Company: KRO
Filing Date: 2025-09-03
Form Type: 8-K
Source: 0001257640-25-000027
Chunk: 0

Company: KRONOS WORLDWIDE INC
Filing Date: 2025-09-03
Form: 8-K
Item: Item 7.01
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Item 7.01

Regulation FD Disclosure.

Senior Notes Offering

On September 3, 2025, Kronos Worldwide, Inc. (“ Kronos” or the “ Company”) issued a press release announcing a private offering through an institutional private placement of €75 million of senior secured notes of its wholly-owned subsidiary, Kronos International, Inc. (the “ Notes Offering”), subject to market conditions and other factors.

A copy of the press releases is attached hereto as Exhibit 99.1 and is incorporated by reference herein in accordance with Rule 135c of the Securities Act of 1933, as amended. Nothing in this filing or the attached press releases is an offer to sell or a solicitation of an offer to purchase any notes.

2025 Outlook

In connection with the Notes Offering, Kronos provided the following business update to prospective investors:

As we have previously disclosed, the customer demand momentum we experienced at the beginning of 2025 began to slow in the final weeks of the first quarter of 2025 and continued to slow through the second quarter of 2025 when overall customer demand decreased in all major markets. Customers continue to be cautious as a result of high interest rates and inflation concerns largely driven by ongoing global tariffs and trade tensions. We continue to expect demand to remain challenging until the uncertainty around tariffs is resolved. We believe customer inventory levels remain low; however, customers continue to be hesitant to build inventory, and we continue to receive orders on shorter notice than previously experienced. As we have previously disclosed, in the first quarter of 2025, we implemented tariff mitigation strategies, including building and pre-positioning inventory from our Canadian facility in the U. S., which resulted in increased shipping and warehousing costs and increased finished goods inventory in the U. S. As a result of weaker than expected demand in the second quarter of 2025, inventory balances remain elevated. We reduced our facility operating rates in the second quarter in response to the lower demand levels and we expect to continue to operate our facilities at reduced rates for the remainder of 2025 in response to lower demand levels and to sell down elevated inventory balances which we expect will result in increased cash flows, primarily during the fourth quarter of 2025.

Through the first half of 2025, our raw material, energy and other input costs have trended lower, and we expect this moderation to continue in the second half of 2025. We expect these cost improvements to be reflected in operating results late in the third quarter and the fourth quarter