Tronox Reports $54 Million Net Loss for Fiscal Year 2024, Improved from $314 Million in 2023

Tronox Holdings plc reported a net loss of $54 million for the fiscal year ended December 31, 2024, a significant improvement compared to the $314 million net loss in 2023. Net sales increased 8% year-over-year to $3.1 billion, driven by higher TiO2 and zircon sales volumes. TiO2 revenue specifically increased by 7% to $2.4 billion, while zircon revenue rose 25% to $322 million. Other product revenue remained flat at $345 million. Adjusted EBITDA, a non-GAAP measure, reached $564 million, a $40 million increase compared to the previous year.

The company's fourth-quarter 2024 performance showed a 1% decrease in revenue compared to the same period in 2023, primarily due to lower average selling prices and reduced sales volumes in other product lines. This was partially offset by increased sales volumes of zircon and TiO2. Sequentially, fourth-quarter revenue decreased 16% from the third quarter of 2024, again attributed to lower sales volumes and unfavorable pricing. Gross profit, however, increased in the fourth quarter of 2024 compared to the same period in 2023 due to lower production costs and higher TiO2 and zircon sales volumes.

During 2024, Tronox invested approximately $135 million in two South African mining projects, Namakwa East OFS and Fairbreeze extension, aimed at replacing existing mines nearing the end of their life. The company also returned approximately $80 million to shareholders through dividends and executed several term loan refinancing transactions to extend maturities and reduce interest rates. As of December 31, 2024, Tronox held $151 million in cash and had $427 million in untapped short-term borrowing capacity. The company also highlighted strategic initiatives to become a lower-cost TiO2 producer through business process optimization and to develop its position as a significant supplier of rare earth oxides.

Key operational developments included the launch of a new global coatings product in response to regulatory changes and continued progress on expanding coatings and plastics capabilities in EMEA and APAC. The company employed approximately 6,500 people globally as of December 31, 2024, and reported 20 recordable injuries and no fatalities among its employees and 19 recordable injuries and no fatalities among its contractors during the year. Tronox also detailed its sustainability efforts, including the full operation of a 200 MW solar energy project in South Africa and the announcement of a second large-scale renewable energy project expected to be operational by the end of 2027.

Tronox's outlook is subject to various market risks, including commodity price volatility, competition, and global economic conditions. The company acknowledged risks related to its global operations, debt obligations, regulatory scrutiny of TiO2 products, and concentrated share ownership. The company stated that it expects its operations to generate sufficient cash flow to meet its obligations in the next twelve months, but also noted that it has access to short-term credit facilities if needed. The company's management also discussed several critical accounting policies and estimates, including asset retirement obligations, environmental matters, income taxes, and long-lived assets.