NYSE$TROX

Tronox Holdings PLC · Q3 2021 earnings

Q3 2021 earnings · · Investor relations

Briefing

Achieved record adjusted EBITDA and free cash flow despite ongoing supply chain and inflationary challenges.

Tronox reported a revenue of $870 million, a 29% increase year-over-year. The company's adjusted EBITDA was $252 million with a margin of 29%. Free cash flow reached a record $191 million after $65 million in capital expenditures.

  • Revenue increased by 29% year over year, driven by higher TiO2, zircon and pig iron average selling prices and higher TiO2 and zircon volumes
  • Income from operations was $168 million and net income was $113 million
  • GAAP diluted EPS was $0.70 and adjusted diluted EPS was $0.72
  • Free cash flow reached a record $191 million after $65 million in capital expenditures

Headline financials

Total Revenue

$870M

Previous: $675M+28.9%
EPS (adj)

$0.72

Previous: $0.05+1340.0%
Free Cash Flow

$111M

Previous: $896M-87.6%
Net Income

$111M

Previous: $896M-87.6%
Operating Income

$168M

Previous: $49M+242.9%
Gross Profit

$244M

Previous: $139M+75.5%
Cash & Equivalents

$309M

Previous: $722M-57.2%
Total Assets

$6.04B

Previous: $6.48B-6.7%
Stock-Based Comp

$7M

Previous: $8M-12.5%

Revenue & EPS history

Tronox · Revenue · Quarterly

$870M

Q3 2021+28.9%vs Q3 2020
Beat estimate in 10 of 16 quarters(63%)
ActualEstimate

Revenue by segment

Tronox · $798M total across 2 segments · Q3 2021

  • TiO2
    $682M+25.6%
  • Zircon
    $116M+107.1%

Forward guidance

TiO2 sales volumes are expected to be flat to down mid-single digits sequentially. Adjusted EBITDA is expected to be $230-245 million due to logistics challenges, higher freight and commodity costs and some less favorable product mix.

Tailwinds

  • Strong customer demand is expected.
  • Zircon sales volumes are expected to remain elevated above 2019 and 2020 levels.
  • Pricing is expected to continue to increase, consistent with the quarterly movements seen in 2021.

Headwinds

  • Logistics challenges are expected.
  • Higher freight costs are expected.
  • Higher commodity costs are expected.
  • Some less favorable product mix is expected.
  • Ongoing supply chain disruptions and inflationary pressures including elevated commodity prices are expected to offset customer demand.

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 Q3 2021

Historical avgQ3 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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