J.P. Morgan Raises Tronox Rating to Neutral as Shares Gain 7.2%

Tronox (TROX) shares rose 7.2% after J.P. Morgan upgraded it to Neutral from Underweight. The analyst cited uncertain demand and rising costs in the titanium dioxide industry, forecasting negative free cash flow by 2026. China's TiO2 export trends and new tariffs may benefit Tronox and Chemours (CC) in 2027.

J.P. Morgan upgraded Tronox to Neutral from Underweight, citing shares near all-time lows. The titanium dioxide pigment manufacturer saw a 7.2% rise in Monday's trading. Demand for TiO2 is constrained by negative paint industry volumes in the U.S. and Europe, according to the bank. (TROX)

JPMorgan upgraded Tronox (TROX) from Underweight to Neutral, citing challenging demand and rising costs. The stock is near its 52-week low at $2.51, down 71% in six months. JPMorgan withdrew its 2027 price target due to uncertain conditions. Tronox reported a wider-than-expected Q3 2026 loss and lower revenue, but saw year-over-year revenue and EBITDA growth. Negative free cash flow is projected for 2026 and 2027.

Tronox (TROX) reported Q3 earnings, projecting Q4 free cash flow of $20M-$45M, leading to a full-year cash outflow of $25M-$50M. The company reduced its 2026 capital spending plan by $30M. TiO2 and zircon revenues declined sequentially, but pricing gains and trade measures supported margins. Tronox expects cost savings of over $175M by 2026. The company has $3.2B in debt and $509M in liquidity. It also announced a $32M joint investment with JX Advanced Metals for rare earth studies.

Tronox Holdings PLC (TROX) reported Q3 2026 revenue up 18%, but faces challenges. Middle East conflict disrupted gas supply, causing downtime and higher costs. Q4 TiO2 volumes expected to decline due to seasonality and lower demand. Full-year free cash flow projected to be a use of $25M-$50M. Chinese TiO2 exports up 50% YoY, increasing competition. CEO John Romano discussed cost savings, pricing, and market dynamics during the earnings call.

Tronox (TROX) reported Q3 2026 revenue of $827M, up 18% YoY, with adjusted EBITDA of $101M. The company faced demand challenges but implemented price increases and cost reductions. Trade measures and operational improvements were highlighted. The outlook includes expected volume declines due to seasonality and macroeconomic factors.