It has been about a month since the last earnings report for Kronos Worldwide (KRO). Shares have added about 2.7% in that time frame, outperforming the S&P 500.
Will the recent positive trend continue leading up to its next earnings release, or is Kronos Worldwide due for a pullback? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at its latest earnings report in order to get a better handle on the important catalysts.
Kronos' Q2 Earnings Beat Estimates on Volume Growth and Lower Costs
Kronos reported second-quarter 2026 earnings of 13 cents per share, reversing the year-ago loss of 8 cents. The figure beat the Zacks Consensus Estimate of a loss of 4 cents, resulting in a 425% positive surprise.
Net sales rose 12.9% year over year to $558.1 million and surpassed the consensus mark of $520.3 million by 7.3%.
Higher TiO2 sales volumes and lower production costs aided results, while lower average selling prices remained a headwind.
Volume and Pricing
TiO2 sales volumes increased 15.9% year over year to 153 thousand metric tons from 132 thousand metric tons. The company attributed the increase primarily to market share gains across all markets. Production volumes rose 8% to 135 thousand metric tons from 125 thousand metric tons in the year-ago quarter.
Average TiO2 selling prices remained below year-ago levels and reduced the year-over-year change in second-quarter net sales by 3%. Kronos entered 2026 with average TiO2 selling prices below early-2025 levels, though prices increased 4% during the first six months of 2026. The company implemented price increases and surcharges during the second quarter to address higher operating costs.
TiO2 segment profit jumped to $41 million from $10.9 million a year earlier. Higher sales volumes, lower production and raw material costs, lower unabsorbed fixed costs and benefits from cost-reduction initiatives supported the increase. Lower selling prices and unfavorable currency movements partly offset these gains.
Financials
Kronos ended the quarter with cash and cash equivalents of $26.6 million as of June 30, 2026. Long-term debt stood at $569.6 million as of June 30, 2026, up from $557.4 million as of Dec. 31, 2025.
Outlook
Management emphasized continued execution on pricing and cost initiatives as key priorities following the restructuring actions implemented in late 2025. Additional pricing actions may be needed as overall selling prices remain below 2025 levels. Kronos expects gross margin to improve as lower-cost inventory produced during 2026 flows through the system and more favorable selling prices take hold, though higher production, energy and logistics costs remain a pressure point.
Customers remain cautious on inventories, but longer lead times and a favorable backlog entering the third quarter have improved near- and intermediate-term production flexibility. Demand has strengthened from 2025 levels but remains below historical norms, particularly in North America, where elevated interest rates, economic uncertainty and subdued consumer spending continue to weigh on activity. Kronos expects full-year 2026 net sales to exceed 2025 levels, with gross margin and operating income margin also improving year over year, although geopolitical instability, tariffs, shipping disruptions and energy costs remain sources of uncertainty.
How Have Estimates Been Moving Since Then?
In the past month, investors have witnessed a upward trend in fresh estimates.
The consensus estimate has shifted 134.48% due to these changes.
VGM Scores
Currently, Kronos Worldwide has a great Growth Score of A, a grade with the same score on the momentum front. Charting a somewhat similar path, the stock has a grade of B on the value side, putting it in the top 40% for this investment strategy.
Overall, the stock has an aggregate VGM Score of A. If you aren't focused on one strategy, this score is the one you should be interested in.
Outlook
Estimates have been trending upward for the stock, and the magnitude of this revision looks promising. It comes with little surprise Kronos Worldwide has a Zacks Rank #2 (Buy). We expect an above average return from the stock in the next few months.
Performance of an Industry Player
Kronos Worldwide belongs to the Zacks Chemical - Diversified industry. Another stock from the same industry, Methanex (MEOH), has gained 9.1% over the past month. More than a month has passed since the company reported results for the quarter ended June 2026.
Methanex reported revenues of $1.4 billion in the last reported quarter, representing a year-over-year change of +75%. EPS of $3.87 for the same period compares with $0.97 a year ago.
Methanex is expected to post earnings of $3.10 per share for the current quarter, representing a year-over-year change of +5066.7%. Over the last 30 days, the Zacks Consensus Estimate has changed +14.6%.
Methanex has a Zacks Rank #3 (Hold) based on the overall direction and magnitude of estimate revisions. Additionally, the stock has a VGM Score of A.
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This article originally published on Zacks Investment Research (zacks.com).
