Tronox Revenue Rises 19% Year-Over-Year to $868 Million
The chemical producer reported a free cash flow swing to $60 million in the second quarter from a $135 million outflow in the prior period.
Tronox Holdings (TROX), the chemical producer, reported second-quarter revenue of $868 million. The result represented a 14% sequential increase from the $760 million recorded in the first quarter and a 19% increase compared to the second quarter of 2024.
Growth was driven by gains in both primary product lines. TiO2 revenue rose 14% sequentially to $700 million, supported by a 9% increase in sales volumes and a 5% increase in average selling prices including mix. Zircon revenue increased 9% sequentially to $97 million, reflecting a 4% rise in volumes and a 5% increase in average selling prices.
On a year-over-year basis, zircon revenue rose 43%. This growth was driven by a 61% increase in volume, which offset an 18% decrease in average selling prices.
Adjusted EBITDA rose 18% sequentially to $73 million from $62 million in the first quarter. However, the figure decreased 22% year-over-year from $93 million in the second quarter of 2024. The adjusted EBITDA margin expanded 20 basis points sequentially to 8.4% from 8.2%, though it compressed 430 basis points from 12.7% a year earlier.
Liquidity and balance sheet metrics showed mixed movement. The company reduced total inventory by approximately $120 million from first-quarter levels, reaching its lowest value since June 2024. The net leverage ratio increased to 11.4x on a trailing twelve-month basis as of June 30, compared to 9.0x as of December 31, 2024. Tronox also replaced an expired short-term revolving credit facility with a new long-term financing arrangement.
For the third quarter of 2025, the company expects adjusted EBITDA between $95 million and $115 million. Tronox projects TiO2 pricing to improve mid-single-digits and zircon pricing to increase mid- to high single-digits sequentially, although TiO2 volumes are expected to be down in the mid-single-digit percentage range and zircon volumes are expected to moderate slightly.
To support zircon inventory levels, the company is advancing plans to restart a furnace and bring production back online at the West Mine in Namakwa.