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.)