Tronox(TROX) - 2025 Q2 - Quarterly Report

PART I – FINANCIAL INFORMATION Item 1. Financial Statements (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 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] - 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] Unaudited Condensed Consolidated Statements of Comprehensive Income (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] Unaudited Condensed Consolidated Balance Sheets 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] - 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] Unaudited Condensed Consolidated Statements of Cash Flows 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] - 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] Unaudited Condensed Consolidated Statement of Shareholders' Equity 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][21] Notes to Unaudited Condensed Consolidated Financial Statements 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 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] - The company also supplies zircon, pig iron, and rare-earth bearing mineral monazite to global customers[23] - 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][29] [Note 2. Restructuring and Other Charges](index=12&type=section&id=Note%2