KRONOS WORLDWIDE, INC. REPORTS FIRST QUARTER 2026 RESULTS
Rhea-AI Summary
Kronos Worldwide (NYSE:KRO) reported a net loss of $4.8 million (loss of $0.04 per share) for Q1 2026 versus net income of $18.1 million ($0.16 per share) in Q1 2025. Net sales were $509.8 million, up 4% year-over-year. TiO2 segment profit fell to $15.1 million from $41.6 million; EBITDA was $27.7 million vs. $51.2 million. Management cited lower average TiO2 prices, reduced production volumes, currency headwinds and cost-reduction actions taken in Q4 2025.
Positive
- Net sales increased by $20.0 million (4%) to $509.8 million
- Sales volumes rose to 142 thousand metric tons from 136 thousand
- Cost reduction initiatives implemented in Q4 2025 began lowering production costs
Negative
- Reported net loss of $4.8 million in Q1 2026 versus $18.1 million profit prior year
- Average TiO2 selling prices were lower year-over-year, reducing segment profit
- Production volumes declined to 128 thousand metric tons from 143 thousand, hurting margins
- Currency exchange rates (primarily the euro) reduced segment profit by about $6 million
Key Figures
Market Reality Check
Peers on Argus
KRO gained 5.12% while only one peer in the momentum scan, SCL, moved in the same direction with a 2.0099999383091927% increase, indicating a stock-specific reaction rather than a broad sector move.
Previous Earnings Reports
| Date | Event | Sentiment | Move | Catalyst |
|---|---|---|---|---|
| Mar 09 | Q4 2025 earnings | Negative | -3.3% | Deep Q4 and full-year 2025 net losses on weak pricing and high costs. |
| Nov 06 | Q3 2025 earnings | Negative | -6.8% | Q3 2025 swing to net loss with sharply lower EBITDA and segment profit. |
| Aug 06 | Q2 2025 earnings | Negative | -7.9% | Q2 2025 net loss driven by lower utilization and unabsorbed fixed costs. |
| May 07 | Q1 2025 earnings | Positive | -1.6% | Strong Q1 2025 profit growth with higher TiO2 prices and volumes. |
| Mar 06 | Q4 2024 earnings | Negative | -8.1% | Q4 2024 net loss despite full-year 2024 recovery and higher sales. |
Earnings headlines have typically been followed by negative price reactions, regardless of result strength.
Over the last five earnings reports, Kronos Worldwide has frequently reported net losses or margin pressure, with only Q1 2025 showing notably strong profit growth. Subsequent quarters, including Q2–Q4 2025, showed net losses tied to lower TiO2 prices, production curtailments, and unabsorbed fixed costs. The new Q1 2026 release continues the loss pattern but with higher net sales and smaller losses than late 2025, suggesting early impact from cost-reduction initiatives described in prior filings.
Historical Comparison
In the past five earnings releases, KRO moved an average of -5.55%. Today’s +5.12% move after another quarterly loss contrasts with that typically negative reaction.
Recent earnings show a progression from 2024 profitability to larger 2025 losses, followed by a smaller Q1 2026 net loss as cost actions and volume improvements begin to appear.
Market Pulse Summary
This announcement detailed Q1 2026 results showing a modest net loss of $4.8 million and EBITDA of $27.7 million on higher net sales of $509.8 million. Management highlighted cost-reduction initiatives from late 2025, a 4% increase in TiO2 sales volumes, and a 2% sequential price increase, while noting pressure from lower average selling prices and currency effects. Investors may watch future quarters for sustained margin recovery, TiO2 pricing trends, and the impact of tax and interest expense on overall profitability.
Key Terms
titanium dioxide technical
TiO2 technical
non-GAAP financial
segment profit financial
EBITDA financial
forward-looking statements regulatory
OPEB financial
AI-generated analysis. Not financial advice.
DALLAS, TEXAS, May 06, 2026 (GLOBE NEWSWIRE) -- Kronos Worldwide, Inc. (NYSE:KRO) today reported a net loss of
Net sales of
Our TiO2 segment profit (see description of non-GAAP information below) was
Our net income (loss) before interest expense, income taxes and depreciation and amortization expense (EBITDA) (see description of non-GAAP information below) in the first quarter of 2026 was
“The fourth quarter of 2025 reflected the difficult actions we took to structurally realign our operations, which contributed to a segment loss of
Our net loss for the three months ended March 31, 2026 includes an income tax expense of
The statements in this release relating to matters that are not historical facts are forward-looking statements that represent management's beliefs and assumptions based on currently available information. Although we believe that the expectations reflected in such forward-looking statements are reasonable, we cannot give any assurances that these expectations will prove to be correct. Such statements by their nature involve substantial risks and uncertainties that could significantly impact expected results, and actual future results could differ materially from those described in such forward-looking statements. While it is not possible to identify all factors, we continue to face many risks and uncertainties. The factors that could cause actual future results to differ materially include, but are not limited to, the following:
- Future supply and demand for our products;
- Our ability to realize expected cost savings from strategic and operational initiatives;
- Our ability to integrate acquisitions into our operations and realize expected synergies and innovations;
- The extent of the dependence of certain of our businesses on certain market sectors;
- The cyclicality of our business;
- Customer and producer inventory levels;
- Unexpected or earlier-than-expected industry capacity expansion;
- Changes in raw material and other operating costs (such as energy and ore costs);
- Changes in the availability of raw materials (such as ore);
- General global economic and political conditions that harm the worldwide economy, disrupt our supply chain, increase material and energy costs or reduce demand or perceived demand for our titanium dioxide pigments (“TiO2”) products or impair our ability to operate our facilities (including changes in the level of gross domestic product in various regions of the world, tariffs, natural disasters, terrorist acts, global conflicts and public health crises);
- Operating interruptions (including, but not limited to, labor disputes, leaks, natural disasters, fires, explosions, unscheduled or unplanned downtime, transportation interruptions, certain regional and world events or economic conditions and public health crises);
- Technology related disruptions (including, but not limited to, cyber-attacks; software implementation, upgrades or improvements; technology processing failures; or other events) related to our technology infrastructure (including manufacturing and accounting systems) that could impact our ability to continue operations, or at key vendors which could impact our supply chain, or at key customers which could impact their operations and cause them to curtail or pause orders;
- Competitive products and substitute products;
- Competition from Chinese suppliers with less stringent regulatory and environmental compliance requirements;
- Customer and competitor strategies;
- Potential consolidation of our competitors;
- Potential consolidation of our customers;
- The impact of pricing and production decisions;
- Competitive technology positions;
- The introduction of new, or changes in existing, tariffs, trade barriers or trade disputes;
- Fluctuations in currency exchange rates (such as changes in the exchange rate between the U.S. dollar and each of the euro, the Norwegian krone and the Canadian dollar and between the euro and the Norwegian krone), or possible disruptions to our business resulting from uncertainties associated with the euro or other currencies;
- Our ability to renew or refinance credit facilities or other debt instruments in the future;
- Changes in interest rates;
- Our ability to comply with covenants contained in our revolving bank credit facility;
- Our ability to maintain sufficient liquidity;
- The ultimate outcome of income tax audits, tax settlement initiatives or other tax matters, including future tax reform;
- Our ability to utilize income tax attributes, the benefits of which may or may not have been recognized under the more-likely-than-not recognition criteria;
- Environmental matters (such as those requiring compliance with emission and discharge standards for existing and new facilities);
- Government laws and regulations and possible changes therein including new environmental, sustainability, health and safety, or other regulations (such as those seeking to limit or classify TiO2 or its use); and
- Pending or possible future litigation or other actions.
Should one or more of these risks materialize (or the consequences of such a development worsen), or should the underlying assumptions prove incorrect, actual results could differ materially from those forecasted or expected. The Company disclaims any intention or obligation to update or revise any forward-looking statement whether as a result of changes in information, future events or otherwise.
In an effort to provide investors with additional information regarding the Company's results of operations as determined by accounting principles generally accepted in the United States of America (GAAP), the Company has disclosed certain non-GAAP information which the Company believes provides useful information to investors:
- The Company discloses segment profit, which is used by the Company’s management to assess the performance of the Company’s TiO2 operations. The Company believes disclosure of segment profit provides useful information to investors because it allows investors to analyze the performance of the Company’s TiO2 operations in the same way that the Company’s management assesses performance. The Company defines segment profit as net income (loss) before income tax expense and certain general corporate items. These general corporate items include corporate expense and the components of other income (expense) except for trade interest income; and
- The Company discloses EBITDA, which is also used by the Company’s management to assess the performance of the Company’s TiO2 operations. The Company believes disclosure of EBITDA provides useful information to investors because it allows investors to analyze the performance of the Company’s TiO2 operations in the same way that the Company’s management assesses performance. The Company defines EBITDA as net income (loss) before interest expense, income taxes and depreciation and amortization expense.
Kronos Worldwide, Inc. is a major international producer of titanium dioxide products.
Investor Relations Contact:
Bryan A. Hanley
Senior Vice President & Treasurer
Tel: (972) 233-1700
KRONOS WORLDWIDE, INC.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(In millions, except per share and metric ton data)
| Three months ended | ||||||
| March 31, | ||||||
| 2025 | 2026 | |||||
| (unaudited) | ||||||
| Net sales | $ | 489.8 | $ | 509.8 | ||
| Cost of sales | 383.0 | 426.5 | ||||
| Gross margin | 106.8 | 83.3 | ||||
| Selling, general and administrative expense | 61.6 | 63.6 | ||||
| Other operating income (expense): | ||||||
| Currency transactions, net | (4.3) | (5.4) | ||||
| Other income, net | .5 | .7 | ||||
| Corporate expense | (3.0) | (2.4) | ||||
| Income from operations | 38.4 | 12.6 | ||||
| Other income (expense): | ||||||
| Trade interest income | .2 | .1 | ||||
| Other interest and dividend income | .2 | .1 | ||||
| Marketable equity securities | (1.0) | .3 | ||||
| Other components of net periodic pension and OPEB cost | (.5) | (.8) | ||||
| Interest expense | (11.6) | (14.3) | ||||
| Income (loss) before income taxes | 25.7 | (2.0) | ||||
| Income tax expense | 7.6 | 2.8 | ||||
| Net income (loss) | $ | 18.1 | $ | (4.8) | ||
| Net income (loss) per basic and diluted share | $ | .16 | $ | (.04) | ||
| Weighted average shares used in the calculation of net income (loss) per share | 115.0 | 115.0 | ||||
| TiO2 data - metric tons in thousands: | ||||||
| Sales volumes | 136 | 142 | ||||
| Production volumes | 143 | 128 | ||||
KRONOS WORLDWIDE, INC.
RECONCILIATION OF INCOME FROM
OPERATIONS TO SEGMENT PROFIT
(In millions)
| Three months ended | |||||||
| March 31, | |||||||
| 2025 | 2026 | ||||||
| (unaudited) | |||||||
| Income from operations | $ | 38.4 | $ | 12.6 | |||
| Adjustments: | |||||||
| Trade interest income | .2 | .1 | |||||
| Corporate expense | 3.0 | 2.4 | |||||
| Segment profit | $ | 41.6 | $ | 15.1 | |||
RECONCILIATION OF NET INCOME (LOSS) TO EBITDA
(In millions)
| Three months ended | ||||||
| March 31, | ||||||
| 2025 | 2026 | |||||
| (unaudited) | ||||||
| Net income (loss) | $ | 18.1 | $ | (4.8) | ||
| Adjustments: | ||||||
| Depreciation expense | 13.9 | 15.4 | ||||
| Interest expense | 11.6 | 14.3 | ||||
| Income tax expense | 7.6 | 2.8 | ||||
| EBITDA | $ | 51.2 | $ | 27.7 | ||
IMPACT OF PERCENTAGE CHANGE IN NET SALES
(unaudited)
| Three months ended | |||
| March 31, | |||
| 2026 vs. 2025 | |||
| Percentage change in net sales: | |||
| TiO2 sales volume | 4 | % | |
| TiO2 product pricing | (6) | ||
| TiO2 product mix/other | - | ||
| Changes in currency exchange rates | 6 | ||
| Total | 4 | % |
