Kronos Worldwide Inc (NYSE:KRO) Reports Q3 2025 Earnings Miss, Stock Plunges Over 11%

Kronos Worldwide Inc (NYSE:KRO) reported financial results for the third quarter of 2025 that fell significantly short of analyst expectations, triggering a sharp negative reaction in the market. The titanium dioxide producer posted a substantial miss on both the top and bottom lines, reflecting the challenging conditions currently facing the industry.

Earnings and Revenue Performance

The company's third-quarter results revealed a pronounced deviation from Wall Street's forecasts. Kronos Worldwide reported a net loss of $37.0 million, or $0.32 per share. When adjusted for one-time items, the loss was $0.18 per share, which was substantially worse than the analyst estimate for a loss of $0.06 per share.

On the revenue front, the company reported net sales of $456.9 million, missing analyst estimates of $477.3 million. This represents a 6% decrease compared to the third quarter of 2024.

Key financial metrics for the quarter include:

• Reported EPS: -$0.32 per share
• Adjusted EPS: -$0.18 per share vs. Estimate of -$0.06 per share
• Reported Revenue: $456.9 million vs. Estimate of $477.3 million
• Year-over-Year Revenue Change: -6%

Market Reaction

The market responded decisively to the disappointing earnings report. In after-hours trading following the announcement, Kronos Worldwide's stock price declined by over 11%. This sharp sell-off reflects investor concern over the company's wider-than-expected loss and declining sales amid a difficult market environment for TiO2 products.

Operational Challenges and Press Release Summary

The earnings press release detailed several factors contributing to the weak quarterly performance. The company cited a difficult market environment characterized by lower average TiO2 selling prices and reduced production volumes. These factors led to lower absorption of fixed production costs, which significantly pressured profitability.

A notable non-cash item impacting the results was a $19.3 million deferred income tax expense related to a corporate tax rate reduction in Germany. The company's income from operations turned negative, recording a loss of $19.2 million for the quarter, compared to income of $38.9 million in the prior year period.

Key operational highlights from the report:

• Lower average TiO2 selling prices (down 7% year-over-year)
• Reduced production volumes leading to $27 million in unabsorbed fixed costs
• TiO2 segment loss of $15.3 million, compared to a profit of $43.4 million in Q3 2024
• EBITDA of $0.6 million, down dramatically from $123.3 million a year ago

Forward-Looking Perspective

While the press release did not provide a specific quantitative financial outlook, it described "unprecedented global uncertainty" related to U.S. trade policies, geopolitical tensions, and customer hesitancy to build inventories. This prolonged market downturn has affected both sales volumes and pricing momentum.

Analyst estimates for the future remain cautious. For the upcoming fourth quarter of 2025, analysts are projecting a loss of $0.05 per share on revenue of $405.95 million. For the full 2025 year, the consensus estimate points to a loss of $0.03 per share on sales of $1.877 billion.

For a detailed view of historical earnings, future estimates, and analyst projections, you can review the complete data here.

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