Valhi (NYSE: VHI) reported a Q4 2025 net loss attributable to stockholders of $53.2 million, or $1.86 per share, versus Q4 2024 net income of $22.8 million.
Full-year 2025 net loss was $57.6 million, or $2.02 per share, driven primarily by weaker Chemicals Segment results, lower TiO2 selling prices, production curtailments and pension settlement costs.
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Positive
Component Products operating income +$0.7M in Q4 2025 versus Q4 2024
Component Products full-year operating income rose to $22.6M
Real Estate closed three parcels in Q4 2025, immediate revenue recognition
Negative
Chemicals Segment operating loss of $60.1M in Q4 2025
Full-year Chemicals operating loss of $24.5M versus $138.5M prior year
Average TiO2 selling prices down 10% year-to-date in 2025
Unabsorbed fixed production costs of ~$111M recognized in 2025
Pension settlement loss of $28.7M recorded in Q4 2025
Key Figures
Q4 2025 net loss:$53.2M (‑$1.86/share)FY 2025 net loss:$57.6M (‑$2.02/share)Chemicals Q4 2025 sales:$418.3M+5 more
8 metrics
Q4 2025 net loss$53.2M (‑$1.86/share)Net loss attributable to stockholders vs $22.8M profit in Q4 2024
FY 2025 net loss$57.6M (‑$2.02/share)Full-year loss vs $108.0M ($3.79/share) net income in 2024
Chemicals Q4 2025 sales$418.3MSegment net sales, down $4.8M (1%) from Q4 2024
Chemicals FY 2025 sales$1.9BSegment net sales, $27.7M (1%) lower than full-year 2024
Chemicals Q4 2025 op. loss$60.1MOperating loss vs $32.6M operating income in Q4 2024
Unabsorbed fixed costs FY25$111MUnabsorbed fixed production costs from reduced operating rates
TiO2 price change 202510% lowerAverage TiO2 selling prices end-2025 vs beginning of 2025
Pension settlement loss$28.7MSettlement loss in Q4 2025 related to U.S. pension plan termination
Market Reality Check
Price:$14.01Vol:Volume 13,443 is below th...
low vol
$14.01Last Close
VolumeVolume 13,443 is below the 20-day average of 20,747, suggesting a muted pre-news positioning.low
TechnicalPrice at $13.28 is below the 200-day MA of $14.92 and about 33.6% under the 52-week high.
Peers on Argus
VHI was down 1.41% while peers were mixed: ASIX -1.46%, LXU -3.48%, WLKP -1.32%,...
VHI was down 1.41% while peers were mixed: ASIX -1.46%, LXU -3.48%, WLKP -1.32%, but RYAM +3.74% and TiO2 peer TROX +8.72%, indicating stock-specific pressures rather than a uniform sector move.
Significant profit improvement and TiO2 demand growth plus LPC gain.
Pattern Detected
Earnings headlines often led to sizeable moves, with mixed alignment: strong 2024 results aligned with gains, while several 2025 reports saw the stock rise despite weakening fundamentals.
Recent Company History
Recent earnings coverage shows Valhi shifting from strong profitability in 2024 to much weaker results in 2025, driven largely by the Chemicals segment and TiO2 dynamics. Q1 2025 was solid, but Q2 and Q3 2025 highlighted declining income and higher costs. Today’s Q4 and full-year 2025 loss extends that trend, reinforcing the narrative of margin pressure and reduced operating rates compared to prior-year strength.
Historical Comparison
+2.8% avg move · Past 5 earnings releases saw average moves of about 2.77%, with mixed alignment to fundamentals, mak...
earnings
+2.8%
Average Historical Moveearnings
Past 5 earnings releases saw average moves of about 2.77%, with mixed alignment to fundamentals, making today’s reaction notable relative to that baseline.
Earnings history shows a transition from strong, volume-driven TiO2 profitability in 2024 to 2025 losses tied to lower selling prices, reduced operating rates, and higher unabsorbed fixed costs.
Market Pulse Summary
This announcement details a swing to a full-year 2025 net loss, driven largely by the Chemicals segm...
Analysis
This announcement details a swing to a full-year 2025 net loss, driven largely by the Chemicals segment’s lower TiO2 prices, reduced operating rates, and significant unabsorbed fixed costs. Non-cash tax and pension items further pressured results, while Component Products and certain real estate activities remained profitable. Investors may focus on trends in TiO2 pricing, capacity utilization levels, and segment operating income as key metrics in future periods.
Key Terms
tio2, deferred income tax expense, valuation allowance, deferred tax asset, +2 more
6 terms
tio2technical
"The Chemicals Segment’s net sales decreased... due to lower average TiO2 selling prices"
TiO2, short for titanium dioxide, is a white mineral powder widely used as the primary pigment and UV‑blocker in products like paint, plastics, paper, cosmetics and sunscreens, and as a whitening agent in some foods. Investors care because its price, availability and any safety or regulatory actions (for example over nanoparticle or food use) can affect manufacturing costs, product demand and profitability across multiple industries—think of it as a ubiquitous building block whose supply or regulation can ripple through many company balance sheets.
deferred income tax expensefinancial
"includes a non-cash deferred income tax expense of $8.5 million related to..."
Deferred income tax expense is an accounting entry that records tax obligations (or tax benefits) that arise because the timing of when income or deductions are recognized for financial reporting differs from when they are recognized for tax purposes. Think of it like noting a bill that will be paid (or a refund that will arrive) later; it doesn’t always change current cash flow but alters reported profit and signals future tax cash impacts that investors use when assessing earnings quality and valuation.
valuation allowancefinancial
"related to the recognition of a valuation allowance on our Chemicals Segment’s German..."
A valuation allowance is a reserve set aside to reduce the value of certain assets on a company's financial records when there is uncertainty about whether they will generate the expected benefits. It acts like a caution sign, indicating that some assets might not be fully recoverable or worth their recorded amount. This matters to investors because it provides a more realistic picture of a company's financial health and potential risks.
deferred tax assetfinancial
"valuation allowance on our Chemicals Segment’s German interest deduction limitation deferred tax asset"
A deferred tax asset is an accounting recognition that a company expects to pay less tax in the future because of past losses or timing differences between accounting and tax rules; think of it as an IOU from the tax system that can reduce future tax bills. It matters to investors because it can boost future cash flow and reported profits if the company generates enough taxable income to use it, but its value depends on realistic prospects for future earnings.
noncontrolling interestfinancial
"($5.6 million, or $.20 per share, net of noncontrolling interest)"
The portion of a business owned by investors other than the controlling owner when one company has control of another; it represents outside shareholders’ share of the subsidiary’s assets and profits. For investors, it matters because those outside claims reduce the amount of profit and net assets attributable to the parent owner — similar to saying part of a pizza belongs to someone else — and thus affects earnings, book value and valuation.
opebfinancial
"Other components of net periodic pension and OPEB expense of $32.7 million..."
Other post-employment benefits (OPEB) are promises an employer makes to cover former employees’ costs after they retire, most commonly health care and life insurance, but not pensions. Think of it like a household promising to pay a parent’s medical bills years from now: it creates a future bill the company must plan for. Investors watch OPEB because growing or underfunded OPEB obligations can reduce future cash available for dividends, investment, or debt repayment and can affect a company’s reported liabilities and credit strength.
AI-generated analysis. Not financial advice.
Dallas, Texas, March 10, 2026 (GLOBE NEWSWIRE) -- Valhi, Inc. (NYSE: VHI) reported a net loss attributable to Valhi stockholders of $53.2 million, or $1.86 per share, in the fourth quarter of 2025 compared to net income of $22.8 million, or $.80 per share, in the fourth quarter of 2024. For the full year of 2025, Valhi reported a net loss attributable to Valhi stockholders of $57.6 million, or $2.02 per share, compared to net income of $108.0 million, or $3.79 per share, for the full year of 2024. Net income attributable to Valhi stockholders decreased in the fourth quarter and full year of 2025 as compared to the same periods in 2024 primarily due to lower operating results from the Chemicals Segment. Net loss attributable to Valhi stockholders in the fourth quarter of 2025 includes a non-cash deferred income tax expense of $8.5 million related to the recognition of a valuation allowance on our Chemicals Segment’s German interest deduction limitation deferred tax asset ($5.6 million, or $.20 per share, net of noncontrolling interest) and for the full year of 2025 includes the recognition of a non-cash deferred income tax expense of $19.3 million to reduce the Chemicals Segment’s net German deferred tax asset as a result of the German tax rate reduction in the third quarter ($12.8 million, or $.45 per share, net of noncontrolling interest). Net income attributable to Valhi stockholders in the fourth quarter of 2024 includes aggregate income of $31.4 million ($20.6 million, or $.72 per share, net of tax and noncontrolling interest) related to the settlement of a liability for an environmental remediation site.
As previously reported, effective July 16, 2024, the Chemicals Segment acquired the 50% joint venture interest in Louisiana Pigment Company, L.P. (“LPC) previously held by Venator Investments, Ltd. Prior to the acquisition, the Chemicals Segment held a 50% joint venture interest in LPC. Following the acquisition, LPC became a wholly-owned subsidiary of the Chemicals Segment. We accounted for the acquisition as a business combination. The results of operations of LPC have been included in our results of operations beginning as of the acquisition date. Net income for the full year of 2024 includes the recognition of a non-cash gain of $64.5 million ($33.6 million, or $1.18 per share, net of tax and noncontrolling interest) associated with the remeasurement of the investment in LPC as a result of the acquisition. Net loss for the full year of 2025 includes the recognition of a non-cash gain of $4.6 million ($2.4 million, or $.08 per share, net of tax and noncontrolling interest) associated with the remeasurement of the earn-out liability initially recorded in connection with the LPC acquisition.
The Chemicals Segment’s net sales of $418.3 million in the fourth quarter of 2025 were $4.8 million, or 1%, lower than in the fourth quarter of 2024, and net sales of $1.9 billion in the full year of 2025 were $27.7 million, or 1%, lower than the full year of 2024. The Chemicals Segment’s net sales decreased in the fourth quarter of 2025 compared to the fourth quarter of 2024 primarily due to the net effects of lower average TiO2 selling prices, higher market share gains in its European markets and changes in product mix, primarily due to lower sales volumes in its complementary businesses. The Chemicals Segment’s net sales decreased for the full year of 2025 compared to the same period in 2024 due to the effects of lower average TiO2 selling prices somewhat offset by an increase in sales volumes (primarily in its European, North American and Latin American markets). The Chemicals Segment ended 2025 with average TiO2 selling prices 10% lower than the beginning of 2025. Average TiO2 selling prices were 8% lower in the fourth quarter of 2025 as compared to the fourth quarter of 2024 and 4% lower for the full year of 2025 as compared to the full year of 2024. Fluctuations in currency exchange rates (primarily the euro) also affected net sales comparisons, increasing the Chemicals Segment’s net sales by approximately $13 million in the fourth quarter of 2025 and by approximately $24 million in the full year of 2025 as compared to the same prior year periods. The table at the end of this press release shows how each of these items impacted the Chemicals Segment’s net sales.
The Chemicals Segment’s operating loss in the fourth quarter of 2025 was $60.1 million compared to operating income of $32.6 million in the fourth quarter of 2024. For the full year of 2025, the Chemicals Segment’s operating loss was $24.5 million compared to operating income of $138.5 million in the full year of 2024. The Chemicals Segment’s operating income decreased in the fourth quarter of 2025 compared to the fourth quarter of 2024 primarily due to the effects of higher unabsorbed fixed production costs resulting from reduced operating rates at its production facilities, lower average TiO2 selling prices and costs incurred related to workforce reduction initiatives of approximately $10.3 million. The Chemicals Segment’s operating loss in the fourth quarter of 2025 includes approximately $54 million of unabsorbed fixed production and other manufacturing costs associated with production curtailments at its facilities. The Chemicals Segment’s operating income decreased in the full year of 2025 compared to the full year of 2024 primarily due to the effect of approximately $111 million in unabsorbed fixed production costs recognized as a result of reduced operating rates at its production facilities somewhat offset by lower production costs (primarily raw materials). The Chemicals Segment operated its production facilities at overall average capacities of 77% of practical capacity utilization in the full year of 2025 (93%, 81%, 80% and 55% in the first, second, third and fourth quarters of 2025, respectively) compared to 96% in full year of 2024 (87%, 99%, 92% and 97% in the first, second, third and fourth quarters of 2024, respectively). Fluctuations in currency exchange rates (primarily the euro) for the fourth quarter and full year of 2025 decreased our Chemicals Segment’s operating loss by approximately $3 million and $8 million, respectively, as compared to the same prior year periods.
The Component Products Segment’s net sales were $37.7 million in the fourth quarter of 2025 compared to $38.4 million in the fourth quarter of 2024 and $158.3 million in the full year of 2025 compared to $145.9 million in the full year of 2024. The Component Products Segment’s net sales decreased in the fourth quarter of 2025 compared to the same period in 2024 predominantly due to lower security products sales to the healthcare market, partially offset by higher Marine Components sales to the industrial market. Net sales increased for the full year of 2025 compared to the same period in 2024 primarily due to higher Security Products sales to the government security market and higher marine components sales to various markets including the towboat, government and industrial markets Operating income attributable to the Component Products Segment was $5.6 million in the fourth quarter of 2025 compared to $4.9 million in the fourth quarter of 2024 and $22.6 million in the full year of 2025 compared to $17.0 million in the full year of 2024. The Component Products Segment’s operating income increased in the fourth quarter of 2025 compared to the same period in 2024 primarily due to higher sales at marine components as well as improved gross margins at each of the security products and marine components reporting units. The Component Product’s Segment’s operating income increased for the full year of 2025 compared to 2024 primarily due to higher sales and improved gross margins at each of the security products and marine components reporting units.
The Real Estate Management and Development Segment had net sales of $38.5 million in the fourth quarter of 2025 compared to $19.4 million in the fourth quarter of 2024. For the full year of 2025 the Real Estate Management and Development Segment had net sales of $59.3 million compared to $71.8 million in the same period of 2024. Land sales revenue is generally recognized over time based on cost inputs, and land sales revenues are dependent on spending for development activities. During the fourth quarter of 2025, our Real Estate Management and Development Segment closed on three parcels including approximately $6.3 million related to parcels with no further development obligations which were immediately recognized as revenue. Land sales revenues for the full year of 2025 decreased compared to the full year of 2024 primarily due to the net effects of a slower pace of development activity for previously sold parcels within the residential/planned community as our development work nears completion offset by additional land sale revenue in the fourth quarter of 2025 related to the sale of three parcels noted above. The pace of development activities is dictated by a number of factors such as city permit and design approval, approvals from the Nevada Department of Environmental Protection, labor and materials availability, and the amount of remaining development obligations. The Real Estate Management and Development Segment also recognized tax increment infrastructure reimbursements of $34.2 million ($17.8 million, or $.62 per share, net of income tax and noncontrolling interest) in the full year of 2025 and $30.3 million ($15.7 million, or $.55 per share, net of income tax and noncontrolling interest) in the full year of 2024 which are included in operating income.
Excluding the effect of the environmental remediation settlement noted above, corporate expenses in the fourth quarter and full year of 2025 were comparable to the same periods in 2024. Interest income and other decreased $1.4 million in the fourth quarter and $5.4 million in the full year of 2025 compared to the same periods of 2024 primarily due to lower interest rates and decreased average investment balances. Interest expense increased $1.9 million in the fourth quarter of 2025 and $7.2 million in the full year of 2025 compared to the same periods in 2024 due to higher average debt balances and higher interest rates. In addition, interest expense in the first nine months of 2024 includes a charge of $1.5 million for the write-off of deferred financing costs at the Chemicals Segment. Other components of net periodic pension and OPEB expense of $32.7 million for the full year of 2025 and $30.3 million for the fourth quarter of 2025 includes a $28.7 million settlement loss incurred during the fourth quarter of 2025 related to the termination and buy-out of our U.S. pension plan ($17.6 million, or .62 per share, net of tax and noncontrolling interest).
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), including as a result of additional or changed 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;
Our ability to retain key customers;
Potential consolidation of our 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 OPERATIONS (In millions, except earnings per share)
Three months ended
Year ended
December 31,
December 31,
2024
2025
2024
2025
(unaudited)
Net sales
Chemicals
$
423.1
$
418.3
$
1,887.1
$
1,859.4
Component products
38.4
37.7
145.9
158.3
Real estate management and development
19.4
38.5
71.8
59.3
Total net sales
$
480.9
$
494.5
$
2,104.8
$
2,077.0
Operating income (loss)
Chemicals
$
32.6
$
(60.1)
$
138.5
$
(24.5)
Component products
4.9
5.6
17.0
22.6
Real estate management and development
19.2
23.6
55.2
65.2
Total operating income (loss)
56.7
(30.9)
210.7
63.3
General corporate items:
Interest income and other
5.4
4.0
22.0
16.6
Gain on remeasurement of investment in TiO2 manufacturing joint venture
—
—
64.5
Gain on remeasurement of earn-out liability
—
—
—
4.6
Insurance recoveries
.1
—
1.4
—
Gain on land sales
.5
—
.5
—
Other components of net periodic pension and OPEB expense
(.8)
(30.3)
(2.6)
(32.7)
Changes in market value of Valhi common stock held by subsidiaries
(2.4)
(.9)
1.9
(2.7)
General expenses, net
22.5
(8.4)
(4.3)
(35.0)
Interest expense
(13.3)
(15.2)
(49.9)
(57.1)
Income (loss) before income taxes
68.7
(81.7)
244.2
(43.0)
Income tax expense
36.3
(18.4)
82.9
11.9
Net income (loss)
32.4
(63.3)
161.3
(54.9)
Noncontrolling interest in net income (loss) of subsidiaries
9.6
(10.1)
53.3
2.7
Net income (loss) attributable to Valhi stockholders
$
22.8
$
(53.2)
$
108.0
$
(57.6)
Amounts attributable to Valhi stockholders:
Basic and diluted net income (loss) per share
$
.80
$
(1.86)
$
3.79
$
(2.02)
Basic and diluted weighted average shares outstanding
28.5
28.5
28.5
28.5
VALHI, INC. AND SUBSIDIARIES IMPACT OF PERCENTAGE CHANGE IN CHEMICAL SEGMENT'S NET SALES (unaudited)
Three months ended
Year ended
December 31,
December 31,
2025 vs 2024
2025 vs. 2024
Percentage change in TiO2 net sales:
TiO2 sales volumes
7
%
2
%
TiO2 product pricing
(8)
(4)
TiO2 product mix/other
(3)
—
Changes in currency exchange rates
3
1
Total
(1)
%
(1)
%
FAQ
Why did Valhi (VHI) report a net loss in Q4 2025?
Valhi reported a Q4 2025 net loss primarily due to weak Chemicals Segment results and production curtailments. According to the company, lower TiO2 selling prices, higher unabsorbed fixed production costs and workforce reduction charges materially reduced segment profitability in the quarter.
How did TiO2 selling prices affect Valhi (VHI) results in 2025?
Lower TiO2 selling prices materially pressured Valhi’s Chemicals Segment margins throughout 2025. According to the company, average TiO2 selling prices ended 2025 about 10% below the start of the year, reducing net sales and contributing to unabsorbed fixed costs at lower operating rates.
What one-time items impacted Valhi’s full-year 2025 results?
Valhi’s 2025 results included non-cash tax adjustments and a pension settlement loss affecting net income. According to the company, a deferred tax valuation allowance and a $28.7 million pension settlement loss materially influenced the full-year net loss.
Did Valhi (VHI) report any improvement in other segments in 2025?
Yes, the Component Products and Real Estate segments showed pockets of improvement and revenue recognition. According to the company, Component Products operating income rose year-over-year and Real Estate closed three parcels in Q4 generating immediate revenue recognition.
What operational utilization trends did Valhi report for 2025 production facilities?
Valhi’s Chemicals production utilization declined notably in 2025, lowering capacity absorption. According to the company, full-year average utilization was 77% of practical capacity versus 96% in 2024, with Q4 2025 at 55% contributing to unabsorbed fixed costs.
