STAMFORD, Conn., Oct. 24, 2024 /PRNewswire/ — Tronox Holdings plc (NYSE:TROX) (“Tronox” or the “Company”), the arena’s eminent built-in producer of titanium dioxide (“TiO₂“) pigment, these days reported its monetary effects for the quarter finishing September 30, 2024, as follows:

3rd Quarter 2024 Monetary Highlights:

• Produced income of $804 million, a 21% building up in comparison to the prior yr, or a 2% shorten in comparison to the prior quarter
• Generated source of revenue from operations of $54 million, and a internet lack of $25 million; adjusted internet loss used to be $21 million (non-GAAP)
• GAAP diluted loss in keeping with percentage used to be $0.16; Adjusted diluted loss in keeping with percentage used to be $0.13 (non-GAAP)
• Delivered Adjusted EBITDA of $143 million and an Adjusted EBITDA margin of 17.8% (non-GAAP)
• Invested $101 million in capital expenditures within the quarter, basically within the in the past introduced mining extension tasks in South Africa
• Returned $61 million to shareholders within the 9 months finishing September 30, 2024 within the mode of dividends 

This fall 2024 Outlook:

• TiO₂ volumes anticipated to say no roughly 10-15% in comparison to Q3 2024 (flat to mid single-digit building up in comparison to This fall 2023) 
• Zircon volumes anticipated to be flat to somewhat unwell in comparison to Q3 2024 (double-digit building up in comparison to This fall 2023)
• Adjusted EBITDA anticipated to be $120-135 million and Adjusted EBITDA margin to be within the high-teens

This outlook is according to Tronox’s perspectives on fresh world financial task and is topic to adjustments and affects related to the macroeconomic situations, world provide chain, and inflation-related demanding situations, amongst others.

^{Observe: For the Corporate’s steering with recognize to fourth quarter 2024 non-GAAP measures, we don’t seem to be in a position to lend with out unreasonable try essentially the most without delay related GAAP monetary measure, or reconciliation to such GAAP monetary measure, as a result of sure pieces that affect such measures are unsure, out of the Corporate’s regulate or can’t be somewhat predicted.} 

CEO’s Remarks and Outlook
Prominent Government Officer John D. Romano commented, “Tronox’s third quarter results demonstrated continued demand recovery compared to the prior year, though ultimately came in below our expectations as a result of softer than anticipated market conditions as the pace of the recovery slowed late in the quarter. Orders in North America and Latin America met our expectations, while demand in Europe and Asia Pacific was softer than forecasted in the last month of the quarter. Our TiO₂ volumes declined 7% sequentially, outside our guidance of a 2-4% decrease compared to the second quarter. Zircon volumes declined 12% sequentially, below our expectation of relatively flat volumes compared to the second quarter, due partially to orders rolling from the third quarter to the fourth quarter as well as weaker than expected demand in China.

“On operations, we successfully achieved our targeted average production utilization rate of ~80% for the quarter. However, we have not yet seen the benefit of the lower cost inventory flowing through due to weaker than forecasted demand. The impacts from a weaker market environment along with higher freight costs drove the miss relative to our previously guided range of $145-165 million, resulting in a third quarter Adjusted EBITDA of $143 million and an Adjusted EBITDA margin of 17.8%. Lower sales volume also drove higher finished goods inventory, resulting in a neutral impact from working capital in the quarter.”

Mr. Romano added, “Looking ahead to the fourth quarter, we anticipate North America, Europe and China will experience higher seasonal demand declines based on current customer sentiment, and we therefore expect TiO₂ volumes to decline 10-15% from the third quarter. We expect zircon demand to be flat to slightly down compared to the third quarter. Additionally, our expectations for pricing improvement in the fourth quarter have moderated from our previous forecasts, reflecting current demand and competitive dynamics. We expect our operating rates to remain in the 80% range, driving an improvement in our cost structures and fixed cost absorption and expect to start to see the benefit of the sale of lower cost tons in the quarter. We will also continue to evaluate opportunities for additional cost efficiencies. As a result of these market and operational assumptions, combined with recent unfavorable exchange rate moves, we expect fourth quarter Adjusted EBITDA to be between $120-135 million and our Adjusted EBITDA margin to be in the high teens range.”

Mr. Romano concluded, “Our third quarter results are not indicative of our earnings potential or our ability to deliver industry-leading results. There are significant positive tailwinds building for Tronox. From a macro standpoint, continued market recovery in the medium and long term will be aided by interest rate cuts, stimulus measures and anti-dumping investigations. Trade defense investigations are currently ongoing in the European Union, India, Brazil, and the Kingdom of Saudi Arabia. Additionally, as demand recovers, we expect to see operating cost improvements from higher production rates and will continue to evaluate further cost reduction opportunities. We are confident in our ability to capitalize on the opportunities ahead and deliver significant value for our shareholders. I would like to take this opportunity to thank the Tronox team for their dedication to operating safely and their steadfast commitment to fulfilling our customers’ needs.” 

3rd Quarter 2024 Effects
(Comparisons are to prior yr (Q3 2024 vs. Q3 2023) except another way famous)

The Corporate recorded 0.33 quarter income of $804 million, an building up of 21% basically pushed via upper TiO₂, zircon and alternative product volumes, in part offset via decrease pricing. 

Earnings from TiO₂ gross sales used to be $616 million, an building up of 10% pushed via a 12% building up in volumes, in part offset via a 2% shorten in moderate promoting costs together with combine. Sequentially, TiO₂ gross sales reduced 6%, pushed via a 7% shorten in gross sales volumes, in part offset via a 1% building up in moderate promoting costs together with combine. 

Zircon income higher 124% to $74 million, pushed via a 134% building up in quantity, in part offset via a ten% shorten in moderate promoting costs together with combine. Sequentially, zircon income reduced 13%, pushed via a 12% shorten in volumes and a 1% shorten in moderate promoting costs together with combine. 

Earnings from alternative merchandise used to be $114 million, an building up of 61% year-over-year because of opportunistic gross sales of ilmenite and big mineral pay attention tailings. Sequentially, income from alternative merchandise higher 39%.

Internet loss on account of Tronox within the quarter used to be $25 million, or a lack of $0.16 in keeping with diluted percentage, in comparison to internet loss on account of Tronox of $14 million, or a lack of $0.09 in keeping with diluted percentage within the year-ago duration. Adjusted internet loss on account of Tronox (non-GAAP) used to be $21 million, or a lack of $0.13 in keeping with diluted percentage.

Adjusted EBITDA of $143 million represented a 23% building up, pushed basically via upper gross sales volumes and progressed manufacturing prices, in part offset via product pricing and blend affects, alternative corporate prices, trade charges and freight prices. Adjusted EBITDA margin used to be 17.8%.

Sequentially, Adjusted EBITDA reduced 11% because of headwinds from upper manufacturing prices, trade charges, and freight prices, in part offset via tailwinds from upper gross sales volumes and product pricing and blend affects.

The Corporate’s promoting, common and administrative bills had been $74 million for the quarter, an building up of nineteen%. Tronox’s internet pastime expense within the quarter used to be $39 million. Depreciation, depletion and amortization expense used to be $70 million.

Stability Sheet, Money Tide and Capital Allocation
Tronox ended the quarter with $2.8 billion of general debt, $2.7 billion of internet debt and a internet leverage ratio of five.0x on a trailing twelve-month foundation. To be had liquidity on the finish of the quarter totaled $668 million, together with $167 million in coins and coins equivalents and $501 million to be had below our revolving credit score words. All through the 0.33 quarter, the corporate refinanced its present word mortgage due March 2029 with a unutilized 7-year word mortgage due September 2031, extending the Corporate’s debt adulthood profile and extra optimizing its capital construction following the a hit repricing and extension of its alternative word mortgage tranche finished in April. With the final touch of the untouched refinancing, the after vital debt adulthood for the Corporate isn’t till 2029. Tronox does no longer have any monetary covenants on its word loans or bonds. 

Sovereign coins stream for the quarter used to be a worth of $14 million. Capital expenditures had been $101 million, together with investments within the Corporate’s key capital tasks to increase present mines achieving their finish of moment and maintain the Corporate’s vertical integration get advantages. The Corporate returned $20 million to shareholders within the mode of dividends within the quarter. 

Webcast Convention Name
Tronox will behavior a webcast convention name on Friday, October 25, 2024, at 8:00 AM ET (Brandnew York).  The reside name is observable to the population by way of web broadcast and phone.

Web Broadcast: http://investor.tronox.com
Dial-in Phone Numbers:
United States: +1 (800) 549-8228 
World: +44 80 0279 7040
Convention ID: 99615

Convention Name Presentation Slides can be worn throughout the convention name and made to be had on our web site: http://investor.tronox.com 

Convention Name Replay: To be had by way of the web and phone starting on October 25, 2024, via 12:00 PM ET, till October 31, 2024, 11:59 PM ET.

Web Replay: http://investor.tronox.com
Replay Dial-in Phone Numbers:
US Toll Sovereign: +1 (888) 660-6264
World: +44 20 8609 4320
Replay Get entry to Code: 99615 #

About Tronox
Tronox Holdings plc is without doubt one of the international’s eminent manufacturers of top of the range titanium merchandise, together with titanium dioxide pigment, specialty-grade titanium dioxide merchandise and high-purity titanium chemical compounds, and zircon. We mine titanium-bearing mineral sands and perform upgrading amenities that put together high-grade titanium feedstock fabrics, pig iron and alternative minerals, together with the uncommon earth-bearing mineral, monazite. With roughly 6,500 workers throughout six continents, our affluent prosperous range, unrivaled vertical integration fashion, and extraordinary operational and technical experience around the worth chain, place Tronox because the preeminent titanium dioxide manufacturer on this planet. For more info about how our merchandise upload sunny and sturdiness to paints, plastics, paper and alternative on a regular basis merchandise, consult with tronox.com. 

Cautionary Observation about Ahead-Having a look Statements
Statements on this leave that don’t seem to be historic are forward-looking statements throughout the which means of the U.S. Personal Securities Litigation Reform Operate of 1995. Those forward-looking statements, which might be topic to identified and unknown dangers, uncertainties and suppositions about us, would possibly come with projections of our life monetary and operational functionality, expected final touch of extensions and upgrades to our mining operations, expected developments in our industry and trade, together with business protection measures, expected prices, advantages and timing of capital tasks together with deliberate mining expansions, the Corporate’s expected capital allocation technique together with life capital expenditures, and our sustainability objectives, loyalty and methods. Those statements are most effective predictions according to our fresh expectancies and projections about life occasions. There are remarkable elements that might motive our untouched effects, stage of task, functionality, untouched prices, advantages and timing of capital tasks, or achievements to vary materially from the effects, stage of task, functionality, expected prices, advantages and timing of capital tasks, or achievements expressed or implied via the forward-looking statements. Important dangers and uncertainties would possibly relate to, however don’t seem to be restricted to, macroeconomic situations; inflationary pressures and effort prices; foreign money actions; political instability, together with the continued conflicts in Japanese Europe and the Heart East and any growth of such conflicts, and alternative geopolitical occasions; provide chain disruptions; marketplace situations and value volatility for titanium dioxide, zircon and alternative feedstock fabrics, in addition to world and regional financial downturns, that adversely impact the call for for our end-use merchandise; disruptions in manufacturing at our mining and production amenities; and alternative monetary, financial, aggressive, environmental, political, criminal and regulatory elements, together with business protection measures. Those and alternative possibility elements are mentioned within the Corporate’s filings with the Securities and Trade Fee.

Additionally, we perform in an excessively aggressive and abruptly converting atmosphere. Brandnew dangers and uncertainties emerge from presen to presen, and it’s not imaginable for our control to are expecting all dangers and uncertainties, nor can control assess the affect of all elements on our industry or the level to which any issue, or aggregate of things, would possibly motive untouched effects to vary materially from the ones contained in any forward-looking statements. Even if we consider the expectancies mirrored within the forward-looking statements are affordable, we can’t agreement life effects, stage of task, functionality, synergies or achievements. Neither we nor any alternative individual assumes duty for the accuracy or completeness of any of those forward-looking statements. You must no longer rely on forward-looking statements as predictions of life occasions. Until another way required via acceptable rules, we adopt incorrect legal responsibility to replace or revise any forward-looking statements, whether or not on account of unutilized data or life tendencies.

Virtue of Non-GAAP Knowledge 
To lend buyers and others with alternative data in regards to the monetary result of Tronox Holdings plc, we’ve got disclosed on this leave sure non-U.S. GAAP running functionality measures of EBITDA, Adjusted EBITDA, Adjusted EBITDA margin and Adjusted internet source of revenue on account of Tronox, together with its presentation on a in keeping with percentage foundation, a non-U.S. GAAP liquidity measure of Sovereign Money Tide and internet leverage ratio on a trailing twelve-month foundation. Those non-U.S. GAAP monetary measures are a complement to and no longer an alternative to or great to, the Corporate’s effects introduced in keeping with U.S. GAAP.  The non-U.S. GAAP monetary measures introduced via the Corporate could also be other from non-U.S. GAAP monetary measures introduced via alternative firms. Particularly, the Corporate believes the non-U.S. GAAP data supplies helpful measures to buyers in regards to the Corporate’s monetary functionality via except for sure prices and bills that the Corporate believes don’t seem to be indicative of its core running effects.  The presentation of those non-U.S. GAAP monetary measures isn’t supposed to be regarded as in isolation or as an alternative to effects or steering ready and introduced in keeping with U.S. GAAP.  A reconciliation of the non-U.S. GAAP monetary measures to U.S. GAAP effects is integrated herein.

Investor Members of the family and Media Touch: Jennifer Guenther
+1.646.960.6598 (Investor Members of the family)
+1.203.705.3701 extension: 103701 (Media)

SOURCE Tronox Holdings plc

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