Kronos Worldwide's Q1 Earnings Miss Estimates, Sales Beat

Core Viewpoint - Kronos Worldwide, Inc. reported earnings of 16 cents per share for Q1 2025, an increase from 7 cents in the same quarter last year, but below the Zacks Consensus Estimate of 17 cents [1] - Net sales increased by approximately 2.3% year over year to $489.8 million, surpassing the Zacks Consensus Estimate of $466.6 million, driven by higher sales volumes and titanium dioxide pricing [1] Sales and Production - TiO2 production volumes rose 18.2% year over year to 143 thousand metric tons in Q1 [2] - TiO2 sales volumes increased by 4.6% to 136 thousand metric tons during the same period [2] - Average TiO2 selling prices saw a year-over-year increase of 2% [2] Financial Position - The company ended the quarter with cash and cash equivalents of $20.5 million, a decrease of approximately 80.8% from the previous quarter [3] - Long-term debt rose to $476 million, reflecting a sequential increase of around 10.9% [3] Market Outlook - Demand in North America is expected to remain challenging until there is more clarity on tariff situations, while European demand has improved due to duties on Chinese TiO2 imports [4] - Customer inventory levels are low, and customers are hesitant to rebuild stock, leading to shorter lead times on orders [5] - TiO2 selling prices have remained stable in North America and export markets, with slight increases in Europe due to high utility and raw material costs [5] Stock Performance - Kronos shares have declined by 39.6% over the past year, compared to a 28.3% decline in the industry [6] Zacks Rank and Comparisons - Kronos currently holds a Zacks Rank of 3 (Hold) [7] - Other stocks in the basic materials sector with better rankings include Hawkins, Inc. (HWKN) and Contango Ore, Inc. (CTGO), both rated 1 (Strong Buy), and CSW Industrials, Inc. (CSWI), rated 2 (Buy) [7]