Tronox — Third Quarter 2026 Earnings Summary

Financial Performance

• Revenue was $827 million, an 18% increase year-over-year (YoY) and a 5% decrease quarter-over-quarter (QoQ).
• Income from operations was $12 million, compared to a loss of $43 million in Q3 2025.
• Net loss attributable to Tronox was $55 million ($0.34 per diluted share), compared to a net loss of $99 million ($0.63 per share) in Q3 2025.
• Adjusted net loss attributable to Tronox was $54 million ($0.34 per diluted share).
• Adjusted EBITDA was $101 million, a 36% YoY increase and a 38% QoQ increase, with a margin of 12.2% (up 160 basis points YoY and 380 basis points QoQ).
• Free cash flow was $5 million.
• Capital expenditures were $57 million.
• Total debt was $3.2 billion, with net debt of $3.1 billion and a net leverage ratio of 10.5x on a trailing twelve-month basis.
• Available liquidity totaled $509 million, including $136 million in cash and cash equivalents and $373 million available under revolving credit agreements.
• Selling, general and administrative expenses were $65 million; net interest expense was $55 million; depreciation, depletion and amortization was $76 million.

Guidance and Future Outlook

• Q4 2026 TiO2 volumes are expected to decline sequentially in the high-single to low double-digit percentage range, driven by seasonality.
• Q4 2026 zircon volume levels are expected to soften moderately sequentially due to inventory availability.
• Q4 2026 TiO2 pricing gains are expected to be sustained, while zircon pricing is expected to increase sequentially in the mid-single-digit percentage range.
• Q4 2026 Adjusted EBITDA is expected to be $80-$90 million.
• Q4 2026 free cash flow is expected to be a source of $20-$45 million.
• Full year 2026 free cash flow use is updated to $25-$50 million, revised from previous expectations due to the prolonged conflict in the Middle East causing raw material price headwinds and weaker sales volumes.
• The company plans to reduce anticipated capital expenditures by approximately $30 million for full year 2026.
• Cost improvement program is on track to deliver more than $175 million of run-rate savings by the end of 2026.

Business Segments and Product Lines

• TiO2 revenue was $653 million, up 19% YoY (driven by 10% volume increase and 9% price/mix increase) and down 7% QoQ (driven by 11% volume decrease offset by 4% price/mix increase).
• Zircon revenue was $93 million, up 58% YoY (driven by 49% volume increase and 9% price/mix increase) and down 4% QoQ (driven by 13% volume decrease offset by 9% price/mix increase).
• Other products revenue was $81 million, down 10% YoY and up 14% QoQ.
• Operational ramp-up of the Namakwa furnace and West Mine was completed to support customer demand and improve zircon inventory availability.
• Operating rates at the Yanbu pigment facility were impacted by unplanned downtime due to the temporary closure of Saudi Arabia's East-West natural gas pipeline; the site is back up and running.
• The company announced a cooperation and investment agreement with JX Advanced Metals to fund a 50/50 split of approximately $32 million for a feasibility study on an Australian cracking and leaching facility, a US refinery pre-feasibility study, and a US-based pilot facility for high-purity rare earth oxides.

Market and Competitive Landscape

• Pricing actions implemented in Q2 were successfully executed in Q3, supported by antidumping initiatives and evolving industry supply dynamics.
• The reinstatement of anti-dumping duties in India and the launch of the EU's anti-absorption investigation are viewed as steps toward a more level competitive environment.
• The company noted higher than anticipated raw material input costs, including natural gas, sulfur, and sulfuric acid, driven by the prolonged conflict in the Middle East.
• Demand was unfavorably impacted by broader macro uncertainty and supply chain disruptions in the third quarter.

Risks and Challenges

• The prolonged conflict in the Middle East is causing supply chain disruptions, higher raw material costs, and weaker demand.
• Macroeconomic conditions, global supply chain issues, and inflation-related challenges remain key risks.
• Geopolitical events, including conflicts in Eastern Europe and the Middle East, pose risks to operations and costs.
• Price volatility for titanium dioxide, zircon, and feedstock materials, as well as global economic downturns, could adversely affect demand.
• Potential disruptions in production at mining and manufacturing facilities remain a risk.

Management Commentary and Tone

• CEO John Romano stated the company strengthened its commercial position through pricing actions and noted sales prices remained resilient despite challenging demand.
• Management expressed encouragement regarding trade defense measures in India and the EU.
• The tone emphasized disciplined cash management, operational resilience (specifically at the Yanbu site), and a commitment to cost improvement targets for 2027 and 2028.
• Management highlighted that preserving financial flexibility to support customers, operations, and long-term strategic objectives remains a top priority.

Other Key Points

• The company has ample liquidity and does not expect to trigger the springing covenant on the US revolving credit facility; the next significant debt maturity is not until 2029.
• There are no financial covenants on the company's term loans or bonds.
• The company is actively managing inventory and the balance sheet to minimize adverse impacts from external influences.
• A webcast conference call was scheduled for November 5, 2026, at 9:00 AM ET.
• The company recorded a gain on the sale of Fuzhou in the nine-month period ended September 30, 2026, which was excluded from adjusted net loss.