Whether used in its pure form or as titanium dioxide, titanium is a metal vital to various businesses. From the healthcare industry, which uses the metal in the manufacturing of prosthetic limbs, to the aerospace and defense industries, which use titanium in aircraft and weapons, titanium is found in a wide swath of industrial applications. But that's not all. Everyday products from cosmetics to house paints also rely on titanium dioxide.
Undeniably, titanium is used in a broad number of capacities, making it a metal stock worthy of consideration for investors -- especially in light of its increasing demand. Market research firm Fact.MR estimates the global titanium market to be valued at $28 billion as of 2023 and forecasts it to rise at a compound annual growth rate of 6.5% over the next 10 years.
The 4 best
4 Top Titanium Stocks to Buy in 2025
There's no one way to strengthen one's portfolio with exposure to titanium. Investors can choose from a myriad of options, including diversified chemical companies that produce various materials to those that are singularly focused on the metal.
| Company | Market Cap | Description |
|---|---|---|
| ATI (NYSE:ATI) | $8.57 billion | A manufacturer of specialty materials, including titanium and titanium-based alloys. |
| Chemours (NYSE:CC) | $3.17 billion | A diversified chemicals company that specializes in titanium dioxide production. |
| Kronos Worldwide (NYSE:KRO) | $1.19 billion | Produces titanium dioxide pigments for use in various products such as paper, cars, and cosmetics. |
| Tronox (NYSE:TROX) | $1.89 billion | A vertically integrated mining and chemical business that manufactures titanium dioxide pigments. |
1. ATI
1. ATI
Dividing its business into two operating segments, ATI produces various high-performance materials, components, and advanced metallic powder alloys in its High Performance Materials and Components segment, while its Advanced Alloy and Solutions segment provides flat products to energy, aerospace, and defense industry customers, with titanium present in both segments.
In 2023, sales of titanium and titanium-based alloys accounted for 17% of the company's revenue. This is notably less than the nickel-based alloys and specialty alloys business that represented 49% of the company's 2023 sales, but this shouldn't prevent titanium investors from considering shares of ATI. Rather, it should appeal to investors who want to strengthen their portfolios with titanium exposure but who are similarly interested in mitigating the risk of a downturn in the titanium market.
Although ATI provides materials to multiple industries, aerospace and defense represent the company's largest customer, accounting for about 59% of the company's total 2023 sales. For people considering a position in ATI, it's important to recognize that the aerospace industry is cyclical, and investors should be prepared to experience the occasional turbulence in the industry's ups and downs.
The company is making a more concerted effort to grow its titanium business. In its 2023 annual report, the company stated that "through operational efficiencies and restarting idled assets, we increased titanium melt capacity by 45% over 2022," adding that "by 2025, we'll be up 80% compared to 2022."
2. Chemours
2. Chemours
Although Chemours provides thermal management solutions and several performance materials, titanium figures prominently in the company's identity. Since 1949, Chemours has operated a titanium mine in Florida, and it added to its asset portfolio in 2019 with the acquisition of a titanium mine in Georgia. While the company's mines contribute about 10% of its ore feedstock requirements, Chemours acknowledges that it has the option to expand operations to increase the ore feedstock.
Through its titanium technologies segment, Chemours serves about 500 customers worldwide with more than 20 different grades of titanium dioxide pigment, customized for various applications, including house paint, coated paper, and plastic packaging. Chemours manufactures its titanium dioxide pigments at four production facilities located in the United States, Mexico, and Taiwan.
Management has made a concerted effort in 2024 to expand profitability in the company's titanium business. Over the first three quarters of 2024, for example, Chemours implemented measures that resulted in $130 million in year-over-year savings, exceeding its target of $125 million in savings for the year. Its steps led to the company achieving a 23% year-over-year increase in adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) for its titanium technologies business and an expansion in the segment's adjusted EBITDA margin from 10% in the third quarter of 2023 to 13% in 2024's third quarter.
In addition to its position as a leading titanium dioxide producer, investors interested in growing their passive income streams will also be attracted to Chemours. Currently, Chemours offers a dividend with a forward yield of 4.7%.
3. Kronos Worldwide
3. Kronos Worldwide
True to its name, Kronos Worldwide is a titanium dioxide producer with a considerable global presence that's demonstrated in several ways. For one, Kronos Worldwide has titanium dioxide production facilities in several countries, including Germany, Belgium, Norway, Canada, and the United States.
Additionally, the company attributes the majority of its sales to North America, Europe, and the Asia Pacific region, although it has more than 3,000 customers overall in more than 100 countries. This leading position didn't occur overnight. Kronos Worldwide can trace its history back to 1916, when it claims to have developed the first commercial process for titanium dioxide production.
Further strengthening its industry-leading position, Kronos Worldwide, which initially held a 50% joint venture interest in Louisiana Pigment Company (LPC), acquired the remaining 50% interest in July 2024. As a wholly owned subsidiary of Kronos Worldwide, LPC provides an estimated 78,000 metric tons annually of titanium dioxide production volume, helping to serve the North American market.
Unlike diversified companies that produce various materials, Kronos Worldwide is narrowly focused on its titanium dioxide business. From 2021 through 2023, titanium dioxide accounted for an average of more than 91% of the company's net sales -- something that should appeal to people looking for greater titanium exposure in a single investment.
Along with Chemours, Kronos Worldwide is a titanium stock that will appeal to income investors. Shares currently offer a forward yield of about 2%.
Related investing topics
4. Tronox
4. Tronox
Brandishing itself as "the world’s leading vertically integrated manufacturer of titanium dioxide pigment," Tronox is another company that should be on the radar of people seeking a titanium stock. Although the company sells zircon and other products, such as high-quality pig iron and monazite, titanium dioxide represents the lion's share of the company's revenue -- about 78% and 79% in 2022 and 2023, respectively.
With six mines in operation, Tronox is working to further strengthen its vertical integration, helping to reduce the cost of its titanium dioxide production. In 2023, the company commenced operations at a new mine in Australia. The Atlas/Campaspe mine will provide high-quality ilmenite, an ore from which titanium dioxide is produced. Additionally, Tronox is allocating about $130 million in 2024 toward two expansion projects in South Africa. Management projects that these two projects, located at the Namakwa and Fairbreeze mines, will provide internal rates of returns topping 30%.
In terms of the company's financials, management foresees growth in the next few years. From $847 million in 2022, management forecasts that adjusted EBITDA will rise to between $1.3 billion and $1.5 billion in 2025. Similarly, management expects improvements on the cash flow statement, projecting free cash flow to rise from $122 million in 2022 to between $750 million and $850 million in 2025. The stock currently offers an attractive forward yield of 4.2%.
Right for you?
Are titanium stocks right for you?
For people looking to fortify their portfolios with a conservative investment, titanium stocks are a wise approach. The metal serves a critical need for a variety of uses, from airplane wings to paper laminates. For people especially seeking exposure to the aerospace industry, ATI is a worthy consideration. Income investors, on the other hand, will want to dig in deeper to titanium dioxide stocks Chemours, Kronos Worldwide, and Tronox as possible ways to strengthen their passive income streams.
FAQs
Investing in Titanium FAQs
Can I invest in titanium?
There are several ways to gain titanium exposure. For some, investments in companies focusing on titanium dioxide production will be alluring while others may find a titanium ETF to be a more enticing choice.
Is titanium on the stock market?
There are a variety of titanium stocks found on the stock market such as ATI, Chemours, Kronos Worldwide, and Tronox.
Who produces titanium in the U.S.?
There are several companies that produce titanium in the United States. ATI, for example, operates assets in several states including Pennsylvania, Washington, and South Carolina. Another industry leader, Titanium Metals Corporation, a subsidiary of privately held Precision Castparts, operates melting or mill facilities in Nevada, Ohio, and California.
Is there a titanium ETF?
There are several titanium ETFs that investors can consider. Some popular considerations for titanium-focused investors are the iShares MSCI Global Metals & Mining Producers ETF, First Trust Indxx Global Natural Resources Income ETF, and SPDR S&P Metals and Mining ETF.
