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Jun 30, 2024
Tronox Q2 2024 Earnings Report
Tronox's second quarter performance was consistent with previous guidance and demonstrated continued recovery across both TiO2 and zircon.
Key Takeaways
Tronox reported Q2 2024 financial results with revenue of $820 million, a 3% increase compared to the prior year. Income from operations was $76 million and net income was $10 million. GAAP diluted earnings per share was $0.10, and adjusted diluted earnings per share was $0.07. The company delivered Adjusted EBITDA of $161 million and generated $84 million in free cash flow.
Revenue increased by 3% year-over-year to $820 million, driven by higher TiO2 volumes.
Net income attributable to Tronox was $16 million, or $0.10 per diluted share, compared to a net loss of $269 million in the year-ago period.
Adjusted EBITDA was $161 million, a 4% decrease year-over-year, with an Adjusted EBITDA margin of 19.6%.
Free cash flow for the quarter was $84 million.
Revenue by Segment
Forward Guidance
For Q3 2024, Tronox expects TiO2 volumes to decline approximately 2-4% compared to Q2 2024, and zircon volumes to be relatively flat compared to Q2 2024. Adjusted EBITDA is expected to be $145-165 million and Adjusted EBITDA margin to be in the high-teens.
Positive Outlook
- TiO2 volumes expected to increase in the high-teens range compared to Q3 2023
- Zircon volumes expected to increase ~160% compared to Q3 2023
- Pigment plant utilization rate for July was in the range of 80%
- Second half Adjusted EBITDA will be stronger than the first half
- Improved utilization rates
Challenges Ahead
- TiO2 volumes expected to decline approximately 2-4% compared to Q2 2024
- Macro backdrop for the second half of 2024 is expected to be less robust than previously anticipated
- Higher cost pigment tons manufactured in the second quarter will result in lower profitability as they are sold in the third quarter
Revenue & Expenses
Visualization of income flow from segment revenue to net income
Historical Earnings Impact
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Avg. Return Before/After Earnings
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