NYSE$TROX

Tronox Holdings PLC · Q2 2022 earnings

Q2 2022 earnings · · Investor relations

Briefing

Delivered record earnings and strong margin performance

Tronox reported a revenue of $945 million, a 2% increase compared to the prior year, driven by higher revenue from TiO2. Net income was $375 million, which includes a $262 million non-cash benefit from the reversal of a portion of the valuation allowance in Australia. Adjusted EBITDA was $275 million with a margin of 29.1%.

  • Revenue increased by 2% year-over-year to $945 million, driven by higher TiO2 revenue.
  • Net income reached $375 million, including a $262 million non-cash benefit from an Australian valuation allowance reversal.
  • GAAP diluted EPS was $2.37, and adjusted diluted EPS was $0.84.
  • Adjusted EBITDA was $275 million, with an Adjusted EBITDA margin of 29.1%.

Headline financials

Total Revenue

$945M

Previous: $927M+1.9%
EPS (adj)

$0.84

Previous: $0.61+37.7%
Adjusted EBITDA

$275M

Previous: $237M+16.0%
Adjusted EBITDA Margin

29.1%

Previous: 26.0%+11.9%
Free Cash Flow

$375M

Previous: $73M+413.7%
Net Income

$375M

Previous: $73M+413.7%
Operating Income

$190M

Previous: $150M+26.7%
Gross Profit

$263M

Previous: $227M+15.9%
Cash & Equivalents

$112M

Previous: $303M-63.0%
Total Assets

$6.22B

Previous: $6.18B+0.6%
Stock-Based Comp

$7M

Previous: $7M+0.0%

Revenue & EPS history

Tronox · Revenue · Quarterly

$945M

Q2 2022+1.9%vs Q2 2021
Beat estimate in 6 of 15 quarters(40%)
ActualEstimate

Revenue by segment

Tronox · $880M total across 2 segments · Q2 2022

  • TiO2
    $769M+3.9%
  • Zircon
    $111M-8.3%

Forward guidance

Tronox anticipates relatively flat TiO2 volumes sequentially and an Adjusted EBITDA between $275 million and $295 million for Q3 2022.

Tailwinds

  • Q3 2022 TiO2 volumes expected to be relatively flat sequentially
  • Q3 2022 Adjusted EBITDA expected to be $275-$295 million
  • Reaffirm FY 2022 outlook from Investor Day: Adjusted EBITDA of $1.075 billion to $1.125 billion
  • Reaffirm FY 2022 outlook from Investor Day: Adjusted EPS of $3.15 to $3.591
  • Reaffirm FY 2022 outlook from Investor Day: Free cash flow greater than or equal to $300 million

Headwinds

  • Outlook is based on Tronox's views on current global economic activity and is subject to changes and impacts associated with the macroeconomic conditions
  • Outlook is subject to changes and impacts associated with global supply chain
  • Outlook is subject to changes and impacts associated with inflation-related challenges
  • Company's guidance with respect to third quarter 2022 and full year 2022 non-GAAP measures, we are not able to provide without unreasonable effort the most directly comparable GAAP financial measure, or reconciliation to such GAAP financial measure
  • Certain items that impact such measures are uncertain, out of the Company's control or cannot be reasonably predicted.

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 2022

Historical avgQ2 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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