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Jun 30, 2021
Tronox Q2 2021 Earnings Report
Achieved record results driven by TiO2 volumes, revenue, EPS, Adjusted EBITDA, and free cash flow.
Key Takeaways
Tronox reported a strong second quarter with record revenue of $927 million, driven by higher TiO2 and zircon prices. The company generated $150 million in free cash flow and continued deleveraging efforts. Adjusted EBITDA was $237 million with a margin of 26 percent.
Record revenue of $927 million increased 4 percent sequentially.
GAAP earnings per share of $0.46; Adjusted diluted EPS of $0.61.
Generated a record $150 million in free cash flow.
Board declared a quarterly dividend of $0.10 per share.
Revenue by Segment
Forward Guidance
Tronox anticipates TiO2 sales volumes to decline 5-10 percent sequentially, while zircon sales volumes are expected to remain elevated. Adjusted EBITDA is expected to increase to $245-$260 million, with price improvements offsetting lower sales volumes and increased production costs.
Positive Outlook
- TiO2 and zircon prices expected to continue to increase
- Zircon sales volumes expected to remain elevated above 2019 and 2020 quarterly volume levels
- Benefiting from sales from inventory
- Zircon pricing improvement in the third quarter is expected to more than offset the volume headwind
- Operational disruptions from the second quarter will roll off
Challenges Ahead
- TiO2 sales volumes expected to decline 5-10 percent sequentially from record second quarter levels, due to supplier and logistics constraints
- Continued pressures on the cost side of the business from inflation and raw material price increases
- Chlorine availability issues
Revenue & Expenses
Visualization of income flow from segment revenue to net income
Historical Earnings Impact
Analyze how earnings announcements historically affect stock price performance
Avg. Return Before/After Earnings
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