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Why Is Tronox (TROX) Down 29.8% Since Last Earnings Report?
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It has been about a month since the last earnings report for Tronox (TROX - Free Report) . Shares have lost about 29.8% in that time frame, underperforming the S&P 500.
But investors have to be wondering, will the recent negative trend continue leading up to its next earnings release, or is Tronox due for a breakout? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at its latest earnings report in order to get a better handle on the important catalysts.
Tronox’s Q2 Earnings Miss Estimates on Higher Costs, Sales Beat
Tronox 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 TiO2 and zircon volumes drove sales growth, although elevated production, freight and other costs weighed on profitability.
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.
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.
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.
How Have Estimates Been Moving Since Then?
It turns out, estimates review have trended downward during the past month.
The consensus estimate has shifted -58.21% due to these changes.
VGM Scores
Currently, Tronox has a average Growth Score of C, though it is lagging a bit on the Momentum Score front with a D. Charting a somewhat similar path, the stock has a grade 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 C. If you aren't focused on one strategy, this score is the one you should be interested in.
Outlook
Estimates have been broadly trending downward for the stock, and the magnitude of these revisions indicates a downward shift. Interestingly, Tronox has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.
Performance of an Industry Player
Tronox is part of the Zacks Chemical - Diversified industry. Over the past month, Air Products and Chemicals (APD - Free Report) , a stock from the same industry, has gained 1.4%. The company reported its results for the quarter ended June 2026 more than a month ago.
Air Products and Chemicals reported revenues of $3.16 billion in the last reported quarter, representing a year-over-year change of +4.6%. EPS of $3.47 for the same period compares with $3.09 a year ago.
For the current quarter, Air Products and Chemicals is expected to post earnings of $3.60 per share, indicating a change of +6.2% from the year-ago quarter. The Zacks Consensus Estimate has changed +0.4% over the last 30 days.
The overall direction and magnitude of estimate revisions translate into a Zacks Rank #3 (Hold) for Air Products and Chemicals. Also, the stock has a VGM Score of C.
View the Zacks #1 Rank List
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Why Is Tronox (TROX) Down 29.8% Since Last Earnings Report?
It has been about a month since the last earnings report for Tronox (TROX - Free Report) . Shares have lost about 29.8% in that time frame, underperforming the S&P 500.
But investors have to be wondering, will the recent negative trend continue leading up to its next earnings release, or is Tronox due for a breakout? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at its latest earnings report in order to get a better handle on the important catalysts.
Tronox’s Q2 Earnings Miss Estimates on Higher Costs, Sales Beat
Tronox 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 TiO2 and zircon volumes drove sales growth, although elevated production, freight and other costs weighed on profitability.
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.
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.
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.
How Have Estimates Been Moving Since Then?
It turns out, estimates review have trended downward during the past month.
The consensus estimate has shifted -58.21% due to these changes.
VGM Scores
Currently, Tronox has a average Growth Score of C, though it is lagging a bit on the Momentum Score front with a D. Charting a somewhat similar path, the stock has a grade 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 C. If you aren't focused on one strategy, this score is the one you should be interested in.
Outlook
Estimates have been broadly trending downward for the stock, and the magnitude of these revisions indicates a downward shift. Interestingly, Tronox has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.
Performance of an Industry Player
Tronox is part of the Zacks Chemical - Diversified industry. Over the past month, Air Products and Chemicals (APD - Free Report) , a stock from the same industry, has gained 1.4%. The company reported its results for the quarter ended June 2026 more than a month ago.
Air Products and Chemicals reported revenues of $3.16 billion in the last reported quarter, representing a year-over-year change of +4.6%. EPS of $3.47 for the same period compares with $3.09 a year ago.
For the current quarter, Air Products and Chemicals is expected to post earnings of $3.60 per share, indicating a change of +6.2% from the year-ago quarter. The Zacks Consensus Estimate has changed +0.4% over the last 30 days.
The overall direction and magnitude of estimate revisions translate into a Zacks Rank #3 (Hold) for Air Products and Chemicals. Also, the stock has a VGM Score of C.