NLI REPORTS THIRD QUARTER 2026 RESULTS
CompX segment profit and NLI’s equity earnings from Kronos both improved, while interest and dividend income declined.
Sentiment and the balance of points
Rhea-AI Sentiment reads the wording of the document, how positive or negative its language is on a 1 to 5 scale. The balance of points shown with the takes weighs what the document actually discloses, so the two can disagree, for example when a trial that missed its main goal is described in upbeat language.
Rhea-AI Summary
NLI Holdings (NYSE: NL) returned to profitability in the third quarter of 2026, reporting net income attributable to stockholders of $12.7 million. Earnings were $0.26 per share, versus a loss of $7.8 million, or $0.16 per share, a year earlier. First-nine-month income reached $26.0 million, or $0.53 per share, versus a $6.8 million loss, or $0.14 per share.
Third-quarter CompX sales rose to $44.0 million from $40.0 million, while segment profit increased to $6.4 million from $4.8 million. NLI recognized $10.6 million in equity earnings from Kronos, versus an $11.3 million equity loss. Quarterly results also included a $0.9 million unrealized securities gain and a $2.9 million after-tax benefit related to Kronos’ deferred taxes. Interest and dividend income fell to $1.2 million from $2.1 million, while corporate expenses increased to $3.2 million from $3.0 million.
How this balance works
Rhea-AI gives every point it takes from this document a weight. Minor counts 1, Moderate 3 and Major 9, so one Major point outweighs several Minor ones. The bar adds up the weights on each side, and when neither side holds more than 65% of the total the balance reads Mixed.
It reads the document as published, with the same rules for every company, and it does not look at what the market expected or at how the stock traded, so a point can be objectively good on a day the stock falls.
Rhea-AI Sentiment measures something else, the tone of the wording.
Positive
- Major pointThird-quarter attributable earnings reached $12.7 million, or $0.26 per share, versus a $7.8 million loss, or $0.16 per share.
- Moderate pointCompX sales increased to $44.0 million quarterly and $128.2 million year-to-date, from $40.0 million and $120.6 million.
- Moderate pointCompX segment profit rose to $6.4 million quarterly and $22.4 million year-to-date, from $4.8 million and $17.0 million.
- Moderate pointGross margin increased to $13.0 million quarterly and $41.8 million year-to-date, from $11.0 million and $36.1 million.
- Moderate pointOperating income increased to $3.2 million quarterly and $13.4 million year-to-date, from $1.8 million and $7.8 million.
7 minor points
- Minor pointNine-month attributable earnings reached $26.0 million, or $0.53 per share, versus a $6.8 million loss, or $0.14 per share.
- Minor pointKronos equity earnings reached $10.6 million quarterly and $13.8 million year-to-date, versus losses of $11.3 million and $8.6 million.
- Minor pointUnrealized securities gains were $0.9 million quarterly and $4.0 million year-to-date, versus losses of $0.5 million and $9.1 million.
- Minor pointKronos’ non-cash deferred tax benefit added $2.9 million after tax, or $0.06 per share, to quarterly and year-to-date earnings.
- Minor pointNine-month corporate expenses declined to $9.0 million from $9.2 million, primarily reflecting lower environmental remediation costs.
- Minor pointNine-month interest expense fell to zero from $0.7 million.
- Minor pointPension and other postretirement benefit costs fell to zero, from $0.3 million quarterly and $0.9 million year-to-date.
Negative
- Moderate pointInterest and dividend income declined to $1.2 million quarterly and $3.6 million year-to-date, from $2.1 million and $5.6 million.
- Minor pointSelling, general and administrative expenses rose to $6.6 million quarterly and $19.4 million year-to-date, from $6.2 million and $19.1 million.
- Minor pointQuarterly corporate expenses increased to $3.2 million from $3.0 million, primarily reflecting higher environmental remediation costs.
- Minor pointKronos’ uncertain tax position reduced nine-month earnings by $0.5 million after tax, or $0.01 per share.
- Minor pointIncome tax expense was $2.5 million quarterly and $6.4 million year-to-date, versus $0.9 million benefits in both prior-year periods.
News Explained
As context for NLI’s reported equity earnings from Kronos, Kronos reported third-quarter operating income of
Key Figures
- Third-quarter net income
- $12.7 million vs. a $7.8 million net loss
- Q3 2026 vs. Q3 2025
- Third-quarter EPS
- $0.26 vs. a $0.16 loss per share
- Q3 2026 vs. Q3 2025
- Nine-month net income
- $26.0 million vs. a $6.8 million net loss
- First nine months of 2026 vs. the same period of 2025
- Nine-month EPS
- $0.53 vs. a $0.14 loss per share
- First nine months of 2026 vs. the same period of 2025
- Kronos third-quarter net sales
- $541.1 million; up $84.2 million (18%)
- Q3 2026 vs. Q3 2025
- Kronos third-quarter income from operations
- $57.9 million vs. a $19.2 million loss
- Q3 2026 vs. Q3 2025
- CompX third-quarter segment profit
- $6.4 million vs. $4.8 million
- Q3 2026 vs. Q3 2025
Previous Earnings Reports
-
Reported Q2 2026 net income of $9.0 million, compared with $0.3 million a year earlier.
-
Reported a Q3 2025 net loss of $7.8 million, compared with income a year earlier.
24h Move is the share-price change in the day after each event; other market factors may also have contributed.
Key Terms
unrealized gain financial
anti-dumping duties regulatory
deferred income tax benefit financial
uncertain tax position financial
unabsorbed fixed production costs financial
AI-generated analysis. How Rhea-AI works. Not financial advice.
Dallas, Texas, Nov. 05, 2026 (GLOBE NEWSWIRE) -- NLI Holdings, Inc. (NYSE: NL) reported net income attributable to NLI stockholders of
CompX’s net sales were
NLI recognized equity in earnings of Kronos of
Kronos’ income from operations in the third quarter of 2026 was
Corporate expenses increased $.2 million in the third quarter of 2026 compared to the third quarter of 2025 primarily due to higher environmental remediation and related costs. Corporate expenses decreased $.2 million in the first nine months of 2026 compared to the same period of 2025 primarily due to lower environmental remediation and related costs, partially offset by higher general and administrative costs. Interest and dividend income decreased in the third quarter of 2026 compared to the third quarter of 2025 due to decreased interest rates. Interest and dividend income decreased in the first nine months of 2026 compared to the same period of 2025 primarily due to decreased average investment balances and lower average interest rates. Marketable equity securities represent the change in unrealized gains (losses) on our portfolio of marketable equity securities during the periods.
Net income attributable to NLI stockholders for the third quarter and the first nine month of 2026 includes income of
Net loss attributable to NLI stockholders for the third quarter and the first nine month of 2025 includes expense of
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 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) or the implementation of 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 (including manufacturing and accounting systems) 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;
- Our ability to retain key customers;
- Potential consolidation of Kronos’ competitors;
- Potential consolidation of Kronos’ customers;
- Pricing pressure and changes in industry supply and production levels;
- Competitive technology positions;
- Our ability to protect or defend intellectual property rights;
- Potential difficulties in integrating future acquisitions;
- The introduction of new, or changes in existing, tariffs, trade barriers or trade disputes;
- 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 production 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.
NLI Holdings, Inc. is engaged in component products (security products, recreational marine components and custom metal fabricated parts) and chemicals (TiO2) businesses.
Investor Relations Contact
Bryan A. Hanley
Senior Vice President and Treasurer
(972) 233-1700
NLI HOLDINGS, INC.
CONDENSED CONSOLIDATED STATEMENTS OF INCOME
(Unaudited)
(In millions, except earnings per share)
| Three months ended | Nine months ended | |||||||||||
| September 30, | September 30, | |||||||||||
| 2025 | 2026 | 2025 | 2026 | |||||||||
| Net sales | $ | 40.0 | $ | 44.0 | $ | 120.6 | $ | 128.2 | ||||
| Cost of sales | 29.0 | 31.0 | 84.5 | 86.4 | ||||||||
| Gross margin | 11.0 | 13.0 | 36.1 | 41.8 | ||||||||
| Selling, general and administrative expense | 6.2 | 6.6 | 19.1 | 19.4 | ||||||||
| Corporate expense | (3.0) | (3.2) | (9.2) | (9.0) | ||||||||
| Income from operations | 1.8 | 3.2 | 7.8 | 13.4 | ||||||||
| Equity in earnings (losses) of Kronos Worldwide, Inc. | (11.3) | 10.6 | (8.6) | 13.8 | ||||||||
| Other income (expense): | ||||||||||||
| Interest and dividend income | 2.1 | 1.2 | 5.6 | 3.6 | ||||||||
| Marketable equity securities | (.5) | .9 | (9.1) | 4.0 | ||||||||
| Other components of net periodic pension and OPEB cost | (.3) | — | (.9) | — | ||||||||
| Interest expense | — | — | (.7) | — | ||||||||
| Income (loss) before income taxes | (8.2) | 15.9 | (5.9) | 34.8 | ||||||||
| Income tax expense (benefit) | (.9) | 2.5 | (.9) | 6.4 | ||||||||
| Net income (loss) | (7.3) | 13.4 | (5.0) | 28.4 | ||||||||
| Noncontrolling interest in net income of subsidiary | .5 | .7 | 1.8 | 2.4 | ||||||||
| Net income (loss) attributable to NLI stockholders | $ | (7.8) | $ | 12.7 | $ | (6.8) | $ | 26.0 | ||||
| Net income (loss) per share attributable to NLI stockholders | $ | (.16) | $ | .26 | $ | (.14) | $ | .53 | ||||
| Weighted average shares used in the calculation of net income per share | 48.9 | 48.9 | 48.9 | 48.9 | ||||||||
NLI HOLDINGS, INC.
COMPONENTS OF INCOME FROM OPERATIONS
(Unaudited)
(In millions)
| Three months ended | Nine months ended | |||||||||||
| September 30, | September 30, | |||||||||||
| 2025 | 2026 | 2025 | 2026 | |||||||||
| CompX segment profit | $ | 4.8 | $ | 6.4 | $ | 17.0 | $ | 22.4 | ||||
| Corporate expense | (3.0) | (3.2) | (9.2) | (9.0) | ||||||||
| Income from operations | $ | 1.8 | $ | 3.2 | $ | 7.8 | $ | 13.4 | ||||
IMPACT OF PERCENTAGE CHANGE IN KRONOS’ NET SALES
(Unaudited)
| Three months ended | Nine months ended | |||
| September 30, | September 30, | |||
| 2026 vs. 2025 | 2026 vs 2025 | |||
| Percentage change in net sales: | ||||
| TiO2 sales volume | 14 | % | 11 | % |
| TiO2 product pricing | 5 | (1) | ||
| TiO2 product mix/other | (1) | (1) | ||
| Changes in currency exchange rates | — | 3 | ||
| Total | 18 | % | 12 | % |
FAQ
AI-generated questions and answers. How Rhea-AI works. Not financial advice.
What were NLI Holdings’ third-quarter 2026 earnings?
NLI reported net income attributable to stockholders of $12.7 million, or $0.26 per share, for the third quarter of 2026. That compares with a net loss of $7.8 million, or $0.16 per share, in the third quarter of 2025.
How did CompX perform in NLI’s third-quarter 2026 results?
CompX sales increased to $44.0 million from $40.0 million, and segment profit rose to $6.4 million from $4.8 million. NLI attributed the sales increase primarily to Marine Components sales to towboat and industrial markets, with a smaller contribution from Security Products sales to healthcare and tool storage markets.
What tax items affected NLI Holdings’ 2026 earnings?
A Kronos non-cash deferred tax benefit added $2.9 million after tax, or $0.06 per share, to both quarterly and nine-month earnings. It related to proposed currency regulations under Section 987 released in August 2026. Separately, recognition of an uncertain tax position related to a German tax audit reduced nine-month earnings by $0.5 million after tax, or $0.01 per share.