NYSE$TROX

Tronox Holdings PLC · Q3 2023 earnings

Q3 2023 earnings · · Investor relations

Briefing

Reported adjusted EBITDA within the guided range despite softer market conditions and proactively strengthened balance sheet with incremental term loan.

Tronox Holdings reported Q3 2023 financial results with revenue of $662 million, a net loss of $14 million, and adjusted EBITDA of $116 million. The company proactively reinforced its balance sheet by raising a $350 million incremental term loan.

  • Revenue was $662 million, a 17% decrease compared to the prior quarter, and a 26% decrease compared to the prior year.
  • Income from operations was $32 million, with a net loss of $14 million; adjusted net loss was $12 million (non-GAAP).
  • GAAP diluted EPS was $(0.09); adjusted diluted EPS was $(0.08) (non-GAAP).
  • Adjusted EBITDA was $116 million with an Adjusted EBITDA margin of 17.5%, both within the guided range.

Headline financials

Total Revenue

$662M

Previous: $895M-26.0%
EPS (adj)

-$0.08

Previous: $0.69-111.6%
Adjusted EBITDA

$116M

No prior period
Adjusted EBITDA Margin

17.5%

No prior period
Capital Expenditures

-$54M

No prior period
Free Cash Flow

-$14M

Previous: $121M-111.6%
Net Income

-$14M

Previous: $121M-111.6%
Operating Income

$32M

Previous: $163M-80.4%
Gross Profit

$94M

Previous: $232M-59.5%
Cash & Equivalents

$246M

Previous: $91M+170.3%
Total Assets

$6.04B

Previous: $6.16B-1.9%

Revenue & EPS history

Tronox · Revenue · Quarterly

$662M

Q3 2023-26%vs Q3 2022
Beat estimate in 6 of 15 quarters(40%)
ActualEstimate

Revenue by segment

Tronox · $662M total across 3 segments · Q3 2023

  • TiO2
    $558M-17.1%
  • Other products
    $71M
  • Zircon
    $33M-74.2%

Forward guidance

The company expects pigment volumes to be relatively flat compared to the third quarter and zircon volumes to continue to recover substantially from third quarter 2023 levels. Adjusted EBITDA for the fourth quarter 2023 is anticipated to be $105-125 million.

Tailwinds

  • Pigment volumes expected to be relatively flat compared to the third quarter.
  • Anticipate little to no seasonality in the fourth quarter as customers have largely completed destocking.
  • Represents an approximate 20% increase compared to trough levels realized in fourth quarter 2022.
  • Expect more stable pricing trends over the last year to continue.
  • Zircon volumes expected to continue to recover substantially from third quarter 2023 levels.

Headwinds

  • Outlook is subject to changes and impacts associated with the macroeconomic conditions.
  • Global supply chain challenges.
  • Inflation-related challenges.
  • Potential disruptions in production at mining and manufacturing facilities.
  • Market conditions and price volatility for titanium dioxide, zircon and other feedstock materials.

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 2023

Historical avgQ3 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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