Kronos Restores Profit After a Year-Ago Third-Quarter Loss

The Tip Desk · November 11, 2026 · 3 min read

Net income was $34.8 million, or $.30 a share, after a $37.0 million loss, or $.32 a share, a year earlier.

Kronos Worldwide (KRO), a major international producer of titanium dioxide products, reported net income of $34.8 million, or $.30 a share, in the third quarter of 2026, reversing a net loss of $37.0 million, or $.32 a share, a year earlier.

The titanium dioxide maker said the swing came primarily from higher income from operations as sales and production volumes rose, raw material costs—primarily feedstock—fell, and production costs declined after cost-reduction initiatives implemented in the fourth quarter of 2025, partially offset by higher distribution costs. Average TiO2 selling prices in the third quarter were higher than in the year-ago period.

Net sales were $541.1 million, up 18% from $456.9 million a year earlier, after a 13% year-over-year increase in the second quarter. The company said the sales increase reflected market-share gains in European and North American markets, reflecting anti-dumping duties that remain in effect in certain markets and changing supply conditions, and higher average TiO2 selling prices.

TiO2 sales volumes were 144 thousand metric tons, up 14% from 126 thousand metric tons a year earlier. Production volumes were 140 thousand metric tons versus 126 thousand metric tons. Average TiO2 selling prices were 5% higher than in the third quarter of 2025, after lower prices had partially offset favorable effects in the second quarter. Product mix and other items reduced the sales increase by 1%. Currency had no effect on the third-quarter sales comparison.

Income from operations was $57.9 million versus an operating loss of $19.2 million a year earlier. Gross margin was $127.4 million versus $47.0 million. TiO2 segment profit was $61.0 million versus a segment loss of $15.3 million. EBITDA was $72.7 million versus $0.6 million.

The company said segment profit rose on higher sales volumes and higher production rates that reduced unabsorbed fixed production costs, lower feedstock costs, and lower production costs from the fourth-quarter 2025 initiatives. Those gains were partially offset by higher energy and distribution costs and unfavorable currency. Fluctuations in currency exchange rates, primarily the euro, decreased segment profit by approximately $5 million versus the year-ago quarter.

Net income for the three months ended September 30, 2026 included a non-cash deferred income tax benefit of $12.1 million, or $.11 a share, related to proposed currency regulations under Section 987 released in August 2026. The year-ago quarter included a non-cash deferred income tax expense of $19.3 million, or $.17 a share, to reduce a net German deferred tax asset after legislation enacted in Germany in the third quarter of 2025.

President and Chief Executive Officer Brian W. Christian said third-quarter results reflected continued execution of strategic initiatives even though end-use demand remains below historical levels. He said operating results improved compared with the second quarter, supported by progress across operational, commercial and cost-reduction initiatives.

Looking ahead, the company said it expects normal seasonal trends to result in softer fourth-quarter demand, with production volumes lower due to the timing of recurring maintenance at several facilities. Inventory levels are expected to remain below historical levels.