Tronox Q4 Revenues Beat Estimates, Plans to Close China Plant
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 1h ago
0mins
Source: seekingalpha
- Revenue Beat: Tronox expects Q4 revenues of $730 million, reflecting an 8% year-over-year and 4% quarter-over-quarter increase, significantly surpassing the $688 million analyst consensus, indicating strong performance in TiO2 and other product segments.
- Net Loss Forecast: Despite revenue growth, Tronox anticipates a Q4 net loss of $176 million, with adjusted EBITDA of $57 million and free cash flow of $53 million, all of which exceed prior guidance, highlighting operational resilience.
- Plant Closure Plan: The company plans to permanently close its 46,000 metric tons/year TiO2 plant in Fuzhou, China, due to weak domestic demand and rising costs, impacting approximately 550 permanent staff, which reflects strategic adjustments to market conditions.
- Restructuring Cost Estimates: Tronox expects to incur $60 million to $80 million in restructuring and related charges primarily in Q4 2025, while estimating annual cost savings exceeding $15 million, demonstrating a commitment to operational efficiency.
Analyst Views on TROX
Wall Street analysts forecast TROX stock price to fall over the next 12 months. According to Wall Street analysts, the average 1-year price target for TROX is 4.97 USD with a low forecast of 3.50 USD and a high forecast of 6.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
8 Analyst Rating
4 Buy
3 Hold
1 Sell
Moderate Buy
Current: 6.290
Low
3.50
Averages
4.97
High
6.00
Current: 6.290
Low
3.50
Averages
4.97
High
6.00
About TROX
Tronox Holdings plc is a producer of titanium products, including titanium dioxide (TiO2) pigment, specialty-grade titanium dioxide products and high-purity titanium chemicals, and zircon. The Company is a vertically integrated manufacturer of TiO2 pigment. It mines titanium-bearing mineral sands and operates upgrading facilities that produce high-grade titanium feedstock materials, pig iron and other minerals, including the rare earth-bearing mineral, monazite. It operates titanium-bearing mineral sand mines and beneficiation and smelting operations in Australia and South Africa to produce feedstock materials that can be processed into TiO2 for pigment, high-purity titanium chemicals, including titanium tetrachloride, and ultrafine TiO2 used in certain specialty applications. The Company supplies and markets TiO2 under the brand names TIONA and CristalActiv. It has nine pigment facilities located in the United States, Australia, Brazil, and the United Kingdom, among others.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
