Kronos Worldwide, Inc.’s KRO shares have rallied 72.2% so far this year. The company has also outperformed the Zacks Chemical - Diversified industry’s 9.5% increase over the same time frame.
The rally is driven by stronger titanium dioxide (TiO2) volumes, market-share gains and improving profitability. The company is well-positioned to benefit from long-term TiO2 demand growth. Cost-reduction and pricing initiatives are also expected to support its margins.
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Demand Tailwinds and Cost Discipline Fuel KRO’s Momentum
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 2.6% at the current stock price.
Kronos Worldwide Inc Price and Consensus
Kronos Worldwide Inc price-consensus-chart | Kronos Worldwide Inc Quote
KRO’s Zacks Rank & Other Key Picks
KRO currently carries a Zacks Rank #2 (Buy).
Other top-ranked stocks in the Basic Materials space are Aperam S.A. APEMY, Reliance, Inc. RS and Axalta Coating Systems Ltd. AXTA.
APEMY sports a Zacks Rank #1 (Strong Buy) while RS and AXTA carry a Zacks Rank #2 each. You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for APEMY’s current-year earnings is pinned at $3.30 per share, suggesting a 2,100% year-over-year growth. The consensus estimate for APEMY’s current-year earnings has been revised 27.9% higher over the past 60 days.
The Zacks Consensus Estimate for RS’ 2026 earnings is pegged at $23.70 per share, indicating a 66.2% year-over-year increase. The consensus estimate for RS’s current-year earnings has been revised 3.7% higher over the past 60 days.
The Zacks Consensus Estimate for AXTA’s fiscal 2026 earnings is pegged at $2.63 per share, indicating a rise of 5.6% year over year. Its earnings beat the Zacks Consensus Estimate in three of the trailing four quarters and missed once, with an average surprise of 6.5%.
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Kronos Worldwide Inc (KRO): Free Stock Analysis Report
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This article originally published on Zacks Investment Research (zacks.com).