NYSE$TROX

Tronox Holdings PLC · Q2 2020 earnings

Q2 2020 earnings · · Investor relations

Briefing

Tronox reported financial results impacted by COVID-19 and maintained strong margins.

Tronox reported revenue of $578 million for the second quarter 2020, a decrease of 30 percent compared to second quarter 2019 revenues of $827 million on a pro forma basis. Net loss attributable to Tronox was $4 million, or $0.03 per diluted share. Adjusted EBITDA of $142 million decreased 29 percent compared to $200 million on a pro forma basis in the prior-year quarter.

  • Revenue of $578 million.
  • Income from operations of $49 million; Net loss of $4 million.
  • Adjusted EBITDA of $142 million; Adjusted EBITDA margin of 25 percent.
  • GAAP diluted loss per share of $0.03; Adjusted diluted EPS of $0.03.

Headline financials

Total Revenue

$578M

Previous: $791M-26.9%
EPS (adj)

$0.03

Previous: $0.26-88.5%
Adjusted EBITDA

$142M

Previous: $195M-27.2%
Adjusted EBITDA Margin

25.0%

No prior period
Free Cash Flow

-$4M

Previous: -$62M+93.5%
Net Income

-$4M

Previous: -$62M+93.5%
Operating Income

$49M

Previous: -$13M+476.9%
Gross Profit

$129M

Previous: $100M+29.0%
Cash & Equivalents

$722M

Previous: $397M+81.9%
Total Assets

$5.48B

Previous: $5.42B+1.2%
Stock-Based Comp

$2M

Previous: $7M-71.4%

Revenue & EPS history

Tronox · Revenue · Quarterly

$578M

Q2 2020-26.9%vs Q2 2019
Beat estimate in 10 of 15 quarters(67%)
ActualEstimate

Revenue by segment

Tronox · $534M total across 2 segments · Q2 2020

  • TiO2
    $466M-25.4%
  • Zircon
    $68M-22.7%

Forward guidance

Tronox anticipates TiO2 volumes to continue to improve in the third quarter relative to the second quarter and for the zircon market to remain relatively stable as compared to the last several quarters.

Tailwinds

  • TiO2 volumes to continue to improve in the third quarter relative to the second quarter
  • Zircon market to remain relatively stable as compared to the last several quarters
  • Confident in ability to generate strong free cash flow for the year
  • Available liquidity of over $1.1 billion is more than sufficient to fund the TTI acquisition and support our business
  • Amendment of the Jazan TSA will allow Tronox to increase technical and managerial resources devoted to the project as it continues to advance towards sustainable operations late in 2021.

Headwinds

  • The timing of re-opening of economies across the globe remains uncertain and subject to week-by-week developments
  • TiO2 sales volumes declined 19 percent, consistent with previously issued Q2 outlook
  • Selling prices were level sequentially
  • Feedstock and other products sales decreased 43 percent sequentially, primarily due to the lack of mandated shipments of CP slag in the quarter and lower sales volumes of pig iron
  • COVID-19 pandemic continues to cause global macroeconomic uncertainty

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 Q2 2020

Historical avgQ2 2020

-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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