Kronos Worldwide Inc

Kronos Worldwide reported second-quarter earnings of 13 cents per share, surpassing the Zacks Consensus Estimate of a loss of 4 cents per share. Revenue reached 558.1 million dollars, exceeding the consensus estimate by 7.26 percent and up from 494.4 million dollars a year earlier. The company has beaten consensus EPS estimates in two of the last four quarters. Shares have gained about 41.2 percent year-to-date, outperforming the S&P 500's 13 percent rise.

Kronos Worldwide shares have surged 36.2% this year, outpacing the Zacks Chemicals Diversified industry's 17.6% gain and the S&P 500's 9.4% rise. The company is benefiting from long-term titanium dioxide demand growth of 2-3% annually, with first-quarter TiO2 sales volumes up roughly 4% year over year to 142 thousand metric tons, driven by higher volumes in North America, Latin America, and export markets. Cost-reduction actions, pricing initiatives, and restructuring efforts are expected to support margins, though higher shipping and production costs tied to Middle East supply disruptions and elevated energy and raw material costs in Europe pose headwinds. Kronos ended the first quarter with cash and restricted cash of $33.6 million and roughly $287 million in borrowing availability under its revolving credit facility, and it plans capital spending of around $60 million in 2026. The Zacks Consensus Estimate for 2026 is a loss of 33 cents per share, implying a 65.6% year-over-year improvement, with earnings expected to grow roughly 151.5% in 2027, and the stock trades at a forward price-to-sales ratio of 0.34, below the industry average of 0.91.

Zacks Equity Research named Kronos Worldwide a Strong Buy, citing long-term titanium dioxide demand growth and margin-supporting cost and pricing initiatives. The stock has rallied 33% year-to-date, outpacing the Zacks Chemical - Diversified industry's 17.9% gain, and trades at a forward price-to-sales ratio of 0.34 versus the industry's 0.88. The consensus earnings estimate for 2026 is a loss of 33 cents per share, a 65.6% year-over-year improvement, while the 2027 estimate of 17 cents implies 151.5% growth. First-quarter TiO2 sales volumes rose roughly 4% to 142 thousand metric tons, driven by North American, Latin American, and export markets, though European demand weakened. The firm also highlighted other Zacks Rank #1 stocks in Basic Materials: CSW Industrials, Albemarle, and Perimeter Solutions.

Kronos Worldwide has returned about 50% since the start of the calendar year, significantly outperforming the Basic Materials sector's average gain of 10.5%. The company is part of the Chemical - Diversified industry, which has gained an average of 41.8% year-to-date, meaning Kronos Worldwide is also outperforming its industry peers. Analyst sentiment has improved, with the Zacks Consensus Estimate for full-year earnings moving 0.3% higher over the past three months, and the stock currently holds a Zacks Rank of 2, or Buy. Another stock in the same industry, Air Products and Chemicals, has returned 13.3% year-to-date and also carries a Zacks Rank of 2, with its consensus earnings estimate increasing 1.7% over the past three months.