VALHI REPORTS FIRST QUARTER 2026 RESULTS
Rhea-AI Summary
Valhi (NYSE: VHI) reported Q1 2026 net income attributable to Valhi stockholders of $2.0 million ($0.07 per share) versus $16.9 million ($0.59) in Q1 2025. Total net sales were $560.1 million.
C hemicals sales rose to $509.8 million, but Chemicals operating income fell to $14.5 million. Real estate operating income rose to $11.3 million. The quarter included a $2.0 million tax expense tied to a German tax audit uncertain position.
AI-generated analysis. Not financial advice.
Positive
- Real estate operating income +$8.3M (from $3.0M to $11.3M)
- Real estate net sales increased to $9.7M, including $7.3M parcel sale
- Component products operating income increased from $5.9M to $7.1M
Negative
- Net income attributable to Valhi stockholders fell from $16.9M to $2.0M
- EPS declined from $0.59 to $0.07
- C hemicals operating income declined from $41.2M to $14.5M
- Interest expense increased from $13.2M to $14.7M
Key Figures
Market Reality Check
Peers on Argus
Peers show mixed moves: ASIX -2.62%, LXU -4.48%, while RYAM +3.15%, TROX +1.65%, WLKP +3.99%, indicating stock-specific drivers for VHI.
Previous Earnings Reports
| Date | Event | Sentiment | Move | Catalyst |
|---|---|---|---|---|
| Mar 10 | Quarterly earnings | Negative | -2.7% | Q4 2025 swung to a net loss versus prior-year profit on weak Chemicals. |
| Nov 06 | Quarterly earnings | Negative | +5.5% | Q3 2025 loss vs strong prior year, hurt by weaker Chemicals and tax expense. |
| Aug 07 | Quarterly earnings | Negative | +1.4% | Q2 2025 net income fell sharply with lower Chemicals margins. |
| May 08 | Quarterly earnings | Positive | -3.1% | Strong Q1 2025 income growth led by Chemicals segment improvement. |
| Mar 06 | Quarterly earnings | Positive | +3.2% | Q4 2024 net income and Chemicals sales rose significantly year over year. |
Earnings releases often show divergence between fundamental tone and next-day price, with both strong and weak results sometimes met by opposite moves.
Over the past year, Valhi’s earnings reports have highlighted a sharp deterioration in results driven by its Chemicals segment, including Q3 and Q4 2025 net losses following strong 2024 profitability. Earlier quarters like Q1 2025 and Q4 2024 showed solid income and segment growth. Against this backdrop, the latest Q1 2026 results continue the theme of pressured Chemicals profitability despite modest sales growth and better performance in Component Products and Real Estate.
Historical Comparison
Past earnings releases showed an average move of about 0.85%, with prices sometimes rising on weak results and falling on strong ones, underscoring inconsistent reactions to fundamentals.
Earnings have shifted from strong profitability in 2024 to sequential losses and weaker results through 2025, mainly from Chemicals, with intermittent support from Component Products and Nevada real estate reimbursements.
Market Pulse Summary
This announcement shows Q1 2026 earnings under pressure, with net income dropping to $2.0M and Chemicals operating income falling despite higher TiO₂ volumes. Component Products and Real Estate, including a $5.4M tax increment reimbursement, partly offset this. Investors may track TiO₂ pricing trends, the durability of cost reductions, real estate parcel sales, and how future earnings compare with a history of mixed market reactions to prior reports.
Key Terms
tio2 technical
tax increment infrastructure reimbursement financial
uncertain tax position regulatory
noncontrolling interest financial
AI-generated analysis. Not financial advice.
Dallas, Texas, May 07, 2026 (GLOBE NEWSWIRE) -- Valhi, Inc. (NYSE: VHI) reported net income attributable to Valhi stockholders of
The Chemicals Segment’s net sales of
The Chemicals Segment’s operating income in the first quarter of 2026 was
The Component Products Segment’s net sales were
The Real Estate Management and Development Segment had net sales of
Corporate expenses in the first quarter of 2026 declined slightly compared to the same period in 2025 primarily due to lower administrative and environmental remediation and related costs. Interest income and other decreased $.8 million in the first quarter of 2026 compared to the first quarter of 2025 primarily due to decreased average investment balances and lower average interest rates. Interest expense increased
Our net income attributable to Valhi stockholders in the first quarter of 2026 includes an income tax expense of
The statements in this press 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 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 predicted. While it is not possible to identify all factors, we continue to face many risks and uncertainties. Among the factors that could cause our actual future results to differ materially include, but are not limited to, the following:
- Future supply and demand for our products;
- Our ability to realize expected cost savings from strategic and operational initiatives;
- Our ability to integrate acquisitions into Kronos’ operations and realize expected synergies and innovations;
- The extent of the dependence of certain of our businesses on certain market sectors;
- The cyclicality of certain 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 ore, zinc, brass, aluminum, steel and energy costs) or the implementation of tariffs on imported raw materials;
- 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, reduce demand or perceived demand for TiO2, component products and land held for development 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;
- Potential consolidation of our competitors;
- Potential consolidation of our customers;
- Our ability to retain key customers;
- The impact of pricing and production decisions;
- Competitive technology positions;
- Our ability to protect or defend intellectual property rights;
- The introduction of new, or changes in existing, tariffs, trade barriers or trade disputes;
- The ability of our subsidiaries to pay us dividends;
- Uncertainties associated with new product development and the development of new product features;
- 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;
- The timing and amounts of insurance recoveries;
- Our ability to renew or refinance credit facilities or other debt instruments in the future;
- Changes in interest rates;
- Our ability to maintain sufficient liquidity;
- 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, 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 NL, 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 NL’s lead pigment and environmental matters);
- Our ability to comply with covenants contained in our revolving bank credit facilities;
- Our ability to complete and comply with the conditions of our licenses and permits;
- Changes in construction costs in Henderson, Nevada; 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 the consequences of such 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.
Valhi, Inc. is engaged in the chemicals (TiO2), component products (security products and recreational marine components) and real estate management and development industries.
*****
Investor Relations Contact
Bryan A. Hanley
Senior Vice President and Treasurer
Tel. 972-233-1700
VALHI, INC. AND SUBSIDIARIES
CONDENSED SUMMARY OF INCOME
(In millions, except earnings per share)
| Three months ended | ||||||
| March 31, | ||||||
| 2025 | 2026 | |||||
| (unaudited) | ||||||
| Net sales | ||||||
| Chemicals | $ | 489.8 | $ | 509.8 | ||
| Component products | 40.3 | 40.6 | ||||
| Real estate management and development | 8.5 | 9.7 | ||||
| Total net sales | $ | 538.6 | $ | 560.1 | ||
| Operating income | ||||||
| Chemicals | $ | 41.2 | $ | 14.5 | ||
| Component products | 5.9 | 7.1 | ||||
| Real estate management and development | 3.0 | 11.3 | ||||
| Total operating income | 50.1 | 32.9 | ||||
| General corporate items: | ||||||
| Interest income and other | 4.3 | 3.5 | ||||
| Other components of net periodic pension and OPEB expense | (.8) | (.8) | ||||
| Changes in market value of Valhi common stock held by subsidiaries | (1.7) | .5 | ||||
| General expenses, net | (7.9) | (7.3) | ||||
| Interest expense | (13.2) | (14.7) | ||||
| Income before income taxes | 30.8 | 14.1 | ||||
| Income tax expense | 8.0 | 6.3 | ||||
| Net income | 22.8 | 7.8 | ||||
| Noncontrolling interest in net income of subsidiaries | 5.9 | 5.8 | ||||
| Net income attributable to Valhi stockholders | $ | 16.9 | $ | 2.0 | ||
| Amounts attributable to Valhi stockholders: | ||||||
| Basic and diluted net income per share | $ | .59 | $ | .07 | ||
| Basic and diluted weighted average shares outstanding | 28.5 | 28.5 | ||||
VALHI, INC. AND SUBSIDIARIES
IMPACT OF PERCENTAGE CHANGE IN CHEMICAL SEGMENT'S NET SALES
(unaudited)
| Three months ended | |||
| March 31, | |||
| 2026 vs. 2025 | |||
| Percentage change in TiO2 net sales: | |||
| TiO2 sales volumes | 4 | % | |
| TiO2 product pricing | (6) | ||
| TiO2 product mix/other | — | ||
| Changes in currency exchange rates | 6 | ||
| Total | 4 | % |
