Financial Data and Key Metrics Changes - For the full year 2025, the company generated revenue of $2.9 billion, reflecting a year-over-year decline driven by unfavorable pricing and mix, and lower volumes in both TiO2 and zircon [12] - Loss from operations was $253 million, and net loss attributable to Tronox was $470 million, including $233 million of restructuring and other charges [13] - Adjusted EBITDA was $336 million, with an adjusted EBITDA margin of 11.6% [13] Business Line Data and Key Metrics Changes - TiO2 volumes in Q4 reached their highest point of the year, with a 9% increase in volumes, although prices declined by 4% [14] - Zircon revenues increased 32% sequentially, driven by a 42% increase in volumes, despite a 7% decline in price [15] - Revenue from other products increased 10% year-over-year, mainly due to higher pig iron volumes [15] Market Data and Key Metrics Changes - The company experienced market share gains in India, Latin America, and the Middle East, supported by anti-dumping measures [14] - North America and Europe saw lower volumes consistent with normal fourth quarter demand patterns [14] - The company noted a structural change in global TiO2 trade flows, particularly benefiting from anti-dumping duties [7] Company Strategy and Development Direction - The company is focused on cash generation and maintaining liquidity, with capital expenditures expected to be approximately $260 million in 2026 [20] - Tronox is implementing a sustainable cost improvement program, targeting $125 million-$175 million in run rate savings by the end of 2026 [10] - The company is advancing its rare earth strategy, aiming to move downstream into separated rare earth oxides while maintaining capital discipline [26] Management's Comments on Operating Environment and Future Outlook - Management expressed cautious optimism about market dynamics improving, with TiO2 prices expected to rise due to recent price increase announcements [11] - The company anticipates positive free cash flow in 2026, supported by improved pricing and cost management initiatives [12] - Management highlighted the importance of maintaining a disciplined approach to cash preservation and inventory management [8] Other Important Information - The company executed a $400 million senior secured note offering in September to increase liquidity [8] - The company closed two pigment plants to streamline operations and improve cost structure [9] Q&A Session Summary Question: Free cash flow guidance and EBITDA expectations - The company indicated that to reach breakeven, approximately $350 million in EBITDA is needed, with expectations for EBITDA to expand throughout the year [28][31] Question: Production costs and mining operations - Management clarified that while some production costs were positively impacted in Q4, they expect improvements in operations and efficiencies in Q1 [36][37] Question: Volume changes in TiO2 and industry contraction - The company confirmed a slight decline in TiO2 volumes year-over-year, with the global TiO2 industry experiencing similar trends [58][59] Question: Pricing dynamics and industry discipline - Management noted that the industry is seeing price increases announced across the board, indicating a potential shift towards price discipline [84][85]

Financial Data and Key Metrics Changes - The company generated revenue of $738 million, an increase of 9% sequentially, primarily driven by higher TiO2 sales volumes [10] - Loss from operations was $61 million, with a net loss of $111 million, including $87 million of restructuring and other charges [11] - Adjusted EBITDA was $112 million, representing a 15% decline year on year, with an adjusted EBITDA margin of 15.2% [11][14] - Free cash flow was a use of $142 million, including $110 million of capital expenditures [11] Business Line Data and Key Metrics Changes - TiO2 revenues decreased 3% year over year, driven by a 1% decrease in sales volumes and unfavorable exchange rates, but increased 10% sequentially due to higher seasonal demand [12] - Zircon revenues decreased 22% compared to the prior year, driven by a 15% decrease in sales volume and a 7% decrease in price [12] - Revenue from other products increased 5% year over year and 25% sequentially due to higher sales of pig iron and opportunistic sales of ilmenite [12] Market Data and Key Metrics Changes - Europe experienced a stronger than normal seasonal demand uplift in TiO2 volumes, with a 12% increase from Q4 2024 [7] - North America also saw stronger seasonal trends, while competitive activity in Latin America, the Middle East, and Asia exerted pressure on sales [8] - The company is beginning to see benefits from antidumping duties finalized in the EU in January, resulting in sales volumes recovering to levels not seen since Q2 2021 in Europe [7] Company Strategy and Development Direction - The company is focusing on strategic actions to manage costs and improve operational efficiency, including idling the Batlik pigment plant in the Netherlands [9][18] - A cost improvement program was introduced, targeting sustainable run rate cost improvements of $125 million to $175 million by the end of 2026 [20] - The company aims to maintain its position as a leading vertically integrated titanium mining and upgrading producer [19] Management's Comments on Operating Environment and Future Outlook - The management highlighted ongoing macroeconomic challenges, including inflation and high interest rates, impacting housing markets and consumer sentiment [18] - The company maintains its guidance for 2025, expecting revenue in the range of $3 billion to $3.4 billion and adjusted EBITDA between $525 million and $625 million [23] - Management anticipates stronger performance in the second half of 2025, driven by expected improvements in pigment and zircon volumes [23] Other Important Information - The company ended the quarter with total debt of $3 billion and net debt of $2.8 billion, with a net leverage ratio of 5.2 times [14][15] - Capital expenditures totaled $110 million, with approximately 49% allocated to maintenance and safety and 51% to strategic projects [17] - The company declared a dividend of $0.0125 per share in the first quarter [17] Q&A Session Summary Question: Update on TiO2 volume growth expectations - Management expects a lift in TiO2 demand driven by antidumping duties in Europe and anticipated duties in India and Brazil [30][31] Question: Average utilization rate for TiO2 production - Historically, operating rates were above 80%, and management expects to maintain or exceed those rates [33] Question: European growth size in the quarter - European growth was double the normal rate from Q4 to Q1, indicating significant demand recovery [38] Question: Outlook for zircon market - Management expects measured growth in zircon, with only about 5% growth anticipated year over year [44] Question: Impact of Batlik closure on inventory and cash flow - The closure is expected to generate significant cash flow, with inventory levels decreasing over time [49] Question: Production costs and improvements - Management anticipates improved production costs in the second half of the year due to operational efficiencies and the shutdown of the Batlik plant [56][58] Question: Antidumping duties in India and Brazil - Management sees significant opportunities in India and Brazil, with expectations of increased market share as duties are finalized [62][64]

Financial Data and Key Metrics Changes - The company generated revenue of $738 million, an increase of 9% sequentially, primarily driven by higher TiO2 sales volumes [10] - The loss from operations was $61 million, with a net loss of $111 million, which included $87 million of restructuring and other charges [11] - Adjusted EBITDA was $112 million, representing a 15% decline year on year, with an adjusted EBITDA margin of 15.2% [11][14] - Free cash flow was a use of $142 million, including $110 million of capital expenditures [11] Business Line Data and Key Metrics Changes - TiO2 revenues decreased 3% year over year, driven by a 1% decrease in sales volumes and unfavorable exchange rates, but increased 10% sequentially due to higher seasonal demand [12] - Zircon revenues decreased 22% compared to the prior year, driven by a 15% decrease in sales volume and a 7% decrease due to price [12] - Revenue from other products increased 5% year over year and 25% sequentially due to higher sales of pig iron and opportunistic sales of ilmenite [12] Market Data and Key Metrics Changes - Europe experienced a stronger than normal seasonal demand uplift in TiO2 volumes, with a 12% increase from Q4 2024 [6] - North America also saw stronger seasonal trends, while competitive activity in Latin America, the Middle East, and Asia exerted pressure on sales [7] - Zircon sales were lower both year over year and sequentially due to a slower start in China [7] Company Strategy and Development Direction - The company is focusing on strategic actions to manage costs and improve operational efficiency, including the idling of the Batlik pigment plant in the Netherlands [8][17] - A cost improvement program was introduced, targeting sustainable run rate cost improvements of $125 million to $175 million by the end of 2026 [19] - The company aims to maintain its position as a leading vertically integrated titanium mining and upgrading producer [20] Management's Comments on Operating Environment and Future Outlook - The management highlighted ongoing macroeconomic challenges, including inflation and high interest rates, impacting housing markets and consumer sentiment [17] - The company maintains its guidance for 2025, expecting revenue in the range of $3 billion to $3.4 billion and adjusted EBITDA between $525 million and $625 million [22] - The management anticipates stronger performance in the second half of 2025, driven by expected improvements in pigment and zircon volumes [22] Other Important Information - The company ended the quarter with total debt of $3 billion and net debt of $2.8 billion, with a net leverage ratio of 5.2 times [14] - Capital expenditures totaled $110 million in the quarter, with approximately 49% allocated to maintenance and safety and 51% to strategic projects [16] - The company declared a dividend of $0.0125 per share in the first quarter [16] Q&A Session Summary Question: Update on TiO2 volume growth expectations - Management expects a lift in TiO2 demand driven by antidumping duties in Europe and anticipated duties in India and Brazil [29][30] Question: Average utilization rate for TiO2 production - Historically, operating rates were above 80%, and management expects to maintain or exceed those rates [32] Question: European growth size in the quarter - European growth was double the normal rate, significantly influenced by reduced Chinese exports [37] Question: Outlook for zircon markets - Management anticipates only about 5% growth in zircon year over year, with a more balanced growth expected [42] Question: Impact of Batlik closure on inventory and cash flow - The closure is expected to generate significant cash flow and help reduce inventory levels over time [48] Question: Production costs and improvements - Management expects improved production costs in the second half of the year due to better fixed cost absorption and the impact of the Batlik closure [56] Question: Antidumping measures in India and Brazil - Management sees significant opportunities in India and Brazil, with expectations of increased market share as duties are finalized [62][63] Question: Rare earth extraction project status - The project to extract rare earths from tailings is still in progress, with prefeasibility studies ongoing in Australia [110]