Was Tronox (TROX) a good or bad investment pick in Q2 2025?

**Tronox (TROX) was not a good investment pick in Q2 2025**, based on the company's financial performance and market indicators.

1. **Financial Performance**: Tronox reported a net loss of $111 million for the first quarter of 2025, with an EPS of -$0.15, missing the forecast of $0.02. Revenue was $738 million, below the expected $751.59 million. The company also reported a net loss growth rate of -1110%, a revenue growth rate of -5%, and a diluted EPS growth rate of -900% in Q1 2025.

|code|Ticker|Name|Date|Total Revenue|Net Income|Diluted EPS|market_code|
|---|---|---|---|---|---|---|---|
|TROX|TROX.N|Tronox Holdings|2024 Q2|8.2E8|1.0E7|0.1|169|
|TROX|TROX.N|Tronox Holdings|2024 Q3|8.04E8|-2.5E7|-0.16|169|
|TROX|TROX.N|Tronox Holdings|2024 Q4|6.76E8|-3.0E7||169|
|TROX|TROX.N|Tronox Holdings|2025 Q1|7.38E8|-1.11E8|-0.7|169|

|code|Ticker|Name|Date|Net Income YoY|Total Revenue YoY|Diluted EPS YoY|market_code|
|---|---|---|---|---|---|---|---|
|TROX|TROX.N|Tronox Holdings|2024 Q2|103.7174721189591|3.27455919395466|105.8139534883721|169|
|TROX|TROX.N|Tronox Holdings|2024 Q3|-78.57142857142857|21.45015105740181|-77.77777777777779|169|
|TROX|TROX.N|Tronox Holdings|2024 Q4|46.42857142857143|-1.4577259475218658||169|
|TROX|TROX.N|Tronox Holdings|2025 Q1|-1133.3333333333335|-4.651162790697675|-1066.6666666666665|169|

2. **Market Sentiment**: Analysts' ratings for Tronox have been mixed, with recent downgrades. BMO Capital downgraded Tronox from Market Perform to Underperform and slashed its price target to $3.00 from $7.00. Mizuho lowered its price target on Tronox to $6.00 from $7.00, indicating a more cautious outlook. Despite this, JPMorgan upgraded Tronox from Neutral to Overweight, raising the price target to $7.00, but this upgrade may not have been reflective of Q2 2025 performance given the timing of the upgrade.
3. **Dividend and Financial Health**: Tronox has maintained a notable dividend yield of 9.8% and has consistently paid dividends for 14 consecutive years. However, the company's financial health remains a concern, with a high debt burden and a net leverage ratio of 5.2x.
4. **Strategic Initiatives**: Tronox has taken steps to address its financial challenges, such as idling its Batlik pigment plant in the Netherlands to improve operational efficiency. The company has also provided revenue guidance for 2025 in the range of $3.0 to $3.4 billion, with an adjusted EBITDA target of $525 to $625 million. These initiatives may offer potential for improvement in the future, but they did not reflect positively on the Q2 2025 performance.

In conclusion, Tronox's financial performance in Q2 2025 was lackluster, and despite some positive strategic moves, the company's challenges in revenue growth, profitability, and high debt levels make it an unattractive investment pick for the quarter.