Tronox (TROX) Q1 2025 earnings summary

Executive summary

• Q1 2025 revenue was $738 million, up 9% sequentially but down 5% year-over-year, driven by a 12% sequential increase in TiO2 volumes led by Europe and North America, while zircon volumes and prices declined, especially in China.

• Net loss was $111 million, including $86–$87 million in restructuring charges from the idling of the Botlek pigment plant in the Netherlands.

• Adjusted EBITDA was $112 million (15.2% margin), down 15% year-over-year and 13% sequentially.

• Strategic cost actions, including the Botlek plant idling and a cost improvement program targeting $125–175 million in sustainable savings by end of 2026, are expected to improve free cash flow and EBITDA from 2025 onward.

Financial highlights

• Revenue was $738 million (up 9% sequentially, down 5% year-over-year); TiO2 sales up 12% sequentially, down 1% year-over-year; zircon sales down 6% sequentially, 15% year-over-year.

• Net loss was $111 million, including $86–$87 million in restructuring charges; adjusted diluted loss per share was $0.15.

• Adjusted EBITDA was $112 million (15.2% margin), down from $131 million year-over-year and $129 million prior quarter.

• Free cash flow was negative $142 million, with $110 million in capital expenditures.

• Liquidity stood at $443 million, including $138 million in cash.

Outlook and guidance

• 2025 revenue guidance maintained at $3.0–$3.4 billion; adjusted EBITDA expected at $525–$625 million; free cash flow for 2025 expected to be at least $50 million.

• Capital expenditures for 2025 reduced to less than $365 million.

• Second half of 2025 anticipated to be stronger, with volume and pricing improvements, especially as anti-dumping duties take effect in Europe, India, and Brazil.

• Cost improvement program targets $125–$175 million in sustainable run-rate savings by end of 2026.