Tronox (TROX) Q2 2026 earnings summary

Executive summary

• Revenue rose 19% year-over-year to $868 million in Q2 2026, driven by strong TiO2 and zircon volumes, with TiO2 at the highest since Q2 2022 and zircon at the highest since Q4 2021, despite lower zircon prices and higher costs.

• Net loss attributable to shareholders was $171 million, mainly due to a $103 million deferred tax valuation allowance and higher interest costs.

• Adjusted EBITDA was $73 million (8.4% margin), down 22% year-over-year but up 18% sequentially.

• Free cash flow was $60 million, supported by significant inventory reduction and working capital efficiency, with liquidity at $527 million.

• Benefited from anti-dumping measures and customer preference for reliable supply, especially in India, supporting volume growth.

Financial highlights

• Revenue: $868 million (up 19% YoY, up 14% QoQ); TiO2 revenue $700 million (up 19% YoY); zircon revenue $97 million (up 43% YoY, 61% volume growth, 18% price decline).

• Net loss attributable to shareholders: $171 million, including a $103 million tax valuation allowance; adjusted diluted loss per share: $0.51.

• Adjusted EBITDA: $73 million (8.4% margin, down from 12.7% YoY, up 18% QoQ).

• Free cash flow: $60 million; capital expenditures: $45 million.

Outlook and guidance

• Q3 2026 TiO2 volumes expected to decline moderately due to seasonality; zircon volumes to moderate slightly due to inventory constraints.

• Sequential price increases for both TiO2 and zircon anticipated in Q3, with margins expected to improve; Q3 adjusted EBITDA guidance: $95–$115 million.

• Full-year 2026 outlook includes positive free cash flow, net cash interest ~$190 million, capex <$260 million, and working capital as a significant cash source.

• Cost improvement program on track for $125–$175 million annual run-rate savings by end of 2026.