Tronox Holdings plc has recently released its 10-Q report, providing a detailed look at the company's financial condition and results of operations. Tronox operates as a vertically integrated manufacturer of TiO2 pigment, with operations in various regions around the world. The company's products are used in the manufacture of paints, coatings, plastics, and paper, among other applications.
In the first quarter of 2025, Tronox reported a 5% decrease in revenue compared to the same period in 2024, driven by lower zircon sales volumes and lower average selling prices of zircon and TiO2. TiO2 revenue decreased by 3%, primarily due to lower sales volumes and average selling prices, while zircon revenue decreased by 22% due to lower sales volumes and average selling prices. However, revenue from other products increased by 5% due to higher sales volumes of pig iron and opportunistic sales of ilmenite.
The company's gross profit decreased in the first quarter of 2025, primarily due to lower sales volumes, lower average selling prices, higher mining and freight costs, and unfavorable exchange rate movements. Tronox reported a net loss of $111 million for the first quarter of 2025, compared to a net loss of $9 million in the same period in 2024. Adjusted EBITDA for the first quarter of 2025 was $112 million, down from $131 million in the first quarter of 2024.
Tronox's liquidity as of March 31, 2025, stood at $443 million, including $138 million in cash and cash equivalents and $305 million available under revolving credit agreements. The company's total debt was $3.0 billion, and net debt to trailing twelve months Adjusted EBITDA was 5.2x. Tronox has no financial covenants on its term loan or bonds and only one springing financial covenant on its Cash Flow revolver facility.
The company's other comprehensive income was $40 million in the first quarter of 2025, compared to other comprehensive loss of $32 million in the same period in 2024. This change was primarily due to favorable foreign currency translation adjustments.
Tronox expects that its operations will provide sufficient cash for its operating expenses, capital expenditures, interest payments, and debt repayments in the next twelve months. However, the company acknowledges that negative events outside of its control, such as macroeconomic conditions, political instability, and supply chain disruptions, could impact its forecast. Tronox also highlighted factors that could affect its ability to obtain cash from external sources, including debt covenants and increasing interest rates.
Today the company's shares have moved 0.6% to a price of $5.45. For the full picture, make sure to review Tronox's 10-Q report.
