Kronos Worldwide (KRO) shares are set for a sharp decline, plunging 7.20% in pre-market trading on Friday, as investors react to the company's disappointing third-quarter 2025 financial results released after Thursday's market close. The titanium dioxide producer reported a significant net loss, underscoring the challenges faced by the industry amidst global economic uncertainties.

The company's Q3 2025 performance painted a grim picture, with a reported net loss of $37.0 million, or $0.32 per share, a stark contrast to the net income of $71.8 million, or $0.62 per share, recorded in the same period last year. Kronos attributed this downturn to several factors, including lower production volumes and a 7% decline in average TiO2 selling prices compared to the third quarter of 2024. The company's production facilities operated at only 80% of practical capacity utilization, down from 92% in the previous year, further impacting the bottom line.

Adding to Kronos' woes, a new German tax legislation enacted during the quarter resulted in a non-cash deferred income tax expense of $19.3 million. The ongoing global economic uncertainty, geopolitical tensions, and customer hesitancy to build inventories have prolonged the market downturn, affecting sales volumes and pricing momentum. With the company's management not providing specific guidance for future quarters, investors remain uncertain about the timeline for potential recovery in the titanium dioxide market, likely contributing to the pre-market sell-off.