Kronos Worldwide (KRO) Q4 2024 earnings summary

Executive summary

• Reported net loss of $13.2M ($0.12/share) in Q4 2024 vs. $5.3M ($0.05/share) loss in Q4 2023; full-year 2024 net income of $86.2M ($0.75/share) vs. $49.1M loss ($0.43/share) in 2023.

• Q4 net loss driven by $24.7M in non-cash deferred tax expenses; full-year net income aided by $64.5M non-cash gain from LPC acquisition remeasurement.

• Improved demand and higher production volumes in 2024, with cost reductions in energy and raw materials, offset by lower average TiO2 prices.

Financial highlights

• Q4 2024 net sales rose 6% year-over-year to $423.1M; full-year net sales up 13% to $1.89B.

• Q4 gross margin increased to $86.4M from $55.6M; full-year gross margin up to $359.3M from $164.9M.

• EBITDA for Q4 2024 was $41.7M vs. $6.9M in Q4 2023; full-year EBITDA $252.9M vs. $(7.2)M in 2023.

• Q4 income before taxes was $15.5M vs. $(9.4)M in Q4 2023; full-year income before taxes $149.6M vs. $(72.9)M.

Segment performance

• TiO2 segment profit in Q4 2024 was $33.1M vs. $(1.3)M in Q4 2023; full-year segment profit $141.0M vs. $(39.8)M.

• Production rates increased to 96% of capacity in 2024 from 72% in 2023; unabsorbed fixed costs fell to $12M from $96M.

• Q4 TiO2 sales volumes up 4% year-over-year; full-year volumes up 20%.

• Q4 average TiO2 prices up 2% year-over-year; full-year prices down 5%.

• Full-year segment profit includes $14M in non-cash charges for Canadian sulfate line closure and $2M for workforce reductions.