Kronos Worldwide Earnings Miss Estimates in Q3 on Lower Volumes

Core Insights - Kronos Worldwide, Inc. (KRO) reported a net loss of $37 million or 32 cents per share for Q3 2025, a significant decline from a profit of $71.8 million or 62 cents per share in the same quarter last year [1] - Adjusted loss was 18 cents per share, which was worse than the Zacks Consensus Estimate of a loss of 6 cents [1] Financial Performance - Net sales decreased approximately 6% year over year to $456.9 million, primarily due to lower titanium dioxide (TiO2) selling prices and reduced sales volumes in European and export markets, partially offset by higher sales volumes in North America [2] - The top line fell short of the Zacks Consensus Estimate of $478.5 million [2] - TiO2 production volumes were down roughly 11% year over year to 126 thousand metric tons, while TiO2 sales volumes declined around 3% to 126 thousand metric tons [4] Segment Performance - The TiO2 segment reported a loss of $15.3 million compared to a profit of $43.4 million in the previous year, attributed to reduced income from operations and unfavorable fixed cost absorption due to lower operating rates [5] Cash Flow and Debt - Kronos ended the quarter with cash and cash equivalents of $27.7 million, an increase of about 47% from the prior quarter, while long-term debt rose to $626.2 million, up approximately 25% sequentially [6] Future Outlook - The company does not expect a meaningful improvement in sales volumes in the near term and plans to reduce inventory levels by lowering operating rates to align with current demand [7] - Operating results for Q4 are anticipated to be lower than Q3, with expectations of reduced year-over-year operating results for the full year 2025 due to lower demand, pricing pressure, and reduced fixed cost absorption [8]