

Financial Performance - Net sales for the first quarter of 2025 were $738 million, a decrease of 5% compared to $774 million in the same period of 2024, primarily due to lower sales volumes and average selling prices of TiO2 and zircon[113]. - TiO2 revenue decreased by 3% or $21 million year-over-year, driven by a 1% decrease in sales volumes and a 1% decline in average selling prices, with foreign currency negatively impacting revenue by $7 million[114]. - Zircon revenue decreased by 22% from the first quarter of 2024 to the first quarter of 2025, primarily due to a 15% decrease in sales volumes and a 7% decline in average selling prices[110]. - Gross profit for the first quarter of 2025 was $99 million, representing a gross margin of 13.4%, down from 15.5% in the prior year, largely due to lower sales volumes and prices[113]. - The company reported a net loss of $111 million for the first quarter of 2025, compared to a net loss of $9 million in the prior year, with net loss as a percentage of net sales increasing to 15.0%[113][122]. - Adjusted EBITDA for the first quarter of 2025 was $112 million, down from $131 million in the same period of 2024, with adjusted EBITDA as a percentage of net sales at 15.2%[113][122]. - Adjusted net loss attributable to Tronox for Q1 2025 was $24 million, compared to an adjusted net loss of $7 million in Q1 2024[164]. - Diluted net loss per share for Q1 2025 was $(0.70), significantly higher than $(0.06) in Q1 2024[164]. - Net loss for Q1 2025 was $111 million, compared to a net loss of $9 million in Q1 2024, representing a net loss as a percentage of net sales of (15.0)%[154]. Liquidity and Debt - Total available liquidity as of March 31, 2025, was $443 million, including $138 million in cash and cash equivalents and $305 million available under revolving credit agreements[111]. - Total debt as of March 31, 2025, was $3.0 billion, with a net debt to trailing-twelve month adjusted EBITDA ratio of 5.2x[111]. - At March 31, 2025, the company's total debt was $3.0 billion, with net debt of $2.8 billion after accounting for cash and cash equivalents[135]. - The company's total outstanding principal balance on short-term debt facilities was approximately $212 million as of April 28, 2025[136]. - Working capital was $1.2 billion as of March 31, 2025, down from $1.3 billion at December 31, 2024[125]. Cash Flow - Cash used in operating activities increased to $32 million in Q1 2025 from $29 million in Q1 2024, primarily due to a decrease in income-related cash generation[144]. - Net cash used in investing activities was $95 million in Q1 2025, up from $76 million in Q1 2024, driven by higher capital expenditures of $110 million[145]. - Net cash provided by financing activities was $108 million in Q1 2025, compared to cash used of $12 million in Q1 2024, mainly from net proceeds of $115 million from short-term debt[146]. Restructuring and Charges - Restructuring and other charges for the first quarter of 2025 amounted to $86 million, primarily related to the idling of the Botlek plant[113]. - The company experienced restructuring and other charges of $86 million in Q1 2025, primarily related to the Botlek plant idling[164]. Customer Concentration - The company’s ten largest third-party customers represented 39% of consolidated net sales in Q1 2025, up from 37% in Q1 2024[170]. Interest Rate and Currency Management - A hypothetical 1% increase in interest rates would result in a net decrease to pre-tax income of approximately $9 million on an annualized basis[171]. - The company entered into two new interest-rate swap agreements for a total notional value of $250 million, effective September 30, 2024, to manage interest rate volatility[173]. - As of March 31, 2025, the Company has $950 million in interest rate swaps, with $450 million maturing in March 2028 and $500 million maturing in September 2031, aimed at stabilizing interest expenses and managing interest rate exposure[175]. - For the three months ended March 31, 2025, the interest expense related to interest-rate swap agreements was $2 million, a decrease from $8 million for the same period in 2024[176]. - The Company aims to manage currency risk arising from fluctuations in foreign exchange rates, particularly in markets like South Africa and Australia, where revenues are primarily in U.S. dollars[178]. - The Company uses forward contracts and zero-cost collars as economic hedges for foreign currency transactions, particularly for its South African and Australian subsidiaries[179]. - As of March 31, 2025, the Company had notional amounts of 404 million Australian dollars (approximately $252 million) in foreign currency contracts to hedge against fluctuations in currency rates for its Australian subsidiaries' cost of sales[179]. - The Company has outstanding foreign currency contracts totaling approximately $71 million in South African Rand, $86 million in Australian dollars, $34 million in Pound Sterling, $60 million in Euro, and $39 million in Saudi Riyal as of March 31, 2025[180]. - The amounts recorded in interest expense related to interest-rate swap agreements included less than $1 million reclassified from "Accumulated other comprehensive loss" for the three months ended March 31, 2025[176]. - The Company recorded a net unrealized gain of $10 million in "Accumulated other comprehensive loss" as of March 31, 2025, expected to be recognized in earnings over the next twelve months[179]. - The net unrealized gain recorded in "Accumulated other comprehensive loss" was $11 million as of March 31, 2025, compared to a net unrealized gain of $26 million as of December 31, 2024[176]. - The Company had no outstanding amounts to reduce the exposure of its South African subsidiaries' third-party sales to fluctuations in currency rates as of March 31, 2025[179]. Credit Rating - The company's credit rating with Moody's changed to a negative outlook as of March 31, 2025, while S&P maintained a B positive rating[129]. Contractual Obligations - Contractual obligations as of March 31, 2025, totaled $8.02 billion, including long-term debt and lease financing of $3.78 billion[147].