Kronos Worldwide, Inc.’s KRO shares have rallied 16.8% over the past three months. The company has also outperformed the Zacks Chemical - Diversified industry’s 8.3% fall over the same time frame.
The stock rally is driven by stronger titanium dioxide (TiO2) volumes, market-share gains and improving profitability. Lower restructuring-related costs, better pricing and favorable market conditions are supporting margins, while the company expects 2026 sales to exceed 2025 levels.
Let’s take a look at the factors that are driving KRO stock.
Kronos Gains TiO2 Share While Restructuring Lifts Margins
Kronos expects long-term TiO2 demand to grow 2-3% annually, supporting its exposure to coatings, plastics and other industrial applications. In the first six months of 2026, TiO2 sales volumes rose 10% year over year as the company gained share across all major markets amid changing competitive and supply conditions and anti-dumping duties in certain markets. Management expects full-year 2026 net sales to exceed 2025 levels. The volume gains and sales outlook support the company's long-term growth case.
Kronos benefits from established customer relationships and a broad international footprint across coatings, plastics and industrial end markets. In the first half of 2026, the company gained market share across all major markets, particularly Europe. Management continues to pursue targeted sales opportunities where changing supply conditions, logistics constraints and trade measures have reduced the competitiveness of certain imports, supporting customer-base expansion.
The fourth-quarter 2025 restructuring is lowering production and unabsorbed fixed costs. Second-quarter 2026 gross margin rose to 18% from 13% a year earlier, while segment profit reached $41 million, up from $10.9 million. Management expects gross margin and operating income margins to exceed 2025 levels as lower-cost inventory and pricing contribute.
KRO’s Zacks Rank & Other Key Picks
KRO currently carries a Zacks Rank #2 (Buy).
Other top-ranked stocks in the Basic Materials space include Worthington Steel, Inc. WS, Carpenter Technology Corporation CRS and Avient Corporation AVNT. WS currently sports a Zacks Rank #1 (Strong Buy), while CRS and AVNT carry a Zacks Rank #2. You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for WS’ current-year earnings stands at $3.4 per share, implying a 52.5% year-over-year increase. Its earnings beat the Zacks Consensus Estimate in two of the trailing four quarters and missed twice, with the negative average surprise being 13.8%. Shares of the company have lost around 18.7% in the past three months.
The Zacks Consensus Estimate for CRS’ current-year earnings is pegged at $13.28 per share, implying a 23.4% year-over-year increase. Its earnings beat the Zacks Consensus Estimate in each of the trailing four quarters, with the average surprise being 8.4%. Shares of CRS have fallen around 21.4% in the past three months.
The Zacks Consensus Estimate for AVNT’s current-year earnings is pegged at $3.2 per share, indicating a 13.5% year-over-year increase. Its earnings beat the Zacks Consensus Estimate in each of the trailing four quarters, with the average surprise being 3.4%. Shares of AVNT have surged around 10.3% in the past three months.
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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).