TROX Q2 Earnings Miss Estimates on Higher Costs, Sales Beat

TROX's Q2 Segment Highlights

TiO2 sales were $700 million in the reported quarter, up 19% year over year. TiO2 sales volumes increased 18%, while average selling prices, including mix, were flat and currency contributed 1%. Sequentially, TiO2 sales rose 14% as volumes increased 9% and price/mix improved 5%.

Zircon sales increased 43% year over year to $97 million. Sales volumes surged 61%, more than offsetting an 18% decline in average selling prices, including mix. Sequentially, zircon revenues increased 9%, supported by a 4% volume increase and a 5% improvement in price/mix.

Tronox's Financials

Cash and cash equivalents were $194 million as of June 30, 2026. Total debt stood at $3.2 billion, while net debt was $3 billion. Cash provided by operating activities was $105 million in the second quarter. Capital expenditures totaled $45 million, resulting in positive free cash flow of $60 million.

TROX's Outlook

For the third quarter of 2026, Tronox expects TiO2 volumes to decline sequentially in the mid-single-digit percentage range, consistent with normal seasonal patterns. Zircon volumes are expected to moderate slightly because of inventory availability after a strong first half.

TiO2 pricing is projected to rise sequentially in the mid-single-digit percentage range, while zircon pricing is expected to increase in the mid- to high-single-digit range.

Management forecasts adjusted EBITDA of $95-$115 million, with margins improving sequentially as pricing actions and higher operating rates provide support. Elevated input costs stemming from Middle East volatility are expected to partly offset these benefits.

Free cash flow is expected to be relatively neutral in the third quarter, while Tronox continues to target meaningful positive free cash flow for full-year 2026. Looking further ahead, the company expects the definitive feasibility study for its rare-earths cracking and leaching facility to conclude by the third quarter of 2027.

TROX Stock’s Price Performance

Shares of Tronox have risen 70.9% in the past year compared with the industry’s 4.8% growth.

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TROX’s Zacks Rank & Other Chemicals Releases

TROX currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here. 

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