Tronox Reports First Quarter 2025 Financial Results

Financial Performance - Tronox reported first quarter 2025 revenue of $738 million, a decrease of 5% year-over-year, primarily due to lower zircon sales volumes and average selling prices [3][6] - TiO2 revenue was $584 million, down 3% year-over-year, with a 1% decline in sales volumes and average selling prices [7] - Zircon revenue decreased 22% to $69 million, driven by a 15% decline in sales volume and a 7% decrease in average selling prices [8] - The company recorded a net loss of $111 million, or a loss of $0.70 per diluted share, compared to a net loss of $9 million, or a loss of $0.06 per diluted share in the prior year [9][10] Operational Insights - The CEO noted stronger seasonal demand for TiO2, particularly in Europe, with sales volumes recovering to levels not seen since Q2 2021 [4] - Zircon sales were lower due to weaker demand, primarily in China, and competitive pressures were noted in Latin America, the Middle East, and Asia [4] - Production costs were higher than expected due to lower operating rates and increases in direct material prices [4] Strategic Actions - Tronox is implementing strategic actions to manage macroeconomic volatility, including idling the Botlek pigment plant, which is expected to improve free cash flow in 2025 [5] - The company anticipates sustainable cost improvements of $125-175 million by the end of 2026 [5][14] - Capital expenditures are focused on critical maintenance and completing mining projects in South Africa, with a reduction in expected capital expenditures to less than $365 million in 2025 [5][14] Outlook - Tronox maintains its guidance for 2025, expecting revenue between $3.0-3.4 billion and adjusted EBITDA of $525-625 million [14] - The company expects the second half of 2025 to be stronger than the first, driven by improving TiO2 and zircon volumes [14] - Free cash flow is anticipated to be greater than $50 million for the year [14]