Tronox Reports Second Quarter 2025 Financial Results

 

STAMFORD, Conn., July 30, 2025/PRNewswire/ — Tronox Holdings plc (NYSE:TROX) (“Tronox” or the “Company”), the world’s leading integrated manufacturer of titanium dioxide ("TiO2") pigment, today reported its financial results for the quarter ending June 30, 2025, as follows:

This outlook is based on Tronox's views on current global economic activity and is subject to changes and impacts associated with the macroeconomic conditions, global supply chain, and inflation-related challenges, among others.

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Note: For the Company's guidance with respect to 2025 Adjusted EBITDA and free cash flow, we are not able to provide without unreasonable effort the most directly comparable GAAP financial measure, or reconciliation to such GAAP financial measure, because certain items that impact such measures are uncertain, out of the Company's control or cannot be reasonably predicted.

		Y-o-Y % ∆			Q-o-Q % ∆
		Volume	Price / Mix	FX	Volume	Price / Mix	FX
	TiO2	(11)%	0%	1%	(2)%	1%	2%
	Zircon	(10)%	(10)%	—	1%	(2)%	—

Chief Executive Officer John D. Romano commented, “Tronox’s second quarter results were impacted by weaker demand across most of our end markets. This resulted in a softer than anticipated coatings season and heightened competitive dynamics. TiO2 volumes in the second quarter were lower by 2% sequentially and 11% year-over-year, reflecting weaker than usual seasonality across all regions. Broader macroeconomic pressures, including elevated interest rates and tariff-related uncertainties, continued to weigh on consumer discretionary spending, while home sales and construction activity remained subdued. Additionally, delays in Brazil's anti-dumping investigation impacted our sales in the region, though we are encouraged by early momentum in India following the implementation of duties in May. Operational costs remained in-line with expectations and our mining projects continue to progress on schedule.

“In response to the prolonged weakness in the market, we are executing on our disciplined strategy to manage through the downturn and optimize earnings and cash. Our cost improvement program is progressing ahead of plan and proving essential in mitigating increasing raw material and operational cost pressures. We remain confident in our ability to deliver $125–$175 million in sustainable, run-rate savings by the end of 2026. We are also selectively adjusting operating rates to preserve cash and deploying targeted commercial initiatives to ensure we maintain and grow our market share in key markets.

“Additionally, we revised our 2025 financial outlook and are taking proactive steps, including adjusting our capital allocation priorities to maximize long-term shareholder value creation. We further reduced capital expenditures this year while ensuring we are not compromising critical investments that support safe and reliable operations. Our Board of Directors declared a dividend of $0.05 per share for the third quarter, a reduction of 60% that will provide enhanced balance sheet flexibility. We will reevaluate as the market recovers to ensure we target a competitive dividend yield.”

Mr. Romano concluded, “Tronox is well positioned to navigate through this continued economic uncertainty. We firmly believe the actions we are taking will further strengthen our business to ensure ample liquidity and solidify our position as the preferred strategic, global supplier for our customers. I remain confident in Tronox’s long-term trajectory and our commitment to delivering sustained value for shareholders.”

The Company’s Board of Directors declared a quarterly cash dividend of $0.05 per share payable on October 3, 2025 to shareholders of record at the close of business on August 11, 2025.

(Comparisons are to prior year (Q2 2025 vs. Q2 2024) unless otherwise noted)

 

The Company recorded second quarter revenue of $731 million, a decrease of 11% primarily driven by lower TiO2 and zircon sales volumes and lower average selling prices of zircon.

Revenue from TiO2 sales was $587 million, a decline of 10% driven by an 11% decline in volumes slightly offset by a 1% favorable impact due to exchange rates, while average selling prices including mix was flat. Sequentially, TiO2 sales increased 1%, driven by a 1% increase in average selling prices including mix and a favorable 2% exchange rate impact, partially offset by a 2% decrease in sales volumes.

Zircon revenue decreased 20% to $68 million, driven by a 10% decline in sales volumes and a 10% decrease in average selling prices including mix. Sequentially, zircon revenue decreased 1%, driven by a 2% decrease in average selling prices including mix partially offset by a 1% increase in sales volumes.

Revenue from other products was $76 million, a decline of 7% year-over-year primarily due to lower sales volumes of pig iron. Sequentially, revenue from other products decreased 11%.

Net loss attributable to Tronox in the quarter was $84 million, or a loss of $0.53 per diluted share, compared to net income attributable to Tronox of $16 million, or income of $0.10 per diluted share in the year-ago period. Non-recurring adjustments totaled $39 million, or $0.25 per diluted share. Excluding these items, adjusted net loss attributable to Tronox (non-GAAP) was $45 million, or a loss of $0.28 per diluted share.

Adjusted EBITDA of $93 million represented a 42% decrease, driven by lower sales volumes, higher production costs, lower average selling prices including mix and higher freight costs, partially offset by favorable exchange rate movements and lower corporate costs. Adjusted EBITDA margin was 12.7%.

Sequentially, Adjusted EBITDA decreased 17% due to higher production costs, non-repeating insurance proceeds received in the first quarter related to the 2023 Botlek supplier outage, lower sales volumes and higher freight costs, partially offset by favorable average selling prices including mix, tailwinds from exchange rate movements and lower corporate costs.

The Company's selling, general and administrative expenses were $72 million for the quarter, a decrease of 3%. Tronox's net interest expense in the quarter was $44 million. Depreciation, depletion and amortization expense was $74 million.

Tronox ended the quarter with $3.1 billion of total debt, $2.9 billion of net debt and a net leverage ratio of 6.1x on a trailing twelve-month basis. Available liquidity at the end of the quarter totaled $397 million, including $132 million in cash and cash equivalents and $265 million available under our revolving credit agreements. The next significant debt maturity for the Company is not until 2029. Tronox does not have any financial covenants on its term loans or bonds.

Free cash flow for the quarter was a use of $55 million. Capital expenditures were $83 million, including investments in the Company's key capital projects to replace existing mines reaching their end of life and sustain the Company's vertical integration benefit.

Tronox is adjusting its previous guidance for 2025. Based on current market conditions, the Company is expecting FY 2025 revenue to be $3.0-$3.1 billion and Adjusted EBITDA to be $410-$460 million. These ranges assume lower pigment and zircon volumes and price than previously anticipated, offset by revenue growth from strategic sales of other products and improved production costs in the second half of the year compared to the first half. The Company expects free cash flow to be a use of $100-$170 million as a result of the lower pigment and zircon sales. The Company further reduced capital expenditures to now be less than $330 million for the year. The Company remains on track to deliver $125-$175 million of sustainable, run-rate cost improvements deliverable by the end of 2026.

Tronox will conduct a webcast conference call on Thursday, July 31, 2025, at 10:00 AM ET (New York). The live call is open to the public and can be accessed via live webcast and teleconference. Please visit investor.tronox.com for a link to register for the live webcast and to view the accompanying slides.

Replay: A webcast replay will be available at investor.tronox.com following the call.

Tronox Holdings plc is one of the world's leading producers of high-quality titanium products, including titanium dioxide pigment, specialty-grade titanium dioxide products and high-purity titanium chemicals, and zircon. We mine titanium-bearing mineral sands and operate upgrading facilities that produce high-grade titanium feedstock materials, pig iron and other minerals, including the rare earth-bearing mineral, monazite. With approximately 6,500 employees across six continents, our rich diversity, unmatched vertical integration model, and unparalleled operational and technical expertise across the value chain, position Tronox as the preeminent titanium dioxide producer in the world. For more information about how our products add brightness and durability to paints, plastics, paper and other everyday products, visit tronox.com.

Statements in this release that are not historical are forward-looking statements within the meaning of the U.S. Private Securities Litigation Reform Act of 1995. These forward-looking statements, which are subject to known and unknown risks, uncertainties and assumptions about us, may include projections of our future financial performance, our operating rates, anticipated completion of extensions and upgrades to our mining operations, anticipated trends in our business and industry, including trade defense measures, anticipated costs, benefits and timing of capital projects including planned mining expansions, the Company's anticipated capital allocation strategy including future capital expenditures, the benefits and timing of the Company’s cost improvement plan, and our sustainability goals, commitments and programs. These statements are only predictions based on our current expectations and projections about future events. There are important factors that could cause our actual results, level of activity, performance, actual costs, benefits and timing of capital projects, or the cost improvement plan, or achievements to differ materially from the results, level of activity, performance, anticipated costs, benefits and timing of capital projects, or the cost improvement plan, or achievements expressed or implied by the forward-looking statements. Significant risks and uncertainties may relate to, but are not limited to, macroeconomic conditions; policy changes affecting international trade, including import/export restrictions and tariffs; inflationary pressures and energy costs; currency movements; political instability, including the ongoing conflicts in Eastern Europe and the Middle East and any expansion of such conflicts, and other geopolitical events; supply chain disruptions; market conditions and price volatility for titanium dioxide, zircon and other feedstock materials, as well as global and regional economic downturns, that adversely affect the demand for our end-use products; disruptions in production at our mining and manufacturing facilities; and other financial, economic, competitive, environmental, political, legal and regulatory factors. These and other risk factors are discussed in the Company's filings with the Securities and Exchange Commission.

Moreover, we operate in a very competitive and rapidly changing environment. New risks and uncertainties emerge from time to time, and it is not possible for our management to predict all risks and uncertainties, nor can management assess the impact of all factors on our business or the extent to which any factor, or combination of factors, may cause actual results to differ materially from those contained in any forward-looking statements. Although we believe the expectations reflected in the forward-looking statements are reasonable, we cannot guarantee future results, level of activity, performance, synergies or achievements. Neither we nor any other person assumes responsibility for the accuracy or completeness of any of these forward-looking statements. You should not rely upon forward-looking statements as predictions of future events. Unless otherwise required by applicable laws, we undertake no obligation to update or revise any forward-looking statements, whether because of new information or future developments.

Use of Non-GAAP Information

To provide investors and others with additional information regarding the financial results of Tronox Holdings plc, we have disclosed in this release certain non-U.S. GAAP operating performance measures of EBITDA, Adjusted EBITDA, Adjusted EBITDA margin and Adjusted net income attributable to Tronox, including its presentation on a per share basis, and a non-U.S. GAAP liquidity measure of Free Cash Flow and net leverage ratio on a trailing twelve-month basis. These non-U.S. GAAP financial measures are a supplement to and not a substitute for or superior to, the Company's results presented in accordance with U.S. GAAP. The non-U.S. GAAP financial measures presented by the Company may be different from non-U.S. GAAP financial measures presented by other companies. Specifically, the Company believes the non-U.S. GAAP information provides useful measures to investors regarding the Company's financial performance by excluding certain costs and expenses that the Company believes are not indicative of its core operating results. The presentation of these non-U.S. GAAP financial measures is not meant to be considered in isolation or as a substitute for results or guidance prepared and presented in accordance with U.S. GAAP. A reconciliation of the non-U.S. GAAP financial measures to U.S. GAAP results is included herein.

Investor Relations and Media Contact: Jennifer Guenther CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (U.S.

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