Tronox Q4 prelim revenue beats; plans to close Fuzhou plant

Reuters
Jan 26
Tronox Q4 prelim revenue beats; plans to close Fuzhou plant

Overview

  • Titanium dioxide producer's preliminary Q4 revenue rose 8% yr/yr, beating analyst expectations

  • Adjusted EBITDA for Q4 missed analyst estimates

  • Company to close Fuzhou plant in China, citing weak demand and rising costs

Outlook

  • Tronox expects TiO(2) prices to improve in Q1 2026 due to price increases

  • Company anticipates positive free cash flow in 2026

  • Tronox is assessing feasibility of rare earth processing facility in Australia

Result Drivers

  • PLANT CLOSURE - Tronox announced closure of Fuzhou plant due to weak demand and rising costs, particularly for sulfur

  • HIGHER VOLUMES - TiO2 and zircon volumes increased, with TiO2 volumes up 13% year-over-year, driven by higher volumes in India

  • PRICING PRESSURE - TiO2 and zircon pricing declined, with TiO2 prices down 8% year-over-year and zircon prices down 23%

Key Details

Metric

Beat/Miss

Actual

Consensus Estimate

Q4 Revenue

Beat

$730 mln

$684.31 mln (8 Analysts)

Q4 Net Income

-$176 mln

Q4 Adjusted EBITDA

Miss

$57 mln

$72.97 mln (8 Analysts)

Analyst Coverage

  • The current average analyst rating on the shares is "hold" and the breakdown of recommendations is 4 "strong buy" or "buy", 4 "hold" and 1 "sell" or "strong sell"

  • The average consensus recommendation for the specialty chemicals peer group is "buy."

  • Wall Street's median 12-month price target for Tronox Holdings PLC is $5.38, about 14.5% below its January 23 closing price of $6.29

Press Release: ID:nPn9yf2hFa

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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)

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