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Why Is Kronos Worldwide (KRO) Up 22.7% Since Last Earnings Report?

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A month has gone by since the last earnings report for Kronos Worldwide (KRO - Free Report) . Shares have added about 22.7% in that time frame, outperforming the S&P 500.

But investors have to be wondering, will the recent positive trend continue leading up to its next earnings release, or is Kronos Worldwide due for a pullback? Well, first let's take a quick look at the most recent earnings report in order to get a better handle on the recent catalysts for Kronos Worldwide Inc before we dive into how investors and analysts have reacted as of late.

Kronos' Q4 Earnings Miss Estimates, Sales Beat Amid Economic Weakness

Kronos reported a fourth-quarter 2025 net loss of $82.8 million or 72 cents per share. This compares unfavorably to a loss of $13.2 million, or 12 cents per share, in the year-ago quarter. It was wider than the Zacks Consensus Estimate of a loss of 26 cents.

Net sales decreased around 1.1% year over year to $418.3 million. The decline was mainly due to lower average TiO2 selling prices, partly offset by higher sales volumes in the European market. The top line beat the Zacks Consensus Estimate of $372.3 million.

Volumes and Pricing

TiO2 production volumes (thousand metric tons) were down 36.8% year over year to 86 in the fourth quarter. TiO2 sales volumes (thousand metric tons) increased around 7.3% to 118 in the quarter.

TiO2 segment loss was $59.4 million in the reported quarter compared with a segment profit of $33.1 million a year ago. The downside was mainly due to reduced income from operations as a result of unfavorable fixed cost absorption stemming from reduced operating rates at certain of Kronos’ manufacturing facilities and increased costs related to workforce reduction initiatives.

Financials

Kronos ended the year with cash and cash equivalents of $33.2 million, down around 68.9% from the prior year. Long-term debt amounted to $557.4 million, up around 30% year over year.

Outlook

The company expects demand to improve in 2026, supported by low customer inventories and seasonal restocking, particularly in North America. However, the pace and sustainability are subject to macroeconomic factors, including interest rates, inflation and consumer confidence. Demand in Europe continues to remain below historical levels. However, the company anticipates European volumes to increase from 2025 levels, considering industry capacity reductions, including the Venator bankruptcy and the associated plant closures. It remains focused on permanently realigning its operating costs, improving capital efficiency and preserving liquidity.

How Have Estimates Been Moving Since Then?

Analysts were quiet during the last two month period as none of them issued any earnings estimate revisions.

VGM Scores

Currently, Kronos Worldwide has a strong Growth Score of A, though it is lagging a lot on the Momentum Score front with a D. Charting a somewhat similar path, the stock has a score of C on the value side, putting it in the middle 20% for this investment strategy.

Overall, the stock has an aggregate VGM Score of B. If you aren't focused on one strategy, this score is the one you should be interested in.

Outlook

Kronos Worldwide has a Zacks Rank #5 (Strong Sell). We expect a below average return from the stock in the next few months.

Performance of an Industry Player

Kronos Worldwide belongs to the Zacks Chemical - Diversified industry. Another stock from the same industry, Methanex (MEOH - Free Report) , has gained 26.3% over the past month. More than a month has passed since the company reported results for the quarter ended December 2025.

Methanex reported revenues of $968.81 million in the last reported quarter, representing a year-over-year change of +2.1%. EPS of -$0.14 for the same period compares with $1.24 a year ago.

For the current quarter, Methanex is expected to post earnings of $0.43 per share, indicating a change of -66.9% from the year-ago quarter. The Zacks Consensus Estimate has changed +25.4% over the last 30 days.

The overall direction and magnitude of estimate revisions translate into a Zacks Rank #3 (Hold) for Methanex. Also, the stock has a VGM Score of C.

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