Financial Performance - Tronox reported second quarter 2025 revenue of $731 million, a decrease of 11% year-over-year, primarily due to lower TiO2 and zircon sales volumes and lower average selling prices of zircon [3][8] - TiO2 revenue was $587 million, down 10% year-over-year, driven by an 11% decline in volumes, slightly offset by a 1% favorable impact from exchange rates [9] - Zircon revenue decreased 20% to $68 million, attributed to a 10% decline in sales volumes and a 10% decrease in average selling prices [10] - The company recorded a net loss of $84 million, or a loss of $0.53 per diluted share, compared to net income of $16 million, or income of $0.10 per diluted share in the prior year [13][26] Operational Insights - The second quarter results were impacted by weaker demand across most end markets, leading to a softer coatings season and heightened competitive dynamics [4] - TiO2 volumes were lower by 2% sequentially and 11% year-over-year, reflecting weaker than usual seasonality across all regions [4] - Broader macroeconomic pressures, including elevated interest rates and tariff-related uncertainties, continued to affect consumer discretionary spending [4] Cost Management and Strategic Initiatives - The company is executing a disciplined strategy to manage through the downturn, aiming to optimize earnings and cash flow [5] - Tronox is targeting $125–$175 million in sustainable, run-rate savings by the end of 2026 through a cost improvement program [5] - Capital expenditures have been reduced to less than $330 million for the year to enhance balance sheet flexibility [11][19] Dividend and Shareholder Value - The Board of Directors declared a quarterly cash dividend of $0.05 per share, a reduction of 60%, to provide enhanced balance sheet flexibility [6][7] - The company plans to reevaluate its dividend strategy as the market recovers to ensure a competitive dividend yield [6] Future Outlook - Tronox revised its 2025 financial outlook, expecting revenue to be between $3.0 billion and $3.1 billion and Adjusted EBITDA to be between $410 million and $460 million [19] - The company anticipates free cash flow to be a use of $100-$170 million due to lower pigment and zircon sales [19]

First Quarter 2025 Conference Call Tronox Holdings plc May 1, 2025 Tronox Holdings plc | tronox.com | Confidential & Proprietary | © 2025 1 Presenters John Romano John Srivisal Chief Executive Officer Senior Vice President, Chief Financial Officer Tronox Holdings plc | tronox.com | Confidential & Proprietary | © 2025 2 Safe Harbor Statement and Non-U.S. GAAP Financial Terms Cautionary Statement about Forward-Looking Statements Statements in this presentation that are not historical are forward-looking state ...

Financial Data and Key Metrics Changes - Tronox generated revenue of $3.1 billion in 2024, an increase of 8% compared to the prior year, driven primarily by higher TiO2 and zircon sales volumes, partially offset by unfavorable price and product mix [10] - The company reported a net loss attributable to Tronox of $48 million for the full year, with adjusted EBITDA of $564 million and an adjusted EBITDA margin of 18.3% [10] - In Q4 2024, revenue was $676 million, a decrease of 1% year-over-year, with a net loss of $30 million and adjusted EBITDA of $129 million, achieving an adjusted EBITDA margin of 19.1% [11][10] Business Line Data and Key Metrics Changes - TiO2 revenues increased by 3% year-over-year in Q4, with sales volumes improving by 4%, but were partially offset by a 1% decline due to price and product mix [11] - Zircon revenues surged by 32% year-over-year in Q4, driven by a 43% increase in sales volumes, despite an 11% headwind from price and product mix [12] - Revenue from other products decreased by 38% year-over-year due to opportunistic sales that did not repeat in Q4 2024 [13] Market Data and Key Metrics Changes - Stronger TiO2 commercial performance in Asia Pacific and Latin America helped mitigate lagging demand in Europe, while North America performed in line with expectations [6] - The company noted competitive dynamics affecting pricing across all products, with expectations for price recovery in the second half of 2025 [30][29] Company Strategy and Development Direction - Tronox is focusing on sustainability projects, including converting 40% of its power in South Africa to solar, which avoided $17 million in electricity costs in 2024 [8] - The company launched a new business strategy in the second half of 2024, emphasizing cost efficiency, optimizing asset reliability, and driving operational excellence [9] - Tronox identified $125 million to $175 million of additional cost improvement opportunities achievable by the end of 2026 [9] Management's Comments on Operating Environment and Future Outlook - Management expects 2025 revenue to range from $3 billion to $3.4 billion, with adjusted EBITDA between $525 million and $625 million, considering market recovery and competitive dynamics [18] - The company anticipates a stronger second half of 2025, with pricing expected to improve as market conditions stabilize [19] - Management highlighted ongoing challenges with mining production costs, projecting a negative impact of $50 million to $60 million in 2025 due to transitioning to new mines [40][41] Other Important Information - Tronox's total debt stood at $2.9 billion, with a net leverage ratio of 4.8 times at year-end [15] - The company returned $80 million to shareholders in dividends during 2024 [16] Q&A Session Summary Question: What is driving the softer pricing in the first half of the year? - Management noted competitive activity in certain regions and a slow recovery period, with expectations for price increases in the second half of the year as market conditions improve [26][30] Question: How much of the cost improvement program relies on volumes versus efficiency? - The cost improvement program focuses primarily on cost efficiencies rather than volume increases, with expectations to achieve $25 million to $30 million of improvements in 2025 [31][32] Question: What is the expected impact of mining costs in 2025? - The majority of the $50 million to $60 million negative impact is expected in the first half of 2025, with recovery anticipated in 2026 as new mines come online [40][41] Question: How are raw material costs trending for 2025? - Raw material costs are expected to decline in the low single digits year-over-year, with specific increases in electricity and coal costs [84][85] Question: What is the outlook for TiO2 market share? - Management indicated that while some share has been lost to Chinese competitors, there are opportunities for recovery, particularly in regions benefiting from trade duties [68][69]