NL REPORTS FIRST QUARTER 2025 RESULTS
NL Industries reported Q1 2025 net income of $.7 million ($.01 per share), down from $6.8 million ($.14 per share) in Q1 2024. The company experienced an unrealized loss of $8.5 million from marketable equity securities compared to a $2.4 million gain last year. CompX's net sales increased to $40.3 million from $38.0 million, with improved segment profit of $5.9 million.
Through its stake in Kronos, which completed acquisition of Louisiana Pigment Company in July 2024, NL recognized equity earnings of $5.5 million, up from $2.5 million. Kronos reported net sales of $489.8 million, a 2% increase, driven by higher sales volumes in North America and Europe, and 2% higher average TiO2 prices compared to Q1 2024. Kronos' production facilities operated at 93% capacity, with production volumes up 18% year-over-year.
NL Industries ha riportato un utile netto del primo trimestre 2025 di 0,7 milioni di dollari (0,01 dollari per azione), in calo rispetto ai 6,8 milioni di dollari (0,14 dollari per azione) del primo trimestre 2024. L'azienda ha subito una perdita non realizzata di 8,5 milioni di dollari derivante da titoli azionari negoziabili, rispetto a un guadagno di 2,4 milioni di dollari dell'anno precedente. Le vendite nette di CompX sono aumentate a 40,3 milioni di dollari da 38,0 milioni, con un miglioramento del profitto di segmento a 5,9 milioni di dollari.
Attraverso la sua partecipazione in Kronos, che ha completato l'acquisizione della Louisiana Pigment Company nel luglio 2024, NL ha riconosciuto utili da partecipazione di 5,5 milioni di dollari, in aumento rispetto ai 2,5 milioni precedenti. Kronos ha riportato vendite nette di 489,8 milioni di dollari, con un incremento del 2%, trainato da volumi di vendita più elevati in Nord America ed Europa e da un aumento del 2% del prezzo medio del TiO2 rispetto al primo trimestre 2024. Gli impianti produttivi di Kronos hanno operato al 93% della capacità, con volumi di produzione in crescita del 18% su base annua.
NL Industries reportó un ingreso neto del primer trimestre de 2025 de 0,7 millones de dólares (0,01 dólares por acción), una disminución respecto a los 6,8 millones de dólares (0,14 dólares por acción) del primer trimestre de 2024. La compañía experimentó una pérdida no realizada de 8,5 millones de dólares por valores de renta variable negociables, en comparación con una ganancia de 2,4 millones el año pasado. Las ventas netas de CompX aumentaron a 40,3 millones de dólares desde 38,0 millones, con una mejora en la ganancia del segmento de 5,9 millones.
A través de su participación en Kronos, que completó la adquisición de Louisiana Pigment Company en julio de 2024, NL reconoció ganancias por participación de 5,5 millones de dólares, un aumento desde 2,5 millones. Kronos reportó ventas netas de 489,8 millones de dólares, un incremento del 2%, impulsado por mayores volúmenes de ventas en Norteamérica y Europa, y un aumento del 2% en el precio promedio del TiO2 en comparación con el primer trimestre de 2024. Las instalaciones de producción de Kronos operaron al 93% de su capacidad, con un aumento del 18% en los volúmenes de producción interanual.
NL Industries는 2025년 1분기 순이익으로 70만 달러(주당 0.01달러)를 보고했으며, 이는 2024년 1분기의 680만 달러(주당 0.14달러)에서 감소한 수치입니다. 회사는 시장성 있는 주식 증권에서 8.5백만 달러의 미실현 손실을 경험했으며, 이는 작년의 240만 달러 이익과 대비됩니다. CompX의 순매출은 4,030만 달러로 3,800만 달러에서 증가했으며, 세그먼트 이익도 590만 달러로 개선되었습니다.
2024년 7월 Louisiana Pigment Company 인수를 완료한 Kronos 지분을 통해 NL은 5.5백만 달러의 지분 수익을 인식했으며, 이는 이전의 2.5백만 달러에서 증가한 수치입니다. Kronos는 4억 8,980만 달러의 순매출을 보고했으며, 이는 2% 증가한 수치로, 북미 및 유럽에서의 판매량 증가와 2024년 1분기 대비 TiO2 평균 가격이 2% 상승한 데 힘입은 결과입니다. Kronos의 생산 시설은 93% 가동률로 운영되었으며, 생산량은 전년 대비 18% 증가했습니다.
NL Industries a déclaré un résultat net du premier trimestre 2025 de 0,7 million de dollars (0,01 dollar par action), en baisse par rapport à 6,8 millions de dollars (0,14 dollar par action) au premier trimestre 2024. La société a subi une perte latente de 8,5 millions de dollars liée à des titres de participation négociables, contre un gain de 2,4 millions l'année précédente. Les ventes nettes de CompX ont augmenté à 40,3 millions de dollars contre 38,0 millions, avec une amélioration du bénéfice segmentaire à 5,9 millions.
Grâce à sa participation dans Kronos, qui a finalisé l'acquisition de Louisiana Pigment Company en juillet 2024, NL a reconnu un résultat de mise en équivalence de 5,5 millions de dollars, en hausse par rapport à 2,5 millions. Kronos a déclaré des ventes nettes de 489,8 millions de dollars, soit une augmentation de 2 %, portée par des volumes de ventes plus élevés en Amérique du Nord et en Europe, ainsi qu'une hausse de 2 % du prix moyen du TiO2 par rapport au premier trimestre 2024. Les installations de production de Kronos ont fonctionné à 93 % de leur capacité, avec une augmentation de 18 % des volumes de production en glissement annuel.
NL Industries meldete einen Nettoertrag für das erste Quartal 2025 von 0,7 Millionen US-Dollar (0,01 US-Dollar je Aktie), was einen Rückgang gegenüber 6,8 Millionen US-Dollar (0,14 US-Dollar je Aktie) im ersten Quartal 2024 darstellt. Das Unternehmen verzeichnete einen nicht realisierten Verlust von 8,5 Millionen US-Dollar aus handelbaren Aktienwerten im Vergleich zu einem Gewinn von 2,4 Millionen US-Dollar im Vorjahr. Die Nettoumsätze von CompX stiegen auf 40,3 Millionen US-Dollar von 38,0 Millionen, mit einem verbesserten Segmentergebnis von 5,9 Millionen US-Dollar.
Durch seine Beteiligung an Kronos, das im Juli 2024 die Übernahme der Louisiana Pigment Company abgeschlossen hat, erkannte NL Anteilsgewinne von 5,5 Millionen US-Dollar an, gegenüber 2,5 Millionen zuvor. Kronos meldete Nettoumsätze von 489,8 Millionen US-Dollar, ein Plus von 2 %, getrieben durch höhere Verkaufsvolumina in Nordamerika und Europa sowie um 2 % höhere durchschnittliche TiO2-Preise im Vergleich zum ersten Quartal 2024. Die Produktionsanlagen von Kronos liefen mit 93 % Kapazität, und die Produktionsmengen stiegen im Jahresvergleich um 18 %.
- CompX's segment profit increased 59% to $5.9 million from $3.7 million
- Kronos' income from operations nearly doubled to $38.4 million from $19.5 million
- Kronos' TiO2 production volumes increased 18% with improved operating rates of 93%
- Kronos successfully integrated Louisiana Pigment Company acquisition
- Higher sales volumes in North American and European markets
- Net income declined significantly to $0.7 million from $6.8 million year-over-year
- $8.5 million unrealized loss on marketable equity securities
- TiO2 selling prices declined 3% during Q1 2025 due to market pressure
- Negative currency exchange rate impact of $11 million on Kronos' net sales
- Interest and dividend income decreased $0.6 million due to lower rates and cash balances
Insights
NL's Q1 showed strong operational improvements masked by investment losses, with segment profits up despite 90% net income decline.
NL Industries reported a dramatic contrast between operational strength and bottom-line results in Q1 2025. Net income plummeted
Stripping away this non-operational item reveals substantial progress across business segments. Income from operations more than doubled to
NL's equity in earnings from Kronos Worldwide more than doubled to
While TiO2 average selling prices were
Corporate expenses increased
Dallas, Texas, May 07, 2025 (GLOBE NEWSWIRE) -- NL Industries, Inc. (NYSE: NL) today reported net income attributable to NL stockholders of $.7 million, or $.01 per share, in the first quarter of 2025 compared to
CompX’s net sales were
NL recognized equity in earnings of Kronos of
Kronos’ net sales of
Kronos’ income from operations in the first quarter of 2025 was
Corporate expenses increased $.3 million in the first quarter of 2025 compared to the first quarter of 2024 primarily due to higher environmental remediation and related costs and general and administrative expenses, partially offset by lower litigation fees and related costs. Interest and dividend income decreased $.6 million in the first quarter of 2025 compared to the same period of 2024 primarily due to lower average interest rates and decreased cash balances. Marketable equity securities represent the change in unrealized gains (losses) on our portfolio of marketable equity securities during the period.
Net income attributable to NL stockholders for the first three months of 2024 includes a loss of $.3 million ($.01 per share, net of tax) due to Kronos’ recognition of an aggregate charge related to a write-off of deferred financing costs.
The statements in this release relating to matters that are not historical facts are forward-looking statements that represent management's beliefs and assumptions based on currently available information. Although we believe the expectations reflected in such forward-looking statements are reasonable, we cannot give any assurances that these expectations will prove to be correct. Such statements by their nature involve substantial risks and uncertainties that could significantly impact expected results, and actual future results could differ materially from those described in such forward-looking statements. While it is not possible to identify all factors, we continue to face many risks and uncertainties. Factors that could cause actual future results to differ materially include, but are not limited to:
- Future supply and demand for our products;
- Kronos’ ability to realize expected cost savings from strategic and operational initiatives;
- Kronos’ ability to integrate acquisitions, including Louisiana Pigment Company, L.P., into its operations and realize expected synergies and innovations;
- The extent of the dependence of certain of our businesses on certain market sectors;
- The cyclicality of our businesses (such as Kronos’ TiO2 operations);
- Customer and producer inventory levels;
- Unexpected or earlier-than-expected industry capacity expansion (such as the TiO2 industry);
- Changes in raw material and other operating costs (such as energy, ore, zinc, aluminum, steel and brass costs), including as a result of additional or changed tariffs on imported raw materials, and our ability to pass those costs on to our customers or offset them with reductions in other operating costs;
- Changes in the availability of raw materials (such as ore);
- General global economic and political conditions that harm the worldwide economy, disrupt our supply chain, increase material and energy costs or reduce demand or perceived demand for TiO2 and our products or impair our ability to operate our facilities (including changes in the level of gross domestic product in various regions of the world, tariffs, natural disasters, terrorist acts, global conflicts and public health crises);
- Operating interruptions (including, but not limited to, labor disputes, leaks, natural disasters, fires, explosions, unscheduled or unplanned downtime, transportation interruptions, certain regional and world events or economic conditions and public health crises);
- Technology related disruptions (including, but not limited to, cyber-attacks; software implementation, upgrades, or improvements; technology processing failures; or other events) related to our technology infrastructure that could impact our ability to continue operations, or at key vendors which could impact our supply chain, or at key customers which could impact their operations and cause them to curtail or pause orders;
- Competitive products and substitute products;
- Competition from Chinese suppliers with less stringent regulatory and environmental compliance requirements;
- Customer and competitor strategies;
- Potential consolidation of Kronos’ competitors;
- Potential consolidation of Kronos’ customers;
- The impact of pricing and production decisions;
- Competitive technology positions;
- Our ability to protect or defend intellectual property rights;
- Potential difficulties in integrating future acquisitions;
- Potential difficulties in upgrading or implementing accounting and manufacturing software systems;
- The introduction of new, or changes in existing, tariffs, trade barriers or trade disputes (including tariffs imposed by the U.S. federal government on imports from Canada, where Kronos has a manufacturing facility);
- Fluctuations in currency exchange rates (such as changes in the exchange rate between the U.S. dollar and each of the euro, the Norwegian krone and the Canadian dollar and between the euro and the Norwegian krone), or possible disruptions to our business resulting from uncertainties associated with the euro or other currencies;
- Decisions to sell operating assets other than in the ordinary course of business;
- Kronos’ ability to renew or refinance credit facilities or other debt instruments in the future;
- Changes in interest rates;
- Kronos’ ability to comply with covenants contained in its revolving bank credit facility;
- Our ability to maintain sufficient liquidity;
- The timing and amounts of insurance recoveries;
- The ability of our subsidiaries or affiliates to pay us dividends;
- Uncertainties associated with CompX’s development of new products and product features;
- The ultimate outcome of income tax audits, tax settlement initiatives or other tax matters, including future tax reform;
- Our ability to utilize income tax attributes or changes in income tax rates related to such attributes, the benefits of which may or may not have been recognized under the more-likely-than-not recognition criteria;
- Environmental matters (such as those requiring compliance with emission and discharge standards for existing and new facilities or new developments regarding environmental remediation or decommissioning obligations at sites related to our former operations);
- Government laws and regulations and possible changes therein (such as changes in government regulations which might impose various obligations on former manufacturers of lead pigment and lead-based paint, including us, with respect to asserted health concerns associated with the use of such products), including new environmental, sustainability, health and safety or other regulations (such as those seeking to limit or classify TiO2 or its use);
- The ultimate resolution of pending litigation (such as our lead pigment and environmental matters); and
- Pending or possible future litigation (such as litigation related to CompX’s use of certain permitted chemicals in its productions process) or other actions.
Should one or more of these risks materialize (or if the consequences of such a development worsen), or should the underlying assumptions prove incorrect, actual results could differ materially from those currently forecasted or expected. We disclaim any intention or obligation to update or revise any forward-looking statement whether as a result of changes in information, future events or otherwise.
NL Industries, Inc. is engaged in component products (security products and recreational marine components) and chemicals (TiO2) businesses.
Investor Relations Contact
Bryan A. Hanley
Senior Vice President and Treasurer
(972) 233-1700
NL INDUSTRIES, INC.
CONDENSED CONSOLIDATED STATEMENTS OF INCOME
(In millions, except earnings per share)
| Three months ended | ||||||
| March 31, | ||||||
| 2024 | 2025 | |||||
| (unaudited) | ||||||
| Net sales | $ | 38.0 | $ | 40.3 | ||
| Cost of sales | 28.3 | 28.1 | ||||
| Gross margin | 9.7 | 12.2 | ||||
| Selling, general and administrative expense | 6.0 | 6.3 | ||||
| Corporate expense | 2.4 | 2.7 | ||||
| Income from operations | 1.3 | 3.2 | ||||
| Equity in earnings of Kronos Worldwide, Inc. | 2.5 | 5.5 | ||||
| Other income (expense): | ||||||
| Interest and dividend income | 2.6 | 2.0 | ||||
| Marketable equity securities | 2.4 | (8.5) | ||||
| Other components of net periodic pension and OPEB cost | (.3) | (.3) | ||||
| Interest expense | (.2) | (.6) | ||||
| Income before income taxes | 8.3 | 1.3 | ||||
| Income tax expense | 1.0 | — | ||||
| Net income | 7.3 | 1.3 | ||||
| Noncontrolling interest in net income of subsidiary | .5 | .6 | ||||
| Net income attributable to NL stockholders | $ | 6.8 | $ | .7 | ||
| Net income per share attributable to NL stockholders | $ | .14 | $ | .01 | ||
| Weighted average shares used in the calculation of net income per share | 48.8 | 48.8 | ||||
NL INDUSTRIES, INC.
COMPONENTS OF INCOME FROM OPERATIONS
(In millions)
| Three months ended | ||||||
| March 31, | ||||||
| 2024 | 2025 | |||||
| (unaudited) | ||||||
| CompX segment profit | $ | 3.7 | $ | 5.9 | ||
| Corporate expense | (2.4) | (2.7) | ||||
| Income from operations | $ | 1.3 | $ | 3.2 | ||
CHANGE IN KRONOS’ NET SALES
| Three months ended | ||
| March 31, | ||
| 2025 vs. 2024 | ||
| (unaudited) | ||
| Percentage change in net sales: | ||
| TiO2 sales volume | 5 | % |
| TiO2 product pricing | 2 | |
| TiO2 product mix/other | (2) | |
| Changes in currency exchange rates | (3) | |
| Total | 2 | % |
FAQ
What was NL Industries' (NL) earnings per share in Q1 2025?
How did CompX's performance change in Q1 2025 compared to Q1 2024?
What was Kronos' operating capacity and production volume growth in Q1 2025?
How did TiO2 pricing trend for Kronos in Q1 2025?
What was the impact of the Louisiana Pigment Company acquisition on NL's results?
