Tronox (NYSE:TROX) executives said the company ended 2025 with stronger-than-expected volumes and improved working capital discipline, even as lower titanium dioxide (TiO2) and zircon pricing weighed on results and restructuring charges drove a full-year loss. Management also outlined a first-quarter 2026 EBITDA outlook of $55 million to $65 million and reiterated an expectation for positive free cash flow in 2026, supported by price increases, cost savings and working capital improvements.
2025 results reflected weaker pricing, restructuring charges
Chief Financial Officer John Srivisal said full-year 2025 revenue was $2.9 billion, down year over year due to “unfavorable pricing and mix” and lower volumes in both TiO2 and zircon. The company reported a loss from operations of $253 million and a net loss attributable to Tronox of $470 million.
Free cash flow for the year was a use of $281 million, including $341 million of capital expenditures. The company returned $48 million to shareholders via dividends in 2025.
Quarter trends: higher volumes, lower pricing, cash focus
CEO John Romano said TiO2 volumes in the fourth quarter reached their highest point of the year, which he described as a pattern previously seen only during the COVID period in 2020. Romano attributed the trend to anti-dumping duties influencing regional markets, highlighting gains in India and other protected regions as evidence of market share gains and a potential structural shift in global TiO2 trade flows.
Srivisal said sequential TiO2 revenue increased 5% on a 9% volume increase, partially offset by a 4% decline in price (including mix). He said volumes exceeded prior guidance and reflected market share gains in India, Latin America and the Middle East, supported by anti-dumping measures, while North America and Europe were lower in line with typical fourth-quarter seasonality.
On pricing, Srivisal said TiO2 price was down 2% sequentially, with an additional 2% headwind from mix, driven largely by stronger growth in lower-margin regions and seasonally lower demand in higher-margin markets. Romano said the company is implementing price increases that are “beginning to show results in the first quarter,” and expects a shift toward higher-price regions to support market dynamics.
Zircon also finished 2025 with improved volumes. Romano said zircon volumes benefited from customers “restocking and resuming normal buying patterns,” though pricing and mix were headwinds in the fourth quarter. Srivisal said zircon revenue rose 32% sequentially, driven by a 42% volume increase—well above guidance—while zircon price fell 7% quarter over quarter, or 10% including mix. Management said price increases have been announced and expressed optimism they will be implemented in the second quarter of 2026, though Romano declined to quantify the targeted increase.
Adjusted EBITDA in the fourth quarter was $57 million, down 56% year over year, reflecting unfavorable pricing and mix, higher production costs and higher freight costs, partially offset by volume growth, exchange rate tailwinds and SG&A savings. Srivisal said production costs were higher year over year by $39 million due to deliberate actions aimed at improving cash generation, including maintenance timing changes, lower operating rates, idled assets and downtime that reduced fixed-cost absorption. In Q&A, the company said Stallingborough downtime was about an $11 million EBITDA impact in Q4 and that the outage is behind them.
Despite EBITDA pressure, Romano said the company generated $53 million of free cash flow in the fourth quarter, aided by working capital discipline and inventory reduction initiatives.
Balance sheet and liquidity
Srivisal said total debt ended 2025 at $3.2 billion, with net debt of $3.0 billion. He noted a weighted average interest rate of about 6% in Q4 and said approximately 77% of interest rates are fixed through 2028. The next significant debt maturity is not until 2029, and management said the company has no financial covenants on its term loans or bonds, with only a springing covenant on the U.S. revolver that it does not expect to trigger.
Liquidity at December 31 was $674 million, including $199 million of cash and cash equivalents. Srivisal said fourth-quarter working capital was a source of $133 million (excluding restructuring payments), exceeding expectations due to inventory reductions, and that the company expects working capital to remain a source of cash in 2026.
Cost program, footprint actions and CapEx outlook
Romano highlighted a “sustainable cost improvement program,” saying Tronox exited 2025 with more than $90 million of run-rate savings—“three times our original target”—and remains on pace for the high end of its $125 million to $175 million run-rate target by the end of 2026. Management said the biggest benefits so far have come from fixed-cost reductions, workforce actions affecting labor and contractors, and SG&A reductions.
The company also emphasized footprint rationalization, including the closures of two pigment plants. Romano said the Fuzhou plant closure in China, announced in January, was driven by prolonged market downturn, weak domestic demand, overcapacity and “unsustainable pricing levels” in China. The closure follows the previously announced Botlek shutdown. In Q&A, management said the longer-term fixed-cost savings are expected to be about $30 million annually from Botlek and about $15 million from Fuzhou.
For 2026, Romano said capital allocation priorities remain focused on cash generation and liquidity preservation. With major South Africa mining extension spending largely behind the company, Tronox expects 2026 capital expenditures of approximately $260 million, down from $341 million in 2025, though management noted some “catch-up capital” from delayed 2025 projects.
2026: pricing actions, working capital release and Q1 EBITDA guide
For the first quarter of 2026, management expects TiO2 volumes to be relatively flat sequentially after a strong Q4. Romano said growth is expected in all regions except Asia, citing India as the key driver due to customers shifting some volume back to China after a temporary halt in duty collection following a court ruling in late December. The company said it expects a favorable resolution in the coming weeks that would reinstate duties and shift volumes back toward local and Western suppliers.
Tronox expects TiO2 pricing to increase about 2% to 4% sequentially in Q1, reflecting announced price increases and a favorable mix shift to higher-value regions. Zircon volumes are expected to remain similar to Q4, with pricing stabilizing in Q1 and anticipated increases in Q2.
Management also described near-term EBITDA trade-offs tied to a cash focus. Romano said the company decided to keep the West Mine down and to keep one furnace down longer than planned, along with pulling back some mining production in Australia, to reduce inventories and improve working capital. The company cited foreign exchange volatility as well, stating that current rates imply a $10 million headwind in Q1 versus Q4 average rates.
Against that backdrop, Tronox guided to Q1 2026 EBITDA of $55 million to $65 million. For full-year cash assumptions embedded in its free cash flow outlook, the company cited:
- Net cash interest of approximately $185 million
- Net cash taxes of less than $10 million
- Capital expenditures of approximately $260 million
- Working capital expected to be a source of cash in excess of $100 million
In Q&A, management said Q1 is typically a significant seasonal use of cash, with free cash flow expected to be positive for the remainder of the year. The company also said remaining cash restructuring payments are expected to be about $6 million for Botlek and about $15 million for Fuzhou in 2026.
Rare earths update and vertical integration commentary
Romano said Tronox advanced its rare earths strategy during the quarter, including progress toward a definitive feasibility study and continued engagement with potential customers, partners and funding sources. He referenced a conditional, non-binding financing announcement with EFA and EXIM Bank related to an acid cracking and leaching facility in Australia, and said the company is evaluating adding refining capacity over time. Management emphasized capital discipline, noting in Q&A that rare earths capital spending is not significant in the current 2026 CapEx forecast.
On vertical integration, Romano reiterated the company’s historical feedstock advantage of $200 to $400 per ton, saying Tronox is currently on the lower end of that range due to running three of four furnaces in South Africa and pulling back mining operations to match feedstock needs and reduce inventories.
Looking ahead, Romano said the company is “cautiously optimistic” that market dynamics are improving, citing pricing actions, mix shifts, cost savings and portfolio changes as drivers that he expects will support positive free cash flow in 2026.
About Tronox (NYSE:TROX)
Tronox Holdings plc is a vertically integrated global producer of titanium dioxide (TiO₂) pigment and specialty materials. The company’s operations encompass the full supply chain for TiO₂, from mining and processing titanium-bearing ores—such as ilmenite and rutile—to the production of high-purity pigment for use in paints, coatings, plastics, paper and other industrial applications. In addition to TiO₂, Tronox’s product portfolio includes zircon, rare earth byproducts and other specialty minerals that serve a range of industrial markets.
Tronox operates a network of mines, processing facilities and pigment plants located across North America, Europe, the Middle East, Australia and South Africa.
