KRONOS WORLDWIDE, INC. REPORTS FOURTH QUARTER 2024 RESULTS

Core Viewpoint Kronos Worldwide, Inc. reported a net loss in Q4 2024, but achieved a significant turnaround for the full year with a net income, driven by increased sales volumes and improved production efficiency, despite challenges from tax expenses and lower average selling prices for TiO2. Financial Performance - The company reported a net loss of $13.2 million in Q4 2024, compared to a loss of $5.3 million in Q4 2023 [1] - For the full year 2024, net income was $86.2 million, a recovery from a net loss of $49.1 million in 2023 [1] - EBITDA for Q4 2024 was $41.7 million, up from $6.9 million in Q4 2023, while full year EBITDA was $252.9 million compared to a loss of $7.2 million in 2023 [5][17] Sales and Revenue - Net sales in Q4 2024 were $423.1 million, a 6% increase from $400.1 million in Q4 2023 [2] - Full year net sales reached $1.9 billion, a 13% increase from $1.67 billion in 2023 [2] - TiO2 sales volumes increased by 4% in Q4 2024 and 20% for the full year compared to the previous year [2][19] Production and Costs - The TiO2 segment profit for Q4 2024 was $33.1 million, compared to a loss of $1.3 million in Q4 2023 [3] - Full year segment profit was $141.0 million, a significant improvement from a loss of $39.8 million in 2023 [3] - Production rates increased to 96% of practical capacity utilization in 2024, compared to 72% in 2023 [4] Tax and Other Expenses - The increase in net loss for Q4 2024 was primarily due to a non-cash deferred income tax expense of $16.5 million and a valuation allowance of $8.2 million related to deferred tax assets [1] - Selling, general, and administrative expenses for the full year included $2.2 million in transaction costs related to the LPC acquisition [4] Acquisition Impact - The acquisition of the 50% interest in Louisiana Pigment Company, which became a wholly-owned subsidiary, contributed to the financial results starting from July 16, 2024 [1] - The acquisition resulted in a non-cash gain of $64.5 million recognized in the full year 2024 [1]