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TROX Q2 Earnings Miss Estimates on Higher Costs, Sales Beat
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Key Takeaways
Tronox's Q2 revenues rose 19% to $868M, while its adjusted loss widened to 51 cents per share.
TiO2 volumes rose 18%, and zircon volumes surged 61%, driving strong year-over-year sales growth.
TROX sees Q3 pricing gains and better margins, though elevated input costs may partly offset benefits.
Tronox Holdings plc (TROX - Free Report) posted an adjusted loss of 51 cents per share for the second quarter of 2026, wider than the year-ago loss of 28 cents. The loss was also wider than the Zacks Consensus Estimate of a loss of 39 cents.
Revenues increased 19% year over year to $868 million and beat the consensus estimate of $848.8 million by 2.2%. Higher titanium dioxide (TiO2) and zircon volumes drove sales growth, although elevated production, freight and other costs weighed on profitability.
Tronox Holdings PLC Price, Consensus and EPS Surprise
TiO2 sales were $700 million in the reported quarter, up 19% year over year. TiO2 sales volumes increased 18%, while average selling prices, including mix, were flat and currency contributed 1%. Sequentially, TiO2 sales rose 14% as volumes increased 9% and price/mix improved 5%.
Zircon sales increased 43% year over year to $97 million. Sales volumes surged 61%, more than offsetting an 18% decline in average selling prices, including mix. Sequentially, zircon revenues increased 9%, supported by a 4% volume increase and a 5% improvement in price/mix.
Tronox's Financials
Cash and cash equivalents were $194 million as of June 30, 2026. Total debt stood at $3.2 billion, while net debt was $3 billion. Cash provided by operating activities was $105 million in the second quarter. Capital expenditures totaled $45 million, resulting in positive free cash flow of $60 million.
TROX's Outlook
For the third quarter of 2026, Tronox expects TiO2 volumes to decline sequentially in the mid-single-digit percentage range, consistent with normal seasonal patterns. Zircon volumes are expected to moderate slightly because of inventory availability after a strong first half.
TiO2 pricing is projected to rise sequentially in the mid-single-digit percentage range, while zircon pricing is expected to increase in the mid- to high-single-digit range.
Management forecasts adjusted EBITDA of $95-$115 million, with margins improving sequentially as pricing actions and higher operating rates provide support. Elevated input costs stemming from Middle East volatility are expected to partly offset these benefits.
Free cash flow is expected to be relatively neutral in the third quarter, while Tronox continues to target meaningful positive free cash flow for full-year 2026. Looking further ahead, the company expects the definitive feasibility study for its rare-earths cracking and leaching facility to conclude by the third quarter of 2027.
TROX Stock’s Price Performance
Shares of Tronox have risen 70.9% in the past year compared with the industry’s 4.8% growth.
Ashland Inc.’s (ASH - Free Report) adjusted earnings were $1.02 per share for the fiscal third quarter, down around 2% from the year-ago quarter’s figure of $1.04. The bottom line missed the Zacks Consensus Estimate of $1.03. For fiscal 2026, Ashland reaffirmed sales guidance of $1.835-$1.870 billion and adjusted EBITDA outlook of $385-$400 million.
Huntsman Corporation (HUN - Free Report) posted break-even earnings per share on an adjusted basis for the second quarter compared with a loss of 20 cents in the year-ago quarter. The Zacks Consensus Estimate of earnings was pegged at 6 cents per share. HUN expects to remain focused on additional price increases and cost-reduction initiatives to offset rising and volatile energy and crude oil-related costs, particularly in Europe.
Olin Corporation’s (OLN - Free Report) second-quarter adjusted earnings were 7 cents per share, in line with the Zacks Consensus Estimate. For the third quarter, Olin expects adjusted EBITDA in the range of $160 million to $200 million. OLN expects its Chemical businesses’ results to be comparable with second-quarter levels as lower operating rates at the Freeport vinyl chloride monomer facility and weaker ethylene dichloride pricing offset anticipated stronger caustic soda volumes.
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TROX Q2 Earnings Miss Estimates on Higher Costs, Sales Beat
Key Takeaways
Tronox Holdings plc (TROX - Free Report) posted an adjusted loss of 51 cents per share for the second quarter of 2026, wider than the year-ago loss of 28 cents. The loss was also wider than the Zacks Consensus Estimate of a loss of 39 cents.
Revenues increased 19% year over year to $868 million and beat the consensus estimate of $848.8 million by 2.2%. Higher titanium dioxide (TiO2) and zircon volumes drove sales growth, although elevated production, freight and other costs weighed on profitability.
Tronox Holdings PLC Price, Consensus and EPS Surprise
Tronox Holdings PLC price-consensus-eps-surprise-chart | Tronox Holdings PLC Quote
TROX's Q2 Segment Highlights
TiO2 sales were $700 million in the reported quarter, up 19% year over year. TiO2 sales volumes increased 18%, while average selling prices, including mix, were flat and currency contributed 1%. Sequentially, TiO2 sales rose 14% as volumes increased 9% and price/mix improved 5%.
Zircon sales increased 43% year over year to $97 million. Sales volumes surged 61%, more than offsetting an 18% decline in average selling prices, including mix. Sequentially, zircon revenues increased 9%, supported by a 4% volume increase and a 5% improvement in price/mix.
Tronox's Financials
Cash and cash equivalents were $194 million as of June 30, 2026. Total debt stood at $3.2 billion, while net debt was $3 billion. Cash provided by operating activities was $105 million in the second quarter. Capital expenditures totaled $45 million, resulting in positive free cash flow of $60 million.
TROX's Outlook
For the third quarter of 2026, Tronox expects TiO2 volumes to decline sequentially in the mid-single-digit percentage range, consistent with normal seasonal patterns. Zircon volumes are expected to moderate slightly because of inventory availability after a strong first half.
TiO2 pricing is projected to rise sequentially in the mid-single-digit percentage range, while zircon pricing is expected to increase in the mid- to high-single-digit range.
Management forecasts adjusted EBITDA of $95-$115 million, with margins improving sequentially as pricing actions and higher operating rates provide support. Elevated input costs stemming from Middle East volatility are expected to partly offset these benefits.
Free cash flow is expected to be relatively neutral in the third quarter, while Tronox continues to target meaningful positive free cash flow for full-year 2026. Looking further ahead, the company expects the definitive feasibility study for its rare-earths cracking and leaching facility to conclude by the third quarter of 2027.
TROX Stock’s Price Performance
Shares of Tronox have risen 70.9% in the past year compared with the industry’s 4.8% growth.
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TROX’s Zacks Rank & Other Chemicals Releases
TROX currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Ashland Inc.’s (ASH - Free Report) adjusted earnings were $1.02 per share for the fiscal third quarter, down around 2% from the year-ago quarter’s figure of $1.04. The bottom line missed the Zacks Consensus Estimate of $1.03. For fiscal 2026, Ashland reaffirmed sales guidance of $1.835-$1.870 billion and adjusted EBITDA outlook of $385-$400 million.
Huntsman Corporation (HUN - Free Report) posted break-even earnings per share on an adjusted basis for the second quarter compared with a loss of 20 cents in the year-ago quarter. The Zacks Consensus Estimate of earnings was pegged at 6 cents per share. HUN expects to remain focused on additional price increases and cost-reduction initiatives to offset rising and volatile energy and crude oil-related costs, particularly in Europe.
Olin Corporation’s (OLN - Free Report) second-quarter adjusted earnings were 7 cents per share, in line with the Zacks Consensus Estimate. For the third quarter, Olin expects adjusted EBITDA in the range of $160 million to $200 million. OLN expects its Chemical businesses’ results to be comparable with second-quarter levels as lower operating rates at the Freeport vinyl chloride monomer facility and weaker ethylene dichloride pricing offset anticipated stronger caustic soda volumes.