Fourth quarter performance in line with expectations

Launched cost improvement plan targeting $125-175 million of sustainable savings

STAMFORD, Conn., Feb. 12, 2025/PRNewswire/ — Tronox Holdings plc (NYSE:TROX) (“Tronox” or the “Company”), the world’s leading integrated manufacturer of titanium dioxide pigment, today reported its financial results for the quarter ending December 31, 2024:

This outlook is based on Tronox’s current views of global economic activity and is subject to changes and impacts associated with global supply chain and inflation-related challenges, among others.

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Note: For the Company’s guidance with respect to 2025 Adjusted EBITDA and free cash flow we are not able to provide without unreasonable effort the most directly comparable GAAP financial measure, or reconciliation to such GAAP financial measure, because certain items that impact such measures are uncertain, out of the Company’s control or cannot be reasonably predicted.

($M unless otherwise noted)			Q4 2024				Q4 2023				Y-o-Y %∆				Q3 2024				Q-o-Q %∆
Revenue		$	676			$	686				(1	)%		$	804				(16	)%
TiO2		$	533			$	519				3	%		$	616				(13	)%
Zircon		$	75			$	57				32	%		$	74				1	%
Other products		$	68			$	110				(38	)%		$	114				(40	)%
Income from operations		$	48			$	8				500	%		$	54				(11	)%
Net (Loss)		$	(30	)		$	(56	)			n/m			$	(25	)			n/m
Net (Loss) attributable to Tronox		$	(30	)		$	(56	)			n/m			$	(25	)			n/m
GAAP diluted (loss) per share		$	(0.19	)		$	(0.36	)			n/m			$	(0.16	)			n/m
Adjusted diluted earnings (loss) per share		$	0.03			$	(0.38	)			n/m			$	(0.13	)			n/m
Adjusted EBITDA		$	129			$	94				37	%		$	143				(10	)%
Adjusted EBITDA Margin %			19.1	%			13.7	%		540 bps					17.8	%		130 bps
Free cash flow		$	(35	)		$	51				n/m			$	(14	)			n/m

	Y-o-Y % ∆			Q-o-Q % ∆
	Volume	Price/Mix	FX	Volume	Price/Mix	FX
TiO2	4 %	(1)%	0 %	(11)%	(1)%	(1)%
Zircon	43 %	(11)%	— %	9 %	(8)%	— %

Chief Executive Officer John D. Romano commented “Tronox delivered fourth quarter results in line with expectations despite continued macro weakness. Strong TiO₂ commercial performance in Asia Pacific and Latin America mitigated continued lagging demand in Europe, while North America performed as expected. Zircon sales exceeded our previous guidance, driven by strong execution from our commercial group. Additionally, despite significant competitive dynamics across all products, pricing came in as anticipated. On operations, we realized $75 million of production cost improvements compared to Q4 2023, owing to consistent and reliable performance in the fourth quarter. As a result, Tronox delivered an Adjusted EBITDA of $129 million in the quarter, well within the previously guided range of $120-$135 million, and an Adjusted EBITDA margin of 19.1%.

“Reflecting on the full year, I am proud of the work our team did to remain focused on the things we can control and influence. In 2024, we heightened our focus on safety and reduced our total recordable injuries by 23%. We enhanced our focus on operations, resulting in significant production cost improvements in the second half of 2024. We continued to execute on our capital allocation strategy, prioritizing investments in the business including replacing our mines reaching end of life. Additionally, we strengthened our balance sheet through opportunistic refinancing transactions and returned $80 million to shareholders in the form of dividends.”

Mr. Romano concluded, "As we look ahead to 2025, we remain committed to safety, continuous improvement and disciplined cost management across our entire business as we navigate through economic uncertainties. Part of our strategy includes the launch of a cost improvement program. We identified $125-175 million in sustainable cost savings, achievable on a run-rate basis by the end of 2026. This program is focused on enhancing cost efficiency and optimizing asset performance across all aspects of our business. We will continue to evaluate every aspect of our business to drive further improvements.”

(Comparisons are to prior year (Q4 2024 vs. Q4 2023) unless otherwise noted)

The Company reported fourth quarter revenue of $676 million, a decrease of 1%, driven by unfavorable average selling prices and product mix impact on TiO₂ and zircon and lower revenue from other products, partially offset by higher sales volumes of zircon and TiO₂.

Revenue from TiO₂ sales was $533 million, an increase of 3% driven by a 4% increase in volumes partially offset by a 1% price decrease in average selling prices and product mix. Sequentially, TiO₂ sales decreased 13%, driven by an 11% decrease in volumes, a 1% decline in average selling prices and mix, and a 1% unfavorable exchange rate impact.

Zircon revenue increased 32% to $75 million, driven by a 43% increase in volumes, partially offset by an 11% decrease in average selling prices and unfavorable mix impact. Sequentially, zircon revenue increased 1%, driven by a 9% increase in volumes, partially offset by a 8% decrease in average selling prices and unfavorable mix impact.

Revenue from other products was $68 million, a decline of 38% year-over-year, and a sequential decline of 40% primarily due to the opportunistic sales of ilmenite and heavy mineral concentrate tailings that occurred in the fourth quarter of 2023 and the third quarter of 2024 that did not repeat in the fourth quarter of 2024.

Net loss attributable to Tronox in the quarter was $30 million, or a loss of $0.19 per diluted share, compared to a net loss of $56 million, or loss of $0.36 per diluted share in the year-ago period. Adjusted net income attributable to Tronox (non-GAAP) was $4 million, or earnings of $0.03 per diluted share.

Adjusted EBITDA of $129 million represented a 37% increase compared to the fourth quarter 2023, driven primarily by improved absorption from higher production volumes and favorable production costs partly offset by lower sales volume of other products, product pricing and mix impacts, and headwinds from exchange rates. Adjusted EBITDA margin was 19.1% for the quarter.

Sequentially, Adjusted EBITDA decreased 10% due to lower sales volumes of other products and TiO₂, headwinds from average selling prices and mix impacts, partly offset by improved production costs, favorable exchange rates, and lower other company costs.

The Company's selling, general and administrative expenses were $69 million in the quarter. Net interest expense was $40 million. Depreciation, depletion and amortization expense was $71 million.

The Company reported full-year revenue of $3,074 million, an increase of 8% year-over-year. Net loss attributable to Tronox was $48 million, or a loss of $0.31 per diluted share. Excluding non-recurring adjustments totaling $36 million or $0.23 per diluted share, adjusted net loss attributable to Tronox (non-GAAP) was $12 million or a loss of $0.08 per diluted share. Adjusted EBITDA of $564 million increased 8% compared to $524 million in the prior year. Adjusted EBITDA margin was 18.3% for the year.

Tronox ended the year with $2.9 billion of total debt, $2.7 billion of net debt and a net leverage ratio of 4.8x on a trailing twelve-month basis. As of December 31, 2024, available liquidity totaled $578 million, including $151 million in cash and cash equivalents and $427 million under existing revolving credit agreements.

Free cash flow for the year was a use of $70 million. Capital expenditures were $370 million. The Company returned $80 million to shareholders in the form of dividends in the year.

For the full year 2025, the Company is expecting revenue to be $3.0-3.4 billion driven by improving TiO₂ and zircon volumes, partially offset by lower sales from other products. Adjusted EBITDA is expected to be $525-625 million, with improved pigment production costs, partially offset by higher mining production costs. The Company expects the second half of 2025 to be stronger than the first half. Capital expenditures are expected to be $375-395 million. Free cash flow is expected to be relatively flat at the midpoint of the range. The Company identified $125-175 million of sustainable, run-rate cost improvements deliverable by the end of 2026. The Company expects the majority of these savings to be weighted more towards 2026.

Tronox Holdings plc is one of the world's leading producers of high-quality titanium products, including titanium dioxide pigment, specialty-grade titanium dioxide products and high-purity titanium chemicals, and zircon. We mine titanium-bearing mineral sands and operate upgrading facilities that produce high-grade titanium feedstock materials, pig iron and other minerals, including the rare earth-bearing mineral, monazite. With approximately 6,500 employees across six continents, our rich diversity, unmatched vertical integration model, and unparalleled operational and technical expertise across the value chain, position Tronox as the preeminent titanium dioxide producer in the world. For more information about how our products add brightness and durability to paints, plastics, paper and other everyday products, visit tronox.com.

Statements in this release that are not historical are forward-looking statements within the meaning of the U.S. Private Securities Litigation Reform Act of 1995. These forward-looking statements, which are subject to known and unknown risks, uncertainties and assumptions about us, may include projections of our future financial performance, anticipated completion of extensions and upgrades to our mining operations, anticipated trends in our business and industry, anticipated costs, benefits and timing of capital projects including planned mining expansions, the Company's anticipated capital allocation strategy including future capital expenditures, the benefits and timing of the Company’s cost improvement plan, and our sustainability goals, commitments and programs. These statements are only predictions based on our current expectations and projections about future events. There are important factors that could cause our actual results, level of activity, performance, actual costs, benefits and timing of capital projects, or the cost improvement plan, or achievements to differ materially from the results, level of activity, performance, anticipated costs, benefits and timing of capital projects, or the cost improvement plan, or achievements expressed or implied by the forward-looking statements. Significant risks and uncertainties may relate to, but are not limited to, macroeconomic conditions; inflationary pressures and energy costs; currency movements; political instability, including the ongoing conflicts in Eastern Europe and the Middle East and any expansion of such conflicts, and other geopolitical events; supply chain disruptions; market conditions and price volatility for titanium dioxide, zircon and other feedstock materials, as well as global and regional economic downturns, that adversely affect the demand for our end-use products; disruptions in production at our mining and manufacturing facilities; and other financial, economic, competitive, environmental, political, legal and regulatory factors. These and other risk factors are discussed in the Company's filings with the Securities and Exchange Commission.

Moreover, we operate in a very competitive and rapidly changing environment. New risks and uncertainties emerge from time to time, and it is not possible for our management to predict all risks and uncertainties, nor can management assess the impact of all factors on our business or the extent to which any factor, or combination of factors, may cause actual results to differ materially from those contained in any forward-looking statements. Although we believe the expectations reflected in the forward-looking statements are reasonable, we cannot guarantee future results, level of activity, performance, synergies or achievements. Neither we nor any other person assumes responsibility for the accuracy or completeness of any of these forward-looking statements. You should not rely upon forward-looking statements as predictions of future events. Unless otherwise required by applicable laws, we undertake no obligation to update or revise any forward-looking statements, whether because of new information or future developments.

Use of Non-GAAP Information

To provide investors and others with additional information regarding the financial results of Tronox Holdings plc, we have disclosed in this release certain non-U.S. GAAP operating performance measures of EBITDA, Adjusted EBITDA, Adjusted EBITDA margin and Adjusted net income attributable to Tronox, including its presentation on a per share basis, and a non-U.S. GAAP liquidity measure of Free Cash Flow. These non-U.S. GAAP financial measures are a supplement to and not a substitute for or superior to, the Company's results presented in accordance with U.S. GAAP. The non-U.S. GAAP financial measures presented by the Company may be different from non-U.S. GAAP financial measures presented by other companies. Specifically, the Company believes the non-U.S. GAAP information provides useful measures to investors regarding the Company's financial performance by excluding certain costs and expenses that the Company believes are not indicative of its core operating results. The presentation of these non-U.S. GAAP financial measures is not meant to be considered in isolation or as a substitute for results or guidance prepared and presented in accordance with U.S. GAAP. A reconciliation of the non-U.S. GAAP financial measures to U.S. GAAP results is included herein.

Investor Relations and Media Contact: Jennifer Guenther

+1.203.705.3701 extension: 103701 (Media)

+1.646.960.6598 (Investor Relations)

		Three Months Ended December 31,								Year Ended December 31,
		2024				2023				2024				2023
Net sales		$	676			$	686			$	3,074			$	2,850
Cost of goods sold			559				608				2,559				2,388
Gross profit			117				78				515				462
Selling, general and administrative expenses			69				70				296				276
Income from operations			48				8				219				186
Interest expense			(41	)			(45	)			(167	)			(158	)
Interest income			1				8				10				18
Loss on extinguishment of debt			—				—				(3	)			—
Other income (expense), net			7				(3	)			14				3
Income (Loss) before income taxes			15				(32	)			73				49
Income tax (provision) benefit			(45	)			(24	)			(127	)			(363	)
Net (loss) income			(30	)			(56	)			(54	)			(314	)
Net (loss) income attributable to noncontrolling interest			—				—				(6	)			2
Net (loss) income attributable to Tronox Holdings plc		$	(30	)		$	(56	)		$	(48	)		$	(316	)
Loss per share:
Basic		$	(0.19	)		$	(0.36	)		$	(0.31	)		$	(2.02	)
Diluted		$	(0.19	)		$	(0.36	)		$	(0.31	)		$	(2.02	)
Weighted average shares outstanding, basic (in thousands)			158,038				156,818				157,819				156,397
Weighted average shares outstanding, diluted (in thousands)			158,038				156,818				157,819				156,397
Other Operating Data:
Capital expenditures			117				59				370				261
Depreciation, depletion and amortization expense			71				69				285				275

		Three Months Ended December 31,								Year Ended December 31,
		2024				2023				2024				2023
Net loss attributable to Tronox Holdings plc (U.S. GAAP)		$	(30	)		$	(56	)		$	(48	)		$	(316	)
Loss on extinguishment of debt (a)			—				—				3				—
Sale of royalty interest (b)			—				—				(21	)			—
Other (c)			1				(4	)			5				(1	)
Tax valuation allowance (d)			33				—				49				293
Adjusted net income (loss) attributable to Tronox Holdings plc (non-U.S. GAAP)  (1)(2)		$	4			$	(60	)		$	(12	)		$	(24	)
Diluted net (loss) income per share (U.S. GAAP)		$	(0.19	)		$	(0.36	)		$	(0.31	)		$	(2.02	)
Loss on extinguishment of debt, per share			—				—				0.02				—
Sale of royalty interest, per share			—				—				(0.13	)			—
Other, per share			0.01				(0.03	)			0.03				(0.01	)
Tax valuation allowance, per share			0.21				—				0.31				1.88
Diluted adjusted net income (loss) per share attributable to Tronox Holdings plc (non-U.S. GAAP)		$	0.03			$	(0.38	)		$	(0.08	)		$	(0.15	)
Weighted average shares outstanding, diluted (in thousands)			158,262				156,818				157,819				156,397

		December 31, 2024				December 31, 2023
ASSETS
Current Assets
Cash and cash equivalents		$	151			$	273
Restricted cash			1				—
Accounts receivable (net of allowance of $1 in 2024 and $3 in 2023)			266				290
Inventories, net			1,551				1,421
Prepaid and other assets			184				141
Income taxes receivable			2				10
Total current assets			2,155				2,135
Noncurrent Assets
Property, plant and equipment, net			1,927				1,835
Mineral leaseholds, net			616				654
Intangible assets, net			244				243
Lease right of use assets, net			140				132
Deferred tax assets			830				917
Other long-term assets			126				218
Total assets		$	6,038			$	6,134
LIABILITIES AND EQUITY
Current Liabilities
Accounts payable		$	499			$	461
Accrued liabilities			247				230
Short-term lease liabilities			24				24
Short-term debt			65				11
Long-term debt due within one year			35				27
Income taxes payable			4				0
Total current liabilities			874				753
Noncurrent Liabilities
Long-term debt, net		$	2,759			$	2,786
Pension and postretirement healthcare benefits			85				104
Asset retirement obligations			172				172
Environmental liabilities			40				48
Long-term lease liabilities			107				103
Deferred tax liabilities			174				149
Other long-term liabilities			36				39
Total liabilities			4,247				4,154
Commitments and Contingencies
Shareholders’ Equity
Tronox Holdings plc ordinary shares, par value $0.01 — 157,938,056 shares issued and outstanding at December 31, 2024 and 156,793,755 shares issued and outstanding at December 31, 2023			2				2
Capital in excess of par value			2,084				2,064
Retained Earnings			555				684
Accumulated other comprehensive loss			(880	)			(814	)
Total Tronox Holdings plc shareholders’ equity			1,761				1,936
Noncontrolling interest			30				44
Total equity			1,791				1,980
Total liabilities and equity		$	6,038			$	6,134

		Year Ended December 31,
		2024				2023
Cash Flows from Operating Activities:
Net (loss) income		$	(54	)		$	(314	)
Adjustments to reconcile net (loss) income to net cash provided by operating activities:
Depreciation, depletion and amortization			285				275
Deferred income taxes			110				330
Share-based compensation expense			21				21
Amortization of deferred debt issuance costs and discount on debt			10				9
Loss on extinguishment of debt			1				-
Other non-cash affecting net (loss) income			30				37
Changes in assets and liabilities:
Decrease in accounts receivable, net			11				84
Increase in inventories, net			(115	)			(151	)
Decrease in prepaid and other assets			40				37
Decrease in accounts payable and accrued liabilities			(11	)			(84	)
Net changes in income tax payables and receivables			10				(24	)
Changes in other non-current assets and liabilities			(38	)			(36	)
Cash provided by operating activities			300				184
Cash Flows from Investing Activities:
Capital expenditures			(370	)			(261	)
Proceeds from the sale of assets			27				6
Cash used in investing activities			(343	)			(255	)
Cash Flows from Financing Activities:
Repayments of short-term debt			(18	)			(148	)
Repayments of long-term debt			(228	)			(17	)
Proceeds from short-term debt			55				86
Proceeds from long-term debt			217				347
Debt issuance costs			(16	)			(3	)
Dividends paid			(80	)			(89	)
Restricted stock and performance-based shares settled in cash for taxes			(1	)			-
Cash provided by (used in) financing activities			(71	)			176
Effects of exchange rate changes on cash and cash equivalents and restricted cash			(7	)			4
Net (decrease) increase in cash and cash equivalents and restricted cash			(121	)			109
Cash and cash equivalents and restricted cash at beginning of period			273				164
Cash and cash equivalents and restricted cash at end of period		$	152			$	273

		Three Months Ended December 31,								Year Ended December 31,
		2024				2023				2024				2023
Net loss (U.S. GAAP)		$	(30	)		$	(56	)		$	(54	)		$	(314	)
Interest expense			41				45				167				158
Interest income			(1	)			(8	)			(10	)			(18	)
Income tax provision (benefit)			45				24				127				363
Depreciation, depletion and amortization expense			71				69				285				275
EBITDA (non-U.S. GAAP)			126				74				515				464
Share-based compensation (a)			4				6				21				21
Loss on extinguishment of debt (b)			—				—				3				—
Foreign currency remeasurement (c)			(11	)			1				(1	)			(6	)
Accretion expense and other adjustments to asset retirement obligations and environmental liabilities (d)			1				8				23				22
Accounts receivable securitization program costs (e)			4				3				15				12
Sale of royalty interest in certain Canadian mineral properties, net of fees (f)			—				—				(28	)			—
Other items (g)			5				2				16				11
Adjusted EBITDA (non-U.S. GAAP)		$	129			$	94			$	564			$	524

		Three Months Ended December 31,								Year Ended December 31,
		2024				2023				2024				2023
Net sales		$	676			$	686			$	3,074			$	2,850
Net loss (U.S. GAAP)		$	(30	)		$	(56	)		$	(54	)		$	(314	)
Net loss (U.S. GAAP) as a % of Net sales			(4.4	)%			(8.2	)%			(1.8	)%			(11.0	)%
Adjusted EBITDA (non-U.S. GAAP) (see above) as a % of Net sales			19.1	%			13.7	%			18.3	%			18.4	%

		December 31,
		2024				2023
Long-term debt, net		$	2,759			$	2,786
Short-term debt			65				11
Long-term debt due within one year			35				27
(Less) Cash and cash equivalents			(151	)			(273	)
Net debt		$	2,708			$	2,551
Adjusted EBITDA (non-U.S. GAAP) (see above)			564				524
Net debt to trailing-twelve month Adjusted EBITDA (non-U.S. GAAP) (see above)			4.8	x			4.9	x

		Year Ended December 31, 2024				Nine Months Ended September 30, 2024				Three Months Ended December 31, 2024
Cash provided by operating activities		$	300			$	218			$	82
Capital expenditures			(370	)			(253	)			(117	)
Free cash flow (non-U.S. GAAP)		$	(70	)		$	(35	)		$	(35	)