CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 80.96% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.
Open platformOpen platform

Tronox Q3 revenue misses estimates on higher raw material costs

By Reuters News


Overview

  • US titanium dioxide producer's Q3 revenue rose 18% yr/yr but missed analyst expectations

  • Adjusted loss per share for Q3 was higher than expected

  • Q3 adjusted EBITDA slightly beat analyst expectations, helped by price realization


Outlook

  • Tronox expects Q4 2026 TiO2 volumes to decline sequentially in the high-single to low double-digit percentage range

  • Company expects Q4 2026 Adjusted EBITDA of $80-$90 mln

  • Tronox sees Q4 2026 free cash flow of $20-$45 mln, with full-year 2026 free cash flow use of $25-$50 mln


Result Drivers

  • PRICE GAINS - Higher average selling prices for TiO(2) and zircon drove revenue growth, per CEO John Romano

  • VOLUME INCREASES - Higher sales volumes for TiO(2) and zircon contributed to revenue growth

  • RAW MATERIAL COSTS - Higher input costs for natural gas, sulfur, and sulfuric acid weighed on results due to supply chain disruptions from Middle East conflict


Company press release:


Key Details

Metric

Beat/Miss

Actual

Consensus Estimate

Q3 Revenue

Miss

$827 mln

$837.28 mln (8 Analysts)

Q3 Adjusted Loss Per Share

Miss

$0.34

$0.20 (9 Analysts)

Q3 Net Loss Attributable

$55 mln

Q3 Adjusted EBITDA

Slight Beat*

$101 mln

$100.19 mln (8 Analysts)

Q3 Adjusted EBITDA Margin

12.20%

Q3 Income From Operations

$12 mln

*Applies to a deviation of less than 1%; not applicable for per-share numbers.


Analyst Coverage

  • The current average analyst rating on the shares is "hold" and the breakdown of recommendations is 2 "strong buy" or "buy", 5 "hold" and 3 "sell" or "strong sell"

  • The average consensus recommendation for the specialty chemicals peer group is "buy."

  • Wall Street's median 12-month price target for Tronox Holdings PLC is $4.50, about 32.4% above its November 3 closing price of $3.40


Reuters Recommended Reads

  • Nov 2 - Chemours Q3 adjusted profit misses estimates despite titanium pricing gains

  • Nov 4 - Solstice Advanced Materials beats Q3 revenue estimates on segment growth, raises FY outlook

  • Nov 3 - Rayonier Advanced Materials Q3 sales and EBITDA miss estimates on tariffs, impairments


For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.


(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)

Capital.com is an execution-only brokerage platform and the content provided on the Capital.com website is intended for informational purposes only and should not be regarded as an offer to sell or a solicitation of an offer to buy the products or securities to which it applies. No representation or warranty is given as to the accuracy or completeness of the information provided.

The information provided does not constitute investment advice nor take into account the individual financial circumstances or objectives of any investor. Any information that may be provided relating to past performance is not a reliable indicator of future results or performance.

To the extent permitted by law, in no event shall Capital.com (or any affiliate or employee) have any liability for any loss arising from the use of the information provided. Any person acting on the information does so entirely at their own risk.

Any information which could be construed as “investment research” has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such is considered to be a marketing communication.