Kronos Worldwide (KRO) Q2 2025 earnings summary

Executive summary

• Reported a net loss of $9.2 million in Q2 2025 versus net income of $19.5 million in Q2 2024; six-month net income was $8.9 million, down from $27.6 million year-over-year.

• Lower production volumes, higher unabsorbed fixed costs, and increased distribution and warehousing expenses drove the decline.

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

• Results for 2025 include full consolidation of LPC; integration is expected to yield long-term synergies but near-term impact is limited by soft demand and higher debt service.

Financial highlights

• Q2 2025 net sales were $494.4 million, down 1% from Q2 2024; six-month net sales rose 1% to $984.2 million.

• Gross margin declined to $62.8 million (12.7% of net sales) in Q2 2025 from $100.2 million (20.0%) in Q2 2024.

• Segment profit dropped to $10.9 million in Q2 2025 from $41.1 million in Q2 2024; six-month segment profit was $52.5 million, down from $64.5 million.

• EBITDA for Q2 2025 was $22.2 million, down from $56.2 million in Q2 2024; six-month EBITDA was $73.4 million, down from $87.9 million.

• Q2 2025 production volumes were 125k metric tons, down from 137k in Q2 2024; sales volumes were 132k metric tons, down from 134k.

Outlook and guidance

• Demand weakened in Q2 2025 across all major markets, with customers hesitant to build inventory amid tariff and trade uncertainties.

• Operating rates were reduced in response to lower demand; facilities will continue to operate in line with demand as inventory is sold down.

• TiO2 selling prices remained stable but are under downward pressure due to soft demand and high availability; average prices declined 4% in the first six months of 2025.

• Cost reduction initiatives and lower input costs are expected to benefit results in the second half of 2025, but full-year operating results are projected to be lower than 2024.

• Increased credit facility to $350 million in July 2025 to support liquidity and near-term debt maturities.