VALHI REPORTS SECOND QUARTER 2025 RESULTS
Valhi (NYSE:VHI) reported Q2 2025 net income of $.9 million ($.03 per share), down significantly from $19.9 million ($.70 per share) in Q2 2024. The company's performance was marked by mixed results across segments:
The Chemicals Segment saw net sales decrease 1% to $494.4M in Q2 2025, with operating income dropping to $10.3M from $40.5M, primarily due to reduced operating rates and unfavorable fixed cost absorption. The Component Products Segment showed improvement with net sales increasing to $40.3M from $35.9M. The Real Estate Management and Development Segment experienced lower sales but recognized significant tax increment infrastructure reimbursements of $17.2M.
The company faced challenges including global uncertainty, trade tensions, and customer hesitancy, with TiO2 prices declining 4% during H1 2025. Production facilities operated at 87% capacity in H1 2025, down from 93% in H1 2024.
Valhi (NYSE:VHI) ha riportato un utile netto di 0,9 milioni di dollari (0,03 dollari per azione) nel secondo trimestre del 2025, in calo significativo rispetto ai 19,9 milioni di dollari (0,70 dollari per azione) nel secondo trimestre del 2024. Le performance aziendali hanno mostrato risultati contrastanti tra i diversi segmenti:
Il Segmento Chimico ha registrato una diminuzione delle vendite nette dell'1%, attestandosi a 494,4 milioni di dollari nel Q2 2025, con un utile operativo sceso a 10,3 milioni di dollari dai 40,5 milioni precedenti, principalmente a causa di una riduzione dei tassi di produzione e di un assorbimento sfavorevole dei costi fissi. Il Segmento Prodotti Componenti ha mostrato un miglioramento, con vendite nette in aumento a 40,3 milioni di dollari rispetto ai 35,9 milioni. Il Segmento Gestione e Sviluppo Immobiliare ha registrato vendite inferiori, ma ha beneficiato di significativi rimborsi per infrastrutture legati a incrementi fiscali pari a 17,2 milioni di dollari.
L'azienda ha affrontato sfide quali l'incertezza globale, tensioni commerciali e esitazione da parte dei clienti, con prezzi del TiO2 in calo del 4% nella prima metà del 2025. Gli impianti produttivi hanno operato all'87% della capacità nella prima metà del 2025, in diminuzione rispetto al 93% della prima metà del 2024.
Valhi (NYSE:VHI) reportó un ingreso neto de 0,9 millones de dólares (0,03 dólares por acción) en el segundo trimestre de 2025, una caída significativa respecto a los 19,9 millones de dólares (0,70 dólares por acción) del segundo trimestre de 2024. El desempeño de la compañía mostró resultados mixtos entre sus segmentos:
El Segmento de Químicos registró una disminución del 1% en ventas netas, alcanzando 494,4 millones de dólares en el segundo trimestre de 2025, con una caída en el ingreso operativo a 10,3 millones desde 40,5 millones, principalmente debido a menores tasas de operación y una absorción desfavorable de costos fijos. El Segmento de Productos Componentes mejoró, con ventas netas que aumentaron a 40,3 millones desde 35,9 millones. El Segmento de Gestión y Desarrollo Inmobiliario tuvo ventas más bajas, pero reconoció reembolsos significativos por infraestructura de incremento fiscal de 17,2 millones de dólares.
La compañía enfrentó desafíos como la incertidumbre global, tensiones comerciales y la cautela de los clientes, con precios del TiO2 que bajaron un 4% durante el primer semestre de 2025. Las instalaciones de producción operaron al 87% de su capacidad en el primer semestre de 2025, por debajo del 93% del primer semestre de 2024.
Valhi (NYSE:VHI)는 2025년 2분기 순이익이 90만 달러(주당 0.03달러)로, 2024년 2분기의 1,990만 달러(주당 0.70달러)에서 크게 감소했다고 보고했습니다. 회사의 실적은 부문별로 엇갈린 결과를 보였습니다:
화학 부문은 2025년 2분기 순매출이 1% 감소한 4억 9,440만 달러를 기록했으며, 영업이익은 4,050만 달러에서 1,030만 달러로 하락했는데, 이는 주로 가동률 감소와 고정비 흡수 불리 때문입니다. 부품 제품 부문은 순매출이 3,590만 달러에서 4,030만 달러로 증가하며 개선을 보였습니다. 부동산 관리 및 개발 부문은 매출이 감소했지만 1,720만 달러의 중요한 세금 인크리먼트 인프라 환급을 인식했습니다.
회사는 글로벌 불확실성, 무역 긴장 및 고객의 주저함 등 여러 어려움에 직면했으며, 2025년 상반기 TiO2 가격은 4% 하락했습니다. 생산 시설은 2025년 상반기에 87% 가동률을 기록했으며, 이는 2024년 상반기의 93%에서 감소한 수치입니다.
Valhi (NYSE:VHI) a annoncé un bénéfice net de 0,9 million de dollars (0,03 dollar par action) pour le deuxième trimestre 2025, en forte baisse par rapport à 19,9 millions de dollars (0,70 dollar par action) au deuxième trimestre 2024. Les résultats de l'entreprise ont été contrastés selon les segments :
Le segment Chimie a vu ses ventes nettes diminuer de 1 % pour atteindre 494,4 millions de dollars au deuxième trimestre 2025, avec un résultat opérationnel en baisse à 10,3 millions de dollars contre 40,5 millions, principalement en raison de taux d'exploitation réduits et d'une absorption défavorable des coûts fixes. Le segment Produits Composants a progressé avec des ventes nettes en hausse à 40,3 millions contre 35,9 millions. Le segment Gestion et Développement Immobilier a enregistré des ventes plus faibles mais a reconnu d'importants remboursements d'infrastructures liés à l'incrément fiscal de 17,2 millions de dollars.
L'entreprise a fait face à des défis tels que l'incertitude mondiale, les tensions commerciales et l'hésitation des clients, avec une baisse des prix du TiO2 de 4 % durant le premier semestre 2025. Les installations de production ont fonctionné à 87 % de leur capacité au premier semestre 2025, contre 93 % au premier semestre 2024.
Valhi (NYSE:VHI) meldete für das zweite Quartal 2025 einen Nettogewinn von 0,9 Millionen US-Dollar (0,03 US-Dollar pro Aktie), was einen deutlichen Rückgang gegenüber 19,9 Millionen US-Dollar (0,70 US-Dollar pro Aktie) im zweiten Quartal 2024 darstellt. Die Unternehmensleistung zeigte gemischte Ergebnisse in den einzelnen Segmenten:
Das Chemiesegment verzeichnete im zweiten Quartal 2025 einen Rückgang der Nettoumsätze um 1 % auf 494,4 Mio. USD, wobei das operative Ergebnis von 40,5 Mio. USD auf 10,3 Mio. USD sank, hauptsächlich aufgrund geringerer Auslastungsraten und ungünstiger Fixkostendegression. Das Segment Komponentenprodukte zeigte eine Verbesserung mit einem Anstieg der Nettoumsätze von 35,9 Mio. USD auf 40,3 Mio. USD. Das Segment Immobilienverwaltung und -entwicklung verzeichnete niedrigere Umsätze, erkannte jedoch bedeutende Steuererhöhungsinfrastruktur-Erstattungen in Höhe von 17,2 Mio. USD an.
Das Unternehmen sah sich Herausforderungen wie globaler Unsicherheit, Handelskonflikten und Zurückhaltung der Kunden gegenüber, wobei die TiO2-Preise im ersten Halbjahr 2025 um 4 % sanken. Die Produktionsanlagen liefen im ersten Halbjahr 2025 mit 87 % Kapazität, gegenüber 93 % im ersten Halbjahr 2024.
- Component Products Segment increased sales and operating income in both Q2 and H1 2025
- Real Estate segment received $17.2M in tax increment infrastructure reimbursements
- Corporate expenses decreased 11% in Q2 2025 due to lower litigation and environmental costs
- Higher sales volumes achieved in North American and European markets
- Q2 2025 net income dropped 95% to $.9M from $19.9M year-over-year
- Chemicals Segment operating income decreased 75% to $10.3M from $40.5M in Q2
- TiO2 selling prices declined 4% during first six months of 2025
- Approximately $20M in unabsorbed fixed production costs due to reduced production volumes
- Interest expense increased due to higher debt levels and interest rates
Insights
Valhi reported significant Q2 earnings decline, with net income dropping 95% to $0.9M due to Chemicals segment weakness.
Valhi's Q2 2025 results reveal a substantial decline in performance, with net income attributable to stockholders plummeting to
The primary driver behind this underperformance is the Chemicals Segment, which saw operating income collapse to
The TiO2 market faces persistent challenges, with Valhi noting that "global uncertainty related to U.S. trade policies, geopolitical tensions and general hesitancy by customers to build inventories" have delayed market recovery. TiO2 selling prices declined
There were some bright spots: the Component Products Segment showed improvement with sales increasing to
From a balance sheet perspective, Valhi's interest expense increased
Dallas, Texas, Aug. 07, 2025 (GLOBE NEWSWIRE) -- Valhi, Inc. (NYSE: VHI) reported net income attributable to Valhi stockholders of $.9 million, or $.03 per share, in the second quarter of 2025 compared to
The Chemicals Segment’s net sales of
The Chemicals Segment’s operating income in the second quarter of 2025 was
The Component Products Segment’s net sales were
The Real Estate Management and Development Segment had net sales of
Corporate expenses were
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, including LPC, 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 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 difficulties in upgrading or implementing accounting and manufacturing software systems;
- Potential consolidation of our competitors;
- 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 (including tariffs imposed by the U.S. federal government on imports from Canada, where Kronos has a manufacturing facility);
- 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 real estate values and 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 | Six months ended | |||||||||||
| June 30, | June 30, | |||||||||||
| 2024 | 2025 | 2024 | 2025 | |||||||||
| (unaudited) | ||||||||||||
| Net sales | ||||||||||||
| Chemicals | $ | 500.5 | $ | 494.4 | $ | 979.3 | $ | 984.2 | ||||
| Component products | 35.9 | 40.3 | 73.9 | 80.6 | ||||||||
| Real estate management and development | 23.3 | 5.7 | 37.1 | 14.2 | ||||||||
| Total net sales | $ | 559.7 | $ | 540.4 | $ | 1,090.3 | $ | 1,079.0 | ||||
| Operating income | ||||||||||||
| Chemicals | $ | 40.5 | $ | 10.3 | $ | 63.3 | $ | 51.5 | ||||
| Component products | 5.1 | 6.3 | 8.8 | 12.2 | ||||||||
| Real estate management and development | 9.2 | 18.9 | 14.2 | 21.9 | ||||||||
| Total operating income | 54.8 | 35.5 | 86.3 | 85.6 | ||||||||
| General corporate items: | ||||||||||||
| Interest income and other | 5.5 | 3.7 | 11.2 | 8.0 | ||||||||
| Other components of net periodic pension and OPEB expense | (.6) | (.7) | (1.2) | (1.5) | ||||||||
| Changes in market value of Valhi common stock held by subsidiaries | .1 | — | .6 | (1.7) | ||||||||
| General expenses, net | (10.3) | (9.2) | (18.1) | (17.1) | ||||||||
| Interest expense | (11.9) | (13.8) | (23.2) | (27.0) | ||||||||
| Income before income taxes | 37.6 | 15.5 | 55.6 | 46.3 | ||||||||
| Income tax expense | 7.9 | 8.0 | 12.3 | 16.0 | ||||||||
| Net income | 29.7 | 7.5 | 43.3 | 30.3 | ||||||||
| Noncontrolling interest in net income of subsidiaries | 9.8 | 6.6 | 15.6 | 12.5 | ||||||||
| Net income attributable to Valhi stockholders | $ | 19.9 | $ | .9 | $ | 27.7 | $ | 17.8 | ||||
| Amounts attributable to Valhi stockholders: | ||||||||||||
| Basic and diluted net income per share | $ | .70 | $ | .03 | $ | .97 | $ | .62 | ||||
| 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 | Six months ended | ||||||
| June 30, | June 30, | ||||||
| 2025 vs. 2024 | 2025 vs. 2024 | ||||||
| Percentage change in TiO2 net sales: | |||||||
| TiO2 sales volumes | (1) | % | 2 | % | |||
| TiO2 product pricing | (1) | — | |||||
| TiO2 product mix/other | (1) | (1) | |||||
| Changes in currency exchange rates | 2 | — | |||||
| Total | (1) | % | 1 | % | |||
FAQ
What was Valhi's (VHI) earnings per share in Q2 2025?
How did Valhi's Chemicals Segment perform in Q2 2025?
What was Valhi's production capacity utilization in H1 2025?
How much did TiO2 prices change for Valhi in 2025?
What was the performance of Valhi's Component Products Segment in Q2 2025?
