TROX

Image source: The Motley Fool. Thursday, Aug. 6, 2026 at 9:00 a.m. ET Chief Sustainability Officer, Head of Investor Relations and External Affairs - Jennifer Guenther Chief Executive Officer - John Romano Senior Vice President, Chief Financial Officer - John Srivisal Operator: Good morning, and welcome to the Tronox Holdings Second Quarter 2026 Earnings Call. [Operator Instructions] I would now like to turn the call over to Jennifer Guenther, Chief Sustainability Officer, Head of Investor Relations and External Affairs. Jennifer, please go ahead. Jennifer Guenther: Thank you, and welcome to our Second Quarter 2026 Conference Call and Webcast. Turning to Slide 2. On our call today are John Romano, Chief Executive Officer; and John Srivisal, Senior Vice President, Chief Financial Officer. We will be using slides as we move through today's call. You can access the presentation on our website at investor.tronox.com. Moving to Slide 3. A friendly reminder that comments made on this call and the information provided in our presentation and on our website include certain statements that are forward-looking and subject to various risks and uncertainties, including, but not limited to, the specific factors summarized in our SEC filings. This information represents our best judgment based on what we know today. However, actual results may vary based on these risks and uncertainties. The company undertakes no obligation to update or revise any forward-looking statements. During the conference call, we will refer to certain non-U.S. GAAP financial terms that we use in the management of our business and believe are useful to investors in evaluating the company's performance. Reconciliations to their nearest U.S. GAAP terms are provided in our earnings release and in the appendix of the accompanying presentation. Additionally, please note that all financial comparisons made during the call are on a year-over-year basis unless otherwise noted. It is now my pleasure to turn the call over to John Romano. John? John Romano: Thanks, Jennifer, and good morning, everyone. We'll begin this morning on Slide 4. In the second quarter, we continued to build on the commercial momentum we saw in the first quarter. TiO2 volumes came in at the high end of our guidance and at the highest level since Q2 of 2022. Zircon volumes exceeded our expectations and surpassed the strong levels achieved in Q1 as supply remained constrained across the industry. This performance reflects disciplined commercial execution, strong customer engagement and the value of our global footprint, which continues to allow us to reliably serve customers as supply dynamics shift across our markets. We also continue to see meaningful structural benefits from antidumping measures. In addition, customer shifts in certain markets, including India, where customers are increasingly prioritizing reliable supply and long-term supplier relationships are driving strong volumes in the region. And as it relates to India, on August 3, the Indian Trade Defense Agency issued a recommendation that duties on Chinese made TiO2 be reinstated. The level of the duties recommended is unchanged from the original duties imposed in May of 2025. The recommendation now goes to the Minister of Finance, which has 90 days to approve. We believe this represents another important step towards reestablishing a more level and competitive environment. Given the long lead times associated with global shipments, the impact is unlikely to be immediate. But over time, we would expect these measures to impact Chinese exports into India and further support the structural changes already underway in the market. We also remain encouraged by the progress of the antidumping investigations in Australia and the United Kingdom, and we'll continue to evaluate additional appropriate actions such as anti-absorption in markets where duties have already been imposed to support fair competition. Additionally, broader supply dynamics continue to evolve. Capacity curtailments, logistics challenges and trade defense measures are impacting supply and trade flows across a number of regions. On pricing, we previously announced increase took effect as planned during the second quarter, driving sequential pricing improvement of 5% for both TiO2 and zircon. The improvement in Q2 was driven primarily by higher base pricing rather than temporary surcharge mechanisms. We also announced additional pricing actions for both products that have gone into effect in the third quarter. While we continue to use targeted surcharges where appropriate, our focus has shifted towards more sustainable pricing actions that reflect the current market conditions, higher input costs, the value of our reliable supply. We will discuss our outlook in more detail later in the call, but the continued realization of these pricing actions remains an important driver of our expected margin improvement in the third quarter. From a cost perspective, we continue to realize the benefits from our cost improvement program, which remains on track to deliver at the higher end of our $125 million to $175 million run rate target at the end of 2026. These efforts contributed to sales of lower cost inventory during the quarter and helped offset a number of headwinds. As expected, our second quarter cost profile reflected the impact of the planned outages. We successfully completed both the regulatory outage in Stallingborough and our extended SR kiln outage. These were significant planned events for the year, and I want to recognize our teams for executing both safely and efficiently. Importantly, those outages are now behind us and position us for improved operating performance moving forward. While we see elevated costs stemming from the conflict in the Middle East and unfavorable foreign exchange movement, we delivered adjusted EBITDA within our expected range for the quarter. We also made strong progress on cash generation and working capital. Free cash flow was a positive in the second quarter, and we reduced inventory by approximately $120 million from the first quarter level, bringing inventory to its lowest level since June of 2024. We remain focused on strengthening liquidity, improving working capital efficiency and continuing to optimize our capital structure to enhance financial flexibility. At the same time, we're making targeted operational decisions to support demand and product availability. This includes the restart of a furnace and advancing plans to bring production back online at our West Mine, both at Namakwa to support inventory levels, including zircon to meet demand as we continue to ramp up East OFS to full production. While the situation in the Middle East remains dynamic, our approach remains focused on factors we can control and influence. We are actively evaluating market conditions, customer demand, supply chain impacts and input costs and taking targeted commercial and operational actions where appropriate. As conditions evolve, we'll remain disciplined and adaptable, focused on maintaining reliable supply to our customers while protecting earnings and cash flow. I'll speak to our expectations for the third quarter and the full year in more detail later in the call. But for now, I'll turn the call over to John to review our financials from the second quarter in more detail. John? John Srivisal: Thank you, John. Turning to Slide 5. We generated revenue of $868 million, an increase of 19% versus the second quarter of 2025, driven by higher TiO2 and zircon volumes, partly offset by lower average selling prices of zircon, including mix. Loss from operations was $21 million. Net loss attributable to Tronox is $171 million, including a $103 million valuation allowance on certain state deferred tax assets in the U.S. Adjusted diluted earnings per share was a loss of $0.51. Adjusted EBITDA was $73 million, and our adjusted EBITDA margin was 8.4%. Capital expenditures were $45 million and free cash flow was a source of $60 million for the quarter. Now let's move to the next slide for a review of our commercial performance. As John mentioned, TiO2 volumes came in at the high end of our range and zircon came in better than expected. Pricing for both TiO2 and zircon were in line with our expectations. Sequentially, TiO2 revenues increased 14%, driven by a 9% increase in volumes and a 5% increase in average selling prices, including mix. Volumes came in as expected, driven by stronger demand on the back of the structural shifts that John mentioned earlier. Zircon revenues increased 9% sequentially, driven by a 4% increase in volumes and a 5% increase in average selling prices, including mix. Volume remained strong following a solid first quarter, reflecting continued customer realignment in the capacity-constrained environment. Zircon pricing reflected increases that were announced in the first quarter and took effect in the second quarter as we referenced on our last earnings call. And revenue from other products decreased 7% compared to the prior year, which represented a 29% increase sequentially, driven by pig iron volumes. Turning to the next slide. I will now review our operating performance for the quarter. Our adjusted EBITDA of $73 million represented a 22% decline year-on-year as a result of exchange rate headwinds, unfavorable pricing, including mix and higher production costs, freight and other expenses. This was partially offset by the increase in sales volume that I discussed on the previous slide. The year-over-year production cost increase of $10 million included the impact of the planned regulatory-driven outages as well as the continued effect of actions taken over the last year to enhance cash generation by slowing select mining operating rates. Partially offsetting these impacts were sales of lower-cost inventory and savings associated with our cost improvement program and plant closures. Sequentially, adjusted EBITDA increased 18%. Favorable pricing, including mix and higher sales volume were partially offset by higher production costs, exchange rate headwinds and higher freight and other costs. Turning to the next slide. We ended the quarter with total debt of $3.2 billion and net debt of $3 billion. Our weighted average interest rate in Q2 was approximately 6%, and we maintain swaps such that approximately 75% of our interest rates are fixed through 2028. Importantly, our next significant debt maturity is not until 2029. We do not have any financial covenants on our term loans or bonds. Liquidity as of June 30 was $527 million, including $194 million in cash and cash equivalents. Over the last year, we've demonstrated the numerous levers at our disposal to proactively manage our balance sheet and enhance our liquidity position. Towards that end, in the second quarter, we replaced the expired short-term Emirates Revolver with a new $75 million long-term financing arrangement that provides us with greater financial flexibility. Working capital was a source of approximately $101 million in the second quarter, excluding $10 million of restructuring payments. This was driven by better-than-planned inventory reductions from targeted working capital initiatives, partially offset by higher AR and lower AP. Capital expenditures of $45 million in the quarter were primarily related to maintenance and safety, and we returned $8 million to shareholders in the form of dividends during the quarter. And with that, I'll hand it back to John to review our capital allocation priorities. John? John Romano: Thank you, John. Turning to Slide 9. Our capital allocation priorities remain unchanged. We continue investing to maintain our assets, preserve our vertical integration advantage and advance projects that support our long-term strategy, including rare earths. As earning and cash generation recover, we'll resume debt paydown, targeting a long-term net leverage of less than 3x. With that, I'd like to turn to our outlook and walk through some of the assumptions that will drive our performance in the third quarter. So turning to Slide 10. Following a strong first half of the year, we expect TiO2 volumes to be down moderately in the third quarter in the mid-single-digit percentage range, consistent with normal seasonal patterns. We expect zircon volumes to moderate slightly following a very strong first half, primarily due to inventory availability. On pricing for both TiO2 and zircon, the announced increases during the second quarter have taken effect and are positively impacting our margins in the third quarter. As a result, we expect TiO2 pricing to increase sequentially in the mid-single-digit percentage range and zircon pricing to increase in the mid- to high single-digit percentage range. It's worth noting that we are transitioning away from some of the temporary surcharge mechanisms and focusing more on base price improvements. We continue to utilize targeted surcharges where appropriate, now largely limited to sulfur-related costs in Brazil and Thann. From an operational perspective, the planned and extended outage activity that impacted the second quarter is now behind us. In the third quarter, we anticipate improved performance driven by higher operating rates and the continued sale of lower cost inventory. These benefits are expected to be partially offset by an elevated sulfuric acid, diesel, utilities and other inputs such as tungsten, resulting from the ongoing volatility in the Middle East. We remain focused on recovering these higher costs through pricing and other commercial initiatives over time. As a result, we expect third quarter adjusted EBITDA to be in the range of $95 million to $115 million and expect margins to improve sequentially in the third quarter. We expect free cash flow to be relatively neutral in the third quarter as it includes the semiannual interest payments. We made significant progress on pricing, inventory reduction and liquidity during the first half, ensuring a position of strength as we move into the second half. Based on our outlook today, we continue to expect meaningful positive free cash flow for the full year 2026. Incorporated into our guide are the following assumptions on cash for the year. Net cash interest of approximately $190 million, net cash taxes of less than $10 million, capital expenditures of less than $260 million, and we expect working capital to be a source of cash well in excess of $100 million. Turning to Slide 11. As we discussed throughout the call, the operating environment continues to evolve, particularly as the ongoing conflict in the Middle East impacts supply chains, trade flows and input costs. Against that backdrop, we've taken deliberate actions within our control to strengthen the business and position ourselves for the opportunities ahead. Commercially, we continue to execute on pricing, maintaining disciplined customer engagement and leverage the strength of our global footprint and reliable supply position. Trade defense remains an important component of that strategy. We continue to see the benefits of measures already in place and remain focused on supporting a fair and competitive market environment. We also continue to closely monitor global trade flows and support additional actions where appropriate. Operationally, our focus remains on strengthening the advantage of our vertically integrated business model, improving our cost profile and enhancing operational efficiencies. We continue to evaluate production plans across our asset base to ensure we're balancing customer demand, inventory levels, cash generation and operating efficiency. As a result, we're beginning to see an improvement in a number of factors that weighed on earnings during the first half. Operating rates are improving, utilization levels are increasing and the impact of unfavorable absorption should continue to moderate as we move through the balance of the year. That said, not every factor is within our control. Input and logistics costs remain elevated, broader inflationary pressures persist and economic conditions remain volatile. We cannot control the macro environment, but we can control how we run the business. The actions we've taken over the last several quarters have strengthened our cost structure, improved our financial flexibility and enhanced the long-term earnings potential of the business. As pricing actions continue to build, operating rates improve and the benefits of our vertically integrated business model become more pronounced, we believe Tronox is increasingly well positioned to capitalize on the structural changes taking place across our markets. Combined with the improving market conditions over time, those factors have the potential to drive a meaningful step change in earnings and free cash flow. Turning to Slide 12. I'd like to touch on our rare earths initiative before we turn the call over to questions. We continue to advance our rare earth strategy while remaining prudent around capital. We're engaging broadly with stakeholders, including potential customers, strategic partners and funding sources to identify the most viable and responsible way forward for the project. The definitive feasibility study for the cracking and leaching facility in Australia to produce mixed rare earth carbonate or MREC is expected to conclude in the third quarter of 2027. The expected capacity of that facility is 10,000 tons per year on a total rare earth oxide basis with a start-up expected in late 2029, assuming we continue on the current trajectory. Simultaneously, we continue to evaluate the potential to move further downstream through the build-out of a rare earth refinery to produce separated rare earth oxides from the MREC produced in Australia, and we are currently scoping possible sites, including our Hamilton, Mississippi site, which is highly advantaged for rare earth refining due to low-cost power and reagents used in solvent extraction. These ongoing discussions are instrumental in shaping our approach and ensuring that we pursue opportunities that align both with our strategic vision and our values. Our approach remains steadfast in its dedication to generating long-term shareholder value. We are carefully balancing strategic opportunities with prudent financial management. We believe that rare earths represents a compelling growth platform for Tronox, leveraging our vertical integration, our existing mining footprint and our expertise in hydrometallurgical and chemical operations to create new avenues for sustainable growth. So that will conclude our prepared remarks. We'll now turn the call back over to the operator for Q&A. Operator? Operator: [Operator Instructions] Your first question comes from the line of David Begleiter with Deutsche Bank. David Begleiter: John, just on your potential U.S. rare earth refinery, would you pursue without U.S. government pricing support? And do you still think you need a technology and/or financial partner for that potential refinery? John Romano: Yes. Thanks. So look, I guess 2 things. One, the first -- we're looking at this in phases. So the first phase is the MREC plant in Australia. Second phase would be to go to a separated oxide facility and possibly in Hamilton, Mississippi. So we're still looking at all possible avenues for financing. And from the MREC facility, we don't need a technology partner. But ultimately, for making mix or going to separated oxides, we're still exploring what that right avenue would be and if, in fact, we needed a strategic partner. So we're still making progress. First phase of our approach, although simultaneously, we're looking at what we might do with a separated oxide facility in Hamilton, where our primary focus right now is getting that definitive feasibility study done for the MREC plant in Australia. David Begleiter: Very good. And just on India, are these reinstated tariffs potentially high enough to preclude all Chinese imports? Can you remind us what those imports have been in the last few years into India? John Romano: I wouldn't expect that all the exports are going to go away. I mean the reality is China is going to be a competitor of ours for a long period of time, and we have to be competitive with them and these trade measures are a bridge for us to continue to improve our cost profile and be able to compete fairly. That being said, we do think that the duties that have been announced and were stayed and now there's been a motion by the Trade Defense Agency in India to reinstate those. Those numbers range from on the low end of $460 to the high end of $681, and we believe that those are going to be enough to help us manage that business in a better way. And when you think about our volumes in India, even though those duties have been stayed, our volumes are still growing in India. Even though the exports from China into India in the last month were higher, our volumes from Q2 to -- from Q1 to Q2 continue to increase. Operator: Your next question comes from the line of Josh Spector with UBS. Joshua Spector: I wanted to ask just on your comments around the surcharge to structural pricing kind of transition here. So how much pricing in 2Q would you say was from surcharges? And what's kind of left within the mix today? John Romano: Yes. So thanks for your question, Josh. So what's left in the mix today is a small portion that's largely tied to sulfur. And again, the majority of it is tied to sulfur. There's still a few that are lagging out there. In the second quarter, I think we had some color on that in the first call was about 60% to 70% of the price that we increased in the first quarter was strictly pricing and the balance was surcharges. And so when you think about that transition into Q3, where we're still talking mid-single-digit price increases, we converted some of what was surcharges into longer-term pricing because that longer-term pricing is stickier than surcharges. Joshua Spector: Okay. No, that makes sense. And if I could ask more broadly just about kind of the industry from here. I mean it's nice to see Western players starting to get more price. But I guess when we look around, some of the industry was tight because of Western outages from some of your competitors that are now ramping up supply. There's potentially more supply in Europe. China supply seems like it's just not going away from the export market for whatever reason. I guess if we don't have a good coating season next year, does this create a headwind that means that it's going to be harder to keep price and potentially get back price? Or if not, like why do you think that would trend the other way? John Romano: Yes. Look, it's a great question. And -- what I can say is that the market will recover, but I can't be specific on when it is going to recover. I think the important part is what we're seeing right now is all on the back of what you just described, which is a structural shift in the supply base. And when pricing was moving down over the course of the last several years, what you saw was customers weren't really buying much inventory because there was always an assumption that price might be lower in the next quarter or the next month. So as pricing starts to move up, what we saw is that customers started to rebuild some inventory. And very quickly, we got to the point where we talked a little bit about having constraints around what we can even take on the order pattern because we're selling everything that we're making now, we drew down inventory. So what that says is that any kind of a flex on demand, whether it's structural or true demand drivers, the industry is having a tough time even with China, filling that on a short-term basis because there's -- you have to remember, even with the capacity coming back in Spain, the capacity coming back in Italy and the announcement that Lohmann is starting their facility in the U.K. in August, and they'll start to ramp that up. And to be clear, we don't know any more than what's been reported. There's still more than 1 million tons of capacity that's come offline net. And that's why I still think what's happening right now, not on the back of demand, there's more upside when the market does recover. And I don't -- I can't say there won't be any downside on pricing. But right now, we're in a comfortable place, and we think we're on the right trajectory with 2 quarters of price improvement under our belt in a market that has not been supported by demand improvement. Operator: [Operator Instructions] Your next question comes from the line of Duffy Fischer with Goldman Sachs. Patrick Fischer: First question is just on the midpoint of your guide, you're up sequentially about $32 million in EBITDA. Could you do just kind of a quick bridge like you did on Slide 7, how much of that $32 million improvement comes from price? Obviously, volume probably is a little bit of a negative because you called that as down. And then how much is getting better on cost? John Srivisal: Yes. Thanks, Duffy. We don't want to give specific numbers there. Obviously, we've given a guide around what we expect high-level volumes and pricing to drive. But pricing is driving the majority of the improvement quarter-over-quarter. We are seeing declines. It's more seasonal related on TiO2 and zircon. But we're also seeing a benefit on the cost. If you recall, we did have a couple of significant outages in Q2 that will be added back to Q3 as well as better costs from our sustainable cost improvement program as well as shutdowns of our Botlek and Fuzhou facilities. So we are seeing that net-net be a slight benefit. However, obviously, there's a lot going on with the war that we can't control. We're seeing costs escalate. We're going to try to cover as much as we can, but that potentially could be a headwind. And as you've already seen on the Q1 and Q2 year-over-year graphs, bridges that we provided. FX is a huge headwind year-over-year. So we're needing to overcome that. But again, the biggest item driving our earnings improvement is pricing. Patrick Fischer: And then just a clarification. The comment you guys were making around zircon where inventory is going to limit sales in Q3, is that because you've drawn down your inventory, so you don't have as much excess inventory to sell above production or that inventory at your customer level where they've kind of built back some inventory and maybe their demand pull isn't as strong? John Romano: No, that's our inventory and our ability to meet that. And it's really more towards the end of the quarter, so there could be some volume slipping out as far as rolling. But we have pulled back our inventory significantly with the last 3 quarters of high sales. So that's our inventory being lower. And again, it's not so much having it, but having it at the right time and making sure we get those shipments out. That's that's why we made that comment moderating slightly due to inventory. John Srivisal: And that's the reason why we are bringing the West Mine up because that will give us a significant amount of zircon inventory later in the year. Operator: Your next question comes from the line of Jeff Zekauskas with JPMorgan. Jeffrey Zekauskas: I think Chinese imports into Europe year-to-date are up 25%. And there are obviously high tariffs in Europe. What do you make of the increase in Chinese imports if you see it the same way? John Romano: Yes, Jeff, look, again, we get the question on the Chinese imports a lot, and they were up. And when you think about a lot of those exports was a big increase in India. There was also a significant increase in chloride exports, which I'd say wasn't abnormal for the first -- for the last couple of months, but it's just noteworthy. And I think that's coming from the fact that sulfur prices have gone up so much that some of the chloride producers over there. And if you think about nameplate or actual production that we're forecasting out of China in 2026 is about just under 5 million tons and about just under 1 million of that is chloride. They're starting to export some of that material. And China is not very strong right now. So we still sell in China. China is a weak market even though we don't have an asset there any longer. So there is an element of continuing to push exports out because the market in China is weak. And then you've also got the issue where we've got it on pretty good authority that there are a number of producers over there that are curtailing production, and they've got inventory, but they need to generate cash. So I can't be specific as to exactly why they're doing it, but exports are up. The big swing was in India, and I'll restate what I made earlier, even though their exports were up, there was some repositioning in India where some suppliers aren't supplying as much there. So our volumes from Q1 to Q2 went up in India as well. And I think there could be also one last element of -- I made reference that the trade agency in India has now recommended the duties come back online. There was an assumption that, that could happen. Those duties won't be retroactive. So there could be some movement of inventory over into China. I mean, into India, knowing that those duties are going to come back. So they're building a bit of inventory over there. And that's why I made the comment that it could take some time before we see that benefit because there's going to be some inventory build in India from some of those Chinese exports. John Srivisal: I will say as well, we have seen chloride volumes go up pretty significantly. It's almost doubled in the EU but you have to keep in mind, as you know, the majority of the Chinese producers are sulfate. So you will be more capped on the exports in -- from China on chloride. Obviously, they're exporting chloride because sulfur price has gone up significantly. So it is more economical for them on a chloride basis. Jeffrey Zekauskas: And then maybe a financial question. Two parts, your gross profits are down year-over-year in the quarter and for the 6 months. Should we read that as whatever the price and volume increases have been, they've not been large enough to outstrip your cost inflation? Is that a fair appraisal? And second, do you expect your inventories at the end of the year to be lower than they are today? And maybe if you can tell us how you've brought down your inventories. John Srivisal: Sure. No, good questions there. I would say on your first question, from a gross margin perspective, obviously, costs have been inflated significantly year-over-year, in particular, following the war, prices have skyrocketed in sulfur, which we do consume some of it as well as some other costs. I think you need to keep in mind that we had 2 major outages in Q2. So all that cost with no production does go and expense in that quarter versus if you had some production above a certain level, you would spread it out. It would go to inventory. So I think that's part of what's missing. We have seen pricing increasing and provide more gap versus cost increases generally in the first half of the year. John Romano: Yes. And just maybe on those 2 outages, remember, the outage on the SR kiln was north of 50 days. And the Stallingborough outage was scheduled for 24 and it went to 29. So all of the costs that we had that could have been into a small amount of inventory based on Stallingborough, we absorbed all those in the month of June, and that's why we're going to have better costs going into the third quarter because we took that hit in the form of an idle facility charge in the third quarter in the month of June. I mean second quarter in the month of June. John Srivisal: On your second on inventory, obviously, you've seen Q2. We took a big change in our operating method to purposely slow down our production in order to unlock cash through inventory. So you saw $120 million roughly of cash being released from inventory. This was primarily finished goods, so primarily pigment and zircon, a lesser extent, feedstock. As you -- we look towards the rest of the year, as we've mentioned, we are ramping up our facilities running the pigment plants unconstrained. As John mentioned, we do have more orders than we've been able to fill. So we will ramp up those facilities, but we will be able to sell them, we believe. And so we do still see inventory lowering in the second half of the year. It's just not going to be the extent of what we brought down in Q1 and Q2. If you want to finish the working capital side of it, we do see obviously more cash generating in Q3 and Q4 from AR. And just as we expect volumes to be down a bit. So we do expect to collect more in AR. John Romano: And in that range of EBITDA that we talked about in the third quarter, we're still expecting to draw more finished goods inventory down because we've got more sales than we're producing. But in the fourth quarter, again, you're going to see seasonal shift. And typically, we would build some inventory in the third -- in the fourth quarter, but that will largely be TiO2 inventory. We don't believe we'll build any zircon inventory. Jeffrey Zekauskas: Maybe if I can squeeze in a last one. Why should your free cash flow in the fourth quarter be much better than the other quarters? What's going on in the fourth quarter? What are the levers? John Srivisal: Yes. I mean the biggest driver is what I mentioned is working capital, primarily AR. So as you know, it's seasonally down. So you should collect from that. And secondly, if you look at, for example, our profile quarterly, we have 2 big interest payments in first quarter and second quarter, each $50 million. So you have to add that back to Q4. So that gives us confidence that we're going to generate a significant amount of free cash flow in Q4. Operator: Your next question comes from the line of Hassan Ahmed with Alembic Global. Hassan Ahmed: John, a question around cost curves. Obviously, sulfur availability remains an issue. Sulfuric acid prices have gone up a fair bit. And obviously, China is curbing the exports of sulfuric acid as well. So I mean, as you look at the cost curves, what percentage of the industry do you think is in the red right now? And part and parcel with that, I mean, historically, over the last couple of quarters, you guys would give an update on the rationalization side of things. So where do we stand on that front as well? John Romano: Thanks, Hassan. So look, it's really hard to get a super accurate read on exactly what's going on in China. But I'll give you anecdotally what we've heard recently is there are as many as 19 to 20 producers in China that are curtailing for the very reason that you just identified. Sulfur prices, I think on our last call, we were talking about pricing being up 300%. Sulfur prices are up 400% now. And on a sulfur basis, that's like a 1:1 -- sulfur goes up, you got to raise the price for TiO2 accordingly. We've also made that correlation to sulfuric acid. As it goes up $100, you have to raise the price $300. So pricing has started to move. You've got this dynamic where we talked a little bit about China's increase in exports of chloride versus sulfate. Chloride becomes -- pricing for chloride TiO2 hasn't gone up as much as the costs have gone up for sulfur. So I guess short answer, I would say the majority of producers are now not able to pass through all the sulfur charges. Again, we're using surcharges for sulfur, both in Thann and Brazil, but there's a limit to what we can do to make sure we continue to maintain competitive activity, and we maintain our share. So I would say the majority of them are and one of the reasons are losing money. But one of the reasons exports are still increasing. And again, it's hard for me to gauge that month-to-month. One is I think there is a belief understanding that duties are going to come back in India. So that's why you saw that channel get filled up a bit. But there were exports increased in a lot of other countries. And I think the Chinese are continuing to push volumes out because they need to generate cash. It's not so much for making money. Hassan Ahmed: Fair enough. And one of the points that you raised, which I think is kind of interesting, now that there's more clarity around the antidumping measures in India in particular. I mean, obviously, I think there was some concern around elevated exports coming out of China. So do you really think that ahead of potentially these antidumping measures, the Chinese may have elevated their exports to India in particular? And could that be an opportunity for you, call it, post the 90-day period that you guys spoke about of garnering more market share out in India in particular? John Romano: I agree with that 100%. And one of the reasons they're doing it is because although they have said they're going to reinstate the duties, there isn't going to be any retroactive duty on that. So customers are, I would say, the issue is there's not a lot of opportunity for them to store material over in India based on -- there's not -- those Chinese companies don't have a lot of wholly owned subsidiaries over there. So I do think there is a bit of customers buying more of the Chinese on the assumption that those duties are going to go away. And I would agree with both your timing and the definition of how you describe what the Chinese are doing at this particular stage on the assumption that those duties are coming back. Operator: Your next question comes from the line of John Roberts with Mizuho. John Ezekiel Roberts: You mentioned LB planning to ramp in the U.K. here. Is your understanding that, that will only be finishing? Or do you think they're attempting to refire the furnaces? And do you expect that product to make its way to the EU as well? John Romano: So I can only tell you what I've read, which is public, is that they're talking about starting up one chlorinator. So when you think about that facility, they've got multiple chlorinators. One of them apparently is in a position where they're going to restart it. They've got one oxidation line. So they're going to be running that asset. They've talked about recommissioning and starting in August. So we'll have to wait and see what that is. It's at a very low rate of production run. They've only got one oxidation line. So you're going to be putting very little titanium tetrachloride to that oxidation line. It doesn't feel to me like it's going to run super efficiently. The question -- and that's if, in fact, they do. So I don't have any more information that's public -- than what's public right now. And as we get more information and can share, we will. With regards to if they produce it in the U.K., they could sell it into Europe. I can't tell you if they're going to be bringing raw pigment in and trying to finish it there. That wouldn't be an alignment with the trade barriers that are put in place. But I'm not going to speculate on what they're doing, and we'll continue to evaluate that as we monitor trade flows. And to the extent we can provide an update before they update you, we will. John Srivisal: And just a reminder, that facility was high cost, which is obviously why it got shut down. And obviously, running that without all the lines up would imply that the cost would be even higher. John Romano: You go back to the points we made when we were -- back when we were slowing our production down. One thing that we found is that one oxidation line facility is running below 70% capacity don't run very well. John Ezekiel Roberts: Got it. And then on rare earths, what would be the gross capital requirements for Phase 1 and then Phase 2? John Romano: So look, at this particular stage, we haven't provided a lot of color on exactly how much capital. We are looking at the definitive feasibility study on what that acid leaching and cracking facility will look like. That will be done, like I mentioned on the prepared comments in the third quarter of 2027. And although we've got some ideas, a lot of that is going to depend on the feed rate, who we're working with because, again, it's just a little bit too early to be giving you actual capital numbers. The fact of the matter is it's public that both EFA and EXIM Bank have given us a nonbinding indication of about $600 million, but we're looking at lots of funding sources at this stage. Operator: Your next question comes from the line of Frank Mitsch with Fermium Research. Frank Mitsch: I want to come back to India. Obviously, you mentioned how the Trade Defense Agency has recommended putting the duties back on, but the Ministry of Finance has 90 days to act on that. What are your government affairs people saying about the history of the Ministry of Finance accepting these recommendations? I mean is it a rubber stamp? Do they go along with it 50% of the time? I mean any color here because this is really the first time that we're dealing with the situation. So any help there in terms of the probabilities of this being accepted by the Ministry of Finance would be very helpful. John Romano: Great question, Frank. And look, it is considering these went into effect in May, and here we are in August of 2026, and we're still kind of working through what those ultimate duties are going to be. They do have 90 days to approve it. I would expect that there's going to be some complaints from the Indian trade -- the Indian Paint Association on that. I do think that, that recommendation is, in fact, I won't call it a rubber stamp, but they've got 90 days to approve that, and there'll be some back and forth around what that is. But I think at this particular stage, we feel pretty confident, and we're very engaged in India. I'll be there in 2 months, not to meet with them, but we -- I mean, 2 weeks. So we're spending a lot of time over there. It is a very important market for us. Our margins and our volumes have continued to grow in that area, and we have a very vested interest in trying to make sure that there's fair trade over there because it's a significant market for us. So it's hard for me to give you a definitive answer, but I'll say I'm a bit more confident that this decision was made and there's a 90-day window, and hopefully, that answer will come sooner than that. Frank Mitsch: Well, you mentioned that the Indian Paint Association will lobby the Ministry of Finance to try not to have these duties put on. But I would assume that they have been lobbying pretty hard the Indian Trade Defense Agency. Has that not been the case? John Romano: It has. So again, it's not say they won't continue to do it. I guess you -- the reason I said that is I don't have a real clear definitive answer on exactly when it's going to happen. There's 90 days there, and I'm sure they're going to continue to lobby. But they -- to your point, they did lobby against it and the trade authorities agreed that they were going to reinstate them. And that's just a 90-day period that they've got to continue to evaluate it. So it's a bit opaque to use the TiO2 word, but hopefully, will be done prior to 90 days. Frank Mitsch: Okay. So I mean, so the way that realistically, if it gets implemented, et cetera, the Chinese are going to be building inventory for the next couple of months over there. It will take time for the Indian paint companies to work through that inventory. So we're really talking about a benefit in 2027 realistically potentially. John Romano: For -- I would say maybe for additional volume, that's true. It depends on how much they do between now -- they export between now and the end of the quarter. The numbers that they exported in the month of June were really high. So that's why I'm kind of leaning towards this idea that they're building some inventory on there on the assumption that they're going to go down. But I'll make the point, our volumes in Q1 were higher than they were in Q4. Our volumes in Q2 are higher than they were in Q1. So we're continuing to align with customers over there that are looking for strategic partners knowing that some of these things are going to happen. So our volumes have not gone down. Our volumes Q1 to Q2 have actually increased in India, and we don't expect that we're going to lose share over there right now. Operator: Your next question comes from the line of John McNulty with BMO Capital Markets. John McNulty: And maybe somewhat tied to your last answer. I think, John, earlier, I guess, at the beginning of the presentation, you spoke to how there were customers that were looking for stability around long-term supply and you were looking to capitalize on that. I guess, can you speak to the levers you can pull to kind of lock in some of that longer-term volume so it doesn't just become temporary and kind of tied to sulfur pricing and what's going on in the street right now? John Romano: Yes. I was speaking more specifically to India on that one. So again, not knowing what China is going to do, and I think this all comes back down to the antidumping duties, we believe, and I think some of our customers believe, ultimately, they're going to be put in place. We see customers shifting towards longer-term commitments, and that's helped us secure volume for longer periods of time where typically we'd be negotiating quarterly. We're getting agreements for longer periods of time because they value us as a supplier, having reliable supply and knowing that we're going to be predictable long term and not in and out of the market. I think the fact of the matter is China moves in and out of the market. We've been in that market. It's the second largest market that we sell into globally -- second largest country we sell into globally. It's strategic for us. And I think you could say that for lots of regions that are impacted by duties. I mean the fact of the matter is there's duties in Brazil, there's duties in Saudi Arabia, there's duties in Europe. We believe duties in India are going to come back. We're actively working on duties in Australia. We're actively working on duties in the U.K. The only other place that TiO2 is produced is Canada and Mexico. So you've got a lot of free trade efforts in place. And I can't tell you where things are in Canada and in Mexico at this stage because they don't produce there. John McNulty: Got it. Okay. No, that's fair. Makes sense. And then I guess the only other question I had was you mentioned early on a lot of antidumping measures have been taken and the next step in your mind is some anti or at least potential anti-absorption steps. I guess, can you help us to think about how that process starts and where we might -- where you might be able to take that or the industry in various regions might be able to take that over time? John Romano: What I can tell you now is that we're looking at that in areas where duties have already been implemented. I can't get into specifics, but anti-absorption basically means companies that continue to absorb the duties and don't move the price accordingly. So we're actively involved and looking at those in areas where duties are already in place. And at this particular stage, I can't provide you any more color on what we're doing. But let's just say that there's a significant body of work that's going on around maintaining and optimizing fair trade. Operator: Your next question comes from the line of Ed Brucker with Barclays. Edward Brucker: My first question, it seems like volumes were pretty strong to start the year. Would you attribute any of that to some prebuying maybe ahead of potential price increases either customers were expecting or even uncertainty within the market? And do you think that could potentially lead to destocking in the year? John Romano: That's a great question. I do believe as pricing starts to move up in any cycle, whether that's driven by structural supply shifts or demand as pricing starts to move up -- when pricing is moving down, people draw inventories down. As it starts to move up, there's an assumption that it's going to continue to move up, so people do start buying. So there was a little bit of that in the first quarter. What's going to prevent that from happening in the second and third quarter is that I won't speak for the entire industry, but our inventory very quickly got depleted. As we mentioned, we drew down north of $100 million of inventory from Q1 to Q2. I would believe our competitors are in a similar position. So there's not a lot of opportunity for a lot of inventory to be built. And I'll go back to the industry doesn't have the same capability to flex production because there's 1 million less tons of production out there to respond to that demand. So I can't say that it won't happen. I'd say there's limited capability for a lot of prebuying going on in the markets that we serve other than what I talked about in India and some of the markets where antidumping may be coming back. Edward Brucker: Got it. And my next one, I noticed on the slide deck that you expect current CapEx levels to be around -- or excuse me, the next couple of years CapEx levels to be around 2026 levels. How should we view that in the context of any sort of growth CapEx? Or are we staying close to maintenance? And would you view that as kind of an underinvestment over time over the next couple of years? John Srivisal: Yes. We're less than $260 million is our guide for this year. And historically, we've been operating at much higher levels just due to a lot of the mining investments that we've done. But as we've mentioned previously, those are mostly behind us. So expect to be at these levels in the next 5 to 8 years. I'll say within that bucket, we do still have some discretionary and growth capital in there. Maintenance and safety is usually around $150 million to $175 million, roughly up and down here and there throughout the years. So we do have a significant amount that we would describe as discretionary. It does exclude, however, anything related to the rare earth project at this point in time other than some normal expenses that we're incurring for the DFS and just setting up that business. Operator: Your next question comes from the line of Peter Osterland with Truist. Peter Osterland: So first, just wanted to follow up on the earlier point on how you've been managing operating rates across your TiO2 footprint. Could you approximate how much your average utilization rates changed as of midyear versus where you were at the end of last year? And where are you planning to go in the second half? John Srivisal: So we have actually -- obviously, in the first half of the year, we did bring down our operating rates just to unlock more inventory. But as we've seen a big pickup in our sales volumes, we are not constraining any of our assets. The only one that we have more potential would be in Yanbu, where we have one line that is -- has a potential to go online later this year. John Romano: Actually, we're in the process of rebuilding that line. It's a line that's been down. So remember, that facility has 5 oxidation -- 6 oxidation lines, 6 chlorination lines. So to the extent we need to bring that back up, it will be ready to be brought back up. But at this particular stage, we're running unconstrained at our TiO2 facilities other than that. Peter Osterland: Very helpful. And then just as a follow-up, looking into the fourth quarter, I understand there's some negative seasonality around TiO2 volumes there. But just given the dynamics around costs and pricing that you described, would you expect your margins in the fourth quarter to be your highest for the year and potentially even meaningfully step up from third quarter? John Srivisal: And we -- obviously, we haven't guided for Q4, but obviously, the pricing momentum that we've had will create some tailwinds for us. Operator: Your next question comes from the line of Aaron Rosenthal with JPMorgan. Aaron Rosenthal: Just circling back to the decision to re-ramp the assets. I guess what gives you confidence in there being incremental market demand for zircon in 2027? Is it a specific call on, let's say, China housing recovery? Or are you seeing any indications of the competitors that are maybe idle today not having an ability to re-ramp as well? Just trying to think about balancing the earnings uplift potential against the potential liquidity needs on the working capital front. John Romano: Yes, great question. I'll just make the comment that we need that for the inventory. I mean, right now, we will be selling more than we're producing in 2026 and drawing down that inventory. So starting that lineup is going to allow us to continue running at the rates that we need to run at to meet customer demand. So I don't expect at this stage, based on what we know, there's going to be a significant change in our demand for that product. Specifically, there's a lot of things going on. I mean, when you think about -- there have been some capacity constraints out there, which I think from the individual producers you know. In Indonesia, largely, there's a lot of that production that's not there that's not being produced at this particular time. That's about 65,000 to 70,000 tons per year. And then I think more importantly, in China, there's a lot of heavy mineral concentrate that gets converted to natural rutile, monazite and zircon. And at this particular stage, it's not very economic for them to convert that for 2 reasons. One, there's not a home for the ilmenite because volumes in China are down and there's no home for the ilmenite. And the zircon that they're producing is not a premium grade there. And in China, the ceramics industry is not doing well. Where you're getting the big pull from a demand perspective, and we -- I think we didn't talk about this on the last call, but China is improving a little bit, but it's more driven towards investment casting, zirconium chemicals, fused zirconia and refractory applications, not ceramics. And the majority of our sales in China, Tronox is actually migrate to those other products. Only 16% of our sales in China go to ceramics. And globally, that's only 8%. So I hope that answers the question maybe a bit longer than you wanted, but this is to meet current demand, bringing on the West Mine and it's also why we're ramping us up East OFS to full capacity, and we would expect that, that will help us support sales into the end of the year and into 2027. Aaron Rosenthal: That's great. More detail, I think, is always very much appreciated. And then maybe one more on India. I know there's been a lot of Q&A already. I may have missed this, but does your second half volume metric guidance explicitly take into account incremental exports from China flowing into India ahead of the ADDs potentially going into place? Or is there some room for the outlook to evolve based on how actual trade flows may play out? John Romano: I'm not. Could you repeat it one more time, just to make sure I get the answer right. Aaron Rosenthal: Yes. So once again, I guess with respect to your second half volumetric guidance on TiO2, wondering if it takes new accounts and sort of market share considerations with respect to more Chinese products flowing into India ahead of ADDs potentially going back into place? If not, maybe how the outlook could evolve based on how actual trade flows play out? John Romano: It definitely is factored into our third quarter guide. When I think about the fourth quarter guide, which is a bit early to kind of get a good read on our order book, we have a 90-day kind of window on our order book, but I would expect that we'll see similar volumes. And as I mentioned, we're not losing share to China right now. The volumes that we're selling into India, it's not to say there won't be any seasonal adjustments there. But I would -- short answer to your question, it is taking it into account, but I can't predict what they're going to do month-to-month. Operator: That concludes our question-and-answer session. Ladies and gentlemen, this will conclude today's call. Thank you all for joining. You may now disconnect. Before you buy stock in Tronox Plc, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Tronox Plc wasn’t one of them. The 10 stocks that made the cut are built for long-term growth and could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $400,209!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,375,393!* That performance is why people listen. With a track record of beating the S&P 500 by 4x, Stock Advisor offers a distinct advantage. Don't miss the latest top 10 list, available with Stock Advisor, and join an investing community built for the long haul. See the 10 stocks » *Stock Advisor returns as of August 13, 2026. This article is a transcript of this conference call produced for The Motley Fool. While we strive for our Foolish Best, there may be errors, omissions, or inaccuracies in this transcript. As with all our articles, The Motley Fool does not assume any responsibility for your use of this content, and we strongly encourage you to do your own research, including listening to the call yourself and reading the company's SEC filings. Please see our Terms and Conditions for additional details, including our Obligatory Capitalized Disclaimers of Liability. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. Tronox (TROX) Q2 2026 Earnings Call Transcript was originally published by The Motley Fool

Tronox Holdings plc TROX posted an adjusted loss of 51 cents per share for the second quarter of 2026, wider than the year-ago loss of 28 cents. The loss was also wider than the Zacks Consensus Estimate of a loss of 39 cents. Revenues increased 19% year over year to $868 million and beat the consensus estimate of $848.8 million by 2.2%. Higher titanium dioxide (TiO2) and zircon volumes drove sales growth, although elevated production, freight and other costs weighed on profitability. Tronox Holdings PLC price-consensus-eps-surprise-chart | Tronox Holdings PLC Quote TiO2 sales were $700 million in the reported quarter, up 19% year over year. TiO2 sales volumes increased 18%, while average selling prices, including mix, were flat and currency contributed 1%. Sequentially, TiO2 sales rose 14% as volumes increased 9% and price/mix improved 5%. Zircon sales increased 43% year over year to $97 million. Sales volumes surged 61%, more than offsetting an 18% decline in average selling prices, including mix. Sequentially, zircon revenues increased 9%, supported by a 4% volume increase and a 5% improvement in price/mix. Cash and cash equivalents were $194 million as of June 30, 2026. Total debt stood at $3.2 billion, while net debt was $3 billion. Cash provided by operating activities was $105 million in the second quarter. Capital expenditures totaled $45 million, resulting in positive free cash flow of $60 million. For the third quarter of 2026, Tronox expects TiO2 volumes to decline sequentially in the mid-single-digit percentage range, consistent with normal seasonal patterns. Zircon volumes are expected to moderate slightly because of inventory availability after a strong first half. TiO2 pricing is projected to rise sequentially in the mid-single-digit percentage range, while zircon pricing is expected to increase in the mid- to high-single-digit range. Management forecasts adjusted EBITDA of $95-$115 million, with margins improving sequentially as pricing actions and higher operating rates provide support. Elevated input costs stemming from Middle East volatility are expected to partly offset these benefits. Free cash flow is expected to be relatively neutral in the third quarter, while Tronox continues to target meaningful positive free cash flow for full-year 2026. Looking further ahead, the company expects the definitive feasibility study for its rare-earths cracking and leaching facility to conclude by the third quarter of 2027. Shares of Tronox have risen 70.9% in the past year compared with the industry’s 4.8% growth. Image Source: Zacks Investment Research TROX currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here. Ashland Inc.’s ASH adjusted earnings were $1.02 per share for the fiscal third quarter, down around 2% from the year-ago quarter’s figure of $1.04. The bottom line missed the Zacks Consensus Estimate of $1.03. For fiscal 2026, Ashland reaffirmed sales guidance of $1.835-$1.870 billion and adjusted EBITDA outlook of $385-$400 million. Huntsman Corporation HUN posted break-even earnings per share on an adjusted basis for the second quarter compared with a loss of 20 cents in the year-ago quarter. The Zacks Consensus Estimate of earnings was pegged at 6 cents per share. HUN expects to remain focused on additional price increases and cost-reduction initiatives to offset rising and volatile energy and crude oil-related costs, particularly in Europe. Olin Corporation’s OLN second-quarter adjusted earnings were 7 cents per share, in line with the Zacks Consensus Estimate. For the third quarter, Olin expects adjusted EBITDA in the range of $160 million to $200 million. OLN expects its Chemical businesses’ results to be comparable with second-quarter levels as lower operating rates at the Freeport vinyl chloride monomer facility and weaker ethylene dichloride pricing offset anticipated stronger caustic soda volumes. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Tronox Holdings PLC (TROX) : Free Stock Analysis Report Ashland Inc. (ASH) : Free Stock Analysis Report Huntsman Corporation (HUN) : Free Stock Analysis Report Olin Corporation (OLN) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

Interested in Tronox Holdings PLC? Here are five stocks we like better. Second-quarter revenue rose 19% year over year to $868 million, supported by higher TiO₂ and zircon volumes, but Tronox reported a $171 million net loss, including a $103 million deferred-tax valuation allowance. Adjusted EBITDA fell 22% to $73 million, while free cash flow reached $60 million. Sequential pricing and volumes improved, with TiO₂ revenue up 14% and zircon revenue up 9%; additional price increases are expected to drive third-quarter earnings growth. Tronox forecast third-quarter adjusted EBITDA of $95 million to $115 million despite moderately lower seasonal volumes. The company reduced inventory by roughly $120 million and remains on track for the high end of its $125 million–$175 million cost-improvement target by the end of 2026. India’s trade agency recommended reinstating duties on Chinese TiO₂, while Tronox continues evaluating its Australian rare-earth project, targeted for potential startup in late 2029. Value Alert: 3 High-Yield Stocks Trading at 52-Week Lows Tronox (NYSE:TROX) reported second-quarter 2026 revenue of $868 million, up 19% from a year earlier, as higher titanium dioxide, or TiO2, and zircon volumes helped offset lower average zircon selling prices, including mix. The company posted a $21 million operating loss and a net loss attributable to Tronox of $171 million, which included a $103 million valuation allowance related to certain U.S. state deferred-tax assets. Adjusted EBITDA was $73 million, down 22% year over year but up 18% sequentially, while adjusted EBITDA margin was 8.4%. Adjusted diluted earnings per share was a loss of $0.51. The company generated $60 million of free cash flow during the quarter and reduced inventory by roughly $120 million from the first quarter, reaching its lowest inventory level since June 2024. → No Hangover: Revisiting Microsoft One Week After Earnings Chemical Maker Tronox Holds Above 10-Day Line After $4.3 Billion Buyout Offer Chief Executive Officer John Romano said TiO2 volumes reached the high end of the company’s guidance range and were at their highest level since the second quarter of 2022. Zircon volumes exceeded expectations and surpassed the strong first-quarter level as industry supply remained constrained. Sequentially, TiO2 revenue rose 14%, reflecting a 9% volume increase and a 5% increase in average selling prices, including mix. Zircon revenue increased 9%, with volumes rising 4% and pricing increasing 5%. Romano said the pricing gains were primarily driven by base-price increases rather than temporary surcharges. → MarketBeat Week in Review – 08/03 - 08/07 The company has implemented additional TiO2 and zircon price increases in the third quarter. Romano said Tronox is increasingly shifting away from temporary surcharge mechanisms toward “more sustainable pricing actions” that account for market conditions, higher input costs and the value of reliable supply. Remaining targeted surcharges are largely tied to sulfur-related costs in Brazil and Thann. Chief Financial Officer John Srivisal said pricing is expected to be the largest contributor to expected third-quarter earnings improvement. He also cited expected cost benefits from the completion of planned outages and from the company’s cost-improvement program, partly offset by elevated costs associated with the Middle East conflict and foreign-exchange headwinds. → Why the Landlord of the AI Boom Could Outlast the Chipmakers Tronox said its second-quarter costs included the effects of a regulatory outage at its Stallingborough facility and an extended shutdown of its SR kiln. Romano said the SR kiln outage lasted more than 50 days, while the Stallingborough outage extended to 29 days from an originally scheduled 24 days. Both outages have now been completed. Management said the company remains on track to achieve the high end of its $125 million to $175 million cost-improvement run-rate target by the end of 2026. Sales of lower-cost inventory, program savings and plant closures partially offset higher production costs, freight expenses and currency effects during the quarter. At June 30, Tronox had $3.2 billion of total debt and $3 billion of net debt. Liquidity totaled $527 million, including $194 million of cash and cash equivalents. The company’s weighted average interest rate was approximately 6%, with about 75% of interest rates fixed through 2028. Its next significant debt maturity is not until 2029, according to Srivisal. During the quarter, the company replaced an expired short-term Emirates revolving facility with a new $75 million long-term financing arrangement. Tronox also paid $45 million in capital expenditures, primarily for maintenance and safety, and returned $8 million to shareholders through dividends. For the third quarter, Tronox expects TiO2 volumes to decline moderately in the mid-single-digit percentage range due to seasonal patterns. Zircon volumes are expected to moderate slightly after a strong first half, primarily because of the company’s inventory availability. TiO2 pricing is expected to rise sequentially by a mid-single-digit percentage range, while zircon pricing is projected to increase by a mid- to high-single-digit percentage range. Tronox forecast third-quarter adjusted EBITDA of $95 million to $115 million and expects sequential margin improvement. The company expects third-quarter free cash flow to be relatively neutral because of semiannual interest payments, but it reaffirmed expectations for meaningful positive free cash flow for full-year 2026. Its assumptions include approximately $190 million of net cash interest, less than $10 million of net cash taxes, less than $260 million of capital expenditures and working capital as a cash source of well above $100 million. Romano highlighted developments in India, where the Indian Trade Defense Agency on Aug. 3 recommended reinstating duties on Chinese-made TiO2 at levels unchanged from those originally imposed in May 2025. The recommendation now goes to India’s Minister of Finance, which has 90 days to decide. Romano said the duties, ranging from $460 to $681, would not eliminate Chinese imports but could help create a more competitive market. He said Chinese exports into India have increased, potentially as customers build inventory ahead of a possible reinstatement, though Tronox’s own India volumes rose from the first quarter to the second quarter. The company is also monitoring anti-dumping investigations in Australia and the United Kingdom and is evaluating possible anti-absorption actions in markets where duties already exist. Tronox continues to advance its rare-earth strategy while seeking financing sources, potential customers and strategic partners. The company expects its definitive feasibility study for an Australian cracking and leaching facility producing mixed rare earth carbonate, or MREC, to conclude in the third quarter of 2027. The planned Australian facility would have expected capacity of 10,000 tons annually on a total rare-earth-oxide basis, with a potential late-2029 startup if the project continues on its current path. Tronox is also evaluating a downstream refinery for separated rare-earth oxides, including a potential location at its Hamilton, Mississippi, site. Romano said the company does not currently need a technology partner for the initial Australian MREC phase, but it continues to assess potential partners for a separated-oxides facility. He said the company is prioritizing completion of the Australian feasibility study before providing more detailed capital estimates. 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. This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to [email protected]. The article "Tronox Q2 Earnings Call Highlights" was originally published by MarketBeat. View MarketBeat's top stocks for August 2026.

Our analysts just identified a stock with the potential to be the next Nvidia. Tell us how you invest and we'll show you why it's our #1 pick. Tap here. Achieved highest TiO2 volumes since Q2 2022, driven by disciplined commercial execution and a global footprint that allows for reliable supply as market dynamics shift. Realized sequential pricing improvements of 5% for both TiO2 and zircon, successfully transitioning from temporary surcharges to more sustainable base price increases. Benefited from structural shifts in the supply base, including approximately 1 million tons of net industry capacity that has come offline, tightening the market despite stagnant global demand. Capitalized on customer realignment in India and other regions where buyers are increasingly prioritizing long-term supplier reliability over volatile spot market options. Advanced the cost improvement program, which remains on track to reach the high end of its $125 million to $175 million annual run rate target by the end of 2026. Successfully completed significant planned regulatory and maintenance outages at Stallingborough and the SR kiln, positioning the company for improved operating performance in the second half. Managed liquidity and working capital aggressively, reducing inventory by $120 million sequentially to its lowest level since June 2024. Anticipate Q3 adjusted EBITDA between $95 million and $115 million, driven by sequential pricing gains of mid-single digits for TiO2 and mid-to-high single digits for zircon. Expect TiO2 and zircon volumes to moderate slightly in Q3 due to normal seasonal patterns and internal inventory availability constraints following strong first-half sales. Project meaningful positive free cash flow for the full year 2026, supported by working capital being a source of cash well in excess of $100 million. Assume improved operating rates and the continued sale of lower-cost inventory in the second half, partially offset by elevated input costs for sulfuric acid, diesel, and utilities. Target a long-term net leverage ratio of less than 3x as earnings and cash generation recover, prioritizing debt paydown once cash flows stabilize. Monitoring the Indian Ministry of Finance's 90-day window to approve the reinstatement of antidumping duties on Chinese TiO2, which could curb recent surges in Chinese exports. Evaluating 'anti-absorption' actions in markets where duties already exist to ensure competitors do not bypass trade measures by failing to adjust prices accordingly. Managing ongoing volatility in the Middle East, which has led to elevated logistics costs and a 400% increase in sulfur prices, necessitating targeted surcharges in Brazil and Thann. Recorded a $103 million valuation allowance on certain state deferred tax assets in the U.S. during the second quarter. One stock. Nvidia-level potential. 30M+ investors trust Moby to find it first. Get the pick. Tap here. Management is pursuing a phased approach, focusing first on the MREC plant in Australia (DFS due Q3 2027) before potentially building a refinery in Mississippi. Confirmed that while they have non-binding indications for $600 million in government financing, they are still evaluating the need for a strategic technology or financial partner for the refinery phase. Acknowledged that Chinese producers likely front-loaded exports to India in June to build inventory before duties are reinstated, as the measures will not be retroactive. Stated that Tronox's own volumes in India have continued to grow sequentially despite these surges, as customers seek long-term stability. Argued that current price increases are sustainable even without a demand recovery because the the industry's ability to flex production is limited by more than 1 million tons of capacity that has come offline net. Noted that customers can no longer assume prices will be lower in the next month, ending the cycle of destocking that plagued previous quarters. Confirmed the restart of a furnace and the West Mine at Namakwa to address zircon inventory depletion after three quarters of high sales. Clarified that these restarts are necessary to meet current demand levels and support demand, product availability, and sales into the end of 2026 and 2027.

STAMFORD, Conn., Aug. 5, 2026 /PRNewswire/ -- Tronox Holdings plc (NYSE:TROX) ("Tronox" or the "Company"), the world's leading integrated manufacturer of titanium dioxide ("TiO2") pigment, today reported its financial results for the quarter ending June 30, 2026, as follows: Second Quarter 2026 Financial Highlights: Revenue of $868 million, a 14% increase compared to the prior quarter and a 19% increase compared to the prior year Loss from operations of $21 million; net loss attributable to Tronox of $171 million (including $103 million tax valuation allowance); adjusted net loss attributable to Tronox was $82 million (non-GAAP) GAAP diluted loss per share was $1.07; Adjusted diluted loss per share was $0.51 (non-GAAP) Adjusted EBITDA of $73 million; Adjusted EBITDA margin of 8.4% (non-GAAP) Capital expenditures of $45 million Generated free cash flow of $60 million Outlook: Expect to deliver meaningful positive free cash flow for full year 2026, with Q3 relatively neutral Expect Q3 2026 TiO2 volumes to be down moderately, in the mid-single-digit percentage range, in-line with normal, seasonal patterns Expect Q3 zircon volumes to moderate slightly compared to Q2, due to inventory availability following a very strong first half TiO2 pricing expected to improve sequentially in the mid-single-digit percentage range and zircon pricing to improve in the mid- to high single-digit percentage range in Q3 2026 Q3 2026 Adjusted EBITDA expected to be $95-$115 million This outlook is based on Tronox's views on current global economic activity and is subject to changes and impacts associated with the general macroeconomic and industry-related conditions, global supply chain, and inflation-related challenges, among others. ------ Note: For the Company's guidance with respect to Adjusted EBITDA and free cash flow, we are not able to provide without unreasonable effort the most directly comparable GAAP financial measure, or reconciliation to such GAAP financial measure, because certain items that impact such measures are uncertain, out of the Company's control or cannot be reasonably predicted. Summary of Select Financial Results for the Quarter Ending June 30, 2026 CEO's RemarksChief Executive Officer John Romano stated, "The strong commercial momentum we experienced during the first quarter continued into the second quarter. TiO2 volumes came in at the high end of our guidance and at the highest level since the second quarter of 2022. Our ability to reliably serve customers through our global footprint supported volume performance during the quarter, and we continue to benefit from trade defense measures and structural shifts across the industry. Zircon volumes continued to strengthen in the second quarter, exceeding expectations and outperforming the already strong volumes delivered in the first quarter as supply remained constrained across the industry. Pricing for both TiO2 and zircon increased 5% sequentially, as previously announced increases were implemented across our markets. During the quarter, we also announced additional pricing increases for both TiO2 and zircon that are in effect for the third quarter. "Operationally, we continued to realize benefits from our cost improvement program, which remains on track to deliver at the higher end of the $125-$175 million annual run-rate savings target by the end of 2026. Our second quarter cost profile was in-line with our expectations, as higher costs, primarily related to the successful completion of two planned outages, were partially offset by the sale of more lower-cost inventory during the quarter. As a result, we delivered Adjusted EBITDA within our guided range." Mr. Romano concluded, "Cash generation remains a key priority for our business and we delivered $60 million of positive free cash flow in the second quarter. We continued to execute on working capital initiatives, reducing total inventory approximately $120 million from first quarter levels to its lowest value since June 2024. These actions improved liquidity and further strengthened our financial position. While geopolitical developments in the Middle East continue to create uncertainty across portions of the industry, we remain focused on the factors within our control, including disciplined working capital management, commercial and operational execution, and strengthening our balance sheet. At the same time, we are making targeted operating decisions to support future demand and product availability, including the restart of a furnace and advancing plans to bring production back online at our West Mine, both at Namakwa, to support inventory levels, including zircon, to meet demand. Based on our outlook today, we continue to expect meaningful positive free cash flow generation for the full year." Second Quarter 2026 Results (Comparisons are to prior year (Q2 2026 vs. Q2 2025) unless otherwise noted) The Company recorded second quarter revenue of $868 million, an increase of 19% primarily driven by higher sales volumes of TiO2 and zircon, and a favorable exchange rate impact, partially offset by lower average selling prices of zircon including mix. Revenue from TiO2 sales was $700 million, an increase of 19% driven by a 18% increase in sales volumes and a 1% favorable exchange rate impact, while average selling prices including mix remained flat. Sequentially, TiO2 sales increased 14%, driven by a 9% increase in sales volumes and a 5% increase in average selling prices including mix. Zircon revenue increased 43% to $97 million, driven by a 61% increase in sales volumes, partially offset by a 18% decrease in average selling prices including mix. Sequentially, zircon revenue increased 9%, driven by a 4% increase in sales volumes, and a 5% increase in average selling prices including mix. Revenue from other products was $71 million, a decline of 7% year-over-year, driven by lower sales volumes. Sequentially, revenue from other products increased 29% primarily due to higher sales volumes of pig iron. Net loss attributable to Tronox in the quarter was $171 million, or a loss of $1.07 per diluted share, compared to net loss attributable to Tronox of $84 million, or a loss of $0.53 per diluted share in the year-ago period. Non-recurring adjustments totaled $89 million, or $0.56 per diluted share. Excluding these items, adjusted net loss attributable to Tronox (non-GAAP) was $82 million, or a loss of $0.51 per diluted share. Adjusted EBITDA of $73 million represented a 22% decrease, driven by unfavorable exchange rate movements, lower average selling prices including mix, higher production costs, freight and other costs, partially offset by higher sales volumes. Adjusted EBITDA margin was 8.4%. Sequentially, Adjusted EBITDA increased 18% due to higher average TiO2 and zircon selling prices including mix and higher sales volumes, partly offset by higher production costs, unfavorable exchange rate impacts, and higher freight and other costs. The Company's selling, general and administrative expenses were $72 million for the quarter. Tronox's net interest expense in the quarter was $56 million. Depreciation, depletion and amortization expense was $76 million. Balance Sheet, Cash Flow and Capital Allocation Tronox ended the quarter with $3.2 billion of total debt, $3.0 billion of net debt and a net leverage ratio of 11.4x on a trailing twelve-month basis. Available liquidity at the end of the quarter totaled $527 million, including $194 million in cash and cash equivalents and $333 million available under revolving credit agreements. The Company replaced an expired short-term revolving credit facility with a new long-term financing arrangement providing the Company with greater financial flexibility. The next significant debt maturity for the Company is not until 2029. Tronox does not have any financial covenants on its term loans or bonds. The Company has ample liquidity and does not expect to trigger the springing covenant on the US revolving credit facility. The Company generated free cash flow of $60 million. Capital expenditures were $45 million. Rare Earths Tronox continued to advance its rare earths strategy during the quarter, with a clear focus on moving further downstream in a disciplined manner. The definitive feasibility study for the cracking and leaching facility is expected to conclude by third quarter 2027. The Company continued to evaluate development pathways that prioritize returns and limit incremental leverage. Tronox remains actively engaged with potential customers, partners, and funding sources as it assesses the most responsible and value-accretive path forward, leveraging its existing mining footprint and expertise in hydrometallurgical and chemical operations. The Company believes this strategy positions Tronox to participate in longer‑term efforts to diversify rare earth supply chains. OutlookFollowing a strong first half of the year, Tronox expects TiO2 volumes in the third quarter of 2026 to moderate sequentially in the mid-single-digit percentage range compared to the second quarter, consistent with normal seasonal patterns. Zircon volumes in the second quarter are expected to moderate slightly following a very strong first half, primarily due to inventory availably. Pricing for TiO2 is expected to increase sequentially in the mid-single-digit percentage range and zircon is expected to increase sequentially in the mid- to high single-digit percentage range as pricing actions announced during the second quarter have taken effect and are having a positive impact on our margins. Adjusted EBITDA for the third quarter of 2026 is expected to be in the range of $95-$115 million and margins are expected to improve sequentially. This range reflects the continued realization of pricing actions implemented during the first half of the year and higher operating rates as the second quarter extended outages are complete. These benefits are expected to be partially offset by elevated input costs resulting from continued volatility in the Middle East. The Company continues to evaluate opportunities to recover these higher costs through pricing and other commercial and operating initiatives over time. The Company expects free cash flow to be relatively neutral in the third quarter. Tronox continues to expect meaningful positive free cash flow generation for the full year 2026. Webcast Conference Call Tronox will conduct a webcast conference call on Thursday, August 6, 2026, at 9:00 AM ET (New York). The live call is open to the public and can be accessed via live webcast and teleconference. Please visit investor.tronox.com for a link to register for the live webcast and to view the accompanying slides. Replay: A webcast replay will be available at investor.tronox.com following the call. About TronoxTronox Holdings plc is one of the world's leading producers of high-quality titanium products, including titanium dioxide pigment, specialty-grade titanium dioxide products and high-purity titanium chemicals, and zircon. We mine titanium-bearing mineral sands and operate upgrading facilities that produce high-grade titanium feedstock materials, pig iron and other minerals, including the rare earth-bearing mineral, monazite. With approximately 5,700 employees across six continents, our rich diversity, unmatched vertical integration model, and unparalleled operational and technical expertise across the value chain, position Tronox as the preeminent titanium dioxide producer in the world. For more information about how our products add brightness and durability to paints, plastics, paper and other everyday products, visit tronox.com. Cautionary Statement about Forward-Looking StatementsStatements in this release that are not historical are forward-looking statements within the meaning of the U.S. Private Securities Litigation Reform Act of 1995. These forward-looking statements, which are subject to known and unknown risks, uncertainties and assumptions about us, may include projections of our future financial performance, our operating rates, anticipated completion of extensions and upgrades to our mining operations, anticipated trends in our business and industry, including trade defense measures in specific jurisdictions and their timing and effectiveness, market penetration and growth rates, anticipated costs, competitive landscape, benefits and timing of capital projects including planned mining expansions, the Company's anticipated capital allocation strategy including future capital expenditures, the benefits and timing of the Company's cost improvement and other cost saving, inventory reduction and asset rationalization plans, our rare earths and critical minerals strategy and our sustainability goals, commitments and programs. These statements are only predictions based on our current expectations and projections about future events. There are important factors that could cause our actual results, level of activity, performance, actual costs, benefits and timing of capital projects, or the cost improvement plan and other cost saving, inventory reduction and asset rationalization plans, or achievements to differ materially from the results, level of activity, performance, anticipated costs, benefits and timing of capital projects, or the cost improvement plan and other cost saving, inventory reduction and asset rationalization plans, or achievements expressed or implied by the forward-looking statements. Significant risks and uncertainties may relate to, but are not limited to, macroeconomic conditions; policy changes affecting international trade, including import/export restrictions and tariffs; inflationary pressures and energy costs; currency movements; interest rate and debt market volatility, including in respect of our debt securities; political instability, including the ongoing conflicts in Eastern Europe and the Middle East and any expansion of such conflicts, and other geopolitical events; supply chain disruptions; market conditions and price volatility for titanium dioxide, zircon and other feedstock materials, as well as global and regional economic downturns, that adversely affect the demand for our end-use products; disruptions in production at our mining and manufacturing facilities; and other financial, economic, competitive, environmental, political, legal and regulatory factors. These and other risk factors are discussed in the Company's filings with the Securities and Exchange Commission. Moreover, we operate in a very competitive and rapidly changing environment. New risks and uncertainties emerge from time to time, and it is not possible for our management to predict all risks and uncertainties, nor can management assess the impact of all factors on our business or the extent to which any factor, or combination of factors, may cause actual results to differ materially from those contained in any forward-looking statements. Although we believe the expectations reflected in the forward-looking statements are reasonable, we cannot guarantee future results, level of activity, performance, synergies or achievements. Neither we nor any other person assumes responsibility for the accuracy or completeness of any of these forward-looking statements. You should not rely upon forward-looking statements as predictions of future events. Unless otherwise required by applicable laws, we undertake no obligation to update or revise any forward-looking statements, whether because of new information or future developments. Use of Non-GAAP InformationTo provide investors and others with additional information regarding the financial results of Tronox Holdings plc, we have disclosed in this release certain non-U.S. GAAP operating performance measures of EBITDA, Adjusted EBITDA, Adjusted EBITDA margin and Adjusted net income attributable to Tronox, including its presentation on a per share basis, and a non-U.S. GAAP liquidity measure of Free Cash Flow and net leverage ratio on a trailing twelve-month basis. These non-U.S. GAAP financial measures are a supplement to and not a substitute for or superior to, the Company's results presented in accordance with U.S. GAAP. The non-U.S. GAAP financial measures presented by the Company may be different from non-U.S. GAAP financial measures presented by other companies. Specifically, the Company believes the non-U.S. GAAP information provides useful measures to investors regarding the Company's financial performance by excluding certain costs and expenses that the Company believes are not indicative of its core operating results. The presentation of these non-U.S. GAAP financial measures is not meant to be considered in isolation or as a substitute for results or guidance prepared and presented in accordance with U.S. GAAP. A reconciliation of the non-U.S. GAAP financial measures to U.S. GAAP results is included herein. Investor Relations and Media Contact: Jennifer Guenther +1.203.705.3701 extension: 103701 (Media) +1.646.960.6598 (Investor Relations) View original content to download multimedia:https://www.prnewswire.com/news-releases/tronox-reports-second-quarter-2026-financial-results-302844181.html

Eastman Chemical (EMN) came out with quarterly earnings of $1.97 per share, beating the Zacks Consensus Estimate of $1.8 per share. This compares to earnings of $1.6 per share a year ago. These figures are adjusted for non-recurring items. This quarterly report represents an earnings surprise of +9.44%. A quarter ago, it was expected that this specialty chemicals maker would post earnings of $1.07 per share when it actually produced earnings of $1.09, delivering a surprise of +1.87%. Over the last four quarters, the company has surpassed consensus EPS estimates two times. Eastman Chemical, which belongs to the Zacks Chemical - Diversified industry, posted revenues of $2.51 billion for the quarter ended June 2026, surpassing the Zacks Consensus Estimate by 6.16%. This compares to year-ago revenues of $2.29 billion. The company has topped consensus revenue estimates just once over the last four quarters. The sustainability of the stock's immediate price movement based on the recently-released numbers and future earnings expectations will mostly depend on management's commentary on the earnings call. Eastman Chemical shares have added about 5.4% since the beginning of the year versus the S&P 500's gain of 6.9%. While Eastman Chemical has underperformed the market so far this year, the question that comes to investors' minds is: what's next for the stock? There are no easy answers to this key question, but one reliable measure that can help investors address this is the company's earnings outlook. Not only does this include current consensus earnings expectations for the coming quarter(s), but also how these expectations have changed lately. Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions. Investors can track such revisions by themselves or rely on a tried-and-tested rating tool like the Zacks Rank, which has an impressive track record of harnessing the power of earnings estimate revisions. Ahead of this earnings release, the estimate revisions trend for Eastman Chemical was unfavorable. While the magnitude and direction of estimate revisions could change following the company's just-released earnings report, the current status translates into a Zacks Rank #4 (Sell) for the stock. So, the shares are expected to underperform the market in the near future. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here. It will be interesting to see how estimates for the coming quarters and the current fiscal year change in the days ahead. The current consensus EPS estimate is $1.81 on $2.38 billion in revenues for the coming quarter and $6.30 on $9.06 billion in revenues for the current fiscal year. Investors should be mindful of the fact that the outlook for the industry can have a material impact on the performance of the stock as well. In terms of the Zacks Industry Rank, Chemical - Diversified is currently in the top 38% of the 250 plus Zacks industries. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1. Another stock from the same industry, Tronox (TROX), has yet to report results for the quarter ended June 2026. The results are expected to be released on August 5. This producer of titanium ore and titanium dioxide is expected to post quarterly loss of $0.39 per share in its upcoming report, which represents a year-over-year change of -39.3%. The consensus EPS estimate for the quarter has been revised 35% lower over the last 30 days to the current level. Tronox's revenues are expected to be $848.78 million, up 16.1% from the year-ago quarter. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Eastman Chemical Company (EMN) : Free Stock Analysis Report Tronox Holdings PLC (TROX) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

The market expects Tronox (TROX) to deliver a year-over-year decline in earnings on higher revenues when it reports results for the quarter ended June 2026. This widely-known consensus outlook is important in assessing the company's earnings picture, but a powerful factor that might influence its near-term stock price is how the actual results compare to these estimates. The earnings report, which is expected to be released on August 5, might help the stock move higher if these key numbers are better than expectations. On the other hand, if they miss, the stock may move lower. While the sustainability of the immediate price change and future earnings expectations will mostly depend on management's discussion of business conditions on the earnings call, it's worth handicapping the probability of a positive EPS surprise. This producer of titanium ore and titanium dioxide is expected to post quarterly loss of $0.39 per share in its upcoming report, which represents a year-over-year change of -39.3%. Revenues are expected to be $848.78 million, up 16.1% from the year-ago quarter. The consensus EPS estimate for the quarter has been revised 34.99% lower over the last 30 days to the current level. This is essentially a reflection of how the covering analysts have collectively reassessed their initial estimates over this period. Investors should keep in mind that the direction of estimate revisions by each of the covering analysts may not always get reflected in the aggregate change. Price, Consensus and EPS Surprise Estimate revisions ahead of a company's earnings release offer clues to the business conditions for the period whose results are coming out. This insight is at the core of our proprietary surprise prediction model -- the Zacks Earnings ESP (Expected Surprise Prediction). The Zacks Earnings ESP compares the Most Accurate Estimate to the Zacks Consensus Estimate for the quarter; the Most Accurate Estimate is a more recent version of the Zacks Consensus EPS estimate. The idea here is that analysts revising their estimates right before an earnings release have the latest information, which could potentially be more accurate than what they and others contributing to the consensus had predicted earlier. Thus, a positive or negative Earnings ESP reading theoretically indicates the likely deviation of the actual earnings from the consensus estimate. However, the model's predictive power is significant for positive ESP readings only. A positive Earnings ESP is a strong predictor of an earnings beat, particularly when combined with a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold). Our research shows that stocks with this combination produce a positive surprise nearly 70% of the time, and a solid Zacks Rank actually increases the predictive power of Earnings ESP. Please note that a negative Earnings ESP reading is not indicative of an earnings miss. Our research shows that it is difficult to predict an earnings beat with any degree of confidence for stocks with negative Earnings ESP readings and/or Zacks Rank of 4 (Sell) or 5 (Strong Sell). For Tronox, the Most Accurate Estimate is lower than the Zacks Consensus Estimate, suggesting that analysts have recently become bearish on the company's earnings prospects. This has resulted in an Earnings ESP of -2.96%. On the other hand, the stock currently carries a Zacks Rank of #4. So, this combination makes it difficult to conclusively predict that Tronox will beat the consensus EPS estimate. While calculating estimates for a company's future earnings, analysts often consider to what extent it has been able to match past consensus estimates. So, it's worth taking a look at the surprise history for gauging its influence on the upcoming number. For the last reported quarter, it was expected that Tronox would post a loss of$0.48 per share when it actually produced a loss of -$0.55, delivering a surprise of -14.58%. The company has not been able to beat consensus EPS estimates in any of the last four quarters. An earnings beat or miss may not be the sole basis for a stock moving higher or lower. Many stocks end up losing ground despite an earnings beat due to other factors that disappoint investors. Similarly, unforeseen catalysts help a number of stocks gain despite an earnings miss. That said, betting on stocks that are expected to beat earnings expectations does increase the odds of success. This is why it's worth checking a company's Earnings ESP and Zacks Rank ahead of its quarterly release. Make sure to utilize our Earnings ESP Filter to uncover the best stocks to buy or sell before they've reported. Tronox doesn't appear a compelling earnings-beat candidate. However, investors should pay attention to other factors too for betting on this stock or staying away from it ahead of its earnings release. Another stock from the Zacks Chemical - Diversified industry, DuPont de Nemours (DD), is soon expected to post earnings of $1.76 per share for the quarter ended June 2026. This estimate indicates a year-over-year change of -47.6%. Revenues for the quarter are expected to be $1.82 billion, down 44.2% from the year-ago quarter. The consensus EPS estimate for DuPont de Nemours has been revised 1.5% higher over the last 30 days to the current level. However, a lower Most Accurate Estimate has resulted in an Earnings ESP of -0.33%. This Earnings ESP, combined with its Zacks Rank #3 (Hold), makes it difficult to conclusively predict that DuPont de Nemours will beat the consensus EPS estimate. The company beat consensus EPS estimates in each of the trailing four quarters. Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Tronox Holdings PLC (TROX) : Free Stock Analysis Report DuPont de Nemours, Inc. (DD) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research