SAN JOSE, Calif., May 18, 2026 (GLOBE NEWSWIRE) -- California Water Service Group (Group) (NYSE: CWT) published its 2025 Sustainability Report today, showcasing efforts and progress made in its four key focus areas: protecting the planet, serving customers, engaging the workforce, and governing with integrity.
The Sustainability Report aligns with the Sustainability Accounting Standards Board (SASB) Water Utilities & Services Industry Standards, Recommendations of the Task Force on Climate-Related Financial Disclosures (TCFD), and Global Reporting Initiative (GRI) Standards. Key data and metrics are further detailed in the supplemental Sustainability Data Download.
“While much has changed over our 100 years of service, our dedication to delivering safe, clean, reliable water and being a responsible corporate citizen has remained steadfast,” said Martin A. Kropelnicki, Group Chairman & CEO. “By focusing our efforts on key areas, we can fulfill the promise we have made to our customers, communities, employees, and stockholders to provide quality, service, and value—day in and day out. It is this focus that will sustain us into our next century of service.”
Highlights in Group’s key focus areas in 2025 alone include:
Protecting the planet
Invested $7.3 million in emissions-reducing energy solutions.Delivered an estimated 2.6 billion gallons of recycled water for landscaping, irrigation, and industrial uses.Invested $3.4 million in customer conservation rebates and programs in California, which are expected to save more than 100 million gallons of water annually.Reduced total Scope 1 and market-based Scope 2 GHG emissions by 26.7% from a 2021 base year.Procured 12.8% of energy from renewable sources, including onsite solar and a utility green rate program. Serving customers
Achieved 100% compliance with primary and secondary federal and state water quality standards, as confirmed by 630,000+ water quality tests conducted.Offered $22 million in discounts to 100,000+ customers through its California subsidiary’s low-income Customer Assistance Program.Submitted $20.4 million in grant funding applications for water quality or supply projects to reduce rate impacts to customers, with $10.1 million already approved for PFAS treatment in New Mexico.Received an overall satisfaction score of 9.1 out of 10, based on customer survey results.Donated nearly $1.9 million to local community organizations. Engaging the workforce
Earned the Great Place to Work® certification from the Great Place to Work Institute® for the 10th consecutive year.Reduced OSHA-recordable injuries by 35% compared to 2024.Invested more than $1 million in employee training and continuing education. Governing with integrity
Named one of the “World’s Most Trustworthy Companies” and one of “America’s Most Responsible Companies” by Newsweek.Held 50+ discussions on sustainability-related matters during board or committee meetings.Helped pass CA SB 693, which helps streamline emergency response efforts.Spent 26% of procurement in California with diverse suppliers. About California Water Service Group
California Water Service Group (NYSE: CWT) is the largest regulated water utility in the western United States. It provides high-quality, reliable water and/or wastewater services to more than 2.2 million people in California, Hawaii, New Mexico, Washington, and Texas through its regulated subsidiaries, California Water Service, Hawaii Water Service, New Mexico Water Service, and Washington Water Service, and its utility holding company, TWSC, Inc. (Texas Water Service). This year, the company commemorates a century of service.
Group’s purpose is to enhance the quality of life for customers, communities, employees, and stockholders. To do so, it invests responsibly in water and wastewater infrastructure, sustainability initiatives, and community well-being. The company’s 1,300+ employees live by a set of strong core values and share a commitment to protecting the planet, caring for people, and operating with the utmost integrity. The company has been named one of “America’s Most Responsible Companies” and the “World’s Most Trustworthy Companies” by Newsweek, a USA Top Workplace, and a Great Place to Work®. More information is available at www.calwatergroup.com.
MEDIA CONTACT: Yvonne Kingman, (310) 257-1434
A photo accompanying this announcement is available at https://www.globenewswire.com/NewsRoom/AttachmentNg/e756088c-02cc-4960-9267-acc569134b1b
May 20, 2026 16:15 ET | Source: California Water Service Group
SAN JOSE, Calif., May 20, 2026 (GLOBE NEWSWIRE) -- At its meeting today, the California Water Service Group (CWT: NYSE) Board of Directors unanimously approved the promotions of Tamara S. Johnson to Vice President, California Operations, and Gregory D. Shimansky to Vice President, Rates and Regulatory Affairs, effective July 1, 2026.
Prior to joining the executive team, Johnson served as Director of Field Operations, Southern California Region. She brings 40 years of public water utility experience to the position, having started her career at California Water Service, Group's largest subsidiary, in 1985. Johnson holds a Master of Business Administration from California State University, Monterey Bay, a Bachelor of Science in Business Administration from the University of La Verne, as well as a Water Treatment Operator License Grade 3 and a Water Distribution License Grade 5 from the State of California. The Vice President, California Operations role is newly created.
"This new position reflects our company's growth and the increasing complexity of water utility operations. Tammy is not only a water utility operations expert, she's also an accomplished professional with a track record of getting things done. It's truly a pleasure to welcome to the officer team someone who has dedicated her entire career to the company," said Chairman and Chief Executive Officer Martin A. Kropelnicki.
Shimansky joined California Water Service Group in 2024 as a director focused on rates and regulatory affairs outside of California. Before joining the Group, he served as Rates and Regulatory Affairs Director at Indiana American Water and General Rate Case Program Manager at San Diego Gas and Electric. He holds a Master of Science in Management from Purdue University and a Bachelor of Arts in Economics from the University of California, Los Angeles. He succeeds Greg A. Milleman, who is retiring after a distinguished 10-year career at Group.
"Greg is results-oriented, and he has done a tremendous job for us thus far. I believe he will be a real asset to the Company as we continue to pursue regulatory mechanisms and rate designs that help keep our rates affordable for customers while allowing us to make the investments in water system infrastructure that help keep our water service safe and reliable," Kropelnicki said.
About California Water Service Group
Group is the parent company of regulated utilities California Water Service, Hawaii Water Service, New Mexico Water Service, and Washington Water Service, as well as Texas Water Service, a utility holding company. Together, these companies provide regulated and non-regulated water and wastewater service to more than 2.1 million people in California, Hawaii, New Mexico, Washington, and Texas. Group’s common stock trades on the New York Stock Exchange under the symbol “CWT.” Additional information is available online at www.calwatergroup.com.
It has been about a month since the last earnings report for California Water Service Group (CWT - Free Report) . Shares have added about 3.7% in that time frame, underperforming the S&P 500.
Will the recent positive trend continue leading up to its next earnings release, or is California Water Service Group due for a pullback? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at its most recent earnings report in order to get a better handle on the important drivers.
California Water Service Q1 Earnings Miss Estimates on Higher Costs
California Water Service Group posted first-quarter 2026 earnings of 7 cents per share, down 68.2% from 22 cents a year ago. The figure missed the Zacks Consensus Estimate of 25 cents per share by 72.0%.
The earnings shortfall reflected cost pressure across the income statement. Total operating expenses rose 8.1% year over year to $196.4 million, outpacing the growth in operating revenues.
CWT’s RevenuesQuarterly revenues were $215 million, up 5.2% from the year-ago period. The top line came in below the consensus mark of $218 million by 1.38%.
Operating revenues increased $10.6 million year over year, supported by rate-related items and higher accrued and unbilled revenues. At the same time, customer usage declined, pressuring billed consumption for the quarter.
CWT’s management attributed the usage decline to climate variability between the periods, while noting that rate changes and higher accrued and unbilled revenues contributed meaningfully to quarterly revenues. This mix underscores the company’s continued reliance on regulatory constructs and billing dynamics to smooth results through seasonal demand swings.
CWT’s Operational HighlightsWater production costs increased $8.3 million year over year to $71.3 million, driven primarily by higher wholesale water rates. Depreciation and amortization also climbed to $40 million as additional capital assets were placed into service.
During the quarter, CWT announced an agreement to acquire Nexus Water Group’s water and wastewater systems in Nevada and Oregon for approximately $218 million. The transaction is expected to add about 36,000 customer equivalent residential units and roughly $109 million of rate base, expanding the company’s footprint beyond California.
CWT continues to invest heavily in its regulated systems, a strategy that supports long-term rate base growth but also raises near-term non-cash costs. The quarter’s step-up in depreciation expense reflected ongoing infrastructure work and new assets entering service.
The company’s expense profile also showed higher financing-related pressure. Net interest expense increased to $18.6 million from $15.7 million in the prior-year quarter, which further weighed on profitability as capital spending and funding needs expanded.
California Water Rate Case Milestone and Catch-UpA key near-term swing factor remains California Water Service’s 2024 California General Rate Case. The company received a revised proposed decision on April 29, 2026, and received the final decision yesterday.
Importantly, the decision authorizes incremental revenues of $90.5 million in 2026, plus additional increases of $43.2 million in 2027 and $48.9 million in 2028. The filing also supports revenue stabilization through continued Monterey-Style mechanisms and additional balancing accounts, along with a new sales reconciliation mechanism aimed at improving fixed-cost recovery.
CWT’s Financial HighlightsCWT ended the quarter with $58.1 million in unrestricted cash and $45.6 million in restricted cash. The company also highlighted access to revolving credit facilities totaling $600 million, expandable to $800 million, with maturities extending to March 2028.
Long-term debt as of March 31, 2026, was $1.472 billion compared with $1.471 billion as of Dec. 31, 2025.
Strategic activity remains in focus. Shareholder returns stayed intact despite the earnings miss. The board declared a quarterly dividend of 33.50 cents per share, marking the 325th consecutive quarterly dividend, and communicated an expected annualized dividend of $1.34 per share following its 59th annual dividend increase.
Cash flow from operational activities in first-quarter 2026 was $49.4 million compared with $38.4 million in the year-ago quarter.
How Have Estimates Been Moving Since Then?In the past month, investors have witnessed a upward trend in fresh estimates.
VGM ScoresCurrently, California Water Service Group has a subpar Growth Score of D, however its Momentum Score is doing a bit better with a C. Charting a somewhat similar path, the stock was allocated a grade of B on the value side, putting it in the second quintile for value investors.
Overall, the stock has an aggregate VGM Score of C. If you aren't focused on one strategy, this score is the one you should be interested in.
OutlookEstimates have been trending upward for the stock, and the magnitude of this revision looks promising. Notably, California Water Service Group has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.
SAN JOSE, Calif., June 01, 2026 (GLOBE NEWSWIRE) -- In a recognition that reinforces its leadership in sustainability and water-use efficiency, California Water Service (Cal Water) has earned Platinum Certification with the G480 standard from the Alliance for Water Efficiency (AWE) for water conservation and efficiency program operation and management. The platinum certification is the highest status a water utility can achieve for compliance with the G480 standard, established by the American Water Works Association.
The G480 framework outlines the key components of an effective water conservation and water-use efficiency program. It covers utility efforts to improve water use in terms of both supply—through planning and distribution system management, and demand—through strategies such as billing and customer education. Programs that meet this standard are able to benefit all water users and serve as a benchmark for developing and evaluating utility conservation efforts. Platinum certification verifies that a utility’s water conservation program meets 100 percent of the compliance requirements outlined in the voluntary standard. Cal Water is the first utility to earn the platinum certification under the newly updated standard, labeled G480-25.
“As a 100-year-old company, our long-term success has been grounded in our commitment to responsible long-term planning, high-quality service, care for our communities, and stewardship of our limited natural resources,” said Marty Kropelnicki, Cal Water Chairman and CEO. “From our urban water supply planning and stringent water loss control measures to our customer conservation incentive programs, our data-driven sustainability efforts will help keep our communities thriving into our next century.”
“We are pleased to be recognized by AWE with the G480 Platinum Certification as a testament to our robust, industry-leading program,” Kropelnicki said of the designation presented to Cal Water representatives at the CalWEP Peer-to-Peer conference held last week.
About California Water Service
California Water Service provides high-quality, reliable water utility services to more than 2.1 million people statewide through 500,000 service connections. Cal Water’s purpose is to enhance the quality of life for customers and communities. To do so, it invests responsibly in water and wastewater infrastructure, sustainability initiatives, and community well-being. The company’s 1,200 employees live by a set of strong core values and share a commitment to protecting the planet, caring for people, and operating with the utmost integrity. The utility, commemorating a century of service this year, has been named one of “America’s Most Responsible Companies” and one of the “World’s Most Trustworthy Companies” by Newsweek, a USA Top Workplace, and a Great Place to Work®. More information is available at www.calwater.com.
Key Takeaways AWK closed a $315M buy of Nexus water/wastewater systems in eight states, adding about 47,000 customers. American Water Works logged 18 acquisitions in 2025; 22 pending deals could add 58,400 more customers. AWK plans $3.7B of 2026 investment and $46-$48B from 2026-2035 to upgrade and expand infrastructure. American Water Works (AWK - Free Report) announced that it has completed the acquisition of water and wastewater systems across eight states from Nexus Regulated Utilities, LLC, a unit of Nexus Water Group, Inc., for about $315 million. The acquisition expands AWK’s existing customer base by adding about 47,000 new customers. The company took more than a year to close the deal, which was announced on May 19, 2025.
American Water Works continues to expand its operation through systematic acquisition and merger. This enables the company to expand its existing customer base and boost long-term earnings growth. The company completed 18 water and wastewater acquisitions in 2025, adding 20,900 customers. The pending 22 acquisitions (as of April 15, 2026), when completed, will add another 58,400 customers to its customer base.
AWK has been actively investing in upgrading, expanding and maintaining its widespread water and wastewater infrastructure network. The company plans to invest $3.7 billion in 2026 and $46-$48 billion between 2026 and 2035. This investment will strengthen and expand the company’s infrastructure, improve service reliability and support long-term growth.
Consolidation Strengthens Fragmented Water IndustryThe U.S. water industry operates in a highly fragmented manner, with more than 50,000 community water systems and nearly 14,000 wastewater treatment systems. A significant portion of the water and wastewater infrastructure is aging, and regular investment is required for maintenance or replacement. Many smaller utilities lack financial ability and are unable to make the required investment for infrastructure development and maintenance, leading to water loss and poor service to customers.
Consolidation through mergers and acquisitions plays a vital role in infrastructure development, which enhances operational efficiency and improves service quality. As a result, larger utilities expand their footprint through acquiring smaller utilities, supporting service reliability, system upgradation and modernization.
California Water Service Group (CWT - Free Report) announced that it has agreed to acquire Nexus Water Group’s Nevada and Oregon water and wastewater systems for $218 million. The transaction is expected to be closed by the end of 2026. The company plans to invest $627 million and $677 million in 2026 and 2027, respectively, for infrastructure development and to support long-term operational growth.
Essential Utilities, Inc. (WTRG - Free Report) stated that its unit Aqua Pennsylvania has completed the acquisition of the Greenville Municipal Water Authority in Mercer County, PA, for $18 million, expanding its customer base by adding over 2,900 new customers. The company has invested $269 million in the first quarter of 2026 and aims to invest $1.7 billion in 2026 for infrastructure development. The company is also working on a merger agreement with American Water Works. The transaction is expected to close in first-quarter 2027 and will result in the formation of a $40 billion utility company.
Middlesex Water Company (MSEX - Free Report) stated that its unit, Tidewater Utilities, Inc., has completed the acquisition of Pinewood Acres, LLC, water utility assets in Delaware, adding about 360 new customers to its service network. The company invested $21 million in the first quarter of 2026 and plans to invest $506 million in 2026 -2028, which includes $249 million for infrastructure expansion, upgradation and replacement.
Price Movement of AWKIn the past month, shares of the company have plunged 4.5% compared with the industry’s 8.1% decline.
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AWK’s Zacks Rank Zacks' 7 Best Strong Buy Stocks (New Research Report) Valued at $99, click below to receive our just-released report predicting the 7 stocks that will soar highest in the coming month.
JPMorgan Chase & Co. reduced its stake in Tronox Holdings PLC (NYSE:TROX – Free Report) by 59.2% during the third quarter, according to its most recent filing with the Securities and Exchange Commission (SEC). The firm owned 625,842 shares of the company’s stock after selling 909,659 shares during the period. JPMorgan Chase & Co. owned about 0.39% of Tronox worth $2,516,000 at the end of the most recent reporting period.
A number of other hedge funds and other institutional investors also recently added to or reduced their stakes in the company. Citigroup Inc. boosted its holdings in shares of Tronox by 693.0% during the third quarter. Citigroup Inc. now owns 469,051 shares of the company’s stock worth $1,886,000 after purchasing an additional 409,902 shares during the period. Counterpoint Mutual Funds LLC lifted its holdings in Tronox by 887.3% in the 3rd quarter. Counterpoint Mutual Funds LLC now owns 689,150 shares of the company’s stock worth $2,770,000 after buying an additional 619,351 shares during the period. Algert Global LLC grew its position in shares of Tronox by 47.7% in the 3rd quarter. Algert Global LLC now owns 1,712,187 shares of the company’s stock worth $6,883,000 after buying an additional 552,845 shares during the last quarter. Inspire Advisors LLC increased its stake in shares of Tronox by 20.2% during the third quarter. Inspire Advisors LLC now owns 552,791 shares of the company’s stock valued at $2,222,000 after buying an additional 93,012 shares during the period. Finally, Van ECK Associates Corp raised its holdings in shares of Tronox by 203.0% during the third quarter. Van ECK Associates Corp now owns 6,534,894 shares of the company’s stock valued at $26,270,000 after acquiring an additional 4,378,023 shares in the last quarter. 73.36% of the stock is currently owned by institutional investors.
Tronox Price Performance Shares of TROX stock opened at $9.15 on Monday. The business’s fifty day moving average is $7.51 and its 200 day moving average is $5.35. The company has a quick ratio of 0.67, a current ratio of 2.46 and a debt-to-equity ratio of 2.16. The stock has a market cap of $1.45 billion, a price-to-earnings ratio of -3.08 and a beta of 0.93. Tronox Holdings PLC has a twelve month low of $2.86 and a twelve month high of $9.94.
Tronox (NYSE:TROX – Get Free Report) last announced its earnings results on Wednesday, February 18th. The company reported ($0.60) EPS for the quarter, missing analysts’ consensus estimates of ($0.43) by ($0.17). The business had revenue of $730.00 million for the quarter, compared to the consensus estimate of $730.22 million. Tronox had a negative net margin of 16.22% and a negative return on equity of 14.75%. The business’s quarterly revenue was up 8.0% on a year-over-year basis. During the same quarter last year, the firm posted $0.03 EPS. Research analysts expect that Tronox Holdings PLC will post 0.49 EPS for the current fiscal year.
Tronox Announces Dividend The firm also recently disclosed a quarterly dividend, which was paid on Thursday, April 2nd. Shareholders of record on Monday, February 23rd were issued a $0.05 dividend. This represents a $0.20 dividend on an annualized basis and a yield of 2.2%. The ex-dividend date was Monday, February 23rd. Tronox’s dividend payout ratio is -6.73%.
Insiders Place Their Bets In other Tronox news, insider Jonathan Flood sold 8,008 shares of the firm’s stock in a transaction that occurred on Friday, March 6th. The shares were sold at an average price of $6.58, for a total transaction of $52,692.64. Following the completion of the transaction, the insider owned 92,861 shares of the company’s stock, valued at approximately $611,025.38. This trade represents a 7.94% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through this link. Also, SVP Jeffrey N. Neuman sold 22,965 shares of the business’s stock in a transaction that occurred on Friday, March 6th. The stock was sold at an average price of $6.59, for a total value of $151,339.35. Following the completion of the sale, the senior vice president directly owned 248,831 shares in the company, valued at approximately $1,639,796.29. This represents a 8.45% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. In the last quarter, insiders have sold 172,711 shares of company stock valued at $1,145,137. Insiders own 1.70% of the company’s stock.
Wall Street Analyst Weigh In Several analysts recently weighed in on TROX shares. Truist Financial lifted their price target on shares of Tronox from $7.00 to $8.00 and gave the company a “buy” rating in a report on Thursday, January 29th. Mizuho upped their price objective on shares of Tronox from $4.50 to $5.00 and gave the stock an “underperform” rating in a report on Monday, March 23rd. Zacks Research raised shares of Tronox from a “strong sell” rating to a “hold” rating in a research note on Monday, March 2nd. Deutsche Bank Aktiengesellschaft reiterated a “buy” rating and set a $8.00 price target on shares of Tronox in a research report on Tuesday, January 27th. Finally, BMO Capital Markets reissued a “market perform” rating on shares of Tronox in a research note on Friday, February 20th. Five research analysts have rated the stock with a Buy rating, five have given a Hold rating and two have assigned a Sell rating to the stock. According to data from MarketBeat.com, Tronox presently has an average rating of “Hold” and a consensus target price of $6.40.
View Our Latest Research Report on Tronox
About Tronox (Free Report)
Tronox Holdings plc is a vertically integrated global producer of titanium dioxide (TiO₂) pigment and specialty materials. The company’s operations encompass the full supply chain for TiO₂, from mining and processing titanium-bearing ores—such as ilmenite and rutile—to the production of high-purity pigment for use in paints, coatings, plastics, paper and other industrial applications. In addition to TiO₂, Tronox’s product portfolio includes zircon, rare earth byproducts and other specialty minerals that serve a range of industrial markets.
Tronox operates a network of mines, processing facilities and pigment plants located across North America, Europe, the Middle East, Australia and South Africa.
See Also Five stocks we like better than Tronox Want to see what other hedge funds are holding TROX? Visit HoldingsChannel.com to get the latest 13F filings and insider trades for Tronox Holdings PLC (NYSE:TROX – Free Report).
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, /PRNewswire/ -- Tronox Holdings plc (NYSE: TROX) announced today the following schedule for its first quarter 2026 earnings release and webcast conference call:
Earnings Release: Wednesday, May 6, 2026, after market close via PR Newswire and the Tronox Holdings plc website: tronox.com
Webcast Conference Call: Thursday, May 7, 2026 at 9:00 AM ET (New York). The live call is open to the public via live webcast. Please visit investor.tronox.com for a link to register and to view the accompanying slides.
Replay: A webcast replay will be available at investor.tronox.com following the call.
About Tronox
Tronox Holdings plc is one of the world's leading producers of high-quality titanium products, including titanium dioxide pigment, specialty-grade titanium dioxide products and high-purity titanium chemicals, and zircon. We mine titanium-bearing mineral sands and operate upgrading facilities that produce high-grade titanium feedstock materials, pig iron and other minerals, including the rare earth-bearing mineral, monazite. With approximately 5,700 employees across six continents, our rich diversity, unmatched vertical integration model, and unparalleled operational and technical expertise across the value chain, position Tronox as the preeminent titanium dioxide producer in the world. For more information about how our products add brightness and durability to paints, plastics, paper and other everyday products, visit tronox.com.
Investor Relations and Media Contact: Jennifer Guenther
+1.203.705.3701 extension: 103701 (Media)
+1.646.960.6598 (Investor Relations)
Key Takeaways TROX shares jumped 76.8% in a year, but profitability remains compressed despite volume gains.TROX trades at 1.02x book vs 2.07x industry, with EBITDA and margins sharply down in 2025.TROX faces high leverage and interest costs, with recovery hinging on pricing, volumes and cost cuts. Tronox Holdings plc’s (TROX - Free Report) shares have rallied sharply over the past year, yet the core debate is not about the move in the stock. It is about whether earnings power is ready to follow.
Shares look optically cheap, but profitability is still compressed and leverage remains high. That mix keeps the risk-reward profile balanced.
TROX’s Price Momentum Builds While Profitability LagsTROX has rallied 76.8% over the past year, far outpacing the Zacks Chemical - Diversified industry over the same period. The market is clearly leaning into a stabilization narrative.
That optimism has support in operating signals. Fourth-quarter 2025 volumes were the strongest of the year for titanium dioxide and zircon, helped by share wins in protected markets and more normal buying patterns. Still, the profitability base remains thin, which is why the risk-reward looks balanced rather than asymmetric.
Image Source: Zacks Investment Research
TROX’s Valuation Snapshot vs Peers and HistoryTROX trades at 1.02x trailing 12-month book value per share, versus 2.07x for the industry.
Over the past five years, the price-to-book multiple has ranged from 0.29x to 2.02x, with a five-year median of 1.01x.
Image Source: Zacks Investment Research
Tronox’s Earnings Power Is the Missing PieceValuation support only carries so far if operating earnings stay depressed. Profitability compressed through 2025 as adjusted EBITDA fell to $336 million, implying an 11.6% margin, down from $564 million and an 18.3% margin in 2024.
The near-term guideposts remain cautious. Management expects first-quarter 2026 adjusted EBITDA of $55-$65 million, which signals limited operating leverage until pricing and utilization improve. Fourth-quarter 2025 results showed how fragile the model can be in a soft pricing tape, with weaker cost absorption, idle-facility charges, higher freight and restructuring impacts weighing on adjusted EBITDA and margins.
TROX Balance Sheet: Leverage and Interest as a ConstraintTronox ended 2025 with total debt of $3.2 billion and net debt of $3 billion, alongside a trailing twelve-month net leverage ratio of 9x. That is a high hurdle for an earnings recovery story.
Interest expense raises the bar further. Net cash interest for 2026 is projected to be around $185 million, a meaningful claim on operating cash flow. In practice, that means deleveraging requires sustained improvement in pricing and volumes plus disciplined execution on cost actions, not just a one-quarter lift.
Tronox’s Cash Catalysts Investors Can TrackThe tangible watch items are cash-driven. Management guides to improved 2026 free cash flow supported by a step-down in capital expenditures to roughly $260 million, about $80 million below 2025, and a working-capital release of more than $100 million.
Liquidity also improved with a $400 million senior secured notes issuance, which provides added runway as the cycle works through excess supply and regional demand volatility. Longer term, the company’s stated net leverage goal is below 3x as conditions improve, giving investors a clear yardstick for progress.
Practical Takeaway for Action-Oriented InvestorsA constructive path starts with commercial traction. Investors should watch whether pricing initiatives in titanium dioxide and zircon gain traction as channel inventories clear, and whether volume holds up across most regions even as Asia remains the weak spot.
Execution is the second leg. The multi-year cost program targets $125-$175 million of run-rate savings by end-2026, with more than $90 million achieved exiting 2025, and restructuring actions like the Botlek and Fuzhou closures are designed to reset the cost base. The payoff depends on delivering savings on time and converting any pricing normalization into margins and cash.
What can break the thesis is continued weak pricing, uneven regional demand with Asia a particular risk, and delays in realizing savings amid restructuring complexity. In that context, TROX fits a “Hold” framework at the moment.
TROX currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
For context, Avient Corporation (AVNT - Free Report) and Kronos Worldwide Inc (KRO - Free Report) are among the industry names investors may compare for valuation and trend.
Key Takeaways TROX faced a 2025 downturn with weaker pricing, mix and volumes, cutting EBITDA and margins sharply.Late 2025 showed volume recovery, with TiO2 up 13% and zircon up 27% despite weaker price/mix.Cost cuts, plant closures and lower capex aim to drive over $100M working capital cash flow in 2026. Tronox Holdings plc (TROX - Free Report) is working through a titanium dioxide (TiO2) downcycle with early signs that volumes and commercial discipline improved into late 2025. The company’s vertical integration and a leaner operating footprint are central to the recovery setup.
The near-term question for investors is whether pricing and mix can stabilize as inventories normalize and whether structural cost actions translate into better cash conversion through 2026.
Tronox’s Revenue Mix and End-Market ExposureTronox’s total revenues were $2.9 billion in 2025. TiO2 was the core contributor, representing 79% of sales. Zircon represented 10% and other mineral products accounted for 11%.
End-market exposure matters because it shapes both volume stability and pricing leverage through the cycle. In 2025, paints and coatings represented 75% of TiO2 volumes, with plastics at 20% and paper/specialty at 5%.
That mix ties performance to downstream demand for coatings and durable goods. It also means that when customers work down inventories, Tronox can feel the change quickly in volumes and realized price/mix across regions and applications.
TROX’s 2025 Downturn and the Key HeadwindsThe 2025 downturn was driven by a combination of lower pricing, weaker mix and softer volumes, resulting in a 6% revenue decline versus 2024. Profitability compressed sharply as weak pricing set the base and limited operating leverage. Adjusted EBITDA fell to $336 million in 2025, with an 11.6% margin, down from $564 million and an 18.3% margin in 2024.
Pressure persisted into the fourth quarter. Fourth-quarter adjusted EBITDA was $57 million, down 56% year over year, with a 7.8% margin. Lower selling prices and higher production costs weighed on results, and additional items like idle-facility charges, freight and restructuring impacts further pressured earnings quality.
Tronox’s Early Stabilization Signals From Late 2025Late 2025 offered an early turn signal on volumes. The fourth quarter marked the strongest quarterly volumes of the year for both TiO2 and zircon, with sequential and year-over-year gains.
Financial results reflected that volume improvement even as pricing remained challenged. Fourth-quarter revenues were $730 million, up about 8% year over year, as higher TiO2 and zircon volumes and favorable currency more than offset lower average selling prices and product mix. TiO2 volumes rose 13% year over year while price/mix declined 8%. Zircon volumes rose 27% year over year while price/mix declined 23%.
As channel inventories clear, pricing initiatives heading into 2026 have a better chance to stick because customers are buying closer to real demand rather than simply destocking. That shift tends to support more consistent order patterns and improved commercial discipline.
Trade Protections and Share Gains by RegionTrade protections were a meaningful commercial tailwind in select regions. Antidumping protections supported TiO2 share wins in India, Latin America and the Middle East, helping volume performance even while broader demand was uneven.
That matters because share gains in protected markets can offset softness elsewhere and improve plant utilization. With a geographically diversified footprint, Tronox can lean into healthier regions when conditions differ across markets and the timing of recovery is not synchronized.
Tronox’s Cost Reset and Footprint ActionsTronox is pairing the demand and pricing cycle with a structural cost reset. The company closed the Botlek and Fuzhou pigment plants to improve its cost structure and boost efficiency.
The Fuzhou closure is also aimed at reducing exposure to challenging China dynamics. The site is a 46,000-metric-ton-per-year TiO2 plant, and management cited weak domestic demand, rising input costs, persistent industry overcapacity in China and unsustainable pricing from Chinese competitors as factors behind the decision. Tronox expects its diversified manufacturing footprint to help avoid customer service disruptions.
Beyond footprint actions, Tronox is advancing a cost improvement program targeting $125 million to $175 million in run-rate savings by the end of 2026, with more than $90 million achieved exiting 2025. Feedstock initiatives in South Africa are intended to support self-sufficiency and lower structural cost, strengthening the link between pricing normalization and margin recovery.
TROX’s 2026 Cash Flow SetupThe company’s 2026 free-cash-flow setup relies on two tangible levers: lower capital spending and working-capital release. Capital expenditures are guided to roughly $260 million, down about $80 million from 2025. Working capital is expected to be a source of cash of more than $100 million.
Operationally, the focus is on inventory management, cost containment and selling lower-cost tons to lift margins as volumes stabilize. TiO2 pricing is expected to improve in the first quarter of 2026, while zircon pricing is anticipated to improve in the second quarter.
For context, investors can watch adjacent chemical names that also depend on cost discipline and end-market demand, such as Avient Corporation (AVNT - Free Report) and Kronos Worldwide Inc (KRO - Free Report) .
TROX currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Key Takeaways Tronox enters 2026 with improving volumes but weak pricing and low EBITDA guidance.TROX is closing its Fuzhou plant to cut China exposure amid weak demand and overcapacity.Tronox eyes rare-earths growth while targeting $125-$175M cost savings by end-2026. Tronox Holdings plc (TROX - Free Report) entered 2026 with a split narrative. Volume trends improved into late 2025 and pricing actions began to take hold, helped by trade protections that supported share gains in select regions.
Still, the recovery is starting from a weak pricing base. Restructuring execution, high leverage and uneven demand, especially in Asia, remain the key risks that can slow margin normalization.
TROX 2026 Narrative: Restructuring Meets Market RebalancingLate 2025 brought early signs of stabilization. The fourth quarter delivered the strongest quarterly volumes of the year for both titanium dioxide (TiO2) pigment and zircon, with sequential and year-over-year gains.
That improvement is not yet translating into healthy profitability. Adjusted EBITDA fell to $336 million in 2025, and the first-quarter 2026 adjusted EBITDA outlook of $55-$65 million underscores how limited pricing power remains at the start of the year.
Tronox’s China Exposure Shift With the Fuzhou ClosureA central restructuring step is Tronox’s decision to permanently close its 46,000-metric-ton-per-year TiO2 pigment plant in Fuzhou, China. Management attributed the move to weak domestic demand, rising input costs, especially sulfur, and persistent industry overcapacity in China. It also cited unsustainable pricing from Chinese competitors as a factor that undermined the plant’s viability.
Importantly, Tronox expects no customer service disruptions because its global manufacturing footprint can supply demand through other sites. The closure reduces exposure to challenged China market dynamics while the company works through a broader footprint reset that also included the Botlek plant closure.
TROX’s Pricing Actions and Commercial DisciplineManagement has announced TiO2 and zircon price initiatives heading into 2026, framing them as part of tighter commercial discipline as channel inventories clear. TiO2 pricing is expected to improve in the first quarter of 2026, while zircon pricing is anticipated to improve in the second quarter. Zircon pricing is projected to be flat sequentially before that second-quarter lift.
Those moves work best if inventory normalization continues and the company can keep selling lower-cost tons while managing production and costs. Tronox has highlighted inventory management, cost containment and mix actions as near-term levers to help margins recover as pricing firms.
Regional Demand Split Is the Key Swing FactorVolume growth is not expected to be uniform. Management expects TiO2 volume growth across most regions in the first quarter of 2026, but not in Asia. India is a notable pressure point within that regional picture. Customers are expected to shift a portion of their volumes back to China rather than western suppliers, including Tronox. That dynamic can influence how quickly price initiatives translate into better margins, even if pricing trends start to improve early in 2026.
Rare-Earths: The Option Value Investors UnderwriteBeyond TiO2 and zircon, Tronox has a longer-dated platform that could diversify cash flows. Mining and smelting of titanium-bearing mineral sands generate co-products, including monazite, which is rare-earth-bearing.
The company made progress on a rare-earths strategy in 2025 and is evaluating potential financing for a cracking and leaching facility in Australia. Management views this as a growth lever that can build on its existing mining footprint and its experience in hydrometallurgical and chemical operations.
This is best framed as option value rather than a near-term earnings fix. The strategy’s relevance in 2026 will come from tangible steps that move the concept closer to commercialization.
Tronox’s Vertical Integration as a Platform for Cash FlowsTronox’s core operating model is built around vertical integration, from mineral sands to finished pigment, with co-products sold globally. That structure is intended to lower costs, support quality and improve competitiveness as markets rebalance.
The company is also pursuing feedstock initiatives in South Africa to improve self-sufficiency and lower structural cost. Combined with footprint rationalization, this is designed to help Tronox convert pricing normalization into better margins and stronger cash conversion.
Those same capabilities are a logical foundation for rare-earth optionality. If the company can extend its processing expertise into rare-earth-bearing materials, it could add an incremental cash-flow stream over time while keeping TiO2 margin recovery as the primary driver of the 2026 thesis.
What to Watch in 2026The 2026 checklist is straightforward. Investors should track delivery against the multi-year cost improvement program targeting $125-$175 million of run-rate savings by end-2026, with more than $90 million achieved exiting 2025.
Cash improvement is another core milestone. Management expects 2026 free cash flow to be positive, supported by capital expenditures of roughly $260 million, down about $80 million from 2025, and working capital expected to be a source of more than $100 million.
Finally, the market will want evidence that pricing normalization is sticking across TiO2 and zircon, alongside concrete progress on rare-earth commercialization steps. Execution against these milestones is likely to remain the key driver of sentiment into 2026.
TROX currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Peers in the Zacks Chemical - Diversified industry include Avient Corporation (AVNT - Free Report) and Kronos Worldwide, Inc. (KRO - Free Report) , carrying a Zacks Rank #4 (Sell) and a Zacks Rank #5 (Strong Sell), respectively.
, /PRNewswire/ -- Tronox Holdings plc (NYSE:TROX), the world's leading integrated manufacturer of titanium dioxide pigment, announced today that its Board of Directors declared a quarterly dividend of $0.05 per share. The dividend is payable on July 8, 2026 to shareholders of record at the close of business on May 11, 2026.
About Tronox
Tronox Holdings plc is one of the world's leading producers of high-quality titanium products, including titanium dioxide pigment, specialty-grade titanium dioxide products and high-purity titanium chemicals, and zircon. We mine titanium-bearing mineral sands and operate upgrading facilities that produce high-grade titanium feedstock materials, pig iron and other minerals, including the rare earth-bearing mineral, monazite. With approximately 5,700 employees across six continents, our rich diversity, unmatched vertical integration model, and unparalleled operational and technical expertise across the value chain, position Tronox as the preeminent titanium dioxide producer in the world. For more information about how our products add brightness and durability to paints, plastics, paper and other everyday products, visit tronox.com.
Investor Relations and Media Contact: Jennifer Guenther
Wall Street expects a year-over-year decline in earnings on higher revenues when Tronox (TROX - Free Report) reports results for the quarter ended March 2026. While this widely-known consensus outlook is important in gauging the company's earnings picture, a powerful factor that could impact its near-term stock price is how the actual results compare to these estimates.
The stock might move higher if these key numbers top expectations in the upcoming earnings report, which is expected to be released on May 6. On the other hand, if they miss, the stock may move lower.
While the sustainability of the immediate price change and future earnings expectations will mostly depend on management's discussion of business conditions on the earnings call, it's worth handicapping the probability of a positive EPS surprise.
Zacks Consensus EstimateThis producer of titanium ore and titanium dioxide is expected to post quarterly loss of $0.48 per share in its upcoming report, which represents a year-over-year change of -220%.
Revenues are expected to be $758.54 million, up 2.8% from the year-ago quarter.
Estimate Revisions TrendThe consensus EPS estimate for the quarter has been revised 8.76% lower over the last 30 days to the current level. This is essentially a reflection of how the covering analysts have collectively reassessed their initial estimates over this period.
Investors should keep in mind that the direction of estimate revisions by each of the covering analysts may not always get reflected in the aggregate change.
Price, Consensus and EPS Surprise
Earnings WhisperEstimate revisions ahead of a company's earnings release offer clues to the business conditions for the period whose results are coming out. Our proprietary surprise prediction model -- the Zacks Earnings ESP (Expected Surprise Prediction) -- has this insight at its core.
The Zacks Earnings ESP compares the Most Accurate Estimate to the Zacks Consensus Estimate for the quarter; the Most Accurate Estimate is a more recent version of the Zacks Consensus EPS estimate. The idea here is that analysts revising their estimates right before an earnings release have the latest information, which could potentially be more accurate than what they and others contributing to the consensus had predicted earlier.
Thus, a positive or negative Earnings ESP reading theoretically indicates the likely deviation of the actual earnings from the consensus estimate. However, the model's predictive power is significant for positive ESP readings only.
A positive Earnings ESP is a strong predictor of an earnings beat, particularly when combined with a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold). Our research shows that stocks with this combination produce a positive surprise nearly 70% of the time, and a solid Zacks Rank actually increases the predictive power of Earnings ESP.
Please note that a negative Earnings ESP reading is not indicative of an earnings miss. Our research shows that it is difficult to predict an earnings beat with any degree of confidence for stocks with negative Earnings ESP readings and/or Zacks Rank of 4 (Sell) or 5 (Strong Sell).
How Have the Numbers Shaped Up for Tronox?For Tronox, the Most Accurate Estimate is lower than the Zacks Consensus Estimate, suggesting that analysts have recently become bearish on the company's earnings prospects. This has resulted in an Earnings ESP of -23.75%.
On the other hand, the stock currently carries a Zacks Rank of #3.
So, this combination makes it difficult to conclusively predict that Tronox will beat the consensus EPS estimate.
Does Earnings Surprise History Hold Any Clue?Analysts often consider to what extent a company has been able to match consensus estimates in the past while calculating their estimates for its future earnings. So, it's worth taking a look at the surprise history for gauging its influence on the upcoming number.
For the last reported quarter, it was expected that Tronox would post a loss of$0.43 per share when it actually produced a loss of -$0.60, delivering a surprise of -39.53%.
The company has not been able to beat consensus EPS estimates in any of the last four quarters.
Bottom LineAn earnings beat or miss may not be the sole basis for a stock moving higher or lower. Many stocks end up losing ground despite an earnings beat due to other factors that disappoint investors. Similarly, unforeseen catalysts help a number of stocks gain despite an earnings miss.
That said, betting on stocks that are expected to beat earnings expectations does increase the odds of success. This is why it's worth checking a company's Earnings ESP and Zacks Rank ahead of its quarterly release. Make sure to utilize our Earnings ESP Filter to uncover the best stocks to buy or sell before they've reported.
Tronox doesn't appear a compelling earnings-beat candidate. However, investors should pay attention to other factors too for betting on this stock or staying away from it ahead of its earnings release.
An Industry Player's Expected ResultsLyondellBasell (LYB - Free Report) , another stock in the Zacks Chemical - Diversified industry, is expected to report earnings per share of $0.31 for the quarter ended March 2026. This estimate points to a year-over-year change of -6.1%. Revenues for the quarter are expected to be $7.52 billion, down 2.1% from the year-ago quarter.
Over the last 30 days, the consensus EPS estimate for LyondellBasell has been revised 48.6% up to the current level. Nevertheless, the company now has an Earnings ESP of +10.28%, reflecting a higher Most Accurate Estimate.
This Earnings ESP, combined with its Zacks Rank #2 (Buy), suggests that LyondellBasell will most likely beat the consensus EPS estimate. Over the last four quarters, the company surpassed EPS estimates just once.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.
Olin (OLN - Free Report) is expected to deliver a year-over-year decline in earnings on lower revenues when it reports results for the quarter ended March 2026. This widely-known consensus outlook gives a good sense of the company's earnings picture, but how the actual results compare to these estimates is a powerful factor that could impact its near-term stock price.
The stock might move higher if these key numbers top expectations in the upcoming earnings report, which is expected to be released on May 7. On the other hand, if they miss, the stock may move lower.
While management's discussion of business conditions on the earnings call will mostly determine the sustainability of the immediate price change and future earnings expectations, it's worth having a handicapping insight into the odds of a positive EPS surprise.
Zacks Consensus EstimateThis chlor-alkali and ammunition producer' is expected to post quarterly loss of $0.67 per share in its upcoming report, which represents a year-over-year change of -1775%.
Revenues are expected to be $1.57 billion, down 4.8% from the year-ago quarter.
Estimate Revisions TrendThe consensus EPS estimate for the quarter has been revised 88.61% higher over the last 30 days to the current level. This is essentially a reflection of how the covering analysts have collectively reassessed their initial estimates over this period.
Investors should keep in mind that an aggregate change may not always reflect the direction of estimate revisions by each of the covering analysts.
Price, Consensus and EPS Surprise
Earnings WhisperEstimate revisions ahead of a company's earnings release offer clues to the business conditions for the period whose results are coming out. Our proprietary surprise prediction model -- the Zacks Earnings ESP (Expected Surprise Prediction) -- has this insight at its core.
The Zacks Earnings ESP compares the Most Accurate Estimate to the Zacks Consensus Estimate for the quarter; the Most Accurate Estimate is a more recent version of the Zacks Consensus EPS estimate. The idea here is that analysts revising their estimates right before an earnings release have the latest information, which could potentially be more accurate than what they and others contributing to the consensus had predicted earlier.
Thus, a positive or negative Earnings ESP reading theoretically indicates the likely deviation of the actual earnings from the consensus estimate. However, the model's predictive power is significant for positive ESP readings only.
A positive Earnings ESP is a strong predictor of an earnings beat, particularly when combined with a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold). Our research shows that stocks with this combination produce a positive surprise nearly 70% of the time, and a solid Zacks Rank actually increases the predictive power of Earnings ESP.
Please note that a negative Earnings ESP reading is not indicative of an earnings miss. Our research shows that it is difficult to predict an earnings beat with any degree of confidence for stocks with negative Earnings ESP readings and/or Zacks Rank of 4 (Sell) or 5 (Strong Sell).
How Have the Numbers Shaped Up for Olin?For Olin, the Most Accurate Estimate is higher than the Zacks Consensus Estimate, suggesting that analysts have recently become bullish on the company's earnings prospects. This has resulted in an Earnings ESP of +7.87%.
On the other hand, the stock currently carries a Zacks Rank of #3.
So, this combination indicates that Olin will most likely beat the consensus EPS estimate.
Does Earnings Surprise History Hold Any Clue?While calculating estimates for a company's future earnings, analysts often consider to what extent it has been able to match past consensus estimates. So, it's worth taking a look at the surprise history for gauging its influence on the upcoming number.
For the last reported quarter, it was expected that Olin would post a loss of$0.58 per share when it actually produced a loss of -$0.58, delivering no surprise.
Over the last four quarters, the company has beaten consensus EPS estimates two times.
Bottom LineAn earnings beat or miss may not be the sole basis for a stock moving higher or lower. Many stocks end up losing ground despite an earnings beat due to other factors that disappoint investors. Similarly, unforeseen catalysts help a number of stocks gain despite an earnings miss.
That said, betting on stocks that are expected to beat earnings expectations does increase the odds of success. This is why it's worth checking a company's Earnings ESP and Zacks Rank ahead of its quarterly release. Make sure to utilize our Earnings ESP Filter to uncover the best stocks to buy or sell before they've reported.
Olin appears a compelling earnings-beat candidate. However, investors should pay attention to other factors too for betting on this stock or staying away from it ahead of its earnings release.
Expected Results of an Industry PlayerAnother stock from the Zacks Chemical - Diversified industry, Tronox (TROX - Free Report) , is soon expected to post loss of $0.48 per share for the quarter ended March 2026. This estimate indicates a year-over-year change of -220%. Revenues for the quarter are expected to be $758.54 million, up 2.8% from the year-ago quarter.
The consensus EPS estimate for Tronox has been revised 8.8% lower over the last 30 days to the current level. However, a lower Most Accurate Estimate has resulted in an Earnings ESP of -23.75%.
When combined with a Zacks Rank of #3 (Hold), this Earnings ESP makes it difficult to conclusively predict that Tronox will beat the consensus EPS estimate. The company could not beat consensus EPS estimates in any of the last four quarters.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.
, /PRNewswire/ -- Tronox Holdings plc (NYSE:TROX) ("Tronox" or the "Company"), the world's leading integrated manufacturer of titanium dioxide ("TiO2") pigment, today reported its financial results for the quarter ending March 31, 2026, as follows:
First Quarter 2026 Financial Highlights:
Revenue of $760 million, a 4% increase compared to the prior quarter and a 3% increase compared to the prior year Loss from operations of $41 million; Net loss attributable to Tronox of $103 million including $15 million of restructuring and other charges, net of taxes, primarily associated with the closure of the Company's Botlek and Fuzhou pigment plants; Adjusted net loss attributable to Tronox was $88 million (non-GAAP) GAAP diluted loss per share was $0.65; Adjusted diluted loss per share was $0.55 (non-GAAP) Adjusted EBITDA of $62 million; Adjusted EBITDA margin of 8.2% (non-GAAP) Capital expenditures of $67 million in the quarter Updated Outlook:
Expect free cash flow to be positive in Q2 2026, largely offsetting Q1 cash use; Expect to deliver meaningful positive free cash flow for full year 2026 Expect Q2 2026 TiO2 volumes to increase sequentially in the high single-digit percentage range Expect Q2 2026 zircon volume levels to moderate slightly compared to Q1 TiO2 and zircon Q2 2026 volumes could be higher, depending on regional inventory availability TiO2 and zircon pricing both expected to improve sequentially in the mid-single-digit percentage range in Q2 2026 as a result of announced price increases and cost input-related surcharges Q2 2026 Adjusted EBITDA expected to be $65-$85 million This outlook is based on Tronox's views on current global economic activity and is subject to changes and impacts associated with the general macroeconomic, geopolitical, and industry-related conditions, global supply chain, and inflation-related challenges, among others.
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Note: For the Company's guidance with respect to second quarter 2026 Adjusted EBITDA and free cash flow, we are not able to provide without unreasonable effort the most directly comparable GAAP financial measure, or reconciliation to such GAAP financial measure, because certain items that impact such measures are uncertain, out of the Company's control or cannot be reasonably predicted.
Summary of Select Financial Results for the Quarter Ending March 31, 2026
($M unless otherwise noted)
Q1 2026
Q1 2025
Y-o-Y % ∆
Q4 2025
Q-o-Q % ∆
Revenue
$760
$738
3 %
$730
4 %
TiO2
$616
$584
5 %
$577
7 %
Zircon
$89
$69
29 %
$78
14 %
Other products
$55
$85
(35) %
$75
(27) %
(Loss) from operations
($41)
($61)
n/m
($114)
n/m
Net (loss) attributable to Tronox
($103)
($111)
n/m
($176)
n/m
GAAP diluted (loss) per share
($0.65)
($0.70)
n/m
($1.11)
n/m
Adjusted diluted (loss) per share
($0.55)
($0.15)
n/m
($0.60)
n/m
Adjusted EBITDA
$62
$112
(45) %
$57
9 %
Adjusted EBITDA Margin %
8.2 %
15.2 %
(700) bps
7.8 %
40 bps
Free cash flow
($135)
($142)
n/m
$53
n/m
Y-o-Y % ∆
Q-o-Q % ∆
Volume
Price / Mix
FX
Volume
Price / Mix
FX
TiO2
5 %
(4) %
4 %
4 %
3 %
0 %
Zircon
57 %
(28) %
— %
14 %
0 %
— %
CEO's Remarks
Chief Executive Officer John Romano stated, "Tronox delivered a strong top-line performance and achieved EBITDA above the mid-point of our guidance in the first quarter of 2026. Volumes for both TiO2 and zircon exceeded our expectations, reflecting disciplined commercial execution, enhanced customer engagement, and the strategic positioning of our products in key markets, supported by our global operating footprint. TiO2 volumes reached the highest first quarter level since 2022, and zircon volumes achieved the highest level since Q4 2021. TiO2 volume growth was driven by normal seasonal demand patterns in key end markets during the quarter in addition to meaningful benefits from structural shifts as a result of antidumping measures, particularly in Europe, Brazil, and Saudi Arabia. While volumes in India were impacted by the temporary stay of the duties in the region, demand was better than anticipated. We saw a clear inflection on pricing during the first quarter. TiO2 price actions took effect as planned, and we announced additional pricing actions and targeted surcharges that are beginning to take effect in the second quarter. Zircon pricing was stable in the first quarter, and the announced pricing increases for the second quarter are being implemented as communicated on our last earnings call.
"From a cost perspective, we saw sequential benefits from actions underway, including our cost improvement program, which remains on track to deliver $125-$175 million of run-rate savings at the end of 2026. These benefits were partially offset by near-term headwinds related in part to higher sales volumes pulling forward sales of higher‑cost inventory, reflective of deliberate actions previously taken to preserve cash, including lower operating rates resulting from idled mining and pigment assets. As the quarter progressed, ongoing geopolitical developments contributed to increased costs from inputs such as natural gas, sulfur, diesel, freight, and insurance, some of which was reflected in our first quarter cost profile. In response, we implemented increases through surcharges, though there will be a lag between when these take effect versus the more immediate impact to our operations. We will continue to assess input cost headwinds and take necessary targeted actions as needed to avoid margin erosion."
Mr. Romano concluded, "Cash generation remains our primary focus. Free cash flow for the first quarter was better than expected, driven by strong execution on working capital. We reduced inventory levels by approximately $75 million compared to year‑end, reflecting higher TiO2 and zircon sales and actions taken across our mining operations to reduce production. Given our strong commercial performance, we also increased the capacity of our accounts receivable securitization facility, further supporting liquidity. While the conflict in the Middle East adds additional variables, based on our outlook today, we continue to expect to generate meaningful positive free cash flow for the full year."
First Quarter 2026 Results
(Comparisons are to prior year (Q1 2026 vs. Q1 2025) unless otherwise noted)
The Company recorded first quarter revenue of $760 million, an increase of 3% primarily driven by higher sales volumes of TiO2 and zircon, and a favorable exchange rate impact, partially offset by lower average selling prices of TiO2 and zircon, including mix, and lower other product volumes.
Revenue from TiO2 sales was $616 million, an increase of 5% driven by a 5% increase in volumes and a 4% favorable exchange rate impact, partially offset by a 4% decline in average selling prices including mix. Sequentially, TiO2 sales increased 7%, driven by a 4% increase in sales volumes and a 3% increase in average selling prices including mix.
Zircon revenue increased 29% to $89 million, driven by a 57% increase in sales volumes, partially offset by a 28% decrease in average selling prices including mix. Sequentially, zircon revenue increased 14%, driven by a 14% increase in sales volumes while average selling prices including mix remained flat.
Revenue from other products was $55 million, a decline of 35% year-over-year and a decline of 27% sequentially primarily due to lower pig iron sales volumes.
Net loss attributable to Tronox in the quarter was $103 million, or a loss of $0.65 per diluted share, compared to net loss attributable to Tronox of $111 million, or a loss of $0.70 per diluted share in the year-ago period. Non-recurring adjustments totaled $15 million, or $0.10 per diluted share. Excluding these items, adjusted net loss attributable to Tronox (non-GAAP) was $88 million, or a loss of $0.55 per diluted share.
Adjusted EBITDA of $62 million represented a 45% decrease, driven by lower average selling prices including mix, unfavorable exchange rate movements, and higher freight and production costs, partially offset by higher sales volumes, and lower corporate costs. Adjusted EBITDA margin was 8.2%.
Sequentially, Adjusted EBITDA increased 9% due to higher average TiO2 selling prices including mix, higher sales volumes of TiO2 and zircon, and lower production costs, partially offset by unfavorable exchange rate impacts, higher freight costs, and higher corporate costs.
The Company's selling, general and administrative expenses were $71 million for the quarter, a decrease of 4%. Tronox's net interest expense in the quarter was $51 million. Depreciation, depletion and amortization expense was $75 million.
Balance Sheet, Cash Flow and Capital Allocation
Tronox ended the quarter with $3.3 billion of total debt, $3.2 billion of net debt and a net leverage ratio of 11.1x on a trailing twelve-month basis. Available liquidity at the end of the quarter totaled $406 million, including $126 million in cash and cash equivalents and $280 million available under revolving credit agreements. Total liquidity excludes the Emirates Revolver, which is undrawn and not expected to be renewed following its expiration in June 2026. In the quarter, the Company also upsized its AR securitization facility by $25 million and increased the facility by an additional $20 million in May 2026. The next significant debt maturity for the Company is not until 2029. Tronox does not have any financial covenants on its term loans or bonds. The Company has sufficient liquidity and does not expect to trigger the springing covenant on the US revolving credit facility.
Free cash flow for the quarter was a use of $135 million. Capital expenditures were $67 million.
Rare Earths
Tronox continued to advance its rare earths strategy during the quarter, with a clear focus on moving further downstream in a disciplined manner. The Company made progress toward a definitive feasibility study and continued to evaluate development pathways that prioritize returns and limit incremental leverage. Tronox remains actively engaged with customers, partners, and funding sources as it assesses the most responsible and value-accretive path forward, leveraging its existing mining footprint and expertise in hydrometallurgical and chemical operations. The Company believes this strategy positions Tronox to participate in longer‑term efforts to diversify rare earth supply chains.
Outlook
Tronox expects TiO2 volumes in the second quarter of 2026 to increase sequentially in the high single-digit percentage range, supported by seasonal demand, continued demand in regions benefiting from trade defense measures, and the Company's ability to reliably serve customers through its global footprint. Zircon volumes are expected to moderate slightly from a very strong first quarter. TiO2 and zircon Q2 2026 volumes could be higher, depending on regional inventory availability. Both TiO2 and zircon pricing are expected to increase sequentially in the mid-single-digit percentage range, reflecting announced price increases and cost input-related surcharges. Adjusted EBITDA for the second quarter of 2026 is expected to be in the range of $65-$85 million. This range includes $10-$15 million of sequential cost headwinds, reflecting elevated input and logistics costs ahead of the full benefit of pricing actions and surcharges and the impact of lower mining operating rates and planned outages implemented to support inventory reduction and cash generation, partially offset by the sale of lower cost tons in the second quarter that were produced in the first quarter. Tronox expects free cash flow to be positive in the second quarter of 2026, largely offsetting the seasonal cash use in the first quarter. Tronox remains on track to generate meaningful positive free cash flow for the full year 2026.
Webcast Conference Call
Tronox will conduct a webcast conference call on Thursday, May 7, 2026, at 9:00 AM ET (New York). The live call is open to the public and can be accessed via live webcast and teleconference. Please visit investor.tronox.com for a link to register for the live webcast and to view the accompanying slides.
Replay: A webcast replay will be available at investor.tronox.com following the call.
About Tronox
Tronox Holdings plc is one of the world's leading producers of high-quality titanium products, including titanium dioxide pigment, specialty-grade titanium dioxide products and high-purity titanium chemicals, and zircon. We mine titanium-bearing mineral sands and operate upgrading facilities that produce high-grade titanium feedstock materials, pig iron and other minerals, including the rare earth-bearing mineral, monazite. With approximately 5,700 employees across six continents, our rich diversity, unmatched vertical integration model, and unparalleled operational and technical expertise across the value chain, position Tronox as the preeminent titanium dioxide producer in the world. For more information about how our products add brightness and durability to paints, plastics, paper and other everyday products, visit tronox.com.
Cautionary Statement about Forward-Looking Statements
Statements in this release that are not historical are forward-looking statements within the meaning of the U.S. Private Securities Litigation Reform Act of 1995. These forward-looking statements, which are subject to known and unknown risks, uncertainties and assumptions about us, may include projections of our future financial performance, our operating rates, anticipated completion of extensions and upgrades to our mining operations, anticipated trends in our business and industry, including trade defense measures in specific jurisdictions and their timing and effectiveness, market penetration and growth rates, anticipated costs, competitive landscape, benefits and timing of capital projects including planned mining expansions, the Company's anticipated capital allocation strategy including future capital expenditures, the benefits and timing of the Company's cost improvement and other cost saving, inventory reduction and asset rationalization plans, our rare earths and critical minerals strategy and our sustainability goals, commitments and programs. These statements are only predictions based on our current expectations and projections about future events. There are important factors that could cause our actual results, level of activity, performance, actual costs, benefits and timing of capital projects, or the cost improvement plan and other cost saving, inventory reduction and asset rationalization plans, or achievements to differ materially from the results, level of activity, performance, anticipated costs, benefits and timing of capital projects, or the cost improvement plan and other cost saving, inventory reduction and asset rationalization plans, or achievements expressed or implied by the forward-looking statements. Significant risks and uncertainties may relate to, but are not limited to, macroeconomic conditions; policy changes affecting international trade, including import/export restrictions and tariffs; inflationary pressures and energy costs; currency movements; interest rate and debt market volatility, including in respect of our debt securities; political instability, including the ongoing conflicts in Eastern Europe and the Middle East and any expansion of such conflicts, and other geopolitical events; supply chain disruptions; market conditions and price volatility for titanium dioxide, zircon and other feedstock materials, as well as global and regional economic downturns, that adversely affect the demand for our end-use products; disruptions in production at our mining and manufacturing facilities; and other financial, economic, competitive, environmental, political, legal and regulatory factors. These and other risk factors are discussed in the Company's filings with the Securities and Exchange Commission.
Moreover, we operate in a very competitive and rapidly changing environment. New risks and uncertainties emerge from time to time, and it is not possible for our management to predict all risks and uncertainties, nor can management assess the impact of all factors on our business or the extent to which any factor, or combination of factors, may cause actual results to differ materially from those contained in any forward-looking statements. Although we believe the expectations reflected in the forward-looking statements are reasonable, we cannot guarantee future results, level of activity, performance, synergies or achievements. Neither we nor any other person assumes responsibility for the accuracy or completeness of any of these forward-looking statements. You should not rely upon forward-looking statements as predictions of future events. Unless otherwise required by applicable laws, we undertake no obligation to update or revise any forward-looking statements, whether because of new information or future developments.
Use of Non-GAAP Information
To provide investors and others with additional information regarding the financial results of Tronox Holdings plc, we have disclosed in this release certain non-U.S. GAAP operating performance measures of EBITDA, Adjusted EBITDA, Adjusted EBITDA margin and Adjusted net income attributable to Tronox, including its presentation on a per share basis, and a non-U.S. GAAP liquidity measure of Free Cash Flow and net leverage ratio on a trailing twelve-month basis. These non-U.S. GAAP financial measures are a supplement to and not a substitute for or superior to, the Company's results presented in accordance with U.S. GAAP. The non-U.S. GAAP financial measures presented by the Company may be different from non-U.S. GAAP financial measures presented by other companies. Specifically, the Company believes the non-U.S. GAAP information provides useful measures to investors regarding the Company's financial performance by excluding certain costs and expenses that the Company believes are not indicative of its core operating results. The presentation of these non-U.S. GAAP financial measures is not meant to be considered in isolation or as a substitute for results or guidance prepared and presented in accordance with U.S. GAAP. A reconciliation of the non-U.S. GAAP financial measures to U.S. GAAP results is included herein.
Investor Relations and Media Contact: Jennifer Guenther
+1.203.705.3701 extension: 103701 (Media)
+1.646.960.6598 (Investor Relations)
TRONOX HOLDINGS PLC
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (U.S. GAAP)
(UNAUDITED)
(Millions of U.S. dollars, except share and per share data)
Three Months Ended March 31,
2026
2025
Net sales
$ 760
$ 738
Cost of goods sold
716
639
Gross profit
44
99
Restructuring and other charges
14
86
Selling, general and administrative expenses
71
74
Loss from operations
(41)
(61)
Interest expense
(53)
(42)
Interest income
2
2
Loss on extinguishment of debt
—
—
Other expense, net
(12)
(5)
Loss before income taxes
(104)
(106)
Income tax provision
—
(5)
Net loss
(104)
(111)
Net loss attributable to noncontrolling interest
(1)
—
Net loss attributable to Tronox Holdings plc
$ (103)
$ (111)
Loss per share:
Basic
$ (0.65)
$ (0.70)
Diluted
$ (0.65)
$ (0.70)
Weighted average shares outstanding, basic (in thousands)
158,889
158,138
Weighted average shares outstanding, diluted (in thousands)
158,889
158,138
Other Operating Data:
Capital expenditures
67
110
Depreciation, depletion and amortization expense
75
71
TRONOX HOLDINGS PLC
RECONCILIATION OF NON-U.S. GAAP FINANCIAL MEASURES
(UNAUDITED)
(Millions of U.S. dollars, except share and per share data)
RECONCILIATION OF NET LOSS ATTRIBUTABLE TO TRONOX HOLDINGS PLC (U.S. GAAP)
TO ADJUSTED NET LOSS ATTRIBUTABLE TO TRONOX HOLDINGS PLC (NON-U.S. GAAP)
Three Months Ended March 31,
2026
2025
Net loss attributable to Tronox Holdings plc (U.S. GAAP)
$ (103)
$ (111)
Restructuring and other charges (a)
14
86
Other (b)
1
1
Adjusted net loss attributable to Tronox Holdings plc (non-U.S. GAAP)
$ (88)
$ (24)
Diluted net loss per share (U.S. GAAP)
$ (0.65)
$ (0.70)
Restructuring and other charges, per share
0.09
0.54
Other, per share
0.01
0.01
Diluted adjusted net loss per share attributable to Tronox Holdings plc (non-U.S. GAAP) (1)
$ (0.55)
$ (0.15)
Weighted average shares outstanding, diluted (in thousands)
158,889
158,138
(1) Diluted adjusted net loss per share attributable to Tronox Holdings plc was calculated from exact, not rounded Adjusted net loss attributable to Tronox Holdings plc and share information.
(a) Represents restructuring and other charges associated with the Botlek and China plant closures.
(b) Represents other activity not representative of the ongoing operations of the Company.
TRONOX HOLDINGS PLC
CONDENSED CONSOLIDATED BALANCE SHEETS
(UNAUDITED)
(Millions of U.S. dollars, except share and per share data)
March 31, 2026
December 31, 2025
ASSETS
Current Assets
Cash and cash equivalents
$ 126
$ 199
Restricted cash
12
12
Accounts receivable (net of allowance for credit losses of $1 and $1 as of March 31, 2026 and
December 31, 2025, respectively)
331
289
Inventories, net
1,577
1,652
Prepaid and other assets
119
112
Income taxes receivable
1
1
Total current assets
2,166
2,265
Noncurrent Assets
Property, plant and equipment, net
1,973
2,007
Mineral leaseholds, net
594
608
Intangible assets, net
208
214
Lease right of use assets, net
169
173
Deferred tax assets
834
833
Other long-term assets
113
117
Total assets
$ 6,057
$ 6,217
LIABILITIES AND EQUITY
Current Liabilities
Accounts payable
$ 419
$ 481
Accrued liabilities
231
274
Short-term lease liabilities
22
22
Obligations under inventory financing arrangement
50
50
Short-term debt
133
51
Long-term debt due within one year
39
39
Income taxes payable
1
2
Total current liabilities
895
919
Noncurrent Liabilities
Long-term debt, net
3,124
3,132
Pension and postretirement healthcare benefits
80
81
Asset retirement obligations
207
198
Environmental liabilities
39
39
Long-term lease liabilities
146
148
Deferred tax liabilities
204
208
Other long-term liabilities
41
43
Total liabilities
4,736
4,768
Commitments and Contingencies
Shareholders' Equity
Tronox Holdings plc ordinary shares, par value $0.01 — 159,518,772 shares issued and
outstanding at March 31, 2026 and 158,557,858 shares issued and outstanding at
December 31, 2025
2
2
Capital in excess of par value
2,101
2,103
(Accumulated deficit) retained earnings
(73)
30
Accumulated other comprehensive loss
(741)
(717)
Total Tronox Holdings plc shareholders' equity
1,289
1,418
Noncontrolling interest
32
31
Total equity
1,321
1,449
Total liabilities and equity
$ 6,057
$ 6,217
TRONOX HOLDINGS PLC
CONSOLIDATED STATEMENTS OF CASH FLOWS
(UNAUDITED)
(Millions of U.S. dollars)
Three Months Ended March 31,
2026
2025
Cash Flows from Operating Activities:
Net loss
$ (104)
$ (111)
Adjustments to reconcile net loss to net cash used in operating activities:
Depreciation, depletion and amortization
75
71
Deferred income taxes
-
4
Share-based compensation expense
6
5
Amortization of deferred debt issuance costs and discount on debt
3
2
Restructuring and other charges
14
86
Other non-cash items affecting net loss
16
12
Changes in assets and liabilities:
Increase in accounts receivable, net of allowance for credit losses
(43)
(49)
Decrease (increase) in inventories, net
67
(35)
Decrease in prepaid and other assets
5
18
Restructuring payments
(19)
(2)
Decrease in accounts payable and accrued liabilities
(80)
(22)
Net changes in income tax payables and receivables
-
(4)
Changes in other non-current assets and liabilities
(8)
(7)
Cash used in operating activities
(68)
(32)
Cash Flows from Investing Activities:
Capital expenditures
(67)
(110)
Loans
-
15
Cash used in investing activities
(67)
(95)
Cash Flows from Financing Activities:
Repayments of short-term debt
(97)
(6)
Repayments of long-term debt
(8)
(6)
Repayments of inventory financing arrangement
(50)
-
Proceeds from short-term debt
182
121
Proceeds from inventory financing arrangement
50
-
Debt issuance costs
(2)
-
Dividends paid
(8)
-
Restricted stock and performance-based shares settled in cash for withholding taxes
-
(1)
Cash provided by financing activities
67
108
Effects of exchange rate changes on cash and cash equivalents and restricted cash
(5)
5
Net decrease in cash and cash equivalents and restricted cash
(73)
(14)
Cash and cash equivalents and restricted cash at beginning of period
211
152
Cash and cash equivalents and restricted cash at end of period
$ 138
$ 138
TRONOX HOLDINGS PLC
RECONCILIATION OF NET LOSS TO EBITDA AND ADJUSTED EBITDA, ADJUSTED EBITDA AS A % OF NET SALES AND NET DEBT TO TRAILING-TWELVE MONTHS ADJUSTED EBITDA (NON-U.S. GAAP)
(UNAUDITED)
(Millions of U.S. dollars)
Three Months Ended March 31,
2026
2025
Net loss (U.S. GAAP)
$ (104)
$ (111)
Interest expense
53
42
Interest income
(2)
(2)
Income tax provision
—
5
Depreciation, depletion and amortization expense
75
71
EBITDA (non-U.S. GAAP)
22
5
Share-based compensation (a)
6
5
Accretion expense and other adjustments to asset retirement obligations and environmental liabilities (b)
4
7
Accounts receivable securitization program (c)
3
4
Foreign currency remeasurement (d)
7
1
Restructuring and other charges (e)
14
86
Other items (f)
6
4
Adjusted EBITDA (non-U.S. GAAP)
$ 62
$ 112
Three Months Ended March 31,
2026
2025
Net sales
$ 760
$ 738
Net loss (U.S. GAAP)
$ (104)
$ (111)
Net loss (U.S. GAAP) as a % of Net sales
(13.7) %
(15.0) %
Adjusted EBITDA (non-U.S. GAAP) (see above) as a % of Net sales
Net debt to trailing-twelve month Adjusted EBITDA (non-U.S. GAAP) (see above)
11.1x
9.0x
(a) Represents non-cash share-based compensation.
(b) Primarily represents accretion expense and other noncash adjustments to asset retirement obligations and environmental liabilities.
(c) Primarily represents expenses associated with the Company's accounts receivable securitization program which is used as a source of liquidity in the Company's overall capital structure.
(d) Represents realized and unrealized gains and losses associated with foreign currency remeasurement related to third-party and intercompany receivables and liabilities denominated in a currency other than the functional currency of the entity holding them, which are included in "Other expense, net" in the unaudited Condensed Consolidated Statements of Operations.
(e) Represents restructuring and other charges associated with the Botlek and Fuzhou plant closures.
(f) Includes noncash pension and postretirement costs, asset write-offs and other items included in "Selling general and administrative expenses", "Cost of goods sold" and "Other expense, net" in the unaudited Condensed Consolidated Statements of Operations.
TRONOX HOLDINGS PLC
FREE CASH FLOW (NON-U.S. GAAP)
(UNAUDITED)
(Millions of U.S. dollars)
The following table reconciles cash used in operating activities to free cash flow for
the three months ended March 31, 2026:
Three Months Ended
March 31, 2026
Cash used in operating activities
$ (68)
Capital expenditures
(67)
Free cash flow (non-U.S. GAAP)
$ (135)
TRONOX HOLDINGS PLC
RECONCILIATION OF TRAILING TWELVE MONTH NET LOSS TO EBITDA AND ADJUSTED EBITDA (NON-U.S. GAAP)
(UNAUDITED)
(Millions of U.S. dollars)
Three Months Ended
Trailing Twelve Month
Adjusted EBITDA
June 30, 2025
September 30, 2025
December 31, 2025
March 31, 2026
Net loss (U.S. GAAP)
$ (85)
$ (100)
$ (177)
$ (104)
$ (466)
Interest expense
45
48
54
53
200
Interest income
(1)
(1)
(2)
(2)
(6)
Income tax provision
4
8
(2)
—
10
Depreciation, depletion and amortization expense
74
75
82
75
306
EBITDA (non-U.S. GAAP)
37
30
(45)
22
44
Share-based compensation (a)
4
5
6
6
21
Foreign currency remeasurement (b)
(2)
—
7
7
12
Accretion expense and other adjustments to asset retirement obligations and environmental liabilities (c)
7
6
(11)
4
6
Accounts receivable securitization program (d)
3
3
3
3
12
Restructuring and other charges (e)
42
25
79
14
160
Other items (f)
2
5
18
6
31
Adjusted EBITDA (non-U.S. GAAP)
$ 93
$ 74
$ 57
$ 62
$ 286
(a) Represents non-cash share-based compensation.
(b) Represents realized and unrealized gains and losses associated with foreign currency remeasurement related to third-party and intercompany receivables and liabilities denominated in a currency other than the functional currency of the entity holding them, which are included in "Other expense, net" in the unaudited Condensed Consolidated Statements of Operations.
(c) Primarily represents accretion expense and other noncash adjustments to asset retirement obligations and environmental liabilities.
(d) Primarily represents expenses associated with the Company's accounts receivable securitization program which is used as a source of liquidity in the Company's overall capital structure.
(e) Represents restructuring and other charges associated with the Botlek and China plant closures.
(f) Includes noncash pension and postretirement costs, asset write-offs, severance expense and other items included in "Selling general and administrative expenses", "Cost of goods sold" and "Other expense, net" in the unaudited Condensed Consolidated Statements of Operations.
Tronox (TROX - Free Report) came out with a quarterly loss of $0.55 per share versus the Zacks Consensus Estimate of a loss of $0.49. This compares to a loss of $0.15 per share a year ago. These figures are adjusted for non-recurring items.
This quarterly report represents an earnings surprise of -13.43%. A quarter ago, it was expected that this producer of titanium ore and titanium dioxide would post a loss of $0.43 per share when it actually produced a loss of $0.6, delivering a surprise of -39.53%.
Over the last four quarters, the company has not been able to surpass consensus EPS estimates.
Tronox, which belongs to the Zacks Chemical - Diversified industry, posted revenues of $760 million for the quarter ended March 2026, surpassing the Zacks Consensus Estimate by 0.19%. This compares to year-ago revenues of $738 million. The company has topped consensus revenue estimates just once over the last four quarters.
The sustainability of the stock's immediate price movement based on the recently-released numbers and future earnings expectations will mostly depend on management's commentary on the earnings call.
Tronox shares have added about 151.3% since the beginning of the year versus the S&P 500's gain of 6%.
What's Next for Tronox?While Tronox has outperformed the market so far this year, the question that comes to investors' minds is: what's next for the stock?
There are no easy answers to this key question, but one reliable measure that can help investors address this is the company's earnings outlook. Not only does this include current consensus earnings expectations for the coming quarter(s), but also how these expectations have changed lately.
Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions. Investors can track such revisions by themselves or rely on a tried-and-tested rating tool like the Zacks Rank, which has an impressive track record of harnessing the power of earnings estimate revisions.
Ahead of this earnings release, the estimate revisions trend for Tronox was mixed. While the magnitude and direction of estimate revisions could change following the company's just-released earnings report, the current status translates into a Zacks Rank #3 (Hold) for the stock. So, the shares are expected to perform in line with the market in the near future. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.
It will be interesting to see how estimates for the coming quarters and the current fiscal year change in the days ahead. The current consensus EPS estimate is -$0.30 on $778.23 million in revenues for the coming quarter and -$1.11 on $3.01 billion in revenues for the current fiscal year.
Investors should be mindful of the fact that the outlook for the industry can have a material impact on the performance of the stock as well. In terms of the Zacks Industry Rank, Chemical - Diversified is currently in the bottom 39% of the 250 plus Zacks industries. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1.
One other stock from the same industry, Innospec (IOSP - Free Report) , is yet to report results for the quarter ended March 2026. The results are expected to be released on May 7.
This specialty chemicals company is expected to post quarterly earnings of $1.02 per share in its upcoming report, which represents a year-over-year change of -28.2%. The consensus EPS estimate for the quarter has been revised 6% lower over the last 30 days to the current level.
Innospec's revenues are expected to be $432.15 million, down 2% from the year-ago quarter.
Tronox (TROX - Free Report) reported $760 million in revenue for the quarter ended March 2026, representing a year-over-year increase of 3%. EPS of -$0.55 for the same period compares to -$0.15 a year ago.
The reported revenue represents a surprise of +0.19% over the Zacks Consensus Estimate of $758.54 million. With the consensus EPS estimate being -$0.49, the EPS surprise was -13.43%.
While investors scrutinize revenue and earnings changes year-over-year and how they compare with Wall Street expectations to determine their next move, some key metrics always offer a more accurate picture of a company's financial health.
Since these metrics play a crucial role in driving the top- and bottom-line numbers, comparing them with the year-ago numbers and what analysts estimated about them helps investors better project a stock's price performance.
Here is how Tronox performed in the just reported quarter in terms of the metrics most widely monitored and projected by Wall Street analysts:
Revenue by product- TiO2: $616 million versus the two-analyst average estimate of $593.02 million.Revenue by product- Other products: $55 million versus the two-analyst average estimate of $73.84 million.Revenue by product- Zircon: $89 million versus the two-analyst average estimate of $77.14 million.View all Key Company Metrics for Tronox here>>>
Shares of Tronox have returned +12.3% over the past month versus the Zacks S&P 500 composite's +10.3% change. The stock currently has a Zacks Rank #3 (Hold), indicating that it could perform in line with the broader market in the near term.
Key Takeaways Tronox posted a wider Q1 adjusted loss as EBITDA fell 45% on pricing and cost pressures. TROX revenue rose 3% as higher TiO2 and zircon volumes offset weaker product mix impacts.Tronox expects stronger Q2 pricing, higher TiO2 volumes and positive free cash flow. Tronox Holdings Plc (TROX - Free Report) logged a loss (as reported) of 65 cents per share for the first quarter of 2026, wider than a loss of 70 cents reported a year ago.
Barring one-time items, adjusted loss for the reported quarter was 55 cents per share compared with a loss of 15 cents a year ago. It was wider than the Zacks Consensus Estimate of a loss of 48 cents.
The company raked in revenues of $760 million, up around 3% year over year. It beat the Zacks Consensus Estimate of $758.5 million. Higher TiO2 and zircon sales volumes and favorable currency impact more than offset lower average selling price and product mix impact.
Adjusted EBITDA was $62 million, down 45% year over year, with an adjusted EBITDA margin of 8.2%. The downside was due to lower average selling prices, including mix, unfavorable exchange rate movements and higher freight and production costs.
Tronox Holdings PLC Price, Consensus and EPS SurpriseTROX’s Q1 Segment HighlightsTiO2 sales were $616 million in the reported quarter, up 5% year over year. TiO2 volumes rose 5% year over year, while price/mix was down 4%. Currency was 4% favorable.
Zircon sales were $89 million, up 29% year over year. Sales were supported by 57% volumes growth, offset by 28% price/mix decline.
TROX’s FinancialsCash and equivalents were $126 million as of March 31, 2026. Total debt was $3.3 billion at the end of the year, while net debt was $3.2 billion.
Operating cash used was $68 million for the first quarter, while free cash flow was negative $135 million.
TROX’s OutlookManagement expects a stronger second quarter with improving demand pricing and cash generation. The company expects free cash flow to turn positive in quarter two and largely offset the cash use in the first quarter while also targeting meaningful positive free cash flow for full-year 2026.
TiO2 volumes are projected to rise sequentially in the high-single-digit percentage range while zircon volumes are expected to moderate slightly from first-quarter levels. Both TiO2 and zircon pricing are expected to improve in the mid-single-digit percentage range due to announced price increases and cost-related surcharges. Supported by stronger pricing and higher TiO2 volumes, Tronox expects adjusted EBITDA of $65 million to $85 million for the second quarter of 2026.
TROX Stock’s Price PerformanceShares of Tronox have risen 57.4% in the past year compared with the industry’s 18.6% growth.
Image Source: Zacks Investment Research
TROX’s Zacks Rank & Key PicksTROX currently sports a Zacks Rank #3 (Hold).
Some better-ranked stocks worth a look in the basic materials space are Sociedad Quimica y Minera de Chile S.A. (SQM - Free Report) , Idaho Strategic Resources, Inc. (IDR - Free Report) and NioCorp Developments Ltd. (NB - Free Report) .
Sociedad is slated to report first-quarter 2026 results on May 26. The Zacks Consensus Estimate for loss is pegged at $1.78 per share, indicating 270.8% year-over-year growth. SQM has a Zacks Rank #2 (Buy) at present.
Idaho is expected to report first-quarter 2026 results on May 14. The Zacks Consensus Estimate for earnings is pegged at 43 cents per share, indicating 258.3% year-over-year growth. IDR sports a Zacks Rank #1 (Strong Buy) at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
NioCorp is expected to report fiscal third-quarter results on May 14. The Zacks Consensus Estimate for NB’s third-quarter loss is pegged at 2 cents per share. NB currently has a Zacks Rank #2.
A month has gone by since the last earnings report for Tronox (TROX - Free Report) . Shares have lost about 7.2% in that time frame, underperforming the S&P 500.
Will the recent negative trend continue leading up to its next earnings release, or is Tronox due for a breakout? Well, first let's take a quick look at the most recent earnings report in order to get a better handle on the recent catalysts for Tronox Holdings PLC before we dive into how investors and analysts have reacted as of late.
Tronox’s Q1 Earnings Miss Estimates, Sales Rise Y/Y On Higher VolumesTronox logged a loss (as reported) of 65 cents per share for the first quarter of 2026, wider than a loss of 70 cents reported a year ago.
Barring one-time items, adjusted loss for the reported quarter was 55 cents per share compared with a loss of 15 cents a year ago. It was wider than the Zacks Consensus Estimate of a loss of 48 cents.
The company raked in revenues of $760 million, up around 3% year over year. It beat the Zacks Consensus Estimate of $758.5 million. Higher TiO2 and zircon sales volumes and favorable currency impact more than offset lower average selling price and product mix impact.
Adjusted EBITDA was $62 million, down 45% year over year, with an adjusted EBITDA margin of 8.2%. The downside was due to lower average selling prices, including mix, unfavorable exchange rate movements and higher freight and production costs.
Segment HighlightsTiO2 sales were $616 million in the reported quarter, up 5% year over year. TiO2 volumes rose 5% year over year, while price/mix was down 4%. Currency was 4% favorable.
Zircon sales were $89 million, up 29% year over year. Sales were supported by 57% volumes growth, offset by 28% price/mix decline.
FinancialsCash and equivalents were $126 million as of March 31, 2026. Total debt was $3.3 billion at the end of the year, while net debt was $3.2 billion.
Operating cash used was $68 million for the first quarter, while free cash flow was negative $135 million.
OutlookManagement expects a stronger second quarter with improving demand pricing and cash generation. The company expects free cash flow to turn positive in quarter two and largely offset the cash use in the first quarter while also targeting meaningful positive free cash flow for full-year 2026.
TiO2 volumes are projected to rise sequentially in the high-single-digit percentage range while zircon volumes are expected to moderate slightly from first-quarter levels. Both TiO2 and zircon pricing are expected to improve in the mid-single-digit percentage range due to announced price increases and cost-related surcharges. Supported by stronger pricing and higher TiO2 volumes, Tronox expects adjusted EBITDA of $65 million to $85 million for the second quarter of 2026.
How Have Estimates Been Moving Since Then?In the past month, investors have witnessed a downward trend in fresh estimates.
The consensus estimate has shifted -20.47% due to these changes.
VGM ScoresCurrently, Tronox has a poor Growth Score of F, a grade with the same score on the momentum front. Charting a somewhat similar path, the stock was allocated a grade of D on the value side, putting it in the bottom 40% for value investors.
Overall, the stock has an aggregate VGM Score of F. If you aren't focused on one strategy, this score is the one you should be interested in.
OutlookEstimates have been broadly trending downward for the stock, and the magnitude of these revisions indicates a downward shift. Notably, Tronox has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.
, /PRNewswire/ -- Tronox Holdings plc (NYSE:TROX) ("Tronox" or the "Company"), the world's leading integrated manufacturer of titanium dioxide pigment, announced today the publication of its 2025 sustainability report. The report highlights the Company's progress during 2025, including the achievement of its 2025 sustainability-related targets, and underscores Tronox's commitment to preserving its privilege to operate through its sustainability strategy and purposeful investments in its people, operations and product portfolio.
Highlights from the report include:
Exceeding the Company's 2025 environmental targets versus the 2019 baseline, including a: 27% reduction in Scope 1 and 2 greenhouse gas emissions intensity versus the target of 25%. This achievement was driven largely by automated process controls (APCs) at all chlorine pigment plants and increased renewable energy generation in South Africa and Australia. 17% reduction in Scope 3 emissions intensity in the supply chain versus the target of 9%. This was supported in part through decarbonization planning with Tronox's largest suppliers. 38% reduction in waste to external landfills versus the target of 15% through multi-year efforts to recycle waste back into the Company's processes and capture byproduct value. Delivering record improvements in injury frequency rates, with six operating sites achieving zero injuries for the year and approximately 4,700 potential hazards removed through the Company's leading indicators program. Advancing water stewardship and resource efficiency through site-level initiatives that strengthened measurement, accountability and long-term planning, including the establishment of initial contextual water targets at the Company's Bahia, Yanbu and Chandala sites. Continuing to engage suppliers, customers and partners to support emissions reduction, responsible sourcing and product stewardship across the value chain. Investing in host communities and social performance programs while continuing to execute against regional commitments and long-term development plans. Further progressing strategic opportunities, including the Company's rare earths initiative, to support materials that are critical to the energy transition. "This report reflects the dedication of our teams around the world and the steady progress we are making in the areas that matter most to our business and our stakeholders," said Tronox's Chief Sustainability Officer, Head of Investor Relations and External Affairs, Jennifer Guenther. "From improving safety and reducing emissions to strengthening water stewardship, product responsibility and community engagement, we are working every day to embed sustainability into how we operate and how we create long-term value."
John D. Romano, Chief Executive Officer, added, "At Tronox, our purpose is to responsibly transform the earth's resources into products and opportunities that enhance lives, and sustainability is fundamental to how we deliver on that purpose. Our progress reflects the focus of our teams, the strength of our operating discipline and our commitment to building a safer, more efficient and more resilient business for the long term."
The 2025 sustainability report is available at Sustainability Reports - Tronox.
About Tronox
Tronox Holdings plc is one of the world's leading producers of high-quality titanium products, including titanium dioxide pigment, specialty-grade titanium dioxide products and high-purity titanium chemicals, and zircon. We mine titanium-bearing mineral sands and operate upgrading facilities that produce high-grade titanium feedstock materials, pig iron and other minerals, including the rare earth-bearing mineral, monazite. With approximately 5,700 employees across six continents, our rich diversity, unmatched vertical integration model, and unparalleled operational and technical expertise across the value chain, position Tronox as the preeminent titanium dioxide producer in the world. For more information about how our products add brightness and durability to paints, plastics, paper and other everyday products, visit tronox.com.
Investor Relations and Media Contact: Jennifer Guenther
+1.203.705.3701 extension: 103701 (Media)
+1.646.960.6598 (Investor Relations)
On May 11, 2026, Tyler Technologies Inc TYL shares fell 3.8%, closing at $312.27. This decline adds to a challenging year for the stock, which has seen a year-to-date decrease of 31.2% and a staggering 44.3% drop over the past year. Currently, the stock is trading within a 52-week range of $283.72 to $621.34.
GF Value™ verdict: Tyler Technologies is currently priced at $312.27, which is 42.4% below the GF Value™ estimate of $542.30.GF Score™ of 83/100 indicates a strong overall rating based on various financial metrics.The most notable signal is the insider activity, where insiders purchased $0.7 million worth of shares while selling $2.7 million in the last three months. Is TYL Overvalued or Undervalued? The current price of Tyler Technologies Inc TYL at $312.27 presents a substantial opportunity, as it is significantly undervalued when compared to the GF Value™ of $542.30. This represents a margin of safety of 42.4%, suggesting that the stock may be an attractive proposition for long-term investors. The GF Valuation label categorizes TYL as "Significantly Undervalued," which indicates a potential for price appreciation as the market corrects itself towards the intrinsic value estimated by GF Value™. GF Value™ is GuruFocus' proprietary measure of intrinsic value, calculated from historical trading multiples, past business growth, and future performance estimates.
While the undervaluation suggests an opportunity, investors should remain cautious. The stock's recent performance indicates volatility, and the overall downtrend could pose risks. A thorough analysis of market conditions, financial health, and operational performance is advisable before making any investment decisions.
How Does TYL's Valuation Compare to Its History? Metric Current Historical P/E (TTM) 43.1x 99.5x Forward P/E 24.7x N/A The current P/E (TTM) of 43.1x is significantly below its 5-year median P/E of 99.5x, indicating that the stock is trading at a much lower valuation compared to its historical averages. Additionally, the forward P/E of 24.7x suggests further potential for earnings growth relative to its price. This P/E analysis aligns with the GF Value™ verdict, reinforcing the view that TYL is undervalued relative to its historical performance.
What Does TYL's GF Score™ Tell Us? Metric Rating GF Score™ 83/100 Financial Strength 9/10 Profitability 9/10 Growth 10/10 Valuation 4/10 Momentum 1/10 The GF Score™ of 83/100 highlights Tyler Technologies' strong position across several key metrics, particularly in Financial Strength (9/10), Profitability (9/10), and Growth (10/10). These high scores suggest that the company is well-positioned for sustainable performance and financial health. However, the lower valuation rank of 4/10 and the very weak momentum rank of 1/10 indicate that the stock may be facing headwinds in price appreciation and market sentiment. Together, these scores present a mixed picture, showcasing strong fundamentals but also caution regarding valuation and recent price performance.
What Are Insiders Doing with TYL Stock? In the past three months, insider activity at Tyler Technologies has shown a notable trend, with insiders purchasing a total of $0.7 million worth of shares while selling $2.7 million. This pattern suggests a level of caution among insiders, as they are more inclined to sell than buy at the current price levels. Such behavior could be interpreted as insiders anticipating further challenges or volatility in the near term, which may influence investor sentiment.
Although the purchases could signal some confidence in the company's long-term prospects, the higher volume of sales raises questions about their immediate outlook. Investors should monitor this activity closely as it could serve as an important indicator of insider sentiment.
What This Means for Investors Based on the GF Value™ analysis, Tyler Technologies Inc TYL is currently undervalued. The significant discrepancy between the current price and the GF Value™ suggests a potential opportunity for investors, albeit with caution due to recent performance trends. An in-depth assessment of the company's fundamentals and market conditions is essential for making informed decisions.
For the complete analysis, visit the Tyler Technologies Inc TYL stock page. You can also explore the GF Value™ page for detailed valuation methodology, or use the GuruFocus Stock Screener to find similar opportunities.
Frequently Asked Questions What is TYL's GF Score™?
TYL's GF Score™ is 83/100, indicating a strong overall rating based on financial strength, profitability, growth, valuation, and momentum metrics.
Is TYL overvalued or undervalued?
TYL is currently undervalued, with a GF Value™ estimate of $542.30 compared to its current price of $312.27, presenting a 42.4% margin of safety.
What is TYL's P/E ratio?
TYL's P/E (TTM) is 43.1x, which is significantly below its 5-year median P/E of 99.5x, indicating it is trading at a lower valuation compared to its historical performance.
This stock alert was generated using automated technology and GuruFocus financial data to provide readers with timely and accurate market reporting. This content was reviewed by GuruFocus editorial team prior to publication. Please send any questions or comments about this story to [email protected].
PLANO, Texas--(BUSINESS WIRE)--Tyler Technologies, Inc. (NYSE: TYL) today announced the pricing of its offering of $1,250,000,000 aggregate principal amount of 0.50% convertible senior notes due 2031 (the “Notes”) in a private offering to persons reasonably believed to be “qualified institutional buyers” pursuant to Rule 144A under the Securities Act of 1933, as amended (the “Securities Act”). The offering size was increased from the previously announced offering size of $1,000,000,000 aggregate principal amount of Notes. The issuance and sale of the Notes are scheduled to settle on May 14, 2026, subject to customary closing conditions. Tyler also granted the initial purchasers of the Notes an option to purchase, for settlement within a period of 13 days from, and including, the date the Notes are first issued, up to an additional $187,500,000 aggregate principal amount of Notes.
The Notes will be senior, unsecured obligations of Tyler and will accrue interest at a rate of 0.50% per annum, in each case payable semi-annually in arrears on July 15 and January 15 of each year, beginning on January 15, 2027. The Notes will mature on July 15, 2031 unless earlier repurchased, redeemed or converted. Before April 15, 2031, holders of the Notes will have the right to convert their Notes only upon the occurrence of certain events. From and including April 15, 2031, holders of the Notes may convert their Notes at any time at their election until the close of business on the second scheduled trading day immediately before the maturity date. Tyler will settle conversions of the Notes either entirely in cash or in a combination of cash and shares of its common stock, at Tyler’s election. However, upon conversion of any Notes, the conversion value, which will be determined proportionately over a period of multiple trading days, will be paid in cash up to the principal amount of the Notes being converted. The initial conversion rate of the Notes is 2.4634 shares of common stock per $1,000 principal amount of Notes (which represents an initial conversion price of approximately $405.94 per share of common stock). The initial conversion price represents a premium of approximately 30.0% over the last reported sale price of Tyler’s common stock on the New York Stock Exchange of $312.27 per share on May 11, 2026. The conversion rate and conversion price will be subject to adjustment upon the occurrence of certain events.
The Notes will be redeemable, in whole or in part (subject to certain limitations), for cash at Tyler’s option at any time, and from time to time, on or after July 20, 2029, and on or before the 30th scheduled trading day immediately before the maturity date, but only if the last reported sale price per share of Tyler’s common stock exceeds 130% of the conversion price for a specified period of time and certain other conditions are satisfied. The redemption price will be equal to the principal amount of the Notes to be redeemed, plus accrued and unpaid interest, if any, to, but excluding, the redemption date. Holders of the Notes will have the right to require Tyler to repurchase their Notes upon the occurrence of a fundamental change (as defined in the indentures governing the Notes) at a cash repurchase price equal to the principal amount of the Notes to be repurchased, plus accrued and unpaid interest, if any, to, but excluding, the fundamental change repurchase date.
Tyler estimates that the net proceeds from the offering will be approximately $1,224.3 million (or approximately $1,408.1 million if the initial purchasers fully exercise their option to purchase additional Notes), after deducting the initial purchasers’ discounts and commissions and estimated offering expenses. Tyler intends to use approximately $162.8 million of the net proceeds to fund the cost of entering into the capped call transactions described below. Tyler expects to use approximately $320.7 million of the net proceeds to repurchase 1,026,900 shares of its common stock concurrently with the offering in privately negotiated transactions effected through one of the initial purchasers of the Notes or its affiliate, as Tyler’s agent, under Tyler’s share repurchase program. Tyler intends to use the remainder of the net proceeds for general corporate purposes. If the initial purchasers exercise their option to purchase additional Notes, then Tyler intends to use a portion of the additional net proceeds to fund the cost of entering into additional capped call transactions as described below. The concurrent repurchases of shares of Tyler’s common stock described above may result in Tyler’s common stock trading at prices that are higher than would be the case in the absence of these repurchases and may have affected the initial terms of the Notes, including the initial conversion price.
In connection with the pricing of the Notes, Tyler entered into privately negotiated capped call transactions with one or more of the initial purchasers or their affiliates or one or more other financial institutions (the “Option Counterparties”). The capped call transactions will cover, subject to anti-dilution adjustments substantially similar to those applicable to the Notes, the number of shares of Tyler’s common stock underlying the Notes. If the initial purchasers exercise their option to purchase additional Notes, then Tyler expects to enter into additional capped call transactions with the Option Counterparties.
The cap price of the capped call transactions will initially be approximately $655.77 per share, which represents a premium of approximately 110% over the last reported sale price of $312.27 per share of Tyler’s common stock on May 11, 2026, and is subject to certain adjustments under the terms of the capped call transactions.
The capped call transactions are expected generally to reduce the potential dilution to Tyler’s common stock upon any conversion of the Notes and/or offset any potential cash payments Tyler is required to make in excess of the principal amount of converted Notes, as the case may be, upon conversion of the Notes. If, however, the market price per share of Tyler’s common stock, as measured under the terms of the capped call transactions, exceeds the cap price of the capped call transactions, there would nevertheless be dilution and/or there would not be an offset of such potential cash payments, in each case, to the extent that such market price exceeds the cap price of the capped call transactions.
In connection with establishing their initial hedges of the capped call transactions, the Option Counterparties or their respective affiliates expect to enter into various derivative transactions with respect to Tyler’s common stock and/or purchase shares of Tyler’s common stock concurrently with or shortly after the pricing of the Notes. This activity could increase (or reduce the size of any decrease in) the market price of Tyler’s common stock or the Notes at that time.
In addition, the Option Counterparties or their respective affiliates may modify their hedge positions by entering into or unwinding various derivatives with respect to Tyler’s common stock and/or purchasing or selling Tyler’s common stock or other securities of Tyler in secondary market transactions following the pricing of the Notes and prior to the maturity of the Notes (and are likely to do so (x) following any conversion of the Notes, any repurchase of the Notes by Tyler on any fundamental change repurchase date or any redemption date, (y) following any other repurchase of the Notes if Tyler elects to unwind a corresponding portion of the capped call transactions in connection with such repurchase and (z) if Tyler otherwise elects to unwind all or a portion of the capped call transactions). This activity could also cause or avoid an increase or decrease in the market price of Tyler’s common stock or the Notes, which could affect the ability to convert the Notes, and, to the extent the activity occurs during any observation period related to a conversion of Notes, it could affect the number of shares and value of the consideration that holders of the Notes will receive upon conversion of the Notes.
As described above, Tyler intends to use a portion of the net proceeds of the offering to repurchase shares of its common stock concurrently with the pricing of the offering in privately negotiated transactions. These repurchases, and any other repurchases of shares of Tyler’s common stock, may increase, or reduce the size of a decrease in, the trading price of Tyler’s common stock, and repurchases executed concurrently with the pricing of the offering may have affected the initial terms of the Notes, including the initial conversion price.
The offer and sale of the Notes and any shares of common stock issuable upon conversion of the Notes have not been, and will not be, registered under the Securities Act or any other securities laws, and the Notes and any such shares cannot be offered or sold except pursuant to an exemption from, or in a transaction not subject to, the registration requirements of the Securities Act and any other applicable securities laws.
This press release does not constitute an offer to sell, or the solicitation of an offer to buy, the Notes or any shares of common stock issuable upon conversion of the Notes, nor will there be any offer, solicitation or sale of the Notes or any such shares, in any state or other jurisdiction in which such offer, solicitation or sale would be unlawful.
About Tyler Technologies, Inc.
Tyler Technologies (NYSE: TYL) is a leading provider of technology solutions purpose-built exclusively for the public sector. Tyler’s end-to-end solutions empower local, state, and federal government entities to operate efficiently and transparently with residents and each other. By connecting data and processes across disparate systems, Tyler’s solutions strengthen the core operations of government and help agencies turn insight into action for their communities. With nearly 47,000 successful installations across 15,000 locations, Tyler serves clients in all 50 states, Canada, the Caribbean, Australia, and other international locations. Tyler has been recognized numerous times for growth and innovation, including on Government Technology’s GovTech 100 list.
Forward-Looking Statements
This press release includes forward-looking statements, including statements regarding the completion of the offering and the expected amount and intended use of the net proceeds and the effects of entering into the capped call transactions described above. Forward-looking statements represent Tyler’s current expectations regarding future events and are subject to known and unknown risks and uncertainties that could cause actual results to differ materially from those indicated in, or implied by, the forward-looking statements. Among those risks and uncertainties are market conditions, the satisfaction of the closing conditions related to the offering and risks relating to Tyler’s business, including those described in periodic reports that Tyler files from time to time with the Securities and Exchange Commission. Tyler may not consummate the offering described in this press release and, if the offering is consummated, cannot provide any assurances regarding its ability to effectively apply the net proceeds as described above. The forward-looking statements included in this press release speak only as of the date of this press release, and Tyler does not undertake to update the statements included in this press release for subsequent developments, except as may be required by law.
Tyler will modernize corrections operations for the fourth largest county in the state
PLANO, Texas--(BUSINESS WIRE)--Tyler Technologies, Inc. (NYSE: TYL) today announced it has signed an agreement with the Riverside County, California, Sheriff’s Office (RSO) for Tyler’s Enterprise Corrections.
Tyler was selected following a comprehensive RFP process guided by consulting firm National Public Safety Group to replace the RSO’s legacy jail management system that has been in place for the past 30 years. Tyler’s Enterprise Corrections will be powered by Amazon Web Services (AWS) in the cloud, helping to modernize corrections operations for five jail facilities in the county. The new system will bring several improvements and new capabilities to the RSO, allowing the office to:
Mitigate potential logistics issues and hardware management risk often associated with an on-premise deployment Optimize operations such as intake and release, population management, and safety and security within its facilities Support employee efficiency and cost-effective process improvements Enhance safety of both corrections officers and inmates through a reliable, robust, and premier jail management system “Correctional facilities are under pressure to ‘do more with less’ while maximizing efficiency and maintaining staff and inmate safety,” said Mandye Robinson, general manager of Tyler’s Enterprise Corrections. “Our solution will help the Riverside County Sheriff’s Office modernize and streamline its corrections operations. This will mark one of Tyler’s largest Enterprise Corrections deployments to date, and we look forward to serving the staff and residents of Riverside County through this implementation.”
Riverside County has a population of 2.5 million people, making it the fourth largest county in California. The law enforcement professionals of the RSO, with a staff of more than 4,000, cover more than 7,000 square miles in southern California.
About Tyler Technologies, Inc.
Tyler Technologies (NYSE: TYL) is a leading provider of technology solutions purpose-built exclusively for the public sector. Tyler’s end-to-end solutions empower local, state, and federal government entities to operate efficiently and transparently with residents and each other. By connecting data and processes across disparate systems, Tyler’s solutions strengthen the core operations of government and help agencies turn insight into action for their communities. With nearly 47,000 successful installations across 15,000 locations, Tyler serves clients in all 50 states, Canada, the Caribbean, Australia, and other international locations. Tyler has been recognized numerous times for growth and innovation, including on Government Technology’s GovTech 100 list. More information about Tyler Technologies, an S&P 500 company headquartered in Plano, Texas, can be found at tylertech.com.
On May 13, 2026, Tyler Technologies Inc TYL shares fell 4.6%, closing at $309.65. The stock has experienced significant volatility, with a 52-week range between $283.72 and $621.34.
GF Value™ verdict: Currently priced at $309.65, TYL is estimated to be 42.9% undervalued compared to a GF Value™ of $542.46. GF Score™ of 83/100 indicates a strong overall rating based on various performance metrics. Notable signal: Financial Strength rating of 9/10 suggests a robust balance sheet. Is TYL Overvalued or Undervalued? Based on the current market price of $309.65 and the GF Value™ estimate of $542.46, Tyler Technologies appears significantly undervalued. The 42.9% margin of safety suggests that the stock has the potential for substantial appreciation if it converges towards its intrinsic value. The GF Valuation label indicates that TYL is significantly undervalued, presenting a potential opportunity for investors who believe in the company’s long-term growth prospects.
However, it is essential to approach this valuation with caution. While the current price suggests an attractive entry point, the recent price declines, including a 31.8% drop year-to-date and a 45.2% decline over the past year, may signal underlying issues that need to be addressed. GF Value™ is GuruFocus' proprietary measure of intrinsic value, calculated from historical trading multiples, past business growth, and future performance estimates.
How Does TYL's Valuation Compare to Its History? Metric Current Historical P/E (TTM) 42.8x 99.5x Forward P/E 24.5x N/A The current P/E (TTM) of 42.8x is significantly below its 5-year median P/E of 99.5x, indicating that the stock is trading at a lower valuation compared to its historical levels. This P/E analysis agrees with the GF Value™ verdict, reinforcing the notion that TYL is undervalued relative to its historical performance.
What Does TYL's GF Score™ Tell Us? Metric Rating GF Score™ 83/100 Financial Strength 9/10 Profitability 9/10 Growth 10/10 Valuation 4/10 Momentum 1/10 The GF Score™ of 83/100 highlights Tyler Technologies' strengths in Financial Strength, Profitability, and Growth, all rated highly at 9/10 or 10/10. However, the low Valuation rank of 4/10 and Momentum rank of 1/10 indicates potential weaknesses in market perception and price action. This mixed score suggests that while the company has solid fundamentals, its current market momentum may be a concern for short-term investors.
What Are Insiders Doing with TYL Stock? In the past three months, insider activity has shown a net sell of $2.7 million against purchases of $0.7 million. This pattern of selling may suggest that insiders are taking profits or positioning themselves for potential volatility ahead. While insider selling isn't necessarily a negative indicator, it often warrants further investigation into the underlying rationale.
What This Means for Investors Considering the GF Value™ assessment and the current market dynamics, Tyler Technologies Inc appears to be undervalued. However, caution is advised due to the recent price performance and insider selling activity, which may indicate potential risks ahead.
For the complete analysis, visit the Tyler Technologies Inc TYL stock page. You can also explore the GF Value™ page for detailed valuation methodology, or use the GuruFocus Stock Screener to find similar opportunities.
Frequently Asked Questions What is TYL's GF Score™?
TYL's GF Score™ is 83/100, indicating a strong overall rating based on various performance metrics, suggesting higher long-term return potential.
Is TYL overvalued or undervalued?
According to GF Value™, TYL is currently undervalued, with a significant margin of safety of 42.9% compared to its estimated fair value.
What is TYL's P/E ratio?
The P/E (TTM) ratio for TYL is 42.8x, which is significantly below its 5-year median P/E of 99.5x, reinforcing the undervalued status of the stock.
This stock alert was generated using automated technology and GuruFocus financial data to provide readers with timely and accurate market reporting. This content was reviewed by GuruFocus editorial team prior to publication. Please send any questions or comments about this story to [email protected].
PLANO, Texas--(BUSINESS WIRE)--Tyler Technologies, Inc. (NYSE: TYL) today announced the closing of $1,437,500,000 aggregate principal amount of its 0.50% Convertible Senior Notes due 2031 (the "Notes"), including the exercise in full of the option granted to the initial purchasers to purchase up to an additional $187,500,000 aggregate principal amount of Notes. The Notes were issued in a private offering to persons reasonably believed to be "qualified institutional buyers" pursuant to Rule 144A under the Securities Act of 1933, as amended (the "Securities Act").
“This capital raise provides financial flexibility, allowing Tyler to further execute on our $1 billion share repurchase authorization and pursue long-term growth initiatives,” said Lynn Moore, Tyler’s president and chief executive officer. “Year to date, we have repurchased approximately 2.1 million shares of our stock for approximately $667 million, reflecting our confidence in Tyler’s long-term strategic goals and financial targets.”
The Notes will accrue interest at a rate of 0.50% per annum and will mature on July 15, 2031, unless earlier repurchased, redeemed or converted. The initial conversion price of the Notes is approximately $405.94 per share of Tyler's common stock, representing an initial conversion premium of approximately 30% above the last reported sale price of $312.27 per share of Tyler's common stock on May 11, 2026.
In connection with the offering of the Notes, Tyler entered into capped call transactions with one or more of the initial purchasers or their affiliates and one or more other financial institutions, which increase the initial effective conversion price of the Notes to approximately $655.77 per share of Tyler's common stock, representing a premium of approximately 110% above the last reported sale price of Tyler's common stock on May 11, 2026. The capped call transactions are expected to reduce potential dilution to Tyler's common stock and/or offset any cash payments Tyler is required to make in excess of the principal amount of converted Notes, subject to the cap price.
The net proceeds from the issuance of the Notes were approximately $1,408.1 million, after deducting the initial purchasers' discounts and commissions and estimated offering expenses payable by Tyler. Tyler used approximately $187.2 million of the net proceeds to fund the cost of the capped call transactions and approximately $320.7 million to repurchase 1,026,900 shares of its common stock. Tyler intends to use the remainder of the net proceeds for general corporate purposes.
Tyler will settle conversions of the Notes either entirely in cash or in a combination of cash and shares of its common stock, at Tyler’s election. However, upon conversion of any Notes, the conversion value, which will be determined proportionately over a period of multiple trading days, will be paid in cash up to the principal amount of the Notes being converted.
The offer and sale of the Notes and any shares of common stock issuable upon conversion of the Notes have not been, and will not be, registered under the Securities Act or any other securities laws, and the Notes and any such shares cannot be offered or sold except pursuant to an exemption from, or in a transaction not subject to, the registration requirements of the Securities Act and any other applicable securities laws.
This press release does not constitute an offer to sell, or the solicitation of an offer to buy, any shares of common stock, the Notes or any shares of common stock issuable upon conversion of the Notes, nor will there be any offer, solicitation or sale of the Notes or any such shares, in any state or other jurisdiction in which such offer, solicitation or sale would be unlawful.
About Tyler Technologies, Inc.
Tyler Technologies (NYSE: TYL) is a leading provider of technology solutions purpose-built exclusively for the public sector. Tyler’s end-to-end solutions empower local, state, and federal government entities to operate efficiently and transparently with residents and each other. By connecting data and processes across disparate systems, Tyler’s solutions strengthen the core operations of government and help agencies turn insight into action for their communities. With nearly 47,000 successful installations across 15,000 locations, Tyler serves clients in all 50 states, Canada, the Caribbean, Australia, and other international locations. Tyler has been recognized numerous times for growth and innovation, including on Government Technology’s GovTech 100 list.
Forward-Looking Statements
This press release includes forward-looking statements, including statements regarding the anticipated use of net proceeds from the offering of the Notes and the expected results of the capped call transactions described above. Forward-looking statements represent Tyler’s current expectations regarding future events and are subject to known and unknown risks and uncertainties that could cause actual results to differ materially from those indicated in, or implied by, the forward-looking statements. Among those risks and uncertainties are market conditions, the satisfaction of the closing conditions related to the offering and risks relating to Tyler’s business, including those described in periodic reports that Tyler files from time to time with the Securities and Exchange Commission. Tyler may not consummate the offering described in this press release and, if the offering is consummated, cannot provide any assurances regarding its ability to effectively apply the net proceeds as described above. The forward-looking statements included in this press release speak only as of the date of this press release, and Tyler does not undertake to update the statements included in this press release for subsequent developments, except as may be required by law.
Tasmania Parks and Wildlife Service will implement a single, modern system for reservations
PLANO, Texas--(BUSINESS WIRE)--Tyler Technologies, Inc. (NYSE: TYL) announced today it has signed an agreement with the Tasmania Parks and Wildlife Service (PWS) in Australia for Tyler’s Recreation Management solution to help the park system provide an easier booking experience for their more than 1 million annual park visitors.
“Modern, unified technology is essential to delivering the kind of seamless experiences today’s park visitors expect,” said Senior Vice President of Tyler’s Outdoor Recreation Sascha Ohler. “By bringing Tasmania’s parks operations into a single, modern platform, we’re helping deliver a reliable experience for visitors while equipping staff with the tools they need to serve them efficiently.”
The park system will be able to consolidate more than a dozen disparate systems and move them under Tyler’s Recreation Management solution to streamline operations for point of sale, camping, and activity bookings. It will also eliminate several manual processes, enabling the agency to better service visitors. Recreation Management will deliver a modern, mobile-friendly system for booking and managing parks and wildlife service products.
“The new platform will ultimately deliver a single contemporary, mobile friendly, system for booking and managing PWS products. It will replace more than a dozen existing IT systems and manual processes and enable innovative capabilities to better service visitors,” said Acting Minister for Tasmania Parks and Wildlife Service Madeleine Ogilvie. “This is a great outcome for the project, and I look forward to seeing the new system take shape.”
Tyler is the leading outdoor recreation software provider for island states and nations. With the addition of Tasmania, Tyler serves three territories in the Asia Pacific region. Tasmania is an island state of Australia located approximately 150 miles south of the Australian mainland. It has a population of roughly 576,000.
About Tyler Technologies, Inc.
Tyler Technologies (NYSE: TYL) is a leading provider of technology solutions purpose-built exclusively for the public sector. Tyler’s end-to-end solutions empower local, state, and federal government entities to operate efficiently and transparently with residents and each other. By connecting data and processes across disparate systems, Tyler’s solutions strengthen the core operations of government and help agencies turn insight into action for their communities. With nearly 47,000 successful installations across 15,000 locations, Tyler serves clients in all 50 states, Canada, the Caribbean, Australia, and other international locations. Tyler has been recognized numerous times for growth and innovation, including on Government Technology’s GovTech 100 list. More information about Tyler Technologies, an S&P 500 company headquartered in Plano, Texas, can be found at tylertech.com.
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Growth ScoreWhile good value is important, growth investors are more focused on a company's financial strength and health, and its future outlook. The Growth Style Score takes projected and historic earnings, sales, and cash flow into account to uncover stocks that will see long-term, sustainable growth.
Momentum ScoreMomentum trading is all about taking advantage of upward or downward trends in a stock's price or earnings outlook, and these investors live by the saying "the trend is your friend." The Momentum Style Score can pinpoint good times to build a position in a stock, using factors like one-week price change and the monthly percentage change in earnings estimates.
VGM ScoreIf you like to use all three kinds of investing, then the VGM Score is for you. It's a combination of all Style Scores, and is an important indicator to use with the Zacks Rank. The VGM Score rates each stock on their shared weighted styles, narrowing down the companies with the most attractive value, best growth forecast, and most promising momentum.
How Style Scores Work with the Zacks Rank The Zacks Rank, which is a proprietary stock-rating model, employs earnings estimate revisions, or changes to a company's earnings expectations, to make building a winning portfolio easier.
It's highly successful, with #1 (Strong Buy) stocks producing an unmatched +23.7% average annual return since 1988. That's more than double the S&P 500. But because of the large number of stocks we rate, there are over 200 companies with a Strong Buy rank, plus another 600 with a #2 (Buy) rank, on any given day.
But it can feel overwhelming to pick the right stocks for you and your investing goals with over 800 top-rated stocks to choose from.
That's where the Style Scores come in.
To have the best chance of big returns, you'll want to always consider stocks with a Zacks Rank #1 or #2 that also have Style Scores of A or B, which will give you the highest probability of success. If you're looking at stocks with a #3 (Hold) rank, it's important they have Scores of A or B as well to ensure as much upside potential as possible.
As mentioned above, the Scores are designed to work with the Zacks Rank, so any change to a company's earnings outlook should be a deciding factor when picking which stocks to buy.
For instance, a stock with a #4 (Sell) or #5 (Strong Sell) rating, even one that boasts Scores of A and B, still has a downward-trending earnings forecast, and a much greater likelihood its share price will decline as well.
Thus, the more stocks you own with a #1 or #2 Rank and Scores of A or B, the better.
Stock to Watch: Tyler Technologies (TYL - Free Report) Tyler Technologies is a leading provider of integrated information-management solutions and services for the public sector.
TYL is a #3 (Hold) on the Zacks Rank, with a VGM Score of B.
Additionally, the company could be a top pick for growth investors. TYL has a Growth Style Score of A, forecasting year-over-year earnings growth of 11.5% for the current fiscal year.
Seven analysts revised their earnings estimate higher in the last 60 days for fiscal 2026, while the Zacks Consensus Estimate has increased $0.09 to $12.61 per share. TYL also boasts an average earnings surprise of +2%.
With a solid Zacks Rank and top-tier Growth and VGM Style Scores, TYL should be on investors' short list.
Municipality of Anchorage will deliver seamless, secure payment services to nearly 300,000 residents
PLANO, Texas--(BUSINESS WIRE)--Tyler Technologies, Inc (NYSE: TYL) today announced the Municipality of Anchorage, Alaska, has selected Tyler’s enterprise Payments platform to streamline and manage the entire payments life cycle, from billing to presentment, revenue collection, fund settlement, financial reconciliation, and reporting.
The cloud-based platform will enable Anchorage to centralize revenue collection operations, improve financial visibility, and deliver a modern, user-friendly payment experience for residents and businesses.
“We are committed to enhancing the way residents interact with our services while improving efficiency across the municipality,” said Lance Wilbur, chief fiscal officer, Municipality of Anchorage. “Expanding our relationship with Tyler to include enterprise Payments allows us to offer a more convenient, accessible, and seamless payment experience for our community.”
With Tyler’s Payments solution, Anchorage will provide residents with flexible, secure payment options, self-service capabilities, and real-time account updates, while equipping staff with tools to increase accuracy, transparency, and operational efficiency.
Key benefits of the solution include:
Multiple convenient payment channels, including online, mobile, and in-person Real-time payment processing and resident account updates Enhanced security and compliance through a trusted, scalable platform Streamlined financial reconciliation and comprehensive reporting capabilities Anchorage currently uses Tyler’s Enterprise Assessment & Tax, Property Access, and SmartFile solutions. Officially incorporated in 1920, the Municipality of Anchorage is Alaska’s largest city and home to nearly 40% of the state’s population. The municipality remains focused on modernizing operations and delivering high-quality services to its diverse community.
“After successfully using Tyler’s products for more than eight years, expanding Anchorage’s use of Tyler solutions enhances how residents interact with government,” said Ryan O’Connor, chief transactions officer. “By implementing enterprise Payments, Anchorage will gain greater control and visibility over its revenue processes while delivering a modern, frictionless payment experience for its residents.”
About Tyler Technologies, Inc.
Tyler Technologies (NYSE: TYL) is a leading provider of technology solutions purpose-built exclusively for the public sector. Tyler’s end-to-end solutions empower local, state, and federal government entities to operate efficiently and transparently with residents and each other. By connecting data and processes across disparate systems, Tyler’s solutions strengthen the core operations of government and help agencies turn insight into action for their communities. With nearly 47,000 successful installations across 15,000 locations, Tyler serves clients in all 50 states, Canada, the Caribbean, Australia, and other international locations. Tyler has been recognized numerous times for growth and innovation, including on Government Technology’s GovTech 100 list. More information about Tyler Technologies, an S&P 500 company headquartered in Plano, Texas, can be found at tylertech.com.
Alaska's Largest City Selects Tyler Technologies to Modernize Resident Payment Experience Tyler Technologies, Inc (NYSE: TYL) today announced the Municipality of Anchorage, Alaska, has selected Tyler’s enterprise Payments platform to streamline and manage the entire payments life cycle, from billing to presentment, revenue collection, fund settlement, financial reconciliation, and reporting.
The cloud-based platform will enable Anchorage to centralize revenue collection operations, improve financial visibility, and deliver a modern, user-friendly payment experience for residents and businesses.
“We are committed to enhancing the way residents interact with our services while improving efficiency across the municipality,” said Lance Wilbur, chief fiscal officer, Municipality of Anchorage. “Expanding our relationship with Tyler to include enterprise Payments allows us to offer a more convenient, accessible, and seamless payment experience for our community.”
With Tyler’s Payments solution, Anchorage will provide residents with flexible, secure payment options, self-service capabilities, and real-time account updates, while equipping staff with tools to increase accuracy, transparency, and operational efficiency.
Key benefits of the solution include:
Multiple convenient payment channels, including online, mobile, and in-person Real-time payment processing and resident account updates Enhanced security and compliance through a trusted, scalable platform Streamlined financial reconciliation and comprehensive reporting capabilities Anchorage currently uses Tyler’s Enterprise Assessment & Tax, Property Access, and SmartFile solutions. Officially incorporated in 1920, the Municipality of Anchorage is Alaska’s largest city and home to nearly 40% of the state’s population. The municipality remains focused on modernizing operations and delivering high-quality services to its diverse community.
“After successfully using Tyler’s products for more than eight years, expanding Anchorage’s use of Tyler solutions enhances how residents interact with government,” said Ryan O’Connor, chief transactions officer. “By implementing enterprise Payments, Anchorage will gain greater control and visibility over its revenue processes while delivering a modern, frictionless payment experience for its residents.”
About Tyler Technologies, Inc.
Tyler Technologies (NYSE: TYL) is a leading provider of technology solutions purpose-built exclusively for the public sector. Tyler’s end-to-end solutions empower local, state, and federal government entities to operate efficiently and transparently with residents and each other. By connecting data and processes across disparate systems, Tyler’s solutions strengthen the core operations of government and help agencies turn insight into action for their communities. With nearly 47,000 successful installations across 15,000 locations, Tyler serves clients in all 50 states, Canada, the Caribbean, Australia, and other international locations. Tyler has been recognized numerous times for growth and innovation, including on Government Technology’s GovTech 100 list. More information about Tyler Technologies, an S&P 500 company headquartered in Plano, Texas, can be found at tylertech.com.
#TYL_Financial
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Klimas Brings Deep Cannabis Regulatory Expertise as Founder of Leaf Street Strategies and Former Executive Director of the Nevada Cannabis Compliance Board
Tonner Adds Decades of Strategic Communications and Public Affairs Experience as Managing Partner of Fulcrum Group
DENVER, May 28, 2026 (GLOBE NEWSWIRE) -- SHF Holdings, Inc., d/b/a Safe Harbor Financial ("Safe Harbor" or "the Company") (NASDAQ: SHFS), a leading fintech platform serving the banking, lending, and financial services needs of the regulated cannabis and hemp industries, today highlighted the appointment of both Tyler Klimas and Sean Tonner to its Board of Directors (the “Board”) on April 22, 2026. The appointments expand the Board from five to six members. Mr. Klimas has been appointed to the Audit Committee, the Compensation Committee, and the Nominating and Corporate Governance Committee, and will serve as Chairman of the Nominating and Corporate Governance Committee. Mr. Tonner has been appointed to the Compensation Committee and the Nominating and Corporate Governance Committee, and will serve as Chairman of the Compensation Committee.
The Company also notes that Richard Carleton previously informed the Board of his decision not to seek reelection at the Company's 2026 annual meeting of stockholders (the “Annual Meeting”). Mr. Carleton's decision is not the result of any disagreement with the Company on any matter relating to its operations, policies or practices. The Company thanks Mr. Carleton for his service and contributions to the Board. “Richard has been an outstanding addition the Board, and we thank him for his tremendous insights and appreciate everything he has done for the Company,” said Fred Niehaus, Chairman of the Board of Directors.
"Tyler and Sean bring exactly the kind of experience that strengthens our ability to execute on the opportunity in front of us," continued Mr. Niehaus. "Tyler's background at the intersection of cannabis regulation and federal policy is directly relevant as the regulatory environment continues to evolve, and Sean's experience advising governments and major organizations on strategic communications and public affairs adds an important dimension to our Board as the Company grows its platform and expands its market presence. We are pleased to welcome them both."
Mr. Klimas is the founder of Leaf Street Strategies, a Washington, D.C.-based consulting and regulatory affairs firm specializing in cannabis and hemp policy, regulatory strategy and market development. Prior to founding Leaf Street Strategies, Mr. Klimas served as the first Executive Director of the Nevada Cannabis Compliance Board, where he designed and led the agency responsible for regulating Nevada's billion-dollar medical and adult-use cannabis markets. Mr. Klimas is a co-founder and former President of the Cannabis Regulators Association (CANNRA), a nonprofit comprising cannabis regulators from more than 45 U.S. states and territories, Canada and the Netherlands. He previously served as Nevada's chief federal lobbyist under Governors Brian Sandoval and Steve Sisolak.
"Safe Harbor has played a foundational role in building the infrastructure that allows cannabis businesses to operate with financial legitimacy," said Mr. Klimas. "I look forward to contributing to the Company's continued growth at a time when the regulatory landscape is shifting in ways that create significant opportunity for the platform Safe Harbor has built."
Mr. Tonner has served as Managing Partner at Fulcrum Group since December 2017 and is a seasoned strategic communications and public affairs leader with experience advising governments and corporations globally. He has served in senior staff roles for Presidents, Prime Ministers and Governors, and brings extensive experience in high-profile political campaigns, global reputation management for major brands and leadership roles across Colorado business and civic organizations. Mr. Tonner is a U.S. Army veteran and was awarded the Army Commendation Medal for Valor during Operation Desert Storm.
"Safe Harbor is building something genuinely differentiated in a market that is maturing rapidly," said Mr. Tonner. "I am excited to join the Board and support the Company's leadership as it grows its platform and advances its position as the financial partner of choice for the cannabis industry."
About Safe Harbor
Safe Harbor is a cannabis-exclusive financial platform delivering smarter banking, lending, payments and business services tailored to how the cannabis industry actually operates. As one of the original pioneers of compliant cannabis banking in the U.S., Safe Harbor has facilitated more than $36 billion in cannabis-related transactions across 41 states and territories. Through its proprietary Cannabis Banking Solutions™ Platform and network of regulated financial institution partners, Safe Harbor empowers cannabis operators to gain clarity, control and confidence in their financial operations. From daily banking to long-term growth, Safe Harbor provides real solutions and personal support built exclusively for cannabis. Safe Harbor is a financial technology company, not a bank. Banking services are provided by our partner financial institutions. For more information, visit www.SHFinancial.org.
Certain information contained in this press release may contain "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. Statements other than statements of historical facts included herein may constitute forward-looking statements and are not guarantees of future performance or results and involve a number of risks and uncertainties. Forward-looking statements are predictions, projections and other statements about future events that are based on current expectations and assumptions and, as a result, are subject to risks and uncertainties. Forward-looking statements may include, but are not limited to, statements with respect to trends in the cannabis industry, including proposed changes in U.S. and state laws, rules, regulations and guidance relating to Safe Harbor’s services; Safe Harbor’s growth prospects and Safe Harbor’s market size; Safe Harbor’s projected financial and operational performance, including relative to its competitors and historical performance; success or viability of new product and service offerings Safe Harbor may introduce in the future; the impact volatility in the capital markets, which may adversely affect the price of Safe Harbor’s securities; the outcome of any legal proceedings that have been or may be brought by or against Safe Harbor; and other statements regarding Safe Harbor’s expectations, hopes, beliefs, intentions or strategies regarding the future. In addition, any statements that refer to projections, forecasts or other characterizations of future events or circumstances, including any underlying assumptions, are forward-looking statements. The words “anticipate,” “believe,” “continue,” “could,” “estimate,” “expect,” “intends,” “outlook,” “may,” “might,” “plan,” “possible,” “potential,” “predict,” “project,” “should,” “would,” and similar expressions may identify forward-looking statements, but the absence of these words does not mean that a statement is not forward-looking. Forward-looking statements are predictions, projections and other statements about future events that are based on current expectations and assumptions and, as a result, are subject to risks and uncertainties. Actual results may differ materially from those in the forward-looking statements as a result of a number of factors, including those described from time to time in Safe Harbor's filings with the U.S. Securities and Exchange Commission (the “SEC”). Safe Harbor undertakes no duty to update any forward-looking statement made herein. All forward-looking statements speak only as of the date of this press release.
Important Additional Information Regarding Proxy Solicitation
The Company filed a definitive proxy statement with the SEC on May 8, 2026 (as supplemented, the "Proxy Statement") in connection with the Annual Meeting. Except as specifically supplemented by the information contained herein (this "Supplement"), all information set forth in the Proxy Statement remains unchanged. From and after the date of this Supplement, all references to the "Proxy Statement" are to the Proxy Statement as supplemented by this Supplement. The Proxy Statement contains important information, and this Supplement should be read in conjunction with the Proxy Statement.
A month has gone by since the last earnings report for Tyler Technologies (TYL - Free Report) . Shares have lost about 10.3% in that time frame, underperforming the S&P 500.
But investors have to be wondering, will the recent negative trend continue leading up to its next earnings release, or is Tyler Technologies due for a breakout? Well, first let's take a quick look at its most recent earnings report in order to get a better handle on the recent drivers for Tyler Technologies, Inc. before we dive into how investors and analysts have reacted as of late.
Tyler Technologies Q1 Earnings Beat Estimates, Revenues Rise Y/YTyler Technologies delivered a solid first quarter of 2026, with non-GAAP earnings of $3.09 per share, which rose 11.2% year over year and beat the Zacks Consensus Estimate by 2.7%.
Tyler Technologies’ revenues increased 8.6% year over year to $613.5 million, topping the consensus mark by 0.64%.
The quarter’s performance was supported by accelerating bookings and continued momentum in cloud and AI-enabled offerings. Annualized recurring revenue (ARR) was $2.15 billion, up 10.4%, underscoring the durability of Tyler Technologies’ subscription-led model.
TYL’s Recurring Base Deepens in Q1Recurring revenues increased 10.4% year over year to $538.6 million and represented 87.8% of total revenues, up from 86.3% in the year-ago quarter. Subscription revenues rose 14.6% to $429.8 million, keeping the revenue base tilted toward more predictable streams.
Management said quarterly recurring and total revenues reached new record highs, reflecting strong execution across strategic priorities and improving operating leverage from a cloud-optimized platform.
Tyler Technologies' SaaS Engine Stays Hot as Deals ExpandSaaS revenues grew 23.5% year over year to $222.4 million, extending the company’s streak of 20% or greater SaaS growth to 21 consecutive quarters. Transaction revenues increased 6.4% to $207.4 million, with Tyler Technologies noting that revenues under the Texas payments contract ended in the fourth quarter of 2025.
Excluding the impact of the Texas payments contract, transaction revenues grew 13.8%, subscription revenues rose 18.6% and total revenues increased 11.0%, pointing to healthier underlying demand and volume trends in the transactions portfolio.
Total bookings rose 10.1% year over year to $543 million, a record for first-quarter bookings. Total SaaS bookings jumped 40.4% to approximately $207 million in total contract value, reflecting strength across new deals, expansions, renewals and on-premises flips.
TYL Lifts Profitability on Mix and Cloud EfficiencyNon-GAAP operating income increased 10% year over year to $166.6 million, while non-GAAP operating margin expanded 40 basis points to 27.2%. Tyler Technologies attributed the margin improvement to a shift toward higher-margin SaaS and transaction revenues, alongside efficiency gains across cloud operations and disciplined expense management.
Adjusted EBITDA rose 9.3% to $177.3 million, reflecting the same mix and efficiency tailwinds that management emphasized in prepared remarks.
TYL Converts Growth to Cash at a Faster ClipCash flows from operations climbed 91% year over year to $107.3 million. Free cash flow more than doubled to $102.8 million, up 112.9%, and free cash flow margin expanded to 16.8% from 8.5% in the year-ago quarter.
TYL Highlights Capital Returns and a Clean Balance SheetTyler Technologies repaid $600 million of convertible debt at maturity in March and ended the quarter with cash and investments of approximately $398 million and no debt on the balance sheet.
The company repurchased 799,856 shares for about $250 million during the quarter and bought an additional 298,144 shares for roughly $97 million from the end of the first quarter through April 29. Year to date, TYL said that it has repurchased about 2.5% of shares outstanding, with roughly $653 million remaining under its current authorization.
TYL Updates 2026 Outlook After for the Record DealFor full-year 2026, Tyler Technologies guided total revenues to be between $2.535 billion and $2.575 billion.
TYL’s non-GAAP earnings per share are projected to be between $12.50 and $12.75.
The company also projected a free cash flow margin of 26-28%, with R&D expense of $245-$250 million and capital expenditures of $18-$20 million.
The updated outlook includes the acquisition of For The Record, which closed on April 14 for approximately $223 million in cash. Management said the deal adds legal-grade speech-to-text and real-time, multilingual transcription capabilities to Tyler Technologies’ Courts & Justice portfolio and is expected to shift toward more recurring revenues as its SaaS transition progresses.
How Have Estimates Been Moving Since Then?It turns out, estimates review have trended downward during the past month.
VGM ScoresCurrently, Tyler Technologies has a great Growth Score of A, though it is lagging a lot on the Momentum Score front with a C. Charting a somewhat similar path, the stock has a score of D on the value side, putting it in the bottom 40% for this investment strategy.
Overall, the stock has an aggregate VGM Score of B. If you aren't focused on one strategy, this score is the one you should be interested in.
OutlookEstimates have been broadly trending downward for the stock, and the magnitude of these revisions looks promising. Interestingly, Tyler Technologies has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.
Performance of an Industry PlayerTyler Technologies belongs to the Zacks Internet - Software and Services industry. Another stock from the same industry, VeriSign (VRSN - Free Report) , has gained 10.2% over the past month. More than a month has passed since the company reported results for the quarter ended March 2026.
VeriSign reported revenues of $428.9 million in the last reported quarter, representing a year-over-year change of +6.6%. EPS of $2.34 for the same period compares with $2.10 a year ago.
VeriSign is expected to post earnings of $2.37 per share for the current quarter, representing a year-over-year change of +7.2%. Over the last 30 days, the Zacks Consensus Estimate remained unchanged.
The overall direction and magnitude of estimate revisions translate into a Zacks Rank #4 (Sell) for VeriSign. Also, the stock has a VGM Score of B.
On June 02, 2026, Tyler Technologies Inc TYL shares fell 4.9% to $313.56, continuing a challenging year that has seen the stock decline by 30.9% year-to-date and 44.5% over the past year. The stock has fluctuated between a 52-week high of $621.34 and a low of $283.72, indicating significant volatility and investor uncertainty.
GF Value™ verdict: TYL is currently priced at $313.56, which is 42.6% below its GF Value™ estimate of $545.98, indicating it may be undervalued.GF Score™: With a strong GF Score™ of 81/100, TYL demonstrates solid financial health and growth potential.Most notable signal: The financial strength score of 9/10 suggests robust balance sheet metrics, although insider activity reveals that insiders sold $2.7 million in shares over the last three months. Is TYL Overvalued or Undervalued? Tyler Technologies Inc's current price of $313.56 is significantly below the GF Value™ estimate of $545.98, indicating the stock is undervalued by 42.6%. This margin of safety presents a potential opportunity for investors looking for undervalued stocks in the software sector. According to GuruFocus' proprietary measure of intrinsic value, the GF Value™ is calculated from historical trading multiples, past business growth, and future performance estimates, which provides a comprehensive view of a company's worth.
While the undervaluation suggests potential upside, it is essential to consider the risks involved. The GF Valuation label of "Significantly Undervalued" implies that the market may not currently recognize the company’s intrinsic value, and factors such as recent insider selling or poor momentum could indicate caution is warranted. Investors should weigh these risks against the valuation opportunity presented by the current price.
How Does TYL's Valuation Compare to Its History? Metric Current Historical P/E (TTM) 43.3x 99.5x Forward P/E 24.8x N/A Tyler Technologies' current P/E (TTM) ratio of 43.3x is significantly below its 5-year median of 99.5x, indicating the stock is trading at a much lower valuation compared to its historical performance. The forward P/E of 24.8x also suggests a more favorable outlook compared to the trailing earnings multiple. This P/E analysis aligns with the GF Value™ verdict that TYL is undervalued, reinforcing the notion that the stock may present a buying opportunity relative to its own historical valuation metrics.
What Does TYL's GF Score™ Tell Us? Metric Rating GF Score™ 81/100 Financial Strength 9/10 Profitability 9/10 Growth 10/10 Valuation 4/10 Momentum 1/10 The GF Score™ of 81/100 reflects a strong overall performance across several key metrics. Tyler Technologies excels in growth (10/10) and financial strength (9/10), suggesting a solid foundation for future expansion and resilience against market downturns. However, the valuation rank of 4/10 indicates that while the stock may be fundamentally strong, its current price does not reflect its historical earnings potential as favorably. The momentum rank of 1/10 highlights a bearish trend, which may concern potential investors looking for stocks with upward price trajectories.
What Are Insiders Doing with TYL Stock? In the past three months, insiders at Tyler Technologies sold $2.7 million worth of shares, with no reported buying activity during the same period. This selling pattern could suggest a lack of confidence among insiders regarding the stock's immediate prospects. While insider selling does not necessarily indicate that the company is in trouble, it may lead to increased scrutiny from potential investors who typically prefer to see insider buying as a sign of confidence in the company’s future performance.
What This Means for Investors Based on the analysis of GF Value™, Tyler Technologies Inc TYL is currently undervalued. The significant disparity between the current price and the estimated intrinsic value suggests that there may be a favorable investment opportunity, although caution is warranted due to the recent insider selling and momentum issues.
For the complete analysis, visit the Tyler Technologies Inc TYL stock page. You can also explore the GF Value™ page for detailed valuation methodology, or use the GuruFocus Stock Screener to find similar opportunities.
Frequently Asked Questions What is TYL's GF Score™?
TYL has a GF Score™ of 81/100, indicating strong performance in critical areas such as financial strength and growth.
Is TYL overvalued or undervalued?
Based on the GF Value™ verdict, TYL is currently undervalued, with a significant margin between its current price and its estimated intrinsic value.
What is TYL's P/E ratio?
TYL's P/E (TTM) ratio is 43.3x, which is significantly lower than its 5-year median of 99.5x, indicating a historical undervaluation.
This stock alert was generated using automated technology and GuruFocus financial data to provide readers with timely and accurate market reporting. This content was reviewed by GuruFocus editorial team prior to publication. Please send any questions or comments about this story to [email protected].
PLANO, Texas--(BUSINESS WIRE)--Tyler Technologies, Inc. (NYSE: TYL) announced two notable additions to its corporate executive leadership structure with the introduction of a chief artificial intelligence officer and chief transactions officer. The new roles support the evolving needs of Tyler’s public sector clients and allow Tyler to sharpen its focus on both AI and transactions.
“The newly created roles of chief artificial intelligence officer and chief transactions officer underscore our commitment to advancing two key growth areas for Tyler – AI and payments,” said Lynn Moore, Tyler’s president and CEO. “I am confident that these leaders will help our teams focus on continuous innovation and collaboration to best serve Tyler’s clients and team members.”
Franklin Williams has been elevated to the newly created role of Chief Artificial Intelligence Officer (CAIO). Since joining Tyler in 2018 as part of Tyler’s acquisition of Socrata, Williams has served as division president and, most recently, as Deputy Chief Technology Officer. In this expanded role, he will lead a newly formed AI organization dedicated to helping Tyler and our clients realize the full value of AI. This includes how Tyler continues to bring AI capabilities into its products, operations, and internal workflows in a thoughtful, responsible way. The team will continue to establish shared AI platforms and standards, support go-to-market efforts across business units and help the company adopt AI where it can create real value for clients and team members.
In addition to the new role of CAIO, Tyler has also promoted Ryan O’Connor from Senior Vice President of payment strategy and operations to Chief Transactions Officer. Since joining Tyler in 2025, O’Connor has brought deep expertise and steady leadership to one of the most complex and fast-growing areas of Tyler’s business. O’Connor brings more than 30 years of experience in the payments and SaaS markets, with executive leadership roles at some of the top payment processors, banks, and fintech companies in the U.S. In this elevated role, he will continue to advise the executive leadership team on transactions growth and oversee Tyler’s vendor partnerships while leading the company’s payments and holistic transactions strategy.
About Tyler Technologies, Inc.
Tyler Technologies (NYSE: TYL) is a leading provider of technology solutions purpose-built exclusively for the public sector. Tyler’s end-to-end solutions empower local, state, and federal government entities to operate efficiently and transparently with residents and each other. By connecting data and processes across disparate systems, Tyler’s solutions strengthen the core operations of government and help agencies turn insight into action for their communities. With nearly 47,000 successful installations across 15,000 locations, Tyler serves clients in all 50 states, Canada, the Caribbean, Australia, and other international locations. Tyler has been recognized numerous times for growth and innovation, including on Government Technology’s GovTech 100 list. More information about Tyler Technologies, an S&P 500 company headquartered in Plano, Texas, can be found at tylertech.com.
Tyler Technologies, Inc. (NYSE: TYL) announced two notable additions to its corporate executive leadership structure with the introduction of a chief artificial intelligence officer and chief transactions officer. The new roles support the evolving needs of Tyler’s public sector clients and allow Tyler to sharpen its focus on both AI and transactions.
“The newly created roles of chief artificial intelligence officer and chief transactions officer underscore our commitment to advancing two key growth areas for Tyler – AI and payments,” said Lynn Moore, Tyler’s president and CEO. “I am confident that these leaders will help our teams focus on continuous innovation and collaboration to best serve Tyler’s clients and team members.”
Franklin Williams has been elevated to the newly created role of Chief Artificial Intelligence Officer (CAIO). Since joining Tyler in 2018 as part of Tyler’s acquisition of Socrata, Williams has served as division president and, most recently, as Deputy Chief Technology Officer. In this expanded role, he will lead a newly formed AI organization dedicated to helping Tyler and our clients realize the full value of AI. This includes how Tyler continues to bring AI capabilities into its products, operations, and internal workflows in a thoughtful, responsible way. The team will continue to establish shared AI platforms and standards, support go-to-market efforts across business units and help the company adopt AI where it can create real value for clients and team members.
In addition to the new role of CAIO, Tyler has also promoted Ryan O’Connor from Senior Vice President of payment strategy and operations to Chief Transactions Officer. Since joining Tyler in 2025, O’Connor has brought deep expertise and steady leadership to one of the most complex and fast-growing areas of Tyler’s business. O’Connor brings more than 30 years of experience in the payments and SaaS markets, with executive leadership roles at some of the top payment processors, banks, and fintech companies in the U.S. In this elevated role, he will continue to advise the executive leadership team on transactions growth and oversee Tyler’s vendor partnerships while leading the company’s payments and holistic transactions strategy.
About Tyler Technologies, Inc.
Tyler Technologies (NYSE: TYL) is a leading provider of technology solutions purpose-built exclusively for the public sector. Tyler’s end-to-end solutions empower local, state, and federal government entities to operate efficiently and transparently with residents and each other. By connecting data and processes across disparate systems, Tyler’s solutions strengthen the core operations of government and help agencies turn insight into action for their communities. With nearly 47,000 successful installations across 15,000 locations, Tyler serves clients in all 50 states, Canada, the Caribbean, Australia, and other international locations. Tyler has been recognized numerous times for growth and innovation, including on Government Technology’s GovTech 100 list. More information about Tyler Technologies, an S&P 500 company headquartered in Plano, Texas, can be found at tylertech.com.
#TYL_General
View source version on businesswire.com: https://www.businesswire.com/news/home/20260604638489/en/
Investors looking for stocks in the Internet - Software and Services sector might want to consider either NetEase (NTES - Free Report) or Tyler Technologies (TYL - Free Report) . But which of these two stocks presents investors with the better value opportunity right now? Let's take a closer look.
We have found that the best way to discover great value opportunities is to pair a strong Zacks Rank with a great grade in the Value category of our Style Scores system. The Zacks Rank favors stocks with strong earnings estimate revision trends, and our Style Scores highlight companies with specific traits.
Currently, NetEase has a Zacks Rank of #1 (Strong Buy), while Tyler Technologies has a Zacks Rank of #3 (Hold). This means that NTES's earnings estimate revision activity has been more impressive, so investors should feel comfortable with its improving analyst outlook. However, value investors will care about much more than just this.
Value investors also tend to look at a number of traditional, tried-and-true figures to help them find stocks that they believe are undervalued at their current share price levels.
Our Value category grades stocks based on a number of key metrics, including the tried-and-true P/E ratio, the P/S ratio, earnings yield, and cash flow per share, as well as a variety of other fundamentals that value investors frequently use.
NTES currently has a forward P/E ratio of 12.54, while TYL has a forward P/E of 24.06. We also note that NTES has a PEG ratio of 1.43. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. TYL currently has a PEG ratio of 1.60.
Another notable valuation metric for NTES is its P/B ratio of 3.09. Investors use the P/B ratio to look at a stock's market value versus its book value, which is defined as total assets minus total liabilities. By comparison, TYL has a P/B of 3.6.
These are just a few of the metrics contributing to NTES's Value grade of B and TYL's Value grade of D.
NTES has seen stronger estimate revision activity and sports more attractive valuation metrics than TYL, so it seems like value investors will conclude that NTES is the superior option right now.
PLANO, Texas--(BUSINESS WIRE)--Tyler Technologies, Inc. (NYSE: TYL) hosted an Investor Day for institutional investors and financial analysts today, June 9, 2026, in Frisco, Texas.
“We were pleased to host investors and analysts at Tyler’s Investor Day and provide an in-depth look at the company’s long-term strategic vision,” said Lynn Moore, president and chief executive officer of Tyler. “The event highlighted the continued momentum behind our strategic growth initiatives and reinforced our commitment to delivering sustained value for our clients, employees, and shareholders as we advance toward our 2030 targets.”
The event included presentations by Lynn Moore and members of the senior leadership team and featured Q&A sessions with attendees. Presentations focused on Tyler’s next phase of SaaS growth, differentiated transactions platform, AI strategy, and overall strategic growth roadmap. Speakers also discussed the company’s updated long-term financial targets and capital allocation framework supporting Tyler’s 2030 vision.
An archived replay of the Investor Day presentation, along with supporting materials, is now available for access at the Events & Presentations section of Tyler’s investor relations website.
About Tyler Technologies, Inc.
Tyler Technologies (NYSE: TYL) is a leading provider of technology solutions purpose-built exclusively for the public sector. Tyler’s end-to-end solutions empower local, state, and federal government entities to operate efficiently and transparently with residents and each other. By connecting data and processes across disparate systems, Tyler’s solutions strengthen the core operations of government and help agencies turn insight into action for their communities. With more than 50,000 installations across 16,000 client locations, Tyler serves clients in all 50 states, Canada, the Caribbean, Australia, and other international locations. Tyler has been recognized numerous times for growth and innovation, including on Government Technology’s GovTech 100 list. More information about Tyler Technologies, an S&P 500 company headquartered in Plano, Texas, can be found at tylertech.com.
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What are the Zacks Style Scores? Developed alongside the Zacks Rank, the Zacks Style Scores are a group of complementary indicators that help investors pick stocks with the best chances of beating the market over the next 30 days.
Based on their value, growth, and momentum characteristics, each stock is assigned a rating of A, B, C, D, or F. The better the score, the better chance the stock will outperform; an A is better than a B, a B is better than a C, and so on.
The Style Scores are broken down into four categories:
Value ScoreFor value investors, it's all about finding good stocks at good prices, and discovering which companies are trading under their true value before the broader market catches on. The Value Style Score utilizes ratios like P/E, PEG, Price/Sales, Price/Cash Flow, and a host of other multiples to help pick out the most attractive and discounted stocks.
Growth ScoreGrowth investors, on the other hand, are more concerned with a company's financial strength and health, and its future outlook. The Growth Style Score examines things like projected and historic earnings, sales, and cash flow to find stocks that will experience sustainable growth over time.
Momentum ScoreMomentum trading is all about taking advantage of upward or downward trends in a stock's price or earnings outlook, and these investors live by the saying "the trend is your friend." The Momentum Style Score can pinpoint good times to build a position in a stock, using factors like one-week price change and the monthly percentage change in earnings estimates.
VGM ScoreIf you want a combination of all three Style Scores, then the VGM Score will be your friend. It rates each stock on their combined weighted styles, helping you find the companies with the most attractive value, best growth forecast, and most promising momentum. It's also one of the best indicators to use with the Zacks Rank.
How Style Scores Work with the Zacks Rank The Zacks Rank is a proprietary stock-rating model that harnesses the power of earnings estimate revisions, or changes to a company's earnings expectations, to help investors build a successful portfolio.
It's highly successful, with #1 (Strong Buy) stocks producing an unmatched +23.7% average annual return since 1988. That's more than double the S&P 500. But because of the large number of stocks we rate, there are over 200 companies with a Strong Buy rank, plus another 600 with a #2 (Buy) rank, on any given day.
This totals more than 800 top-rated stocks, and it can be overwhelming to try and pick the best stocks for you and your portfolio.
That's where the Style Scores come in.
To have the best chance of big returns, you'll want to always consider stocks with a Zacks Rank #1 or #2 that also have Style Scores of A or B, which will give you the highest probability of success. If you're looking at stocks with a #3 (Hold) rank, it's important they have Scores of A or B as well to ensure as much upside potential as possible.
The direction of a stock's earnings estimate revisions should always be a key factor when choosing which stocks to buy, since the Scores were created to work together with the Zacks Rank.
A stock with a #4 (Sell) or #5 (Strong Sell) rating, for instance, even one with Scores of A and B, will still have a declining earnings forecast, and a greater chance its share price will fall too.
Thus, the more stocks you own with a #1 or #2 Rank and Scores of A or B, the better.
Stock to Watch: Tyler Technologies (TYL - Free Report) Tyler Technologies is a leading provider of integrated information-management solutions and services for the public sector.
TYL is a #3 (Hold) on the Zacks Rank, with a VGM Score of B.
Additionally, the company could be a top pick for growth investors. TYL has a Growth Style Score of A, forecasting year-over-year earnings growth of 11.7% for the current fiscal year.
For fiscal 2026, eight analysts revised their earnings estimate upwards in the last 60 days, and the Zacks Consensus Estimate has increased $0.11 to $12.63 per share. TYL boasts an average earnings surprise of +2%.
With a solid Zacks Rank and top-tier Growth and VGM Style Scores, TYL should be on investors' short list.
AI's expansion is not solely a mega cap story — it is a multiyear infrastructure cycle supported by smaller companies building, powering and equipping the data center ecosystem. In mechanical construction, distributed power generation and semiconductor and electrical componentry, smaller cap specialists are supplying the essential inputs enabling hyperscaler AI deployment. Investing beyond the headline-grabbing model developers can provide differentiated exposure to sustained AI-driven capital expenditure across construction, energy and enabling technologies without having to bet on a singular technology, developer.
Analog Century Management LP reduced its position in shares of Allegro MicroSystems, Inc. (NASDAQ: ALGM) by 14.3% during the undefined quarter, according to the company in its most recent 13F filing with the Securities and Exchange Commission. The institutional investor owned 1,174,953 shares of the company's stock after selling 196,637 shares during the
Shares of Allegro MicroSystems, Inc. (NASDAQ: ALGM - Get Free Report) have been given an average recommendation of "Moderate Buy" by the twelve brokerages that are covering the firm, MarketBeat Ratings reports. One equities research analyst has rated the stock with a sell rating, one has assigned a hold rating and ten have issued a buy
Allegro MicroSystems (NASDAQ:ALGM – Get Free Report) and Impinj (NASDAQ:PI – Get Free Report) are both mid-cap computer and technology companies, but which is the better business? We will compare the two businesses based on the strength of their profitability, dividends, institutional ownership, earnings, valuation, risk and analyst recommendations.
Profitability This table compares Allegro MicroSystems and Impinj’s net margins, return on equity and return on assets.
Net Margins Return on Equity Return on Assets Allegro MicroSystems -1.57% 4.35% 2.92% Impinj -3.00% 8.49% 3.11% Institutional & Insider Ownership 56.5% of Allegro MicroSystems shares are owned by institutional investors. 0.4% of Allegro MicroSystems shares are owned by company insiders. Comparatively, 12.4% of Impinj shares are owned by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company will outperform the market over the long term.
Earnings & Valuation This table compares Allegro MicroSystems and Impinj”s gross revenue, earnings per share and valuation.
Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio Allegro MicroSystems $725.01 million 8.33 -$73.01 million ($0.08) -407.50 Impinj $361.08 million 8.41 -$10.85 million ($0.39) -257.56 Impinj has lower revenue, but higher earnings than Allegro MicroSystems. Allegro MicroSystems is trading at a lower price-to-earnings ratio than Impinj, indicating that it is currently the more affordable of the two stocks.
Volatility and Risk Allegro MicroSystems has a beta of 1.7, meaning that its share price is 70% more volatile than the S&P 500. Comparatively, Impinj has a beta of 1.67, meaning that its share price is 67% more volatile than the S&P 500.
Analyst Recommendations This is a summary of recent recommendations for Allegro MicroSystems and Impinj, as reported by MarketBeat.com.
Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score Allegro MicroSystems 1 1 10 0 2.75 Impinj 2 2 5 0 2.33 Allegro MicroSystems presently has a consensus target price of $45.00, indicating a potential upside of 38.04%. Impinj has a consensus target price of $167.63, indicating a potential upside of 66.87%. Given Impinj’s higher probable upside, analysts clearly believe Impinj is more favorable than Allegro MicroSystems.
About Allegro MicroSystems (Get Free Report)
Allegro MicroSystems, Inc., together with its subsidiaries, designs, develops, manufactures, and markets sensor integrated circuits (ICs) and application-specific analog power ICs for motion control and energy-efficient systems. Its products include magnetic sensor ICs, such as position, speed, and current sensor ICs; and power ICs comprising motor driver ICs, regulator and LED driver ICs, and isolated gate drivers. The company sells its products to original equipment manufacturers and distributors primarily in the automotive and industrial markets through its direct sales force, third party distributors, independent sales representatives, and consignment. It operates in the United States, rest of the Americas, Europe, Japan, Greater China, South Korea, and other Asian markets. The company was founded in 1990 and is headquartered in Manchester, New Hampshire. Allegro MicroSystems, Inc. is a subsidiary of Sanken Electric Co., Ltd.
About Impinj (Get Free Report)
Impinj, Inc. operates a cloud connectivity platform in the Americas, the Asia Pacific, Europe, the Middle East, and Africa. Its platform wirelessly connects items and delivers data about the connected items to business and consumer applications. The company’s platform comprises endpoint ICs, a miniature radios-on-a-chip that attaches to a host item and includes a number to identify the item. Its platform also consists of systems products that consists of reader ICs, readers, and gateways to wirelessly provide power to and communicate bidirectionally with endpoint ICs on host items, as well as to read, write, authenticate, and engage the endpoint ICs on those items; and software and algorithms that enable its partners to solve enterprise business problems, such as retail self-checkout and loss prevention. The company primarily serves retail, supply chain and logistics, automotive, aviation, banking, datacenters, food, healthcare, industrial and manufacturing, linen and uniform tracking, sports, and travel industries through original equipment and device manufacturers, tag service bureaus, systems integrators, value-added resellers, independent software vendors, and other solution partners. Impinj, Inc. was incorporated in 2000 and is headquartered in Seattle, Washington.
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MANCHESTER, N.H., April 16, 2026 (GLOBE NEWSWIRE) -- Allegro MicroSystems, Inc. (Nasdaq: ALGM) today announced it plans to release financial results for its fourth quarter and fiscal year 2026 prior to the market open on Thursday, May 7, 2026. Following the press release, Mike Doogue, President and Chief Executive Officer, and Derek D’Antilio, Executive Vice President and Chief Financial Officer, will host a conference call at 8:30 a.m. Eastern Time to discuss the Company’s results and business outlook.
Analysts and investors are invited to join the conference call using the following information:
Fourth Quarter and Fiscal Year 2026 Earnings Conference Call
Date: Thursday, May 7, 2026
Time: 8:30 a.m. ET
Live Webcast Link: Click Here
Dial-in Participant Registration Link: Click Here
Advanced registration is required for dial-in participants. Please complete the linked registration form above to receive a dial-in number and dedicated PIN for accessing the conference call.
A live and archived audio webcast of the conference call will also be accessible for at least 90 days on the Company’s website at www.allegromicro.com/investors in the Events & Presentations section.
About Allegro MicroSystems
Allegro MicroSystems, Inc. is leveraging more than three decades of expertise in magnetic sensing and power ICs to propel electrification, automation, AI data center, and robotics forward with solutions that enhance efficiency, performance and sustainability. Allegro’s commitment to quality drives transformation across industries, reinforcing our status as a pioneer in "automotive-grade" technology and a partner in our customers' success. For additional information, visit https://www.allegromicro.com/en/.
Contact: Jalene Hoover
VP of IR & Corporate Communications
Phone: +1 512 751 6526 [email protected]
The stock market dropped Thursday, leaving the S&P 500 and Nasdaq composite just off record highs, but artificial intelligence leaders Allegro MicroSystems (ALGM), Rambus (RMBS) and Silicon Motion Technologies (SIMO) broke out past new buy points during the trading session. After the close, Intel (INTC) surged roughly 16% in extended trade after the chipmaker crushed Wall Street's targets for its…
Entegris (ENTG - Free Report) came out with quarterly earnings of $0.86 per share, beating the Zacks Consensus Estimate of $0.75 per share. This compares to earnings of $0.67 per share a year ago. These figures are adjusted for non-recurring items.
This quarterly report represents an earnings surprise of +14.71%. A quarter ago, it was expected that this maker of equipment used in chip manufacturing would post earnings of $0.67 per share when it actually produced earnings of $0.7, delivering a surprise of +4.48%.
Over the last four quarters, the company has surpassed consensus EPS estimates three times.
Entegris, which belongs to the Zacks Electronics - Semiconductors industry, posted revenues of $811.9 million for the quarter ended March 2026, surpassing the Zacks Consensus Estimate by 0.58%. This compares to year-ago revenues of $773.2 million. The company has topped consensus revenue estimates four times over the last four quarters.
The sustainability of the stock's immediate price movement based on the recently-released numbers and future earnings expectations will mostly depend on management's commentary on the earnings call.
Entegris shares have added about 77.3% since the beginning of the year versus the S&P 500's gain of 4.2%.
What's Next for Entegris?While Entegris has outperformed the market so far this year, the question that comes to investors' minds is: what's next for the stock?
There are no easy answers to this key question, but one reliable measure that can help investors address this is the company's earnings outlook. Not only does this include current consensus earnings expectations for the coming quarter(s), but also how these expectations have changed lately.
Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions. Investors can track such revisions by themselves or rely on a tried-and-tested rating tool like the Zacks Rank, which has an impressive track record of harnessing the power of earnings estimate revisions.
Ahead of this earnings release, the estimate revisions trend for Entegris was favorable. While the magnitude and direction of estimate revisions could change following the company's just-released earnings report, the current status translates into a Zacks Rank #2 (Buy) for the stock. So, the shares are expected to outperform the market in the near future. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.
It will be interesting to see how estimates for the coming quarters and the current fiscal year change in the days ahead. The current consensus EPS estimate is $0.78 on $826.64 million in revenues for the coming quarter and $3.40 on $3.42 billion in revenues for the current fiscal year.
Investors should be mindful of the fact that the outlook for the industry can have a material impact on the performance of the stock as well. In terms of the Zacks Industry Rank, Electronics - Semiconductors is currently in the bottom 41% of the 250 plus Zacks industries. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1.
One other stock from the same industry, Allegro MicroSystems, Inc. (ALGM - Free Report) , is yet to report results for the quarter ended March 2026. The results are expected to be released on May 7.
This company is expected to post quarterly earnings of $0.16 per share in its upcoming report, which represents a year-over-year change of +166.7%. The consensus EPS estimate for the quarter has remained unchanged over the last 30 days.
Allegro MicroSystems, Inc.'s revenues are expected to be $236.26 million, up 22.5% from the year-ago quarter.
Fourth Quarter Sales Increased by 26% Year-over-Year to $243 Million
Fiscal Year 2026 Sales Increased by 23% Year-over-Year to $890 Million
MANCHESTER, N.H., May 07, 2026 (GLOBE NEWSWIRE) -- Allegro MicroSystems, Inc. (“Allegro” or the “Company”) (Nasdaq: ALGM), a global leader in power and sensing semiconductor solutions for motion control and energy efficient systems, today announced financial results for its fourth quarter and full fiscal year ended March 27, 2026.
“We finished fiscal year 2026 with strong momentum, delivering a fifth consecutive quarter of sales growth at $243 million. Non-GAAP EPS nearly tripled year-over-year to $0.17. For the full year, sales grew 23% to $890 million and non-GAAP EPS more than doubled to $0.54. These results reflect strength in Focus Auto sales - including xEV and ADAS – and Data Center, which reached a record 14% of total Q4 sales,” said Mike Doogue, President and CEO of Allegro MicroSystems. “As we enter fiscal 2027, we see demand trends that support continued growth, and remain confident in our ability to execute towards our target financial model.”
Fourth Quarter and Full Fiscal Year 2026 Financial Highlights:
In thousands, except per share dataThree-Month Period Ended Twelve-Month Period Ended March 27,
2026 December 26,
2025 March 28,
2025 March 27,
2026 March 28,
2025 (Unaudited) (Unaudited) (Unaudited) (Unaudited) (Unaudited) Net Sales Automotive$163,909 $164,543 $139,494 $628,561 $535,205 Industrial and Other 79,278 64,667 53,330 261,535 189,801 Total net sales$243,187 $229,210 $192,824 $890,096 $725,006 GAAP Financial Measures Gross margin % 47.0% 46.7% 41.4% 46.3% 44.3%Operating margin % 2.2% 4.2% (6.8)% 2.1% (2.7)%Diluted EPS$(0.09) $0.04 $(0.08) $(0.08) $(0.39)Non-GAAP Financial Measures Gross margin % 50.0% 49.9% 45.6% 49.4% 48.0%Operating margin % 15.6% 15.4% 9.0% 14.1% 9.5%Diluted EPS$0.17 $0.15 $0.06 $0.54 $0.24 Business Outlook
For the first quarter of fiscal year 2027 ending June 26, 2026, the Company expects total net sales to be in the range of
$245 million to $255 million. At the midpoint of this range, it implies growth in net sales of 23% year-over-year.
The Company also estimates the following results on a non-GAAP basis:
Gross Margin is expected to be between 50% and 51%,Operating expenses are expected to be $80 million, plus or minus $2 million, andDiluted Earnings per Share is expected to be between $0.19 and $0.23.
Allegro has not provided a reconciliation of its first fiscal quarter outlook for non-GAAP Gross Margin, non-GAAP Operating Expenses, and non-GAAP Diluted Earnings per Share because estimates of all of the reconciling items cannot be provided without unreasonable efforts. It is difficult to reasonably provide a forward-looking estimate between such forward-looking non-GAAP measures and the comparable forward-looking U.S. generally accepted accounting principles (“GAAP”) measures. Certain factors that are materially significant to Allegro’s ability to estimate these items are out of its control and/or cannot be reasonably predicted.
Earnings Webcast
A webcast will be held on Thursday, May 7, 2026 at 8:30 a.m., Eastern Time. Michael C. Doogue, President and Chief Executive Officer, and Derek P. D’Antilio, Executive Vice President and Chief Financial Officer, will discuss Allegro’s business and financial results.
The webcast will be available on the Investor Relations section of the Company’s website at investors.allegromicro.com. A recording of the webcast will be posted in the same location shortly after the call concludes and will be available for at least 90 days.
About Allegro MicroSystems
Allegro MicroSystems, Inc. is leveraging more than three decades of expertise in magnetic sensing and power ICs to propel electrification, automation, AI data center, and robotics forward with solutions that enhance efficiency, performance and sustainability. Allegro’s commitment to quality drives transformation across industries, reinforcing our status as a pioneer in "automotive-grade" technology and a partner in our customers' success. For additional information, please visit https://www.allegromicro.com.
Forward-Looking Statements
This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. We intend such forward-looking statements to be covered by the safe harbor provisions for forward-looking statements contained in Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. All statements, other than statements of historical facts, contained in this press release including statements regarding our future results of operations and financial position, business strategy, prospective products and the plans and objectives of management for future operations, including, among others, statements regarding the liquidity, growth and profitability strategies and factors and trends affecting our business, including the projected size and growth of markets in which we operate or may operate, are forward-looking statements. These statements involve known and unknown risks, uncertainties and other important factors that may cause our actual results, performance or achievements to be materially different from any future results, performance or achievements expressed or implied by the forward-looking statements.
Without limiting the foregoing, in some cases, you can identify forward-looking statements by terms such as “aim,” “may,” “will,” “should,” “expect,” “exploring,” “plan,” “anticipate,” “could,” “intend,” “target,” “project,” “would,” “contemplate,” “believe,” “estimate,” “predict,” “potential,” “seek,” or “continue” or the negative of these terms or other similar expressions, although not all forward-looking statements contain these words. No forward-looking statement is a guarantee of future results, performance or achievements, and one should avoid placing undue reliance on such statements.
Forward-looking statements are based on our management’s current expectations, beliefs and assumptions and on information currently available to us. Such beliefs and assumptions may or may not prove to be correct. Additionally, such forward-looking statements are subject to a number of known and unknown risks, uncertainties and assumptions, and actual results may differ materially from those expressed or implied in the forward-looking statements due to various factors, including, but not limited to, those identified in Part II, Item 7. “Management’s Discussion and Analysis of Financial Condition and Results of Operations,” and Part I, Item 1A. “Risk Factors” in our Annual Report on Form 10-K for the year ended March 28, 2025, as any such factors may be updated from time to time in our Quarterly Reports on Form 10-Q and our other filings with the Securities and Exchange Commission (the “SEC”). These risks and uncertainties include, but are not limited to: downturns or volatility in general economic conditions; our ability to compete effectively, expand our market share and increase our net sales and profitability; our reliance on a limited number of third-party semiconductor wafer fabrication facilities and suppliers of other materials; any failure to adjust purchase commitments and inventory management based on changing market conditions or customer demand; shifts in our product mix, customer mix or channel mix, which could negatively impact our gross margin; the cyclical nature of the semiconductor industry, including the analog segment in which we compete; any downturn or disruption in the automotive market or industry; our ability to successfully integrate the acquisition of other companies or technologies and products into our business; our ability to compensate for decreases in average selling prices of our products and increases in input costs; our ability to manage any sustained yield problems or other delays at our third-party wafer fabrication facilities or in the final assembly and test of our products; our ability to accurately predict our quarterly net sales and operating results and meet the expectations of investors; our dependence on manufacturing operations in the Philippines; our reliance on distributors to generate sales; events beyond our control impacting us, our key suppliers or our manufacturing partners; our ability to develop new product features or new products in a timely and cost-effective manner; our dependence on growth in the end markets that use our products and the impact that slowdowns in such growth could have on our financial results; the loss of one or more significant customers; our ability to identify, enter and expand in new markets, and to generate returns on such investments; uncertainties related to the design win process and our ability to recover design and development expenses and to generate timely or sufficient net sales or margins; changes in government trade policies, including the imposition of export restrictions and tariffs; our exposures to warranty claims, product liability claims and product recalls; our dependence on international customers and operations; the availability of rebates, tax credits and other financial incentives on end-user demands for certain products; risks, liabilities, costs and obligations related to governmental regulations and other legal obligations, including export/trade control, privacy, data protection, information security, cybersecurity, consumer protection, environmental and occupational health and safety, antitrust, anti-corruption and anti-bribery, product safety, environmental protection, employment matters and tax; the risk of unsolicited acquisition proposals; the volatility of currency exchange rates; our ability to raise capital to support our growth strategy; our indebtedness may limit our flexibility to operate our business; our ability to retain key and highly skilled personnel; the impact of restructuring activities on our business and operating results; our ability to protect our proprietary technology and inventions through patents or trade secrets; our ability to commercialize our products without infringing third-party intellectual property rights; disruptions or breaches of our information technology systems or confidential information or those of our third-party service providers; any failure to maintain effective internal control over financial reporting; changes in tax rates or the adoption of new tax legislation; the negative impacts of sustained inflation on our business; the risks presented by climate change; the risks related to ESG matters; and other events beyond our control. Moreover, we operate in an evolving environment. New risk factors and uncertainties may emerge from time to time, and it is not possible for management to predict all risk factors and uncertainties.
You should read this press release and the documents that we reference completely and with the understanding that our actual future results may be materially different from what we expect. We qualify all of our forward-looking statements by these cautionary statements. All forward-looking statements speak only as of the date of this press release, and except as required by applicable law, we do not plan to publicly update or revise any forward-looking statements, whether as a result of any new information, future events, changed circumstances or otherwise.
This press release includes certain non-GAAP financial measures as defined by the SEC rules. These non-GAAP financial measures are provided in addition to, and not as a substitute for or superior to measures of, financial performance prepared in accordance with GAAP. There are a number of limitations related to the use of these non-GAAP financial measures versus their most directly comparable GAAP equivalents. For example, other companies may calculate non-GAAP financial measures differently or may use other measures to evaluate their performance, all of which could reduce the usefulness of the presented non-GAAP financial measures as tools for comparison.
This press release may not be reproduced, forwarded to any person or published, in whole or in part.
ALLEGRO MICROSYSTEMS, INC.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(in thousands, except share and per share amounts)
(Unaudited) Three-Month Period Ended Twelve-Month Period Ended March 27, 2026 March 28, 2025 March 27, 2026 March 28, 2025 Net sales$243,187 $192,824 $890,096 $725,006 Cost of goods sold 128,912 112,945 478,126 403,479 Gross profit 114,275 79,879 411,970 321,527 Operating expenses: Research and development 55,535 47,618 205,804 179,649 Selling, general and administrative 46,740 45,459 181,089 161,680 Impairment of assets held for sale 6,590 — 6,590 — Total operating expenses 108,865 93,077 393,483 341,329 Operating income (loss) 5,410 (13,198) 18,487 (19,802)Interest and other expense (8,097) (5,240) (33,388) (31,142)Loss on change in fair value of forward repurchase contract — — — (34,752)Loss before income taxes (2,687) (18,438) (14,901) (85,696)Income tax provision (benefit) 13,749 (3,700) (248) (12,933)Net loss (16,436) (14,738) (14,653) (72,763)Net income attributable to non-controlling interests 52 62 244 247 Net loss attributable to Allegro MicroSystems, Inc.$(16,488) $(14,800) $(14,897) $(73,010)Net loss per common share attributable to Allegro MicroSystems, Inc.: Basic$(0.09) $(0.08) $(0.08) $(0.39)Diluted$(0.09) $(0.08) $(0.08) $(0.39)Weighted average shares outstanding: Basic 185,309,271 184,169,928 185,035,670 187,707,391 Diluted 185,309,271 184,169,928 185,035,670 187,707,391 Supplemental Schedule of Total Net Sales
The following table summarizes total net sales by market within the Company’s unaudited condensed consolidated statements of operations:
Three-Month Period Ended Change Twelve-Month Period Ended Change March 27,
2026 March 28,
2025 Amount % March 27,
2026 March 28,
2025 Amount % (Dollars in thousands) (Dollars in thousands) Automotive$163,909 $139,494 $24,415 18% $628,561 $535,205 $93,356 17%Industrial and Other 79,278 53,330 25,948 49% 261,535 189,801 71,734 38%Total net sales$243,187 $192,824 $50,363 26% $890,096 $725,006 $165,090 23% ALLEGRO MICROSYSTEMS, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
(in thousands)
March 27 March 28, 2026
(Unaudited) 2025 Assets Current assets: Cash and cash equivalents$168,753 $121,334 Restricted cash 6,604 9,773 Trade accounts receivable, net 93,248 84,598 Inventories 181,752 183,914 Prepaid income taxes 1,179 36,662 Prepaid expenses and other current assets 52,070 30,247 Assets held for sale — 16,508 Total current assets 503,606 483,036 Property, plant and equipment, net 308,258 302,919 Deferred income tax assets 80,221 68,528 Goodwill 203,291 202,475 Intangible assets, net 238,675 262,115 Equity investment in related party 22,296 31,695 Other assets 59,828 70,193 Total assets$1,416,175 $1,420,961 Liabilities, Non-Controlling Interest and Stockholders’ Equity Current liabilities: Trade accounts payable$44,438 $38,733 Amounts due to related party 4,794 6,535 Accrued expenses and other current liabilities 95,163 65,570 Current portion of long-term debt 1,530 1,423 Total current liabilities 145,925 112,261 Long-term debt 285,746 344,703 Other long-term liabilities 28,059 32,897 Total liabilities 459,730 489,861 Commitments and contingencies Stockholders’ Equity: Preferred stock — — Common stock 1,854 1,843 Additional paid-in capital 1,050,582 1,012,055 Accumulated deficit (68,488) (53,591)Accumulated other comprehensive loss (29,201) (30,752)Equity attributable to Allegro MicroSystems, Inc. 954,747 929,555 Non-controlling interest 1,698 1,545 Total stockholders’ equity 956,445 931,100 Total liabilities, non-controlling interest and stockholders’ equity$1,416,175 $1,420,961 ALLEGRO MICROSYSTEMS, INC.
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(in thousands)
(Unaudited) Three-Month Period Ended Twelve-Month Period Ended March 27, 2026 March 28, 2025 March 27, 2026 March 28, 2025 Cash flows from operating activities: Net loss$(16,436) $(14,738) $(14,653) $(72,763)Adjustments to reconcile net loss to net cash provided by operating activities: Depreciation and amortization 17,765 15,924 67,593 64,502 Amortization of deferred financing costs 297 732 2,245 2,513 Deferred income taxes (4,009) (4,755) (11,994) (16,301)Stock-based compensation 10,647 9,617 47,910 41,868 Loss on change in fair value of forward repurchase contract — — — 34,752 Impairment of assets held for sale 6,590 — 6,590 — Provisions for inventory and expected credit losses 1,435 1,697 8,989 9,216 Other non-cash reconciling items 348 339 653 6,984 Changes in operating assets and liabilities: Trade accounts receivable 6,403 (1,275) (9,201) 33,081 Inventories (4,994) 7,914 (6,267) (30,160)Payment to related party (15,000) — (15,000) — Prepaid expenses and other assets 22,935 (3,200) 40,634 (4,601)Trade accounts payable (7,685) (1,423) 5,996 4,044 Due to and from related parties 46 4,551 (1,740) 5,115 Other changes in operating assets and liabilities, net 17,372 4,970 41,314 (16,337)Net cash provided by operating activities 35,714 20,353 163,069 61,913 Cash flows from investing activities: Purchases of property, plant and equipment (17,016) (5,391) (38,176) (39,955)Purchases of intangible assets — (1,180) — (1,180)Acquisition of business, net of cash acquired — — — 319 Investment in debt security (3,541) — (3,541) — Net cash used in investing activities (20,557) (6,571) (41,717) (40,816)Cash flows from financing activities: Net proceeds from Refinanced Term Loan Facility 285,000 (402) 285,000 193,081 Repayment of term loan (285,000) (30,000) (345,000) (105,000)Finance lease payments (516) (498) (1,368) (1,201)Receipts on related party notes receivable — — — 1,875 Payments for intangible assets (1,000) — (5,000) — Payments for taxes related to net share settlement of equity awards (2,258) (3,458) (12,612) (16,238)Proceeds from issuance of common stock under employee stock purchase plan 1,427 1,524 3,337 3,511 Repurchases of common stock — — — (853,921)Payments for taxes related to repurchase of common stock — — (1,713) — Net proceeds from issuance of common stock — — — 665,850 Dividends paid to non-controlling interest — (19) (23) (19)Net cash used in financing activities (2,347) (32,853) (77,379) (112,062)Effect of exchange rate changes on cash and cash equivalents and restricted cash (852) 1,216 277 (89)Net increase (decrease) in cash and cash equivalents and restricted cash 11,958 (17,855) 44,250 (91,054)Cash and cash equivalents and restricted cash at beginning of period 163,399 148,962 131,107 222,161 Cash and cash equivalents and restricted cash at end of period$175,357 $131,107 $175,357 $131,107 Non-GAAP Financial Measures
In addition to the measures presented in our condensed consolidated financial statements, we regularly review other measures, defined as non-GAAP financial measures by the SEC, to evaluate our business, measure our performance, identify trends, prepare financial forecasts and make strategic decisions. The key measures we consider are non-GAAP Gross Profit, non-GAAP Gross Margin, non-GAAP Operating Expenses, non-GAAP Operating Income, non-GAAP Operating Margin, EBITDA, Adjusted EBITDA, Adjusted EBITDA margin, non-GAAP Profit before Tax, non-GAAP Income Tax Provision (Benefit), non-GAAP Effective Tax Rate, non-GAAP Net Income Attributable to Allegro MicroSystems, Inc, non-GAAP Basic and Diluted Earnings per Share, non-GAAP Free Cash Flow, and non-GAAP Free Cash Flow as a percentage of net sales (collectively, the “Non-GAAP Financial Measures”). These Non-GAAP Financial Measures provide supplemental information regarding our operating performance on a non-GAAP basis that excludes certain gains, losses and charges of a non-cash nature or that occur relatively infrequently and/or that management considers to be unrelated to our core operations, and in the case of non-GAAP Income Tax Provision (Benefit), management believes that this non-GAAP measure of income taxes provides it with the ability to evaluate the non-GAAP Income Tax Provision (Benefit) across different reporting periods on a consistent basis, independent of special items and discrete items, which may vary in size and frequency. These Non-GAAP Financial Measures are used by both management and our board of directors, together with the comparable GAAP information, in evaluating our current performance and planning our future business activities.
The Non-GAAP Financial Measures are supplemental measures of our performance that are neither required by, nor presented in accordance with, GAAP. These Non-GAAP Financial Measures should not be considered as substitutes for GAAP financial measures, such as gross profit, gross margin, net income or any other performance measures derived in accordance with GAAP. Also, in the future we may incur expenses or charges, such as those being adjusted in the calculation of these Non-GAAP Financial Measures. Our presentation of these Non-GAAP Financial Measures should not be construed as an inference that future results will be unaffected by unusual or nonrecurring items. These Non-GAAP Financial Measures exclude costs related to acquisition and related integration expenses, amortization of acquired intangible assets, stock-based compensation, restructuring actions, related-party activities and other non-operational costs.
Non-GAAP Income Tax Provision (Benefit)
In calculating the non-GAAP Income Tax Provision (Benefit), we adjust for the tax effect of adjustments to GAAP results which represents the estimated income tax effect of the adjustments to non-GAAP Profit before Tax described below. We also adjust for any discrete tax items and the impact of non-recurring tax law changes to ensure the non-GAAP Income Tax Rate (“NG ETR”) reflects future operations.
Our fiscal year 2026 and 2027 NG ETR excludes the impact of the 2025 One Big Beautiful Bill Act’s one-time research and development amortization election which accelerates the amortization of previously capitalized domestic research and development over a two-year period. The NG ETR is applied to non-GAAP Profit before Tax to arrive at the tax effect of adjustments to GAAP results.
Reconciliation of Non-GAAP Gross Profit and Non-GAAP Gross Margin Three-Month Period Ended Twelve-Month Period Ended March 27,
2026 December 26,
2025 March 28,
2025 March 27,
2026 March 28,
2025 (Dollars in thousands) (Dollars in thousands) GAAP Gross Profit$114,275 $107,101 $79,879 $411,970 $321,527 GAAP Gross Margin (% of net sales) 47.0% 46.7% 41.4% 46.3% 44.3% Non-GAAP adjustments Transaction-related costs — — — — 14 Purchased intangible amortization 5,089 5,089 4,957 20,357 19,582 Restructuring costs 723 659 2,350 2,838 4,088 Stock-based compensation 1,033 1,017 697 3,955 2,877 Other costs 442 449 — 935 — Total Non-GAAP Adjustments$7,287 $7,214 $8,004 $28,085 $26,561 Non-GAAP Gross Profit$121,562 $114,315 $87,883 $440,055 $348,088 Non-GAAP Gross Margin (% of net sales) 50.0% 49.9% 45.6% 49.4% 48.0% Reconciliation of Non-GAAP Operating Expenses Three-Month Period Ended Twelve-Month Period Ended March 27,
2026 December 26,
2025 March 28,
2025 March 27,
2026 March 28,
2025 (Dollars in thousands) (Dollars in thousands) GAAP Operating Expenses$108,865 $97,527 $93,077 $393,483 $341,329 Research and Development Expenses GAAP Research and Development Expenses 55,535 52,878 47,618 205,804 179,649 Non-GAAP adjustments Transaction-related costs — 33 3 33 1,571 Purchased intangible amortization 6 5 — 22 — Restructuring costs 1,674 2,663 4,429 7,107 5,426 Stock-based compensation 4,385 3,596 3,406 15,799 14,624 Other costs(1) 956 196 — 1,299 3 Non-GAAP Research and Development Expenses 48,514 46,385 39,780 181,544 158,025 Selling, General and Administrative Expenses GAAP Selling, General and Administrative Expenses 46,740 44,649 45,459 181,089 161,680 Non-GAAP adjustments Transaction-related costs 496 3 116 630 1,353 Purchased intangible amortization 558 535 535 2,163 2,140 Restructuring costs 2,630 2,032 1,656 7,004 6,011 Stock-based compensation 5,229 8,207 5,513 28,156 24,366 Other costs(1) 2,628 1,260 6,921 10,202 6,303 Non-GAAP Selling, General and Administrative Expenses 35,199 32,612 30,718 132,934 121,507 Impairment of assets held for sale 6,590 — — 6,590 — Total Non-GAAP Adjustments 25,152 18,530 22,579 79,005 61,797 Non-GAAP Operating Expenses$83,713 $78,997 $70,498 $314,478 $279,532 (1) Included in non-GAAP other costs are non-recurring charges that are individually immaterial for separate disclosure, such as project evaluation costs, which consist of costs and estimated costs incurred in connection with debt and equity financings or other non-recurring transactions. Reconciliation of Non-GAAP Operating Income and Non-GAAP Operating Margin Three-Month Period Ended Twelve-Month Period Ended March 27,
2026 December 26,
2025 March 28,
2025 March 27,
2026 March 28,
2025 (Dollars in thousands) (Dollars in thousands) GAAP Operating Income (Loss)$5,410 $9,574 $(13,198) $18,487 $(19,802)GAAP Operating Margin (% of net sales) 2.2% 4.2% (6.8)% 2.1% (2.7)% Transaction-related costs 496 36 119 663 2,938 Impairment of assets held for sale 6,590 — — 6,590 — Purchased intangible amortization 5,653 5,629 5,492 22,542 21,722 Restructuring costs 5,027 5,354 8,435 16,949 15,525 Stock-based compensation 10,647 12,820 9,616 47,910 41,867 Other costs(1) 4,026 1,905 6,921 12,436 6,306 Total Non-GAAP Adjustments$32,439 $25,744 $30,583 $107,090 $88,358 Non-GAAP Operating Income$37,849 $35,318 $17,385 $125,577 $68,556 Non-GAAP Operating Margin (% of net sales) 15.6% 15.4% 9.0% 14.1% 9.5% (1) Included in non-GAAP other costs are non-recurring charges that are individually immaterial for separate disclosure such as project evaluation costs, which consist of costs and estimated costs incurred in connection with debt and equity financings or other non-recurring transactions. Reconciliation of EBITDA, Adjusted EBITDA and Adjusted EBITDA Margin Three-Month Period Ended Twelve-Month Period Ended March 27,
2026 December 26,
2025 March 28,
2025 March 27,
2026 March 28,
2025 (Dollars in thousands) (Dollars in thousands) GAAP Net (Loss) Income$(16,436) $8,362 $(14,738) $(14,653) $(72,763)GAAP Net (Loss) Income Margin (% of net sales) (6.8)% 3.6% (7.6)% (1.6)% (10.0)% Interest expense 5,136 4,910 6,874 22,135 30,366 Interest income (269) (114) (222) (776) (1,524)Income tax provision (benefit) 13,749 (7,868) (3,700) (248) (12,933)Depreciation & amortization 17,765 17,001 15,924 67,593 64,502 EBITDA$19,945 $22,291 $4,138 $74,051 $7,648 Transaction-related costs 496 36 119 663 5,742 Impairment of assets held for sale 6,590 — — 6,590 — Restructuring costs 4,830 5,000 8,277 16,057 15,112 Stock-based compensation 10,647 12,820 9,616 47,910 41,867 Loss on change in fair value of forward repurchase contract — — — — 34,752 Other costs(1) 7,184 6,037 6,301 24,796 7,911 Adjusted EBITDA$49,692 $46,184 $28,451 $170,067 $113,032 Adjusted EBITDA Margin (% of net sales) 20.4% 20.1% 14.8% 19.1% 15.6% (1) Included in non-GAAP other costs are non-recurring charges that are individually immaterial for separate disclosure such as project evaluation costs, which consist of costs and estimated costs incurred in connection with debt and equity financings or other non-recurring transactions and income (loss) in earnings of equity investments. Reconciliation of Non-GAAP Profit before Tax Three-Month Period Ended Twelve-Month Period Ended March 27,
2026 December 26,
2025 March 28,
2025 March 27,
2026 March 28,
2025 (Dollars in thousands) (Dollars in thousands) GAAP (Loss) Income before Income Taxes$(2,687) $494 $(18,438) $(14,901) $(85,696) Transaction-related costs 496 36 119 663 5,742 Transaction-related interest 225 225 272 1,955 1,314 Impairment of assets held for sale 6,590 — — 6,590 — Purchased intangible amortization 5,653 5,629 5,492 22,542 21,722 Restructuring costs 5,074 5,354 8,482 17,184 15,317 Stock-based compensation 10,647 12,820 9,616 47,910 41,867 Loss on change in fair value of forward repurchase contract — — — — 34,752 Other costs(1) 7,718 6,422 6,689 25,715 12,351 Total Non-GAAP Adjustments$36,403 $30,486 $30,670 $122,559 $133,065 Non-GAAP Profit before Tax$33,716 $30,980 $12,232 $107,658 $47,369 (1) Included in non-GAAP other costs are non-recurring charges that are individually immaterial for separate disclosure such as project evaluation costs, which consist of costs and estimated costs incurred in connection with debt and equity financings or other non-recurring transactions and income (loss) in earnings of equity investments. Reconciliation of Non-GAAP Income Tax Provision (Benefit) and Non-GAAP Effective Tax Rate Three-Month Period Ended Twelve-Month Period Ended March 27,
2026 December 26,
2025 March 28,
2025 March 27,
2026 March 28,
2025 (Dollars in thousands) (Dollars in thousands) GAAP Income Tax Provision (Benefit)$13,749 $(7,868) $(3,700) $(248) $(12,933)GAAP effective tax rate (511.7)% (1,592.7)% 20.1% 1.7% 15.1% Tax effect of adjustments to GAAP results (11,642) 10,002 4,126 7,610 14,200 Non-GAAP Income Tax Provision$2,107 $2,134 $426 $7,362 $1,267 Non-GAAP effective tax rate 6.2% 6.9% 3.5% 6.8% 2.7% Reconciliation of Non-GAAP Net Income Attributable to Allegro MicroSystems, Inc. and Non-GAAP Earnings per Share Three-Month Period Ended Twelve-Month Period Ended March 27,
2026 December 26,
2025 March 28,
2025 March 27,
2026 March 28,
2025 (Dollars in thousands) (Dollars in thousands) GAAP Net (Loss) Income Attributable to Allegro MicroSystems, Inc.(1)$(16,488) $8,299 $(14,800) $(14,897) $(73,010)GAAP Basic weighted average common shares 185,309,271 185,172,199 184,169,928 185,035,670 187,707,391 GAAP Diluted weighted average common shares 185,309,271 186,208,258 184,169,928 185,035,670 187,707,391 GAAP Basic (Loss) Income per Share$(0.09) $0.04 $(0.08) $(0.08) $(0.39)GAAP Diluted (Loss) Income per Share$(0.09) $0.04 $(0.08) $(0.08) $(0.39) Transaction-related costs 496 36 119 663 5,742 Transaction-related interest 225 225 272 1,955 1,314 Impairment of assets held for sale 6,590 — — 6,590 — Purchased intangible amortization 5,653 5,629 5,492 22,542 21,722 Restructuring costs 5,074 5,354 8,482 17,184 15,317 Stock-based compensation 10,647 12,820 9,616 47,910 41,867 Loss on change in fair value of forward repurchase contract — — — — 34,752 Other costs(2) 7,718 6,422 6,689 25,715 12,351 Total Non-GAAP Adjustments 36,403 30,486 30,670 122,559 133,065 Tax effect of adjustments to GAAP results(3) 11,642 (10,002) (4,126) (7,610) (14,200)Non-GAAP Net Income Attributable to Allegro MicroSystems, Inc.$31,557 $28,783 $11,744 $100,052 $45,855 Basic weighted average common shares 185,309,271 185,172,199 184,169,928 185,035,670 187,707,391 Diluted weighted average common shares 187,134,641 186,208,258 185,247,919 186,318,359 188,629,402 Non-GAAP Basic Earnings per Share$0.17 $0.16 $0.06 $0.54 $0.24 Non-GAAP Diluted Earnings per Share$0.17 $0.15 $0.06 $0.54 $0.24 (1) GAAP Net (Loss) Income Attributable to Allegro MicroSystems, Inc. represents GAAP Net (Loss) Income adjusted for Net Income Attributable to non-controlling interests. (2) Included in non-GAAP other costs are non-recurring charges that are individually immaterial for separate disclosure, such as project evaluation costs, which consists of costs and estimated costs incurred in connection with debt and equity financings or other non-recurring transactions, income (loss) in earnings of equity investments, and unrealized losses (gains) on investments. (3) To calculate the tax effect of adjustments to GAAP results, the Company considers each Non-GAAP adjustment by tax jurisdiction, reverses all discrete items, non-recurring law changes to calculate an annual NG ETR. This NG ETR is then applied to Non-GAAP Profit Before Tax to arrive at the tax effect of adjustments to GAAP results. Reconciliation of Non-GAAP Free Cash Flow and Non-GAAP Free Cash Flow as Percentage of Net Sales Three-Month Period Ended Twelve-Month Period Ended March 27,
2026 December 26,
2025 March 28,
2025 March 27,
2026 March 28,
2025 (Dollars in thousands) (Dollars in thousands) GAAP Operating Cash Flow$35,714 $45,375 $20,353 $163,069 $61,913 GAAP Operating Cash Flow (% of net sales) 14.7% 19.8% 10.6% 18.3% 8.5%Non-GAAP adjustments Purchases of property, plant and equipment (17,016) (4,116) (5,391) (38,176) (39,955)Non-GAAP Free Cash Flow$18,698 $41,259 $14,962 $124,893 $21,958 Non-GAAP Free Cash Flow (% of net sales) 7.7% 18.0% 7.8% 14.0% 3.0% Investor Contact:
Jalene Hoover
VP of Investor Relations & Corporate Communications
+1 (512) 751-6526 [email protected]
Allegro MicroSystems, Inc. (ALGM - Free Report) came out with quarterly earnings of $0.17 per share, beating the Zacks Consensus Estimate of $0.16 per share. This compares to earnings of $0.06 per share a year ago. These figures are adjusted for non-recurring items.
This quarterly report represents an earnings surprise of +4.10%. A quarter ago, it was expected that this company would post earnings of $0.14 per share when it actually produced earnings of $0.15, delivering a surprise of +7.14%.
Over the last four quarters, the company has surpassed consensus EPS estimates three times.
Allegro MicroSystems, which belongs to the Zacks Electronics - Semiconductors industry, posted revenues of $243.19 million for the quarter ended March 2026, surpassing the Zacks Consensus Estimate by 2.93%. This compares to year-ago revenues of $192.82 million. The company has topped consensus revenue estimates three times over the last four quarters.
The sustainability of the stock's immediate price movement based on the recently-released numbers and future earnings expectations will mostly depend on management's commentary on the earnings call.
Allegro MicroSystems shares have added about 94.7% since the beginning of the year versus the S&P 500's gain of 7.6%.
What's Next for Allegro MicroSystems?While Allegro MicroSystems has outperformed the market so far this year, the question that comes to investors' minds is: what's next for the stock?
There are no easy answers to this key question, but one reliable measure that can help investors address this is the company's earnings outlook. Not only does this include current consensus earnings expectations for the coming quarter(s), but also how these expectations have changed lately.
Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions. Investors can track such revisions by themselves or rely on a tried-and-tested rating tool like the Zacks Rank, which has an impressive track record of harnessing the power of earnings estimate revisions.
Ahead of this earnings release, the estimate revisions trend for Allegro MicroSystems was mixed. While the magnitude and direction of estimate revisions could change following the company's just-released earnings report, the current status translates into a Zacks Rank #3 (Hold) for the stock. So, the shares are expected to perform in line with the market in the near future. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.
It will be interesting to see how estimates for the coming quarters and the current fiscal year change in the days ahead. The current consensus EPS estimate is $0.21 on $245.42 million in revenues for the coming quarter and $0.94 on $1.06 billion in revenues for the current fiscal year.
Investors should be mindful of the fact that the outlook for the industry can have a material impact on the performance of the stock as well. In terms of the Zacks Industry Rank, Electronics - Semiconductors is currently in the top 23% of the 250 plus Zacks industries. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1.
Another stock from the same industry, Sono-Tek Corporation (SOTK - Free Report) , has yet to report results for the quarter ended February 2026.
This company is expected to post quarterly earnings of $0.02 per share in its upcoming report, which represents no change from the year-ago quarter. The consensus EPS estimate for the quarter has remained unchanged over the last 30 days.
Sono-Tek Corporation's revenues are expected to be $5.12 million, unchanged compared to the year-ago quarter.
