NYSE$TROX

Tronox Holdings PLC · Q2 2021 earnings

Q2 2021 earnings · · Investor relations

Briefing

Achieved record results driven by TiO2 volumes, revenue, EPS, Adjusted EBITDA, and free cash flow.

Tronox reported a strong second quarter with record revenue of $927 million, driven by higher TiO2 and zircon prices. The company generated $150 million in free cash flow and continued deleveraging efforts. Adjusted EBITDA was $237 million with a margin of 26 percent.

  • Record revenue of $927 million increased 4 percent sequentially.
  • GAAP earnings per share of $0.46; Adjusted diluted EPS of $0.61.
  • Generated a record $150 million in free cash flow.
  • Board declared a quarterly dividend of $0.10 per share.

Headline financials

Total Revenue

$927M

Previous: $578M+60.4%
EPS (adj)

$0.61

Previous: $0.03+1933.3%
Adjusted EBITDA

$237M

Previous: $142M+66.9%
Adjusted EBITDA Margin

26.0%

Previous: 25.0%+4.0%
Free Cash Flow

$73M

Previous: -$4M+1925.0%
Net Income

$73M

Previous: -$4M+1925.0%
Operating Income

$150M

Previous: $49M+206.1%
Gross Profit

$227M

Previous: $129M+76.0%
Cash & Equivalents

$303M

Previous: $722M-58.0%
Total Assets

$6.18B

Previous: $5.48B+12.8%
Stock-Based Comp

$7M

Previous: $2M+250.0%

Revenue & EPS history

Tronox · Revenue · Quarterly

$927M

Q2 2021+60.4%vs Q2 2020
Beat estimate in 11 of 16 quarters(69%)
ActualEstimate

Revenue by segment

Tronox · $861M total across 2 segments · Q2 2021

  • TiO2
    $740M+58.8%
  • Zircon
    $121M+77.9%

Forward guidance

Tronox anticipates TiO2 sales volumes to decline 5-10 percent sequentially, while zircon sales volumes are expected to remain elevated. Adjusted EBITDA is expected to increase to $245-$260 million, with price improvements offsetting lower sales volumes and increased production costs.

Tailwinds

  • TiO2 and zircon prices expected to continue to increase
  • Zircon sales volumes expected to remain elevated above 2019 and 2020 quarterly volume levels
  • Benefiting from sales from inventory
  • Zircon pricing improvement in the third quarter is expected to more than offset the volume headwind
  • Operational disruptions from the second quarter will roll off

Headwinds

  • TiO2 sales volumes expected to decline 5-10 percent sequentially from record second quarter levels, due to supplier and logistics constraints
  • Continued pressures on the cost side of the business from inflation and raw material price increases
  • Chlorine availability issues
  • Increased production costs
  • Anticipated lower sales volumes

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 2021

Historical avgQ2 2021

-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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