NYSE$TROX

Tronox Holdings PLC · Q4 2023 earnings

Q4 2023 earnings · · Investor relations

Briefing

Tronox reported fourth quarter revenue increase driven by higher sales volumes, but experienced a net loss due to lower average selling prices and higher operating costs.

Tronox reported a 6% increase in revenue to $686 million for the fourth quarter of 2023, driven by higher sales volumes of TiO2 and other products. However, the company experienced a net loss of $56 million, or $0.36 per diluted share, compared to a net loss of $15 million in the year-ago period. Adjusted EBITDA decreased by 17% to $94 million due to lower average selling prices and higher operating costs.

  • Revenue increased by 6% year-over-year to $686 million, driven by higher sales volumes.
  • Net loss attributable to Tronox was $56 million, or $0.36 per diluted share.
  • Adjusted EBITDA decreased by 17% to $94 million with a margin of 13.7%.
  • Free cash flow was $51 million, an improvement over the third quarter of 2023.

Headline financials

Total Revenue

$686M

Previous: $649M+5.7%
EPS (adj)

-$0.38

Previous: -$0.17-123.5%
Adjusted EBITDA

$94M

No prior period
Adjusted EBITDA Margin

13.7%

Previous: 17.4%-21.3%
SG&A Expenses

$70M

No prior period
Net Interest Expense

$45M

No prior period
D,D&A Expense

$69M

No prior period
Total Debt

$2.79B

No prior period
Net Debt

$2.55B

No prior period
Net Leverage Ratio

4.9

No prior period
Capital Expenditures

-$59M

No prior period
Net Income

-$56M

Previous: -$14M-300.0%
Operating Income

$8M

Previous: $36M-77.8%
Gross Profit

$78M

Previous: $105M-25.7%

Revenue & EPS history

Tronox · Revenue · Quarterly

$686M

Q4 2023+5.7%vs Q4 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

For the first quarter of 2024, Tronox expects TiO2 volumes to increase 12-16% and zircon volumes to increase 15-30% compared to the fourth quarter of 2023. TiO2 pricing is expected to remain relatively flat, with adjusted EBITDA between $100-120 million and adjusted EBITDA margins in the mid-teens.

Tailwinds

  • TiO2 volumes expected to increase 12-16% compared to Q4 2023.
  • Zircon volumes expected to increase 15-30% compared to Q4 2023.
  • TiO2 pricing expected to remain relatively flat to the prior quarter.
  • Lower operating costs expected due to higher utilization rates.
  • Adjusted EBITDA expected to be $100-120 million.

Headwinds

  • Headwind from non-repeating sales in other products.
  • Headwind from higher cost inventory moving off the balance sheet.
  • Guidance is subject to changes and impacts associated with global supply chain and inflation-related challenges.
  • Uncertainty regarding the most directly comparable GAAP financial measure.
  • Certain items that impact non-GAAP measures are uncertain and out of the Company’s control.

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 Q4 2023

Historical avgQ4 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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