Kronos Worldwide Earnings Miss Estimates in Q2 on Low Volumes

Core Insights - Kronos Worldwide, Inc. (KRO) reported a second-quarter 2025 loss of 8 cents per share, a decline from earnings of 17 cents in the same quarter last year, and missed the Zacks Consensus Estimate of earnings of 13 cents [1][8] - Net sales decreased by approximately 1.2% year over year to $494.4 million, primarily due to lower average titanium dioxide (TiO2) selling prices, an unfavorable product mix, and reduced sales volumes in export markets, partially offset by higher sales volumes in North America. This figure also missed the Zacks Consensus Estimate of $501 million [2][8] KRO's Volumes and Pricing - TiO2 production volumes fell by 8.8% year over year to 125 thousand metric tons in the second quarter, while TiO2 sales volumes decreased by 1.5% to 132 thousand metric tons [3] KRO's Financials - The company ended the quarter with cash and cash equivalents of $18.9 million and long-term debt of $501.4 million [5] KRO's Segment Performance - TiO2 segment profit was reported at $10.9 million, down from $41.1 million a year ago, primarily due to reduced operating income from unfavorable fixed cost absorption, higher-cost inventory from the previous quarter, and currency fluctuations [4] KRO's Outlook - The company anticipates continued demand pressure until tariff uncertainties are resolved, with unclear potential impacts from global tariff and trade tensions on demand for the remainder of 2025. Customer inventory levels are expected to remain low, and customers are hesitant to rebuild stock, leading to shorter order notices [6][8] KRO's Price Performance - Shares of Kronos have declined by 48.7% over the past year, compared to a 23.8% decline in the industry [7]