Q2 2024 Tronox Holdings PLC Earnings Call Transcript
Key Points
- Tronox Holdings PLC (TROX) delivered second-quarter performance within previously guided ranges.
- TiO2 volumes improved sequentially by 8% over Q1 and 16% year-over-year, indicating a recovery from 2023 levels.
- Free cash flow for the quarter was a positive $84 million, with expectations to continue generating positive free cash flow for the second half and full year.
- Significant progress on sustainability goals, including renewable energy contracts in South Africa converting 70% of electricity from coal-based to renewable sources by 2027.
- Revenue increased by 3% year-over-year to $820 million, driven by higher TiO2 volumes.
- Total pigment plant utilization rate was lower than targeted, leading to higher costs and adjusted EBITDA at the lower end of the guided range.
- Adjusted EBITDA margin was just under 20%, impacted by higher costs due to operational challenges.
- Net income attributable to Tronox was only $16 million, with a significant tax expense of $45 million driven by valuation allowances.
- TiO2 prices increased only marginally, with unfavorable mix partially offsetting the gains.
- Net leverage ratio remains high at 5.2 times on a trailing 12-month basis, indicating significant debt levels.
Good morning, ladies and gentlemen, and welcome to the Tronox Holdings second-quarter 2024 earnings call conference. (Operator Instructions) This call is being recorded on Friday, August 2, 2024.
I would now like to turn the conference over to Jennifer Guenther. Please go ahead.
Thank you, and welcome to our second-quarter 2024 Conference Call and webcast.
Turning to slide 2. On our call today are John Romano, Chief Executive Officer, and John Srivisal, Senior Vice President, Chief Financial Officer. We will be using slides as we move through today's call. You can access the presentation on our website at investor.tronox.com.
Moving to slide 3, a friendly reminder that comments made on this call and the information provided in our presentation and on our website include certain statements that are forward-looking and subject to various risks and uncertainties, including but not limited to the specific factors
| Access to All Earning Calls and Stock Analysis | |
| 30-Year Financial on one screen | |
| All-in-one Stock Screener with unlimited filters | |
| Customizable Stock Dashboard | |
| Real Time Insider Trading Transactions | |
| 8,000+ Institutional investorsā 13F holdings | |
| Powerful Excel Add-in and Google sheets Add-on | |
| All data downloadable | |
| Quick customer support | |
| And much more... |
Trustpilot
We'd love to learn more about your experiences on GuruFocus.com and how we can improve!
Take Survey
