KRONOS WORLDWIDE, INC. REPORTS FOURTH QUARTER 2025 RESULTS

Core Viewpoint - Kronos Worldwide, Inc. reported significant net losses for both the fourth quarter and full year of 2025, primarily due to lower TiO2 selling prices and higher production costs resulting from curtailments [1][2]. Financial Performance - The company recorded a net loss of $82.8 million, or $0.72 per share, in Q4 2025, compared to a net loss of $13.2 million, or $0.12 per share, in Q4 2024 [1]. - For the full year 2025, the net loss was $110.9 million, or $0.96 per share, compared to a net income of $86.2 million, or $0.75 per share, in 2024 [1]. - Net sales for Q4 2025 were $418.3 million, a decrease of $4.8 million, or 1%, from Q4 2024 [2]. - Full year net sales for 2025 totaled $1.9 billion, down $27.7 million, or 1%, from 2024 [2]. Segment Performance - The TiO2 segment reported a loss of $59.4 million in Q4 2025, compared to a profit of $33.1 million in Q4 2024 [3]. - For the full year 2025, the segment loss was $22.2 million, down from a profit of $141.0 million in 2024 [3]. - The decrease in segment profit was attributed to higher unabsorbed fixed production costs and lower average TiO2 selling prices [3]. Cost and Pricing Dynamics - Average TiO2 selling prices were 10% lower at the end of 2025 compared to the beginning of the year, with a decrease of 8% in Q4 2025 compared to Q4 2024 [2]. - The company faced approximately $111 million in unabsorbed fixed production costs due to reduced operating rates at production facilities [3]. EBITDA Analysis - EBITDA for Q4 2025 was $(57.9) million, compared to $41.7 million in Q4 2024 [4]. - For the full year 2025, EBITDA was $16.1 million, a significant drop from $252.9 million in 2024 [4]. Currency Impact - Fluctuations in currency exchange rates positively impacted net sales by approximately $13 million in Q4 2025 and $24 million for the full year 2025 compared to the prior year [2][3].