NYSE$TROX

Tronox Holdings PLC · Q1 2022 earnings

Q1 2022 earnings · · Investor relations

Briefing

Tronox reported solid first quarter results driven by higher revenue from TiO2 and pig iron, while overcoming higher costs and logistics constraints.

Tronox's first quarter 2022 results showed an 8% increase in revenue to $965 million compared to the prior year, driven by higher revenue from TiO2 and pig iron. The company's adjusted diluted EPS was $0.60, and it generated $86 million in free cash flow. The company is reaffirming its 2022 Adjusted EBITDA and adjusted diluted EPS guidance, but adjusting 2022 free cash flow lower to reflect the settlement.

  • Revenue increased by 8% year-over-year to $965 million, driven by higher TiO2 and pig iron revenue.
  • GAAP diluted EPS was $0.10, and adjusted diluted EPS was $0.60.
  • Adjusted EBITDA was $240 million with a margin of 24.9%.
  • Free cash flow was $86 million after capital expenditures of $103 million.

Headline financials

Total Revenue

$965M

Previous: $891M+8.3%
EPS (adj)

$0.60

Previous: $0.43+39.5%
Adjusted EBITDA Margin

24.9%

Previous: 25.0%-0.4%
Free Cash Flow

$16M

Previous: $19M-15.8%
Net Income

$16M

Previous: $19M-15.8%
Operating Income

$69M

Previous: $125M-44.8%
Gross Profit

$232M

Previous: $206M+12.6%
Cash & Equivalents

$292M

Previous: $759M-61.5%
Total Assets

$6.22B

Previous: $6.62B-6.2%
Stock-Based Comp

$7M

Previous: $9M-22.2%

Revenue & EPS history

Tronox · Revenue · Quarterly

$965M

Q1 2022+8.3%vs Q1 2021
Beat estimate in 10 of 16 quarters(63%)
ActualEstimate

Revenue by segment

Tronox · $881M total across 2 segments · Q1 2022

  • TiO2
    $773M+11.1%
  • Zircon
    $108M-12.2%

Forward guidance

The 2022 outlook reflects continued solid demand as well as persistent macro challenges including inflation and supply chain disruptions.

Tailwinds

  • Reaffirming Adjusted EBITDA guided range at $1.025-$1.125 billion
  • Reaffirming Adjusted diluted EPS guided range at $3.08 to $3.59

Headwinds

  • Adjusting free cash flow expectation lower to at least $265 million, reflecting the settlement ($85 million), increased 2022 capital expenditures ($25 million) and increased working capital requirements ($25 million)

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 20 quarterly earnings reports · overlaid with Q1 2022

Historical avgQ1 2022

-0.8%

Avg return

Earnings day

+0.3%

Avg return

5 days after

+2.3%

Avg return

30 days after

49%

30 / 61 earnings

Positive

+33.8%

Q4 2016

Best reaction

-20.8%

Q3 2015

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q1 2026+3.3%+4.3%-13.2%
Q4 2025-10.5%+3.6%+0.9%
Q3 2025-0.6%+9.1%+20.4%
Q1 2025+1.5%-1.8%+5.0%
Q4 2024-11.0%-18.4%-28.0%
Q3 2024-7.5%-9.9%-8.4%
Q2 2024-17.6%-16.8%-13.8%
Q1 2024+12.9%+10.2%+16.6%
Q4 2023+9.8%+12.7%+25.0%
Q3 2023+2.7%+0.5%+20.1%
Q2 2023-4.3%-10.0%-15.6%
Q1 2023-0.4%+7.1%-9.7%
Q4 2022-3.2%-2.9%-19.9%
Q3 2022-6.8%-11.0%+5.4%
Q2 2022-0.6%-4.3%-5.8%
Q1 2022-1.6%-4.6%+1.3%
Q4 2021-6.7%-9.9%-13.1%
Q3 2021-9.1%-5.6%-8.6%
Q2 2021+1.9%-3.0%+19.2%
Q1 2021+0.3%+1.0%+7.0%
Q4 2020-2.9%+7.0%-4.1%
Q3 2020+5.8%+17.1%+37.8%
Q2 2020-2.4%-1.0%+18.5%
Q1 2020-8.4%+3.5%+24.2%
Q4 2019-12.0%-16.7%-30.2%
Q3 2019+2.9%+6.4%+5.3%
Q2 2019-2.3%-6.4%-12.1%
Q1 2019-6.1%-9.3%-8.4%
Q4 2018+2.2%+1.4%+13.7%
Q3 2018+5.2%+3.4%-17.5%
Q2 2018-8.9%-7.7%-12.2%
Q1 2018+1.4%+0.1%+9.1%
Q4 2017+8.3%+9.4%+0.9%
Q3 2017+1.9%+3.5%-24.6%
Q2 2017-1.8%-1.5%+9.9%
Q1 2017-6.2%-4.3%-8.0%
Q4 2016+33.8%+20.7%+15.5%
Q3 2016+3.1%+17.2%+36.0%
Q2 2016+6.9%+19.1%+50.4%
Q1 2016-5.4%
Q4 2015+8.3%
Q3 2015-20.8%
Q2 2015+2.2%
Q1 2015-6.0%
Q4 2014-3.7%
Q3 2014+4.1%
Q2 2014+6.5%
Q1 2014-5.9%
Q4 2013+14.3%
Q3 2013+0.6%
Q2 2013+2.9%
Q1 2012+0.5%
Q1 2013+1.5%
Q4 2012+2.5%
Q3 2012-18.6%
Q2 2012-2.4%
Q4 2011+2.5%
Q3 2011-8.2%
Q2 2011+5.2%
Q1 2011+0.7%
Q4 2010+0.0%
Q3 2010
Q2 2010

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