Kronos Worldwide (KRO) investor relations material

Executive summary

• Net income for Q2 2026 was $15.2 million ($0.13/share), reversing a $9.2 million loss in Q2 2025, with six-month net income at $10.4 million ($0.09/share), up from $8.9 million ($0.08/share) year-over-year.

• Improved results were driven by higher sales volumes, lower production and raw material costs, and cost reduction initiatives, partially offset by lower average selling prices and currency impacts.

• Cost reduction initiatives, including workforce reductions in late 2025, continue to benefit margins and operational efficiency.

Financial highlights

• Q2 2026 net sales increased 13% year-over-year to $558.1 million; six-month net sales rose 9% to $1,067.9 million.

• Gross margin improved to $102.8 million (18.4%) in Q2 2026 from $62.8 million (13%) in Q2 2025; six-month gross margin remained steady at 17%.

• EBITDA for Q2 2026 was $52.9 million, more than doubling from $22.2 million in Q2 2025.

• Segment profit for Q2 2026 was $41.0 million, up from $10.9 million in Q2 2025; six-month segment profit rose to $56.1 million from $52.5 million.

• Interest expense increased due to higher debt balances and rates; income tax expense rose to $7.7 million in Q2 2026, reflecting higher earnings and jurisdictional mix.

Outlook and guidance

• Full-year 2026 net sales, gross margin, and operating income margins are expected to exceed 2025 levels.

• Additional price increases and surcharges were implemented in Q2 2026 to offset higher production, energy, and logistics costs.

• Management expects positive momentum in the second half of 2026, supported by ongoing operational, commercial, and cost reduction initiatives.

• Demand remains below historical levels in North America but is improving; order backlog entering Q3 is favorable.

• Liquidity and capital resources are sufficient, with expectations for improved cash on hand in the second half of 2026.