Tronox (TROX) Q4 2025 earnings summary

Executive summary

• Achieved best safety performance in over a decade, with lowest injury rate in 2025 and exceeded Q4 volume expectations for TiO2 and zircon.

• Finished 2025 with stronger TiO2 and zircon volumes than anticipated, aided by anti-dumping measures and market share gains in India, Latin America, and Middle East.

• Announced closures of Fuzhou (China) and Botlek (Netherlands) pigment plants to streamline footprint and improve cost structure.

• Advanced rare earths strategy with conditional financing for an Australian facility and commenced mining at Fairbreeze, with commissioning of East OFS in South Africa.

• Executed cost improvement actions, targeting $125–$175 million in run-rate savings by end of 2026.

Financial highlights

• 2025 revenue was $2.9 billion, down 6% year-over-year due to unfavorable pricing, mix, and lower volumes in TiO2 and zircon.

• Loss from operations was $253 million; net loss attributable was $470 million, including $233 million in restructuring and other charges.

• Adjusted EBITDA was $336 million (11.6% margin), down 40% year-over-year; Q4 adjusted EBITDA was $57 million (7.8% margin), down 56% year-over-year.

• Free cash flow was a use of $281 million for the year, with Q4 free cash flow positive at $53 million.

• Returned $48 million to shareholders via dividends in 2025.

Outlook and guidance

• Expect positive free cash flow in 2026, with Q1 adjusted EBITDA guidance of $55–$65 million.

• TiO2 and zircon volumes expected to be flat sequentially in Q1 2026; TiO2 pricing to increase 2–4%, zircon pricing flat with Q2 increase announced.

• CapEx for 2026 expected to be ~$260 million, down from 2025; working capital expected to be a source of over $100 million.

• Long-term net leverage ratio target set below 3.0x as market recovers.