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Sep 30, 2021
Tronox Q3 2021 Earnings Report
Achieved record adjusted EBITDA and free cash flow despite ongoing supply chain and inflationary challenges.
Key Takeaways
Tronox reported a revenue of $870 million, a 29% increase year-over-year. The company's adjusted EBITDA was $252 million with a margin of 29%. Free cash flow reached a record $191 million after $65 million in capital expenditures.
Revenue increased by 29% year over year, driven by higher TiO2, zircon and pig iron average selling prices and higher TiO2 and zircon volumes
Income from operations was $168 million and net income was $113 million
GAAP diluted EPS was $0.70 and adjusted diluted EPS was $0.72
Free cash flow reached a record $191 million after $65 million in capital expenditures
Revenue by Segment
Forward Guidance
TiO2 sales volumes are expected to be flat to down mid-single digits sequentially. Adjusted EBITDA is expected to be $230-245 million due to logistics challenges, higher freight and commodity costs and some less favorable product mix.
Positive Outlook
- Strong customer demand is expected.
- Zircon sales volumes are expected to remain elevated above 2019 and 2020 levels.
- Pricing is expected to continue to increase, consistent with the quarterly movements seen in 2021.
Challenges Ahead
- Logistics challenges are expected.
- Higher freight costs are expected.
- Higher commodity costs are expected.
- Some less favorable product mix is expected.
- Ongoing supply chain disruptions and inflationary pressures including elevated commodity prices are expected to offset customer demand.
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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