Tronox Holdings plc Q1 FY2026 earnings call

Strong top-line performance, EBITDA above guidance. Volumes exceeded expectations for TIO2 and Zircon. Benefits from anti-dumping measures. Pricing inflection in Q1, cost improvement program on track to save $125-$175M by 2026. Prioritizing free cash flow and working capital, upsized AR securitization facility. Progress on rare earths initiatives, Australian government awarded major project status.

Revenue was $760 million, up 3% vs Q1 2025 due to higher TIO2 and Zircon volumes. TIO2 Q1 2026 volumes expected to increase in high single-digit range, pricing momentum building. Zircon sequential revenue up 14% due to higher volumes, pricing stable in Q1 with Q2 increases, volumes to moderate slightly in Q2. Other products revenue down sequentially and year-on-year mainly due to timing of PIG iron bonds.

Q2 2026 TIO2 volumes expected to increase in high single-digit, pricing to increase mid-single-digit. Zircon volumes to moderate slightly, pricing momentum to carry through Q3. Second quarter adjusted EBITDA range $65M-$85M, free cash flow positive. Full-year 2026 expected to have meaningful positive free cash flow with assumptions like net cash interest ~$190M, net cash taxes <$10M, cap ex ~$260M, working capital source >$100M.

Geopolitical conflict impact on raw material prices and supply chains. Volatility in sulfur prices affecting sulfate TiO2. Uncertainty around Chinese TiO2 exports and anti-dumping measures.

Q: On Q2 EBITDA guidance, how does low end play out?

A: Depends on volume, order books full, planned outages could impact.

Q: On Zircon strategy, why sell volume at low prices?

A: Balance customer requirements and price increases, market tightening expected.

Q: On Chinese exports, impact?

A: Exports may reverse, sulfur price impact on Chinese production.

Q: On TIO2 pricing mix, surcharge vs price?

A: Majority price increases, some surcharges for sulfur.

Q: On working capital, source?

A: Primarily inventory reduction.