Company: KRO
Filing Date: 2025-09-03
Form Type: 8-K
Source: 0001257640-25-000027
Chunk: 1

Company: KRONOS WORLDWIDE INC
Filing Date: 2025-09-03
Form: 8-K
Item: Item 7.01
Chunk 1
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 of 2025 as higher cost inventory is worked down. We continue to focus on cost reduction initiatives which we expect will result in reduced selling, general and administrative costs and operational process improvements aimed at reducing fixed costs. TiO2selling prices have been pressured downward by reduced overall demand, favorable TiO2availability and minimal order lead times in the marketplace. Imports of excess Chinese supply into various end use markets around the world have also negatively impacted TiO2pricing. However, recently western producers have been successful in getting tariffs and anti-dumping duties enacted against Chinese producers in certain regions of the world which has helped slow down the movement of Chinese supply into these regions and which we believe will improve pricing and strengthen TiO2demand in 2026 and beyond.

Overall, due to weaker than expected demand, pricing pressures and lower fixed cost absorption as a result of reduced operating rates, we expect to report lower operating results for the full year of 2025 as compared to 2024. However, we believe we will be well-positioned when TiO2markets ‎return to more normalized levels as a result of declining raw material and energy costs, the impact of the cost reduction initiatives discussed above, the favorable impact on pricing and competition as a result of anti-dumping duties on Chinese producers, our ability to capture increased market share as a result of our 2024 acquisition of the 50% interest in LPC, and the effects of net capacity reductions in the industry that have occurred in recent years which have not yet been reflected in the supply chain. Throughout this downcycle, we have maintained significant liquidity through a combination of cash on hand and borrowing availability on our global revolving credit facility. As previously disclosed, in July 2025 we increased the maximum borrowings under the credit facility from $300 million to $350 million. In addition, we remain focused on low capital expenditures and optimization of working capital, including our current focus on managing inventory levels down to maximize cash flow generation, as discussed above.

About Kronos

We are one of the top five producers and marketers in the world of value-added titanium dioxide pigments, or TiO2, a base industrial product used in a wide range of applications. We offer our customers a broad portfolio of products that includes over 30 different TiO2pigment grades under the Kronos® trademark, which improve whiteness, brightness, opacity and durability to meet customers’ specific requirements. We, along with our distributors and agents, sell and provide technical services for our products to approximately 3,000