TRONOX (TROX) Q2 2026 Earnings Report

The call communicated clear commercial momentum (19% revenue growth, sequential pricing gains, inventory reductions and positive free cash flow in Q2) and an improving outlook (Q3 EBITDA guidance and longer-term rare earths opportunity). At the same time, notable near-term headwinds remain: a material Q2 net loss driven by a tax valuation allowance, a 22% YoY decline in adjusted EBITDA, elevated input costs (notably sulfur/sulfuric acid), FX pressure, and inventory constraints that could moderate zircon volumes in Q3. Management emphasized disciplined pricing, cost improvements and liquidity actions to navigate macro and trade uncertainties. Overall, positives and constructive guidance are balanced against significant near-term profitability and cost challenges.

Tronox guided that third‑quarter TiO2 volumes should be down moderately (mid‑single‑digit %), zircon volumes should moderate slightly (inventory‑timing driven), TiO2 pricing is expected to rise sequentially in the mid‑single‑digit % range and zircon pricing in the mid‑ to high‑single‑digit % range (building on a 5% sequential pricing improvement in Q2); it expects Q3 adjusted EBITDA of $95–115 million with sequential margin improvement and roughly neutral free cash flow in Q3 (reflecting semiannual interest payments). For full‑year 2026 the company reiterated expectations for meaningful positive free cash flow, with net cash interest of ~ $190 million, net cash taxes < $10 million, capital expenditures < $260 million, and working capital to be a source of cash well in excess of $100 million; it also noted its cost‑improvement program remains on track to deliver at the higher end of a $125–$175 million run‑rate by year‑end 2026 (Q2 adjusted EBITDA was $73 million and inventory was reduced ≈ $120 million Q1→Q2).