Tronox (TROX) Q1 2026 earnings summary

Executive summary

• Revenue rose 3% year-over-year to $760 million, driven by higher TiO2 and zircon volumes, partially offset by lower average selling prices and reduced pig iron sales.

• Adjusted EBITDA was $62 million, down 45% year-over-year but up 9% sequentially, with margin at 8.2%.

• Net loss attributable to shareholders was $103 million, including $14–$15 million in restructuring charges related to Botlek and Fuzhou closures.

• Strong commercial execution, global footprint, and rare earths strategy progress supported performance despite geopolitical and cost headwinds.

• Inventory reduction of ~$75 million and AR facility upsizing supported liquidity.

Financial highlights

• Adjusted EBITDA margin was 8.2%, down from 15.2% a year ago.

• Free cash flow was a use of $135 million in Q1, with positive free cash flow expected for Q2 and full year.

• Capital expenditures totaled $67 million, mainly for maintenance and safety.

• Total debt stood at $3.3 billion, net debt at $3.2 billion, with liquidity of $406 million.

• Working capital was a $59 million use, excluding $19 million in restructuring payments.

Outlook and guidance

• Q2 2026 TiO2 volumes expected to increase high single digits sequentially; zircon volumes to moderate slightly.

• Pricing for both TiO2 and zircon anticipated to rise mid-single digits sequentially.

• Q2 adjusted EBITDA guidance: $65–$85 million, with $10–$15 million cost headwind from planned outages.

• Full-year 2026 expected to deliver meaningful positive free cash flow, with working capital as a major source.

• Capital expenditures for 2026 projected at $260 million; net cash interest ~$190 million.