Shares of Kronos Worldwide (KRO) plummeted 5.17% in pre-market trading on Thursday following the release of disappointing second-quarter earnings results. The titanium dioxide producer reported a quarterly loss of $0.08 per share, significantly missing analyst expectations of $0.14 earnings per share and marking a stark contrast to the $0.17 per share profit reported in the same quarter last year.

The company's financial performance deteriorated across multiple metrics. Revenue fell 1.2% year-over-year to $494.40 million, falling short of the $504.73 million expected by analysts. Kronos experienced a decline in both sales volume and average selling prices of titanium dioxide. Production capacity utilization dropped sharply from 99% in Q2 2024 to 81% in Q2 2025, resulting in approximately $20 million in unabsorbed fixed production costs. The gross margin narrowed considerably, from $100.2 million in Q2 2024 to $62.8 million in Q2 2025, impacted by higher inventory costs and unfavorable currency movements, particularly involving the euro.

Looking ahead, Kronos management did not provide specific financial guidance for the upcoming quarter or fiscal year 2025. The company cited ongoing challenges, including global economic uncertainty, geopolitical tensions, and customer hesitancy to build inventories. Despite the disappointing results, Kronos maintained its quarterly dividend of $0.05 per share, payable on September 18 to shareholders of record as of September 5. Investors will likely be closely monitoring the company's ability to recover TiO2 pricing, improve production volumes, and increase plant utilization in the coming quarters.