Valhi Financials
Valhi (VHI) reported $2.2B in revenue over the twelve months to Jun 30, 2026, up 3.4% from the prior twelve months. This page shows its income statement, balance sheet, cash flow statement, and key financial ratios. View 15 years of annual fundamentals and quarterly data, with year-over-year growth rates and compound annual growth rates (CAGR). All figures are derived from SEC filings (10-K and 10-Q reports).
Margin compression and cash-flow reversal reveal a business whose profitability remains highly sensitive to operating conditions.
The FY2024 earnings recovery produced only$13M of free cash flow against$108M of net income, creating a meaningful cash-conversion gap. In FY2025, operating cash flow also turned negative at-$36M while net income was-$58M , showing that the rebound did not become a dependable cash-generating pattern.
Gross margin moved from
The balance-sheet posture is less levered than at the beginning of the period: debt-to-equity was 0.6x in FY2025 versus 0.8x in FY2021. The current ratio recovered to 2.8x from 2.3x in FY2024, providing financial flexibility even as cash conversion weakened.
Financial Health Signals
Scored against operating companies for FY2025. Each of the six dimensions is a percentile rank within that peer group; the overall is their average, with missing dimensions counted as zero out of six. A high score means strong standing among peers, not absolute cross-industry strength. How this score is calculated →
Health score ≠ stock price. This rates the quality of Valhi's business: profitability, growth, balance sheet strength. It doesn't tell you whether the stock is a good buy at today's price. Not financial advice. Use it alongside valuation analysis and your own research.
Valhi has an operating margin of 3.0%, meaning the company retains $3 of operating profit per $100 of revenue. This results in a moderate score of 52/100, indicating healthy but not exceptional operating efficiency. This is down from 10.0% the prior year.
Valhi's revenue declined 1.3% year-over-year, from $2.1B to $2.1B. This contraction results in a growth score of 46/100.
Valhi has elevated debt relative to equity (D/E of 0.58), meaning the company relies heavily on borrowed funds. This high leverage results in a low score of 21/100, reflecting increased financial risk.
With a current ratio of 2.80, Valhi holds $2.80 in current assets for every $1 of short-term obligations. This comfortable liquidity earns a score of 74/100.
Valhi's operations used $35.5M of cash, and capex of $46.6M added to the outflow, for a free cash flow shortfall of $82.1M. This results in a cash flow score of 24/100.
Valhi posts a -5.6% return on equity (ROE), meaning it loses $6 for every $100 of shareholders' equity. This results in a returns score of 50/100. This is down from 10.4% the prior year.
Valhi scores 1.70, below the 1.81 distress threshold. This indicates elevated financial distress risk and warrants close attention to liquidity and debt levels.
Distress-screening estimate for non-financial companies. Not computed for banks or insurers, where the Altman model does not apply.
Valhi passes 3 of 9 financial strength tests. 1 of 4 profitability signals pass, 1 of 3 leverage/liquidity signals pass, 1 of 2 efficiency signals pass.
Valhi reported a net loss of $57.6M while operations used $35.5M of cash. With neither figure positive, the ratio between the two carries no quality signal.
Valhi earns $1.11 in operating income for every $1 of interest expense ($63.3M vs $57.1M). This narrow margin raises concern about the company's ability to service its debt if operating income declines.
Key Financial Metrics
Earnings & Revenue
Valhi generated $2.1B in revenue in fiscal year 2025. This represents a decrease of 1.3% from the prior year.
Valhi's EBITDA was $129.7M in fiscal year 2025, measuring earnings before interest, taxes, depreciation, and amortization. This represents a decrease of 53.2% from the prior year.
Valhi reported -$57.6M in net income in fiscal year 2025. This represents a decrease of 153.3% from the prior year.
Valhi earned -$2.02 per diluted share (EPS) in fiscal year 2025. This represents a decrease of 153.3% from the prior year.
Cash & Balance Sheet
Valhi recorded an outflow of $82.1M in free cash flow in fiscal year 2025, representing a cash shortfall after capex. This represents a decrease of 726.7% from the prior year.
Valhi held $214.0M in cash against $590.9M in long-term debt as of fiscal year 2025.
Valhi paid $0.32 per share in dividends in fiscal year 2025. That is unchanged from the prior year.
Margins & Returns
Valhi's gross margin was 14.2% in fiscal year 2025, indicating the percentage of revenue retained after direct costs. This is down 5.9 percentage points from the prior year.
Valhi's operating margin was 3.0% in fiscal year 2025, reflecting core business profitability. This is down 7.0 percentage points from the prior year.
Valhi's net profit margin was -2.8% in fiscal year 2025, showing the share of revenue converted to profit. This is down 7.9 percentage points from the prior year.
Valhi's ROE was -5.6% in fiscal year 2025, measuring profit generated per dollar of shareholder equity. This is down 16.1 percentage points from the prior year.
Capital Allocation
Valhi invested $17.0M in research and development in fiscal year 2025. This represents an increase of 21.4% from the prior year.
Valhi invested $46.6M in capex in fiscal year 2025, funding long-term assets and infrastructure. This represents an increase of 50.8% from the prior year.
Not reported for fiscal year 2025.
VHI Income Statement
Figures in USD, abbreviated K (thousand), M (million), B (billion), T (trillion). Negative values carry a minus sign and red type.
| Metric | Q2'26 | Q1'26 | Q4'25 | Q3'25 | Q2'25 | Q1'25 | Q4'24 | Q3'24 |
|---|---|---|---|---|---|---|---|---|
| Revenue | $606.1M+8.2% | $560.1M+13.3% | $494.5M-1.8% | $503.5M-6.8% | $540.4M+0.3% | $538.6M+12.0% | $480.9M-9.9% | $533.6M |
| Cost of Revenue | $486.0M+6.3% | $457.1M-0.7% | $460.3M+3.9% | $442.9M-4.2% | $462.3M+11.1% | $416.1M+9.4% | $380.3M-8.9% | $417.3M |
| Gross Profit | $120.1M+16.6% | $103.0M+201.2% | $34.2M-43.6% | $60.6M-22.4% | $78.1M-36.2% | $122.5M+21.8% | $100.6M-13.5% | $116.3M |
| SG&A Expenses | $78.8M+1.7% | $77.5M+0.6% | $77.0M-0.8% | $77.6M-2.0% | $79.2M+0.9% | $78.5M+103.9% | $38.5M-48.1% | $74.2M |
| Operating Income | $67.7M+105.8% | $32.9M+206.5% | -$30.9M-459.3% | $8.6M-75.8% | $35.5M-29.1% | $50.1M-11.6% | $56.7M-16.2% | $67.7M |
| Interest Expense | $14.7M0.0% | $14.7M-3.3% | $15.2M+2.0% | $14.9M+8.0% | $13.8M+4.5% | $13.2M-0.8% | $13.3M-0.7% | $13.4M |
| Income Tax | $11.8M+87.3% | $6.3M+134.2% | -$18.4M-228.7% | $14.3M+78.8% | $8.0M0.0% | $8.0M-78.0% | $36.3M+5.8% | $34.3M |
| Net Income | $22.3M+1015.0% | $2.0M+103.8% | -$53.2M-139.6% | -$22.2M-2566.7% | $900K-94.7% | $16.9M-25.9% | $22.8M-60.3% | $57.5M |
| EPS (Diluted) | $0.78+1014.3% | $0.07+103.7% | -$1.87-139.7% | -$0.78-2700.0% | $0.03-94.9% | $0.59-26.3% | $0.80-60.2% | $2.01 |
Not reported in any period shown, so not listed: R&D Expenses.
VHI Balance Sheet
Figures in USD, abbreviated K (thousand), M (million), B (billion), T (trillion). Negative values carry a minus sign and red type.
| Metric | Q2'26 | Q1'26 | Q4'25 | Q3'25 | Q2'25 | Q1'25 | Q4'24 | Q3'24 |
|---|---|---|---|---|---|---|---|---|
| Total Assets | $2.6B-1.4% | $2.6B-0.8% | $2.6B-3.1% | $2.7B-1.7% | $2.8B+0.2% | $2.8B-1.5% | $2.8B+0.5% | $2.8B |
| Current Assets | $1.2B-2.9% | $1.3B-0.4% | $1.3B-6.1% | $1.3B-1.9% | $1.4B-3.0% | $1.4B-3.0% | $1.5B+3.4% | $1.4B |
| Cash & Equivalents | $209.7M+8.3% | $193.7M-9.5% | $214.0M+16.6% | $183.5M-2.7% | $188.5M-3.1% | $194.5M-44.2% | $348.3M+10.7% | $314.6M |
| Inventory | $530.9M-8.5% | $580.1M-12.1% | $659.8M-4.5% | $690.9M-3.7% | $717.2M-1.7% | $729.7M+6.4% | $685.8M+18.8% | $577.4M |
| Goodwill | $382.3M0.0% | $382.3M0.0% | $382.3M0.0% | $382.3M0.0% | $382.3M0.0% | $382.3M0.0% | $382.3M0.0% | $382.3M |
| Total Liabilities | $1.5B-3.4% | $1.6B-1.5% | $1.6B-3.5% | $1.7B-1.4% | $1.7B-0.2% | $1.7B-3.9% | $1.8B0.0% | $1.8B |
| Current Liabilities | $361.2M-6.4% | $386.0M-14.1% | $449.3M+21.8% | $369.0M-23.6% | $483.1M-8.6% | $528.6M-17.9% | $643.8M+27.8% | $503.7M |
| Long-Term Debt | $586.7M-6.1% | $624.5M+5.7% | $590.9M-10.7% | $661.5M+21.4% | $544.8M+3.6% | $525.9M+8.6% | $484.4M-8.0% | $526.6M |
| Total Equity | $1.0B+1.8% | $1.0B+0.3% | $1.0B-2.3% | $1.0B-2.2% | $1.1B+0.8% | $1.1B+2.5% | $1.0B+1.3% | $1.0B |
| Retained Earnings | $527.8M+4.0% | $507.7M-0.1% | $508.0M-9.8% | $563.5M-4.2% | $588.0M-0.2% | $589.3M+2.5% | $574.7M+3.7% | $554.2M |
Not reported in any period shown, so not listed: Accounts Receivable.
VHI Cash Flow Statement
Figures in USD, abbreviated K (thousand), M (million), B (billion), T (trillion). Negative values carry a minus sign and red type.
| Metric | Q2'26 | Q1'26 | Q4'25 | Q3'25 | Q2'25 | Q1'25 | Q4'24 | Q3'24 |
|---|---|---|---|---|---|---|---|---|
| Operating Cash Flow | $59.1M+228.2% | -$46.1M-145.8% | $100.6M+5394.7% | -$1.9M-108.8% | $21.7M+113.9% | -$155.9M-440.4% | $45.8M+239.3% | $13.5M |
| Capital Expenditures | $17.2M+62.3% | $10.6M-1.9% | $10.8M+3.8% | $10.4M-17.5% | $12.6M-1.6% | $12.8M+2.4% | $12.5M+30.2% | $9.6M |
| Free Cash Flow | $41.9M+173.9% | -$56.7M-163.1% | $89.8M+830.1% | -$12.3M-235.2% | $9.1M+105.4% | -$168.7M-606.6% | $33.3M+753.8% | $3.9M |
| Investing Cash Flow | -$11.7M-23.2% | -$9.5M+13.6% | -$11.0M+9.1% | -$12.1M+2.4% | -$12.4M-0.8% | -$12.3M-66.2% | -$7.4M+95.1% | -$151.6M |
| Financing Cash Flow | -$40.1M-194.4% | $42.5M+149.9% | -$85.2M-675.7% | $14.8M+171.8% | -$20.6M-203.5% | $19.9M+197.5% | -$20.4M-128.6% | $71.3M |
| Dividends Paid | $2.2M-4.3% | $2.3M0.0% | $2.3M0.0% | $2.3M+4.5% | $2.2M-4.3% | $2.3M0.0% | $2.3M0.0% | $2.3M |
| Share Buybacks | N/A | N/A | N/A | N/A | N/A | N/A | N/A | $0 |
VHI Financial Ratios
Margins and returns are percentages; the remaining ratios are unitless multiples.
| Metric | Q2'26 | Q1'26 | Q4'25 | Q3'25 | Q2'25 | Q1'25 | Q4'24 | Q3'24 |
|---|---|---|---|---|---|---|---|---|
| Gross Margin | 19.8%+1.4pp | 18.4%+11.5pp | 6.9%-5.1pp | 12.0%-2.4pp | 14.4%-8.3pp | 22.7%+1.8pp | 20.9%-0.9pp | 21.8% |
| Operating Margin | 11.2%+5.3pp | 5.9%+12.1pp | -6.3%-8.0pp | 1.7%-4.9pp | 6.6%-2.7pp | 9.3%-2.5pp | 11.8%-0.9pp | 12.7% |
| Net Margin | 3.7%+3.3pp | 0.4%+11.1pp | -10.8%-6.3pp | -4.4%-4.6pp | 0.2%-3.0pp | 3.1%-1.6pp | 4.7%-6.0pp | 10.8% |
| Return on Equity | 2.1%+1.9pp | 0.2%+5.4pp | -5.2%-3.1pp | -2.1%-2.2pp | 0.1%-1.5pp | 1.6%-0.6pp | 2.2%-3.4pp | 5.6% |
| Return on Assets | 0.9%+0.8pp | 0.1%+2.1pp | -2.0%-1.2pp | -0.8%-0.9pp | 0.0%-0.6pp | 0.6%-0.2pp | 0.8%-1.3pp | 2.1% |
| Current Ratio | 3.37+0.1x | 3.25+0.4x | 2.80-0.8x | 3.64+0.8x | 2.83+0.2x | 2.67+0.4x | 2.26-0.5x | 2.79 |
| Debt-to-Equity | 0.560.0x | 0.610.0x | 0.58-0.1x | 0.63+0.1x | 0.510.0x | 0.490.0x | 0.470.0x | 0.52 |
| FCF Margin | 6.9%+17.0pp | -10.1%-28.3pp | 18.2%+20.6pp | -2.4%-4.1pp | 1.7%+33.0pp | -31.3%-38.2pp | 6.9%+6.2pp | 0.7% |
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Where Valhi Ranks
Frequently Asked Questions
What is Valhi's annual revenue?
Valhi (VHI) reported $2.1B in total revenue for fiscal year 2025. This represents a -1.3% change compared to the previous fiscal year. Revenue measures the total income earned from the company's primary business operations before any expenses are deducted.
How fast is Valhi's revenue growing?
Valhi (VHI) revenue declined by 1.3% year-over-year, from $2.1B to $2.1B in fiscal year 2025.
Is Valhi profitable?
No, Valhi (VHI) reported a net income of -$57.6M in fiscal year 2025, with a net profit margin of -2.8%.
What is Valhi's EBITDA?
Valhi (VHI) had EBITDA of $129.7M in fiscal year 2025, measuring earnings before interest, taxes, depreciation, and amortization.
How much debt does Valhi have?
As of fiscal year 2025, Valhi (VHI) had $214.0M in cash and equivalents against $590.9M in long-term debt.
What is Valhi's gross margin?
Valhi (VHI) had a gross margin of 14.2% in fiscal year 2025, indicating the percentage of revenue retained after direct costs of goods sold.
What is Valhi's operating margin?
Valhi (VHI) had an operating margin of 3.0% in fiscal year 2025, reflecting the profitability of core business operations before interest and taxes.
What is Valhi's net profit margin?
Valhi (VHI) had a net profit margin of -2.8% in fiscal year 2025, representing the share of revenue converted into profit after all expenses.
Does Valhi pay dividends?
Yes, Valhi (VHI) paid $0.32 per share in dividends during fiscal year 2025.
What is Valhi's return on equity (ROE)?
Valhi (VHI) has a return on equity of -5.6% for fiscal year 2025, measuring how efficiently the company generates profit from shareholder equity.
What is Valhi's free cash flow?
Valhi (VHI) recorded an outflow of $82.1M in free cash flow during fiscal year 2025. This represents a -726.7% change compared to the previous fiscal year. Free cash flow represents the cash a company generates after accounting for capital expenditures, and is widely used to assess financial flexibility and shareholder value.
What is Valhi's operating cash flow?
Valhi (VHI) recorded an outflow of $35.5M in operating cash flow during fiscal year 2025, representing cash used by core business activities.
What are Valhi's total assets?
Valhi (VHI) had $2.6B in total assets as of fiscal year 2025, including both current and long-term assets.
What are Valhi's capital expenditures?
Valhi (VHI) invested $46.6M in capital expenditures during fiscal year 2025, funding long-term assets and infrastructure.
How much does Valhi spend on research and development?
Valhi (VHI) invested $17.0M in research and development during fiscal year 2025.
What is Valhi's current ratio?
Valhi (VHI) had a current ratio of 2.80 as of fiscal year 2025, which is generally considered healthy.
What is Valhi's debt-to-equity ratio?
Valhi (VHI) had a debt-to-equity ratio of 0.58 as of fiscal year 2025, measuring the company's financial leverage by comparing total debt to shareholder equity.
What is Valhi's return on assets (ROA)?
Valhi (VHI) had a return on assets of -2.2% for fiscal year 2025, measuring how efficiently the company uses its assets to generate profit.
How does Valhi's liquidity compare with its operating cash outflow?
At the end of fiscal year 2025, Valhi (VHI) held $223.0M in cash, cash equivalents and investments, and reported an operating cash outflow of $35.5M over that year. Dividing the one by the other, the reported balance equals about 75 months of the outflow reported that year. This is arithmetic over figures already filed, not a projection: it assumes nothing about future spending, financing or operations.
What is Valhi's Altman Z-Score?
Valhi (VHI) has an Altman Z-Score of 1.70, placing it in the Distress Zone (elevated bankruptcy risk). The Z-Score combines five financial ratios (working capital, retained earnings, EBIT, market capitalization, and revenue relative to total assets) to predict the likelihood of bankruptcy. Scores above 2.99 indicate financial safety while scores below 1.81 suggest financial distress. Learn more in our complete guide to financial health indicators.
What is Valhi's Piotroski F-Score?
Valhi (VHI) has a Piotroski F-Score of 3 out of 9, indicating weak financial health. The F-Score evaluates nine binary signals across profitability (positive ROA, positive cash flow, improving ROA, earnings quality), leverage (decreasing debt, improving liquidity, no share dilution), and operating efficiency (improving gross margin, improving asset turnover). Scores of 7 to 9 indicate strong and improving fundamentals. Learn more in our complete guide to financial health indicators.
Are Valhi's earnings high quality?
Valhi (VHI) reported a net loss of $57.6M while operations used $35.5M of cash. With neither figure positive, the ratio between the two carries no quality signal. This ratio compares operating cash flow to net income. A ratio above 1.0x means the company generates more cash than its reported earnings, indicating sustainable, cash-backed profits. Ratios below 1.0x suggest earnings rely on accounting accruals rather than actual cash generation. Learn more in our complete guide to financial health indicators.
Can Valhi cover its interest payments?
Valhi (VHI) has an interest coverage ratio of 1.11x, meaning it can struggle to cover its interest obligations. This ratio divides operating income by interest expense. Ratios above 5x indicate strong debt-servicing ability, while ratios below 2x suggest the company may face difficulty meeting interest payments if earnings decline. Learn more in our complete guide to financial health indicators.
How financially healthy is Valhi?
Valhi (VHI) scores 45 out of 100 on our Financial Health Score, indicating moderate standing within its operating companies peer group. The score is a 0-100 composite of six dimensions (Profitability, Growth, Leverage, Liquidity, Cash Flow, Returns), each ranked as a percentile relative to companies in the same scoring family (banks against banks, REITs against REITs, and so on) rather than across all industries. It rates the quality of the business, not whether the stock is fairly priced, and is not financial advice. Learn more in our complete guide to financial health indicators.