NYSE$TROX

Tronox Holdings PLC · Q1 2023 earnings

Q1 2023 earnings · · Investor relations

Briefing

Tronox's first quarter results exceeded expectations due to favorable exchange rates and cost management, despite softer end-market demand. Sequentially, TiO2 volumes improved and average selling prices increased.

Tronox reported a revenue of $708 million, net income of $25 million, and EPS of $0.15 for Q1 2023. The company exceeded its adjusted EBITDA guidance due to favorable exchange rates and cost management. They anticipate Q2 adjusted EBITDA to be $160-170 million.

  • Revenue decreased by 27% year-over-year to $708 million.
  • Net income was $25 million, with diluted EPS of $0.15.
  • Adjusted EBITDA was $146 million, exceeding guidance.
  • TiO2 volumes increased 14% sequentially.

Headline financials

Total Revenue

$708M

Previous: $965M-26.6%
EPS (adj)

$0.15

Previous: $0.60-75.0%
Adjusted EBITDA Margin

20.6%

Previous: 24.9%-17.3%
Free Cash Flow

$23M

Previous: $16M+43.8%
Net Income

$23M

Previous: $16M+43.8%
Operating Income

$62M

Previous: $69M-10.1%
Gross Profit

$133M

Previous: $232M-42.7%
Cash & Equivalents

$115M

Previous: $292M-60.6%
Total Assets

$6.36B

Previous: $6.22B+2.3%

Revenue & EPS history

Tronox · Revenue · Quarterly

$708M

Q1 2023-26.6%vs Q1 2022
Beat estimate in 6 of 15 quarters(40%)
ActualEstimate

Revenue by segment

Tronox · $632M total across 2 segments · Q1 2023

  • TiO2
    $560M-27.6%
  • Zircon
    $72M-33.3%

Forward guidance

The company expects second quarter pigment volumes to increase in the mid- to high-teens range compared to first quarter 2023, driven by continued demand improvement across all regions. For the second quarter 2023, they anticipate generating an Adjusted EBITDA of $160-170 million, primarily as a result of improved TiO2 and zircon volumes, partially offset by unfavorable product mix impacts and higher costs at our mining sites including increased energy costs in South Africa and higher hauling costs in Australia.

Tailwinds

  • Pigment volumes are expected to increase in the mid- to high-teens range compared to Q1 2023.
  • Demand is expected to improve across all regions.
  • Adjusted EBITDA is projected to be $160-170 million.
  • Improved TiO2 and zircon volumes expected.
  • Upgrading operations at KZN in South Africa are back to full utilization.

Headwinds

  • Unfavorable product mix impacts are expected.
  • Higher costs are anticipated at mining sites.
  • Increased energy costs in South Africa are expected.
  • Higher hauling costs in Australia are expected.
  • Macroeconomic conditions, global supply chain, and inflation-related challenges.

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 2023

Historical avgQ1 2023

-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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