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KRO vs. TROX: Which TiO2 Stock Deserves a Spot in Your Portfolio?

Kronos Worldwide, Inc. KRO and Tronox Holdings plc TROX are major U.S.-based producers of titanium dioxide (TiO2) pigment and direct competitors in the global TiO2 market. Both companies share overlapping end-markets and are exposed to similar cyclical demand, pricing and capacity dynamics.

Let’s dive deep and closely compare the fundamentals of these two major TiO2 producers to determine which is the better investment now.

The Case for KRO

Kronos is expected to benefit from favorable long-term demand fundamentals across the key end markets. The company continues to see growth opportunities supported by global industrial activity, infrastructure development and rising demand across developing regions. Expanding consumption trends in emerging markets, along with steady long-term growth in coatings, plastics and construction applications, are likely to support demand.

KRO’s TiO2 sales volumes increased 16% year over year to 153 thousand metric tons from 132 thousand metric tons in the second quarter of 2026. The company attributed the increase primarily to market share gains across all markets.

Management is also taking actions to reduce costs as well as align production and inventories to expected demand levels, which are expected to support its margins. Its cost actions and process improvement initiatives are aimed at improving the long-term cost structure.

The company has emphasized continued execution on pricing and cost initiatives as key priorities following the restructuring actions implemented in late 2025. It expects additional price increases as selling prices remain below the 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.

Kronos has sufficient liquidity, which allows it to fund investment in capital projects, meet debt obligations and drive shareholder value. It is actively managing working capital to drive cash flow and maintain financial flexibility. At the end of the second quarter, KRO had cash, cash equivalents and restricted cash on hand of $34.5 million. It had total availability for borrowing of roughly $261 million under its revolving credit facility at the end of the quarter.

KRO paid dividends worth $23 million to its shareholders in 2025 and $11.5 million in the first half of 2026. It offers a dividend yield of 2.4% at the current stock price.

However, Kronos continues to face pressure from lower TiO2 selling prices and competitive market conditions. Average TiO2 selling prices remained below year-ago levels and reduced the year-over-year change in second-quarter net sales by 3%. The company entered 2026 with average TiO2 selling prices below early-2025 levels.

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 the 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.

The Case for TROX

Tronox, a vertically integrated producer of TiO2, is gaining traction as TiO2 volumes and pricing improve, supported by trade defense measures, tighter industry supply and its global footprint.

In second-quarter 2026, TiO2 volumes rose 9% sequentially and 18% year over year, reaching the highest level since second-quarter 2022. TiO2 pricing rose 5% sequentially. India’s trade authority recommended reinstating duties on Chinese TiO2, while measures in Europe, Brazil and Saudi Arabia remain supportive. For third-quarter 2026, the company expects TiO2 pricing to be up in the mid-single digits sequentially.

Cost actions and completed outages should help operating efficiency, while inventory reduction and positive second-quarter free cash flow have strengthened liquidity. The Botlek and Fuzhou pigment facility closures and cost program continue to reduce operating costs.

TROX now expects year-end 2026 run-rate savings at the higher end of the $125-$175 million target. Planned Stallingborough and synthetic rutile kiln outages were completed in second-quarter 2026, allowing higher operating rates in the third quarter. Vertical feedstock integration and a mostly chloride-based pigment network should support absorption and cost efficiency as utilization rises.

Meanwhile, second-quarter free cash flow was a source of $60 million after a $135 million use in the first quarter. Liquidity rose to $527 million, including $194 million of cash. Tronox expects full-year 2026 free cash flow to remain positive, with third-quarter free cash flow relatively neutral. The new $75 million long-term financing arrangement also adds flexibility as cash generation recovers.

However, input and logistics costs remain volatile, and seasonal volume moderation is expected in the third quarter. Middle East volatility is raising sulfuric acid, diesel, utilities and other input costs. Elevated production, freight and other costs weighed on profitability in the second quarter and are expected to remain as headwinds in the third quarter.

Leverage and interest expense also constrain financial flexibility. Tronox ended second-quarter 2026 with $3.2 billion of total debt and $3 billion of net debt, while trailing 12-month net leverage was 11.4X. Net interest expense was $56 million in the second quarter, and TROX expects about $190 million of net cash interest for full-year 2026.

KRO & TROX: Price Performance, Valuation & Other Comparisons

The KRO stock is up 30.2% over a year, while TROX has rallied 41.6% compared with the Zacks Chemicals Diversified industry’s increase of 6.6%.