TRONOX (TROX) Q3 2026 Earnings Report

The call was mixed. Tronox reported strong year-over-year revenue and adjusted EBITDA growth, successful pricing actions, progress on trade measures, operational restarts, substantial cost savings, and a significant rare earth partnership. However, these positives were offset by a $55 million net loss, weaker sequential volumes and demand, prolonged Middle East conflict impacts, substantial raw material and energy cost inflation, lower fourth-quarter adjusted EBITDA guidance, and an expected full-year free cash flow use. Management's outlook does not assume a further demand recovery.

For the fourth quarter, Tronox expects TiO2 volumes to decline sequentially by a high single to low double-digit percentage, zircon volume levels to soften moderately, TiO2 pricing to sustain the gains realized in the third quarter, zircon pricing to increase sequentially by a mid-single-digit percentage, adjusted EBITDA to be in the range of $80 million-$90 million, approximately $15 million-$20 million of higher-than-expected input costs, and free cash flow to be positive in the range of $20 million-$45 million; for full year 2026, the company expects a use of free cash flow of approximately $25 million-$50 million, net cash interest of approximately $195 million, net cash taxes of less than $5 million, capital expenditures of approximately $230 million, and working capital as a source of cash in the range of $65 million-$80 million, while its cost improvement program is on track to deliver more than $175 million run rate savings by the end of 2026.