Tronox Holdings Reports 21% Revenue Growth, Net Loss in Q3 2024 Amid Ongoing Profitability Challenges

Tronox Holdings plc reported significant financial developments in its third quarter and nine-month results for 2024, reflecting both revenue growth and ongoing challenges in profitability. For the third quarter ended September 30, 2024, net sales reached $804 million, a 21% increase from $662 million in the same period of 2023. This growth was primarily driven by higher sales volumes of titanium dioxide (TiO2), zircon, and other products. TiO2 revenue increased by 10% to $616 million, while zircon revenue surged by 124% to $74 million, attributed to a 134% rise in sales volumes despite a decline in average selling prices.

Gross profit for Q3 2024 was $128 million, up from $94 million in Q3 2023, reflecting improved sales volumes. However, the company reported a net loss of $25 million for the quarter, compared to a loss of $14 million in the prior year, indicating a deterioration in profitability. The loss was attributed to increased selling, general, and administrative expenses, which rose by $12 million to $74 million, driven by higher employee costs and professional services.

For the nine months ended September 30, 2024, net sales totaled $2,398 million, an 11% increase from $2,164 million in the same period of 2023. Gross profit for this period was $398 million, slightly up from $384 million, while income from operations decreased to $171 million from $178 million, reflecting pressures from lower selling prices and increased expenses. The net loss for the nine months improved significantly to $24 million from $258 million in the previous year, showcasing a substantial recovery in financial performance.

Strategically, Tronox has been focusing on vertical integration to enhance self-sufficiency in TiO2 production across its global facilities. The company has also been active in refinancing its debt, establishing new term loan facilities, and increasing its securitization facility limit to $230 million. As of September 30, 2024, total debt stood at $2.8 billion, with a net debt to trailing-twelve month adjusted EBITDA ratio of 5.0x.

In terms of liquidity, Tronox reported total available liquidity of $668 million, including $167 million in cash and cash equivalents. The company has not engaged in stock repurchases under its $300 million repurchase program authorized in February 2024. Overall, while Tronox has shown revenue growth and improved net loss figures, it continues to face challenges in profitability and operational costs.