Tronox (TROX) investor relations material

Executive summary

• Q3 2025 revenue declined 13% year-over-year to $699 million, driven by weak demand, destocking, and aggressive competitive pricing in TiO2 and zircon markets, with significant inventory liquidation by competitors and a temporary stay on India anti-dumping duties.

• Net loss attributable to shareholders was $99 million, including $27 million in restructuring and other charges, mainly from the Botlek plant closure; adjusted EBITDA was $74 million (margin 10.6%), down 48% year-over-year.

• Cost improvement initiatives are ahead of schedule, targeting $60 million in annualized savings by end of 2025 and $125–$175 million by end of 2026.

• Operational actions included idling of Fuzhou, Namakwa, and Stallingborough facilities, asset idling, and inventory management to enhance cash flow.

• Strategic focus on rare earths, including a 5% equity stake in Lion Rock Minerals, and leveraging anti-dumping duties in key markets for future growth.

Financial highlights

• Q3 2025 net sales were $699 million, down from $804 million in Q3 2024; gross profit was $52 million, with gross margin dropping to 7.4% from 15.9% a year ago.

• Net loss for Q3 2025 was $99 million; adjusted diluted loss per share was $0.46; free cash flow was negative $137 million, with $80 million in capital expenditures.

• TiO2 revenue fell 11% year-over-year to $550 million (volumes -8%, price -5%); zircon revenue declined 20% to $59 million (price -16%, volume -4%).

• Other products revenue dropped 21% year-over-year but rose 18% sequentially due to higher pig iron and mineral concentrate sales.

• Net debt at quarter-end was $3.0 billion; net leverage ratio rose to 7.5x trailing twelve-month adjusted EBITDA; available liquidity was $664 million, including $185 million in cash.

Outlook and guidance

• Q4 2025 revenue and adjusted EBITDA expected to be flat versus Q3, with TiO2 volumes up 3–5% and zircon volumes up 15–20% sequentially, but with further price declines.

• Cost improvement program to exceed $60 million run-rate savings by year-end; capital expenditures for 2025 expected at $330 million, dropping to less than $275 million in 2026.

• Positive free cash flow anticipated in Q4 2025 and 2026, with working capital expected to be a source of cash.

• Management expects sufficient liquidity for operating expenses, capex, interest, and debt repayments over the next twelve months, but may reduce capital spend if negative events impact liquidity.