Kronos(US:KRO)2025-11-06 21:25Financial Performance - Kronos Worldwide reported a net loss of $37.0 million, or $0.32 per share, in Q3 2025, compared to a net income of $71.8 million, or $0.62 per share, in Q3 2024[1]. - Net sales for Q3 2025 were $456.9 million, a decrease of $27.8 million, or 6%, compared to Q3 2024; for the first nine months of 2025, net sales were $1.4 billion, down $22.9 million, or 2%, from the same period in 2024[1]. - EBITDA for Q3 2025 was $0.6 million, a significant decrease from $123.3 million in Q3 2024; for the first nine months of 2025, EBITDA was $74.0 million, down from $211.2 million in the same period in 2024[3]. - Gross margin improved to $101.2 million in Q3 2024 from $47.0 million in Q3 2025, reflecting a significant operational efficiency[11]. - Net income for Q3 2024 was $71.8 million, compared to a net loss of $37.0 million in Q3 2025, indicating a strong recovery[11]. - EBITDA for Q3 2024 was $123.3 million, significantly higher than $0.6 million in Q3 2025, showcasing improved profitability[13]. Sales and Pricing - Average TiO2 selling prices declined by 6% in Q3 2025 compared to Q3 2024 and by 2% in the first nine months of 2025 compared to the same period in 2024[1]. - TiO2 sales volume decreased by 3% in Q3 2025 compared to Q3 2024, while total net sales saw a 6% decline[14]. - Currency fluctuations, primarily the euro, increased net sales by approximately $14 million in Q3 2025 and by approximately $11 million in the first nine months of 2025 compared to the same prior year periods[1]. Segment Performance - The TiO2 segment reported a loss of $15.3 million in Q3 2025, compared to a profit of $43.4 million in Q3 2024; for the first nine months of 2025, segment profit was $37.2 million, down from $107.9 million in the same period in 2024[2]. - Unabsorbed fixed production costs related to decreased production volumes in Q3 2025 were approximately $27 million, contributing to the segment loss[2]. - Production volumes for TiO2 remained stable at 141,000 metric tons in Q3 2024, compared to 126,000 metric tons in Q3 2025[11]. Operational Efficiency - The company operated its production facilities at an average capacity utilization of 85% in the first nine months of 2025, down from 93% in the same period in 2024[2]. - Selling, general and administrative expenses increased slightly to $62.3 million in Q3 2024 from $61.6 million in Q3 2025[11]. Strategic Developments - The company acquired the remaining 50% interest in Louisiana Pigment Company, L.P. in July 2024, which is now a wholly-owned subsidiary[1]. - The company reported a gain of $64.5 million on the remeasurement of its investment in TiO2 manufacturing joint venture[11]. Risks and Challenges - The company faces risks including supply and demand fluctuations, geopolitical tensions, and changes in raw material costs that could impact future performance[5]. - The company experienced a 3% increase in currency exchange rates, positively impacting overall sales[14].