GICS Sector : Basic Materials
Tronox Holdings plc operates as a vertically integrated manufacturer of TiO2 pigment in North America, South and Central America, Europe, the Middle East, Africa, and the Asia Pacific.The company operates titanium-bearing mineral sand mines; and engages in beneficiation and smelting operations.It offers TiO2 pigment; ultrafine specialty TiO2; zircon; feedstock; pig iron; titanium tetrachloride; and other products.
Tronox Holdings reported revenue of $699 million for Q3 2025, a 13% decrease compared to the prior year third quarter, driven by lower sales volumes and unfavorable pricing for both TiO2 and zircon. The company reported a net loss attributable to Tronox of $99 million and adjusted EBITDA of $74 million. The actual EPS came out at -$0.46, missing estimates of -$0.21. The company's financial performance was impacted by weaker demand, downstream destocking, and heightened competitive dynamics in the TiO2 and zircon markets.
Publication Date: Nov -15
The company has taken proactive steps to manage its cash flow, including idling its Fuzhou pigment plant, adjustments at its Stallingborough pigment plant, and shutting down its West mine. These efforts are expected to generate an estimated cash benefit of $25 million to $30 million in the fourth quarter and position the company for free cash flow in the fourth quarter and 2026. As John Romano mentioned, "We're taking steps to preserve cash, including idling assets and reducing capital expenditures."
The company's updated outlook for the fourth quarter is for revenue and adjusted EBITDA to be relatively flat to Q3 of '25. Analysts estimate next year's revenue growth at 3.1%. With a P/S Ratio of 0.18 and EV/EBITDA of 12.14, the stock appears to be undervalued. However, the Net Debt / EBITDA ratio of 10.34 raises concerns about the company's debt levels. The company's focus on cost reduction and cash preservation is expected to drive free cash flow positivity in 2026.
The company is making progress in its rare earth strategy, including mining monazite in Australia and South Africa and processing it for downstream use. The company has taken a 5% equity interest in Lion Rock Minerals, a mineral exploration company, to support its rare earth strategy. Additionally, the company is expecting a positive outcome on the reinstatement of antidumping duties in India, which is expected to benefit its TiO2 business.
The company's liquidity as of September 30 was $664 million, including $185 million in cash and cash equivalents. The company's net debt was $3.0 billion, and its weighted average interest rate was 6%. With a Dividend Yield of 10.39%, the stock may be attractive to income investors. However, the ROE of -14.3% and ROIC of -10.55% raise concerns about the company's profitability.
Tronox (TROX) Q4 Earnings: Taking a Look at Key Metrics Versus Estimates
00:01
Tronox (TROX) Reports Q4 Loss, Misses Revenue Estimates
Feb -18
Tronox Reports Fourth Quarter and Full Year 2025 Financial Results
Feb -18
Tronox Declares First Quarter 2026 Dividend
Feb -11
Tronox Holdings PLC (NYSE:TROX) Given Average Rating of “Hold” by Analysts
Feb -02
Tronox Announces Dates for Fourth Quarter 2025 Earnings Release & Webcast Conference Call
Jan -26
Tronox Announces Closure of its Pigment Plant in China and Releases Selected Preliminary Fourth Quarter 2025 Financial Results
Jan -26
Stone House Investment Management, LLC Buys 265 Shares of Tronox Holdings PLC (TROX)
Jan -21
Tronox Holdings plc's Titanium Dioxide segment growth is driven by increasing demand from the coatings and plastics industries, supported by infrastructure development and urbanization in emerging markets. Additionally, the company's cost leadership, vertical integration, and strategic acquisitions contribute to its growth, with an expected 8% growth rate.
Tronox Holdings plc's 'Other' segment growth is driven by increasing demand for titanium dioxide in emerging markets, expansion into new geographies, and strategic acquisitions. Additionally, the company's focus on operational efficiency, cost savings, and product innovation also contribute to its growth.
Tronox Holdings plc's Zircon segment growth is driven by increasing demand from ceramics and foundry markets, coupled with supply constraints and rising prices. Additionally, the company's vertical integration, cost savings initiatives, and strategic acquisitions contribute to its growth momentum, resulting in a 6% growth rate.
A pigment used in coatings, plastics, and paper to provide opacity and brightness.
A mineral used in ceramics, foundry, and refractory applications.
A raw material used in the production of titanium dioxide.
A mixture of minerals used in various industrial applications.
Tronox Holdings plc operates in the mining and manufacturing of titanium dioxide pigment, which has few substitutes. However, the company faces competition from other titanium dioxide producers, which could lead to a moderate threat of substitutes.
Tronox Holdings plc has a diverse customer base, which reduces the bargaining power of individual customers. Additionally, the company's products are essential to its customers' production processes, making it difficult for customers to switch suppliers.
Tronox Holdings plc relies on a few key suppliers for raw materials, which gives these suppliers some bargaining power. However, the company's large scale of operations and diversified supply chain mitigate this risk.
The titanium dioxide industry has high barriers to entry, including significant capital requirements and environmental regulations. This makes it difficult for new entrants to join the market, reducing the threat of new entrants.
The titanium dioxide industry is highly competitive, with several large players competing for market share. This intense rivalry leads to pricing pressure and high marketing expenses for Tronox Holdings plc.
| Value | |
|---|---|
| Debt Weight | 59.53% |
| Debt Cost | 3.95% |
| Equity Weight | 40.47% |
| Equity Cost | 13.43% |
| WACC | 7.78% |
| Leverage | 147.11% |
Value: 6.8
Growth: 5.8
Quality: 7.1
Yield: 5.0
Momentum: 3.5
Volatility: 7.3
1-Year Total Return ->
Value: 6.2
Growth: 6.4
Quality: 5.8
Yield: 3.0
Momentum: 2.5
Volatility: 7.7
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Value: 5.0
Growth: 4.1
Quality: 4.8
Yield: 3.0
Momentum: 1.0
Volatility: 9.0
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Value: 7.5
Growth: 1.4
Quality: 2.3
Yield: 9.0
Momentum: 0.0
Volatility: 4.3
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Value: 9.0
Growth: 3.0
Quality: 1.4
Yield: 8.0
Momentum: 0.0
Volatility: 1.3
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Value: 9.4
Growth: 3.1
Quality: 3.2
Yield: 2.0
Momentum: 1.0
Volatility: 3.0
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