Kronos Worldwide Q2 sales miss expectations

Overview

• Kronos Worldwide Q2 net loss of $9.2 mln vs net income last year

• The producer of titanium dioxide pigments posts Q2 sales of $494.4 mln, missing street view, per LSEG data

• Segment profit decreased due to lower production volumes and currency fluctuations

Outlook

• Company cites global uncertainty impacting TiO2 market recovery

• Kronos Worldwide notes geopolitical tensions affecting sales volumes

• Company highlights trade policy uncertainties impacting pricing momentum

• Kronos Worldwide sees continued challenges from currency fluctuations

Result Drivers

• LOWER PRODUCTION VOLUMES - Net income decreased due to lower production volumes and reduced absorption of fixed production costs, as stated by the company

• SALES DECLINE - Q2 sales fell 1% from the previous year, driven by lower average TiO2 selling prices, changes in product mix, and reduced export market sales volumes, partially offset by higher North American sales volumes

• INCREASED COSTS - Higher unabsorbed fixed costs and increased distribution and warehousing expenses due to higher finished goods inventory impacted net income for the first half of 2025

Key Details

Analyst Coverage

• The current average analyst rating on the shares is "hold" and the breakdown of recommendations is 1 "strong buy" or "buy", no "hold" and 1 "sell" or "strong sell"

• The average consensus recommendation for the commodity chemicals peer group is "buy."

• Wall Street's median 12-month price target for Kronos Worldwide Inc is $8.00, about 31.3% above its August 5 closing price of $5.50

• The stock recently traded at 7 times the next 12-month earnings vs. a P/E of 8 three months ago

Press Release: ID:nGNX1BNBD5