Kronos Worldwide 2025 Q2 Earnings Net Income Deteriorates 147%

Kronos Worldwide (KRO) reported its fiscal 2025 Q2 earnings on Aug 06th, 2025. The results fell significantly short of expectations, with a net loss of $0.08 per share compared to a profit of $0.17 per share in the same period last year. The company provided no quantitative guidance for future periods, citing ongoing global uncertainties as a key challenge.

Revenue
Kronos Worldwide’s total revenue declined by 1.2% year-over-year to $494.40 million in 2025 Q2, from $500.50 million in 2024 Q2. The drop was attributed to lower average TiO2 selling prices, reduced export sales volumes, and shifts in product mix, partially offset by increased North American sales volumes. Currency exchange rate fluctuations, primarily involving the euro, added $8 million to Q2 net sales but subtracted $3 million over the first half of the year.

Earnings/Net Income
The company swung to a net loss of $9.2 million in 2025 Q2, or $0.08 per share, a 147.2% deterioration from the net income of $19.5 million, or $0.17 per share, in 2024 Q2. The decline was largely due to unabsorbed fixed production costs, higher distribution and warehousing expenses, and lower production volumes. For the first six months of 2025, net income totaled $8.9 million, or $0.08 per share, compared to $27.6 million, or $0.24 per share, in the prior year. The earnings performance was weak, with a significant drop in profitability year-over-year.

Price Action
The stock price of Kronos Worldwide has edged down 1.45% during the latest trading day, has dropped 5.41% during the most recent full trading week, and has tumbled 14.38% month-to-date.

Post Earnings Price Action Review
The strategy of buying KRO when earnings beat and selling in 30 days resulted in a significant loss. The strategy had a return of -46.01%, compared to a benchmark return of 85.42%. It underperformed the benchmark by -131.43% and had a CAGR of -11.68%. The strategy had a maximum drawdown of 0.00% and a Sharpe ratio of -0.31, indicating a low risk but poor return.

CEO Commentary
Chief Executive Officer Mark Newman highlighted that the second quarter 2025 results were impacted by reduced production volumes, leading to unabsorbed fixed costs and lower TiO2 segment profit. The company faces ongoing challenges from global uncertainties, including U.S. trade policies and geopolitical tensions, which have dampened customer demand and delayed market recovery. Despite these headwinds, Kronos has maintained average TiO2 selling prices comparable to the first half of 2024 and achieved modest sales volume growth in North American and European markets. The tone reflects cautious optimism as the company navigates a challenging operating environment.

Guidance
The company expects continued pressure from global market uncertainty, including U.S. trade policies, geopolitical tensions, and customer inventory hesitancy, which are likely to defer market recovery and affect sales volumes and pricing momentum. While the company has seen some improvement in North American and European sales volumes, it acknowledges the risk of ongoing volatility in export markets and currency fluctuations. No specific quantitative guidance is provided for future periods, but the company indicates that lower production rates and higher distribution costs may persist as near-term challenges.

Additional News
On July 16, 2024, Kronos Worldwide completed the acquisition of the remaining 50% interest in Louisiana Pigment Company, L.P. (LPC), previously held by Venator Investments, Ltd. Following the acquisition, LPC became a wholly-owned subsidiary of Kronos. The company accounted for the transaction as a business combination, and the results of operations of LPC were included in Kronos’s consolidated financial statements beginning from the acquisition date. This move is expected to enhance operational efficiencies and provide long-term value for shareholders. No other C-level changes, dividend announcements, or buyback initiatives were disclosed in the provided materials.