Kronos Worldwide (KRO) investor relations material

Executive summary

• Reported a net loss of $37.0 million ($0.32/share) in Q3 2025 versus net income of $71.8 million ($0.62/share) in Q3 2024; nine-month net loss was $28.1 million compared to net income of $99.4 million in the prior year period.

• Losses were driven by lower TiO2 selling prices and volumes, reduced absorption of fixed costs, higher distribution and warehousing costs, and a $19.3 million non-cash deferred tax expense from German tax law changes.

• Q3 2024 included a $64.5 million non-cash gain from the remeasurement of a joint venture investment; Q3 2025 included a $4.6 million non-cash gain from earn-out liability remeasurement and a $19.3 million deferred tax expense due to German tax rate changes.

• Acquisition of the remaining 50% interest in Louisiana Pigment Company (LPC) completed in July 2024, making it a wholly-owned subsidiary.

Financial highlights

• Q3 2025 net sales decreased 6% year-over-year to $456.9 million; nine-month net sales decreased 2% to $1,441.1 million.

• Gross margin fell to $47.0 million (10.3%) in Q3 2025 from $101.2 million (20.9%) in Q3 2024; nine-month gross margin was $216.6 million, down from $272.9 million.

• EBITDA for Q3 2025 was $0.6 million, down from $123.3 million in Q3 2024; nine-month EBITDA was $74.0 million, down from $211.2 million.

• Segment profit turned to a loss of $15.3 million in Q3 2025 from a profit of $43.4 million in Q3 2024; nine-month segment profit declined to $37.2 million from $107.9 million.

• Interest expense increased to $14.1 million in Q3 2025, up from $11.8 million in Q3 2024.

Outlook and guidance

• Demand remains weak with no near-term improvement expected; further operating rate reductions planned in Q4 2025 to align inventory with demand.

• Cost reduction initiatives, including workforce reductions and supplier renegotiations, are underway to improve long-term cost structure.

• Expectation of lower operating results in Q4 and for full-year 2025 compared to 2024 due to continued weak demand and pricing pressure.

• Market share opportunities may arise from competitor capacity reductions and anti-dumping duties in various jurisdictions.

• Management notes ongoing global uncertainty due to U.S. trade policies, geopolitical tensions, and customer hesitancy to build inventories, prolonging the market downturn.