Kronos Worldwide (NYSE:KRO) Shares Gap Up on Better-Than-Expected Earnings

Key Points

• Kronos Worldwide beat quarterly expectations: The company reported EPS of $0.13 versus the $0.07 consensus estimate, while revenue reached $558.1 million compared with expectations of $484.5 million. Net income returned to $15.2 million from a loss a year earlier, helped by stronger sales volumes, lower feedstock costs and cost reductions.
• Shares surged following the results: KRO opened at $7.10 after closing at $6.21 and was last reported at $7.96, up 26.6%. Despite the rally, analysts’ consensus rating remains “Hold,” with a $5.00 price target.
• The company maintained its dividend but faces ongoing risks: Kronos declared a quarterly dividend of $0.05 per share, while lower TiO₂ prices, currency movements and elevated energy costs remain headwinds. Management expects pricing actions and cost discipline to support momentum in the second half of 2026.

Kronos Worldwide Inc (NYSE:KRO - Get Free Report)'s stock price gapped up before the market opened on Thursday after the company announced better than expected quarterly earnings. The stock had previously closed at $6.21, but opened at $7.10. Kronos Worldwide shares last traded at $7.96, with a volume of 130,861 shares changing hands.

The specialty chemicals company reported $0.13 earnings per share (EPS) for the quarter, topping analysts' consensus estimates of $0.07 by $0.06. Kronos Worldwide had a negative net margin of 7.12% and a negative return on equity of 15.01%. The company had revenue of $558.10 million for the quarter, compared to the consensus estimate of $484.51 million.

Kronos Worldwide Announces Dividend

The firm also recently announced a quarterly dividend, which will be paid on Thursday, September 17th. Shareholders of record on Thursday, September 3rd will be issued a $0.05 dividend. The ex-dividend date of this dividend is Thursday, September 3rd. This represents a $0.20 dividend on an annualized basis and a yield of 2.5%. Kronos Worldwide's dividend payout ratio (DPR) is currently -17.24%.

Key Stories Impacting Kronos Worldwide

Here are the key news stories impacting Kronos Worldwide this week:

• Positive Sentiment: Strong earnings and revenue beat: KRO earned $0.13 per share in the second quarter, exceeding the $0.07 analyst consensus and the Zacks estimate for a $0.04 loss. Revenue reached $558.1 million, well above the $484.5 million analyst estimate. Kronos Worldwide Surpasses Q2 Earnings and Revenue Estimates
• Positive Sentiment: Return to profitability: Net income was $15.2 million, or $0.13 per share, compared with a $9.2 million loss in the year-earlier quarter. TiO2 segment profit increased to $41.0 million from $10.9 million, while EBITDA more than doubled to $52.9 million. Higher sales volumes, lower feedstock costs and cost-reduction initiatives drove the improvement. Kronos Worldwide Reports Second Quarter 2026 Results
• Positive Sentiment: Dividend maintained: The company declared a regular quarterly dividend of $0.05 per share, equivalent to $0.20 annually and an indicated yield of approximately 3.2%. The dividend is payable September 17 to shareholders of record September 3. Kronos Worldwide Announces Quarterly Dividend
• Neutral Sentiment: Management sees continued momentum: Kronos expects pricing actions and disciplined cost management to help offset elevated energy and related costs in the second half of 2026.
• Negative Sentiment: Pricing and currency remain concerns: Lower average TiO2 selling prices reduced results, while currency movements—primarily the euro—cut second-quarter segment profit by approximately $12 million. A $2.0 million tax expense tied to a German tax audit also affected first-half earnings.

Wall Street Analysts Forecast Growth

KRO has been the topic of a number of research reports. Wall Street Zen upgraded Kronos Worldwide from a "sell" rating to a "hold" rating in a research report on Saturday, April 25th. Weiss Ratings raised Kronos Worldwide from a "sell (d)" rating to a "sell (d+)" rating in a report on Friday, July 10th. Finally, Zacks Research upgraded Kronos Worldwide from a "hold" rating to a "strong-buy" rating in a research report on Wednesday, July 8th. One research analyst has rated the stock with a Strong Buy rating and two have issued a Sell rating to the company. According to data from MarketBeat, the company presently has a consensus rating of "Hold" and a consensus price target of $5.00.

Hedge Funds Weigh In On Kronos Worldwide

Several hedge funds have recently modified their holdings of the company. Bank of America Corp DE lifted its holdings in shares of Kronos Worldwide by 6.2% in the first quarter. Bank of America Corp DE now owns 416,696 shares of the specialty chemicals company's stock valued at $2,738,000 after buying an additional 24,185 shares during the period. Wealthspire Retirement LLC acquired a new position in Kronos Worldwide during the first quarter worth about $66,000. Bank of New York Mellon Corp grew its holdings in Kronos Worldwide by 4.6% during the first quarter. Bank of New York Mellon Corp now owns 804,588 shares of the specialty chemicals company's stock worth $5,286,000 after acquiring an additional 35,224 shares during the period. IMC Chicago LLC bought a new stake in Kronos Worldwide in the first quarter worth about $68,000. Finally, Money Concepts Capital Corp acquired a new stake in Kronos Worldwide in the 1st quarter valued at about $304,000. 15.11% of the stock is currently owned by institutional investors and hedge funds.

Kronos Worldwide Stock Up 26.6%

The company has a debt-to-equity ratio of 0.81, a quick ratio of 1.41 and a current ratio of 3.18. The stock's fifty day simple moving average is $6.53 and its two-hundred day simple moving average is $6.34. The company has a market capitalization of $904.78 million, a price-to-earnings ratio of -6.68 and a beta of 1.01.

Kronos Worldwide Company Profile

Kronos Worldwide, Inc is a leading global producer of titanium dioxide (TiO₂) pigments, a white pigment widely used in paints, coatings, plastics, paper, and many other industrial and consumer applications. Headquartered in Dallas, Texas, the company markets its products under the “Kronos” brand and has built a reputation for high-quality pigment performance, technical support, and reliable supply. Kronos serves a diverse customer base across coatings manufacturers, plastic compounders, and paper producers, delivering solutions tailored to enhance opacity, color strength, and durability.

In addition to its core TiO₂ offerings, Kronos produces and markets iron oxide pigments and zircon-based specialty chemicals, expanding its portfolio to meet the needs of markets such as construction, ceramics, and glass.

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