Tronox Holdings plc

Second-quarter revenue was $868 million, up 19% year over year. Adjusted diluted EPS was a loss of $0.51, adjusted EBITDA was $73 million, and adjusted EBITDA margin was 8.4%; adjusted EBITDA declined 22% year over year. Loss from operations was $21 million and net loss attributable to Tronox was $171 million, including a $103 million valuation allowance on certain U.S. state deferred tax assets. Capex was $45 million and free cash flow was a source of $60 million. For Q3 2026, management expects adjusted EBITDA of $95 million to $115 million and sequential margin improvement; TiO2 volumes are expected to be down moderately in the mid-single-digit percentage range, zircon volumes to moderate slightly, TiO2 pricing to rise mid-single-digit percentage range, and zircon pricing to rise mid- to high-single-digit percentage range. For full-year 2026, Tronox still expects meaningful positive free cash flow, with net cash interest of about $190 million, net cash taxes of less than $10 million, capex of less than $260 million, and working capital to be a source of cash well in excess of $100 million.

John Romano framed the quarter as evidence of improving commercial momentum, with disciplined execution, strong customer engagement and reliable global supply helping drive higher volumes. He emphasized that antidumping actions, especially the recommended reinstatement of Indian duties on Chinese TiO2, are strengthening the competitive backdrop over time, though the benefits may not be immediate. His tone was constructive but measured: the company is focused on controllable actions like pricing, cost improvement, inventory management and trade defense while acknowledging the volatile macro and Middle East environment.

John Srivisal highlighted the hard numbers: $868 million of revenue, $73 million of adjusted EBITDA, 8.4% adjusted EBITDA margin, $45 million of capex and $60 million of free cash flow. He attributed the 22% year-over-year EBITDA decline to exchange-rate headwinds, unfavorable pricing/mix, higher production costs and freight/other expenses, partially offset by higher volumes. He also pointed to balance-sheet actions and liquidity management, including $3.2 billion of total debt, $3.0 billion of net debt, $527 million of liquidity, $194 million of cash, and a new $75 million long-term financing arrangement replacing the expired short-term Emirates Revolver. Working capital was a source of about $101 million in the quarter excluding $10 million of restructuring payments, driven largely by inventory reduction, and management said the cost improvement program remains on track to reach the higher end of its $125 million to $175 million run-rate target by end-2026.

Analysts focused heavily on India antidumping duties, pricing durability, the impact of Chinese exports, and whether current volume strength included prebuying. Management said it expects the Indian duties to help over time, but not eliminate Chinese competition, and noted that duties are not retroactive, so some near-term inventory build in India is possible. On pricing, Tronox said Q2 increases were mostly structural rather than temporary surcharges, with only a small sulfur-linked component left, and that Q3 guidance already reflects the Indian trade-flow dynamic. The company also said Q3 volume guidance is based on lower inventory and seasonal patterns, while the West Mine restart and East OFS ramp are intended to support zircon supply and customer demand later in the year and into 2027.