KRONOS WORLDWIDE, INC. REPORTS THIRD QUARTER 2026 RESULTS
Currency movements reduced segment profit by approximately $5 million in the quarter and $23 million over nine months.
Sentiment and the balance of points
Rhea-AI Sentiment reads the wording of the document, how positive or negative its language is on a 1 to 5 scale. The balance of points shown with the takes weighs what the document actually discloses, so the two can disagree, for example when a trial that missed its main goal is described in upbeat language.
Rhea-AI Summary
Kronos Worldwide (NYSE:KRO) returned to profitability in the third quarter of 2026, reporting net income of $34.8 million. Earnings were $.30 per share, versus a loss of $37.0 million, or $.32 per share, a year earlier. Sales rose 18% to $541.1 million. Higher sales and production volumes, lower feedstock costs and cost reductions supported the improvement, partly offset by higher distribution costs.
Nine-month net income reached $45.2 million, versus a $28.1 million loss; sales increased 12% to $1,609.0 million. Average titanium dioxide selling prices rose 5% year over year in the quarter but remained 1% lower over nine months. Both 2026 periods included a $12.1 million non-cash deferred tax benefit. Kronos expects softer fourth-quarter demand from normal seasonal trends and lower production because of recurring maintenance at several facilities.
How this balance works
Rhea-AI gives every point it takes from this document a weight. Minor counts 1, Moderate 3 and Major 9, so one Major point outweighs several Minor ones. The bar adds up the weights on each side, and when neither side holds more than 65% of the total the balance reads Mixed.
It reads the document as published, with the same rules for every company, and it does not look at what the market expected or at how the stock traded, so a point can be objectively good on a day the stock falls.
Rhea-AI Sentiment measures something else, the tone of the wording.
Hollow bars mark forward-looking points. How the balance works
Positive
- Moderate pointThird-quarter net income reached $34.8 million, or $.30 per share, versus a $37.0 million, or $.32-per-share, loss.
- Moderate pointThird-quarter sales rose 18% to $541.1 million from $456.9 million a year earlier.
- Moderate pointTitanium dioxide sales volumes rose to 144 thousand metric tons from 126 thousand quarterly; nine-month volumes reached 439 thousand versus 394 thousand.
- Moderate pointAverage selling prices rose 11% during the first nine months of 2026; quarterly prices were 5% higher year over year.
- Minor pointNine-month net income reached $45.2 million, or $.39 per share, versus a $28.1 million, or $.24-per-share, loss.
14 minor points
- Minor pointNine-month sales rose 12% to $1,609.0 million from $1,441.1 million a year earlier.
- Minor pointThird-quarter operating income reached $57.9 million, versus a $19.2 million loss a year earlier.
- Minor pointNine-month operating income rose to $108.1 million from $26.6 million a year earlier.
- Minor pointThird-quarter gross margin rose to $127.4 million from $47.0 million; nine-month margin reached $313.5 million versus $216.6 million.
- Minor pointThird-quarter non-GAAP segment profit reached $61.0 million, versus a $15.3 million loss; nine-month profit rose to $117.1 million from $37.2 million.
- Minor pointThird-quarter EBITDA, earnings before interest, taxes, depreciation and amortization, rose to $72.7 million from $.6 million.
- Minor pointNine-month EBITDA rose to $153.3 million from $74.0 million a year earlier.
- Minor pointProduction rose to 140 thousand metric tons from 126 thousand quarterly; nine-month production reached 403 thousand versus 394 thousand.
- Minor pointEuropean and North American market share gains contributed to sales growth.
- Minor pointLower feedstock and production costs, including benefits from fourth-quarter 2025 cost initiatives, supported profit improvement.
- Minor pointCurrency movements increased nine-month sales by an estimated approximately $39 million.
- Minor pointNon-cash deferred tax benefit of $12.1 million, or $.11 per share supported both 2026 reporting periods.
- Minor pointCorporate expense fell to $3.0 million from $3.7 million quarterly, and $8.6 million from $10.0 million over nine months.
- Minor pointThird-quarter interest expense fell to $13.4 million from $14.1 million a year earlier.
Negative
- Moderate point. Forward-looking: it has not happened yet and may not happen.Fourth-quarter demand is expected to soften seasonally; end-use demand remains below historical levels.
- Moderate pointNine-month average titanium dioxide selling prices remained 1% below the corresponding 2025 period.
- Minor point. Forward-looking: it has not happened yet and may not happen.Fourth-quarter production is expected to be lower because of recurring maintenance at several facilities.
- Minor pointCurrency movements reduced segment profit by approximately $5 million quarterly and approximately $23 million over nine months.
- Minor pointHigher energy and distribution costs partly offset improvements in segment profit.
3 minor points
- Minor pointSelling, general and administrative expense rose to $66.8 million from $61.6 million quarterly; nine-month expense reached $194.9 million versus $185.3 million.
- Minor pointNine-month interest expense rose to $41.9 million from $38.5 million a year earlier.
- Minor pointGerman tax audit uncertainty generated nine-month tax expense of $2.0 million, or $.02 per share.
News Explained
For the first nine months of 2026, currency exchange rates increased net sales by about
Key Figures
- Net income
- $34.8 million vs. net loss of $37.0 million
- Third quarter 2026 vs. third quarter 2025
- Earnings per share
- $0.30 vs. loss of $0.32 per share
- Third quarter 2026 vs. third quarter 2025
- Nine-month net income
- $45.2 million vs. net loss of $28.1 million
- First nine months of 2026 vs. first nine months of 2025
- Net sales
- $541.1 million; 18% higher
- Third quarter 2026 vs. third quarter 2025
- Net sales
- $1.6 billion; 12% higher
- First nine months of 2026 vs. first nine months of 2025
- TiO2 segment profit
- $61.0 million vs. loss of $15.3 million
- Third quarter 2026 vs. third quarter 2025
- EBITDA
- $72.7 million vs. $0.6 million
- Third quarter 2026 vs. third quarter 2025
- Deferred income tax benefit
- $12.1 million
- Non-cash benefit included in 2026 net income
Previous Earnings Reports
-
Net income was $15.2 million as sales rose 13% year over year.
-
Reported a $4.8 million net loss as TiO2 segment profit and EBITDA fell.
24h Move is the share-price change in the day after each event; other market factors may also have contributed.
Key Terms
tio2 technical
anti-dumping duties regulatory
ebitda financial
gaap financial
AI-generated analysis. How Rhea-AI works. Not financial advice.
Dallas, Texas, Nov. 05, 2026 (GLOBE NEWSWIRE) -- Kronos Worldwide, Inc. (NYSE:KRO) today reported net income 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 third quarter of 2026 was
Other income in the third quarter and first nine months of 2025 includes a non-cash pre-tax gain of
“Our third quarter results reflect continued execution of our strategic initiatives even though end use demand remains below historical levels,” said Brian W. Christian, President and Chief Executive Officer. “Operating results improved compared with the second quarter, supported by progress across our operational, commercial and cost reduction initiatives. Looking ahead, we expect normal seasonal trends to result in softer fourth quarter demand while our production volumes are expected to be lower due to the timing of recurring maintenance at several facilities. As a result, our inventory levels are expected to remain below historical levels. We remain focused on the factors within our control, including operational performance, cost discipline, and cash generation. We believe the progress we are making provides a solid foundation as we move forward.”
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;
- Pricing pressure and changes in industry supply and production levels;
- 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 (loss), 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 (loss) 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 (loss) 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
(Unaudited)
(In millions, except per share and metric ton data)
| Three months ended | Nine months ended | |||||||||||
| September 30, | September 30, | |||||||||||
| 2025 | 2026 | 2025 | 2026 | |||||||||
| Net sales | $ | 456.9 | $ | 541.1 | $ | 1,441.1 | $ | 1,609.0 | ||||
| Cost of sales | 409.9 | 413.7 | 1,224.5 | 1,295.5 | ||||||||
| Gross margin | 47.0 | 127.4 | 216.6 | 313.5 | ||||||||
| Selling, general and administrative expense | 61.6 | 66.8 | 185.3 | 194.9 | ||||||||
| Other operating income (expense): | ||||||||||||
| Currency transactions, net | (1.9) | (2.4) | 3.2 | (8.3) | ||||||||
| Other income, net | 1.0 | 2.7 | 2.1 | 6.4 | ||||||||
| Corporate expense | (3.7) | (3.0) | (10.0) | (8.6) | ||||||||
| Income (loss) from operations | (19.2) | 57.9 | 26.6 | 108.1 | ||||||||
| Other income (expense): | ||||||||||||
| Gain on remeasurement of earn-out liability | 4.6 | - | 4.6 | - | ||||||||
| Trade interest income | .2 | .1 | .6 | .4 | ||||||||
| Other interest and dividend income | - | .1 | .3 | .3 | ||||||||
| Marketable equity securities | (.1) | .1 | (1.1) | .4 | ||||||||
| Other components of net periodic pension and OPEB cost | (.5) | (.8) | (1.6) | (2.4) | ||||||||
| Interest expense | (14.1) | (13.4) | (38.5) | (41.9) | ||||||||
| Income (loss) before income taxes | (29.1) | 44.0 | (9.1) | 64.9 | ||||||||
| Income tax expense | 7.9 | 9.2 | 19.0 | 19.7 | ||||||||
| Net income (loss) | $ | (37.0) | $ | 34.8 | $ | (28.1) | $ | 45.2 | ||||
| Net income (loss) per basic and diluted share | $ | (.32) | $ | .30 | $ | (.24) | $ | .39 | ||||
| Weighted average shares used in the calculation of net income (loss) per share | 115.0 | 115.1 | 115.0 | 115.1 | ||||||||
| TiO2 data - metric tons in thousands: | ||||||||||||
| Sales volumes | 126 | 144 | 394 | 439 | ||||||||
| Production volumes | 126 | 140 | 394 | 403 | ||||||||
KRONOS WORLDWIDE, INC.
RECONCILIATION OF INCOME (LOSS) FROM
OPERATIONS TO SEGMENT PROFIT (LOSS)
(Unaudited)
(In millions)
| Three months ended | Nine months ended | ||||||||||||||
| September 30, | September 30, | ||||||||||||||
| 2025 | 2026 | 2025 | 2026 | ||||||||||||
| Income (loss) from operations | $ | (19.2) | $ | 57.9 | $ | 26.6 | $ | 108.1 | |||||||
| Adjustments: | |||||||||||||||
| Trade interest income | .2 | .1 | .6 | .4 | |||||||||||
| Corporate expense | 3.7 | 3.0 | 10.0 | 8.6 | |||||||||||
| Segment profit (loss) | $ | (15.3) | $ | 61.0 | $ | 37.2 | $ | 117.1 | |||||||
RECONCILIATION OF NET INCOME (LOSS) TO EBITDA
(Unaudited)
(In millions)
| Three months ended | Nine months ended | ||||||||||||
| September 30, | September 30, | ||||||||||||
| 2025 | 2026 | 2025 | 2026 | ||||||||||
| Net income (loss) | $ | (37.0) | $ | 34.8 | $ | (28.1) | $ | 45.2 | |||||
| Adjustments: | |||||||||||||
| Depreciation expense | 15.6 | 15.3 | 44.6 | 46.5 | |||||||||
| Interest expense | 14.1 | 13.4 | 38.5 | 41.9 | |||||||||
| Income tax expense | 7.9 | 9.2 | 19.0 | 19.7 | |||||||||
| EBITDA | $ | .6 | $ | 72.7 | $ | 74.0 | $ | 153.3 | |||||
IMPACT OF PERCENTAGE CHANGE IN NET SALES
(Unaudited)
| Three months ended | Nine months ended | ||||
| September 30, | September 30, | ||||
| 2026 vs. 2025 | 2026 vs. 2025 | ||||
| Percentage change in net sales: | |||||
| TiO2 sales volume | 14 | % | 11 | % | |
| TiO2 product pricing | 5 | (1) | |||
| TiO2 product mix/other | (1) | (1) | |||
| Changes in currency exchange rates | - | 3 | |||
| Total | 18 | % | 12 | % |
FAQ
AI-generated questions and answers. How Rhea-AI works. Not financial advice.
What were Kronos Worldwide's third-quarter 2026 earnings and sales?
Kronos reported net income of $34.8 million, or $.30 per share, and sales of $541.1 million. A year earlier, it reported a net loss of $37.0 million, or $.32 per share, and sales of $456.9 million. Sales increased 18% year over year.
What does Kronos Worldwide expect for the fourth quarter of 2026?
Kronos expects softer demand from normal seasonal trends and lower production volumes because of recurring maintenance at several facilities. The company also expects inventory levels to remain below historical levels.
Which tax items affected comparisons in Kronos Worldwide's 2026 earnings?
The 2026 quarter and nine-month period included a $12.1 million non-cash deferred tax benefit related to proposed currency regulations under §987 released in August 2026. The nine-month period also included $2.0 million of German tax audit-related expense. Both corresponding 2025 periods included $19.3 million of non-cash deferred tax expense following German legislation.