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KRO's Q1 Earnings Beat Estimates on Cost Actions, Sales Miss
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Key Takeaways
KRO posted a Q1 loss of 4 cents per share, beating estimates despite a 2.7% sales miss.
Kronos saw TiO2 sales volumes rise 4.4%, while production volumes fell 10.5% year over year.
KRO expects margins to improve as lower-cost 2026 production replaces higher-cost inventory.
Kronos Worldwide, Inc. (KRO - Free Report) reported a first-quarter 2026 net loss of 4 cents per share, narrower than the Zacks Consensus Estimate of a loss of 33 cents. Earnings delivered a positive surprise of 87.9%.
Net sales were $509.8 million, up 4.1% year over year, but missed the consensus mark of $523.8 million by 2.7%. The quarter reflected improving cost performance, while weaker year-over-year pricing and lower production weighed on profitability.
Kronos Worldwide Inc Price, Consensus and EPS Surprise
TiO2 sales volumes rose 4.4% year over year to 142 thousand metric tons in the quarter, supported by higher volumes in North American, Latin American and export markets. Production volumes, however, declined 10.5% to 128 thousand metric tons, reflecting lower operating rates.
On pricing, the company started 2026 with average TiO2 selling prices below the beginning of 2025. Management noted that average TiO2 selling prices increased 2% during the quarter as it works to recover pricing lost during 2025, but pricing remained a year-over-year headwind to both sales and profits.
Kronos reported TiO2 segment profit of $15.1 million in the first quarter, down from $41.6 million a year ago. Management attributed the decline primarily to lower average TiO2 selling prices, lower production volumes and an unfavorable currency impact, partially offset by higher sales volumes and lower production costs.
Kronos' Financials
Kronos ended the quarter with cash and cash equivalents of $25.7 million as of March 31, 2026, down from $33.2 million at the end of 2025. Long-term debt stood at $602.7 million as of March 31, 2026, up from $557.4 million as of Dec. 31, 2025.
KRO's Outlook
Management emphasized continued execution on pricing and cost initiatives as the key operational priorities following the restructuring actions taken late in 2025. Additional increases will be needed as selling prices remain below 2025 levels. Kronos expects gross margin to improve as higher-cost inventory produced in late 2025 works through the system and it realizes the benefit of lower-cost production in 2026, though it is beginning to see higher shipping and production costs tied to Middle East-related supply disruptions and higher energy and raw material costs, particularly in Europe.
Customers are still cautious on inventories, but longer lead times and a higher backlog entering 2026 have improved near-term production flexibility, even as demand stays below historical levels and the recovery outlook remains uncertain.
KRO’s Price Performance
Shares of Kronos have lost 2.5% in the past year against the 18.6% growth in the industry.
Image Source: Zacks Investment Research
KRO’s Zacks Rank & Key Picks
KRO currently carries a Zacks Rank #4 (Sell).
Some better-ranked stocks in the basic materials space are Idaho Strategic Resources, Inc. (IDR - Free Report) , NioCorp Developments Ltd. (NB - Free Report) and Sociedad Quimica y Minera de Chile S.A. (SQM - Free Report) .
Idaho is expected to report first-quarter 2026 results on May 14. The Zacks Consensus Estimate for earnings is pegged at 43 cents per share, indicating 258.33% year-over-year growth. IDR sports a Zacks Rank #1 (Strong Buy) at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
NioCorp is expected to report third-quarter fiscal 2026 results on May 14. The consensus estimate for NB’s loss per share is pegged at 2 cents, indicating 83.33% year-over-year growth. NB presently flaunts a Zacks Rank #1.
Sociedad is slated to report first-quarter 2026 results on May 26. The Zacks Consensus Estimate for loss is pegged at $1.78 per share, indicating 270.8% year-over-year growth. SQM has a Zacks Rank #2 (Buy) at present.
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KRO's Q1 Earnings Beat Estimates on Cost Actions, Sales Miss
Key Takeaways
Kronos Worldwide, Inc. (KRO - Free Report) reported a first-quarter 2026 net loss of 4 cents per share, narrower than the Zacks Consensus Estimate of a loss of 33 cents. Earnings delivered a positive surprise of 87.9%.
Net sales were $509.8 million, up 4.1% year over year, but missed the consensus mark of $523.8 million by 2.7%. The quarter reflected improving cost performance, while weaker year-over-year pricing and lower production weighed on profitability.
Kronos Worldwide Inc Price, Consensus and EPS Surprise
Kronos Worldwide Inc price-consensus-eps-surprise-chart | Kronos Worldwide Inc Quote
KRO's Volume and Pricing
TiO2 sales volumes rose 4.4% year over year to 142 thousand metric tons in the quarter, supported by higher volumes in North American, Latin American and export markets. Production volumes, however, declined 10.5% to 128 thousand metric tons, reflecting lower operating rates.
On pricing, the company started 2026 with average TiO2 selling prices below the beginning of 2025. Management noted that average TiO2 selling prices increased 2% during the quarter as it works to recover pricing lost during 2025, but pricing remained a year-over-year headwind to both sales and profits.
Kronos reported TiO2 segment profit of $15.1 million in the first quarter, down from $41.6 million a year ago. Management attributed the decline primarily to lower average TiO2 selling prices, lower production volumes and an unfavorable currency impact, partially offset by higher sales volumes and lower production costs.
Kronos' Financials
Kronos ended the quarter with cash and cash equivalents of $25.7 million as of March 31, 2026, down from $33.2 million at the end of 2025. Long-term debt stood at $602.7 million as of March 31, 2026, up from $557.4 million as of Dec. 31, 2025.
KRO's Outlook
Management emphasized continued execution on pricing and cost initiatives as the key operational priorities following the restructuring actions taken late in 2025. Additional increases will be needed as selling prices remain below 2025 levels. Kronos expects gross margin to improve as higher-cost inventory produced in late 2025 works through the system and it realizes the benefit of lower-cost production in 2026, though it is beginning to see higher shipping and production costs tied to Middle East-related supply disruptions and higher energy and raw material costs, particularly in Europe.
Customers are still cautious on inventories, but longer lead times and a higher backlog entering 2026 have improved near-term production flexibility, even as demand stays below historical levels and the recovery outlook remains uncertain.
KRO’s Price Performance
Shares of Kronos have lost 2.5% in the past year against the 18.6% growth in the industry.
Image Source: Zacks Investment Research
KRO’s Zacks Rank & Key Picks
KRO currently carries a Zacks Rank #4 (Sell).
Some better-ranked stocks in the basic materials space are Idaho Strategic Resources, Inc. (IDR - Free Report) , NioCorp Developments Ltd. (NB - Free Report) and Sociedad Quimica y Minera de Chile S.A. (SQM - Free Report) .
Idaho is expected to report first-quarter 2026 results on May 14. The Zacks Consensus Estimate for earnings is pegged at 43 cents per share, indicating 258.33% year-over-year growth. IDR sports a Zacks Rank #1 (Strong Buy) at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
NioCorp is expected to report third-quarter fiscal 2026 results on May 14. The consensus estimate for NB’s loss per share is pegged at 2 cents, indicating 83.33% year-over-year growth. NB presently flaunts a Zacks Rank #1.
Sociedad is slated to report first-quarter 2026 results on May 26. The Zacks Consensus Estimate for loss is pegged at $1.78 per share, indicating 270.8% year-over-year growth. SQM has a Zacks Rank #2 (Buy) at present.