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, 2024, as follows:

Second Quarter 2024 Financial Highlights:

• Produced revenue of $820 million, a 6% increase compared to the prior quarter, or a 3% increase compared to the prior year
• Generated income from operations of $76 million, and net income of $10 million; adjusted net income was $12 million (non-GAAP)
• GAAP diluted earnings per share of $0.10; Adjusted diluted earnings per share was $0.07 (non-GAAP)
• Delivered Adjusted EBITDA of $161 million, within previously issued guidance of $160-180 million, and an Adjusted EBITDA margin of 19.6% (non-GAAP)
• Invested $76 million in capital expenditures in the quarter
• Generated $84 million in free cash flow in the quarter (non-GAAP)

Second Quarter 2024 Results

The Company recorded second quarter revenue of $820 million, an increase of 3% primarily driven by higher TiO₂ volumes, partially offset by lower pricing.

Revenue from TiO₂ sales was $653 million, an increase of 7% driven by an 16% increase in volumes, partially offset by a 8% decrease in average selling prices including mix, and a 1% decrease due to exchange rates. Sequentially, TiO₂ sales increased 8%, driven by an 8% increase in sales volumes, while price increases were partially offset by mix.

Zircon revenue decreased 11% to $85 million, driven by a 15% decrease in average selling prices, partially offset by a 4% increase in volumes. Sequentially, zircon revenue decreased 3%, driven by a 4% decrease in volumes, partially offset by a 1% increase in average selling prices including mix.

Revenue from other products was $82 million, a decline of 7% year-over-year primarily due to decreases in pig iron sales volumes and average selling prices. Sequentially, revenue from other products increased 1% primarily due to increased volumes across various products.

Net income attributable to Tronox in the quarter was $16 million, or $0.10 per diluted share, compared to net loss attributable to Tronox of $269 million, or a loss of $1.72 per diluted share in the year-ago period. Adjusted net income attributable to Tronox (non-GAAP) was $12 million, or $0.07 per diluted share.

Adjusted EBITDA of $161 million represented a 4% decrease, driven primarily by headwinds from average selling prices and mix impacts, partially offset by tailwinds from improved production costs, higher sales volumes, and favorable freight costs and exchange rates. Adjusted EBITDA margin was 19.6%.

Sequentially, Adjusted EBITDA increased 23% due to improved production costs, higher TiO₂ sales volumes and average selling prices, partially offset by headwinds from exchange rates.

The Company’s selling, general and administrative expenses were $74 million for the quarter, an increase of 1%. Tronox’s net interest expense in the quarter was $40 million. Depreciation, depletion and amortization expense was $72 million.