Valhi (NYSE: VHI) reported second quarter 2026 net income attributable to stockholders of $22.3 million, or $0.78 per share, up from $0.9 million, or $0.03 per share, in Q2 2025. For the first six months of 2026, net income attributable to stockholders was $24.3 million, or $0.85 per share, versus $17.8 million, or $0.62 per share, a year earlier.
Total Q2 2026 net sales were $606.1 million compared to $540.4 million in Q2 2025, driven mainly by the Chemicals Segment, where net sales rose to $558.1 million and operating income increased to $40.4 million. Component Products net sales increased to $43.6 million with higher operating income, while Real Estate Management and Development net sales declined to $4.4 million but benefited from $16.7 million of tax increment infrastructure reimbursements in the first half and a $5.8 million gain on sale of an office building. Corporate expenses decreased, though interest expense rose due to higher debt levels and rates, and a $2.0 million income tax expense was recorded for an uncertain tax position.
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Positive
Net income attributable to stockholders rose to $22.3m in Q2 2026 from $0.9m in Q2 2025
EPS increased to $0.78 in Q2 2026 from $0.03 in Q2 2025
Chemicals Segment net sales grew 13% to $558.1m in Q2 2026
Chemicals Segment operating income increased to $40.4m from $10.3m in Q2 2025
Component Products operating income rose to $8.9m in Q2 2026 from $6.3m
Real Estate Segment recognized $16.7m of tax increment infrastructure reimbursements and a $5.8m gain on office building sale in first half 2026
Negative
Fluctuations in currency exchange rates reduced Chemicals Segment operating income by about $12m in Q2 2026 and $18m in first half 2026 versus prior-year periods
Real Estate net sales declined to $4.4m in Q2 2026 from $5.7m in Q2 2025
Interest expense increased by $0.9m in Q2 2026 and $2.4m in first half 2026 compared to 2025
First-half 2026 income tax expense includes $2.0m related to an uncertain tax position at the Chemicals Segment
News Explained
The completed second-quarter results show that Valhi’s Chemicals segment’s TiO2 sales growth was volume-led rather than price-led: sales volumes contributed 16%, while product pricing and mix reduced the comparison by 3% and 2%, respectively; currency added 2%.
Market Context
The earnings-tag history averaged a 0.51% move across the provided events, giving this 2Q26 report a...
Analysis
The earnings-tag history averaged a 0.51% move across the provided events, giving this 2Q26 report a platform reference point. The disclosed German tax position, currency sensitivity, and higher interest expense remained risks; short positioning was low.
Key Figures
Q2 net income:$22.3 millionQ2 EPS:$0.78 per shareSix-month net income:$24.3 million+5 more
8 metrics
Q2 net income$22.3 millionSecond quarter 2026 versus $0.9 million in second quarter 2025
Q2 EPS$0.78 per shareSecond quarter 2026 versus $0.03 per share in second quarter 2025
Six-month net income$24.3 millionFirst six months of 2026 versus $17.8 million in the prior-year period
Chemicals net sales$558.1 millionSecond quarter 2026, 13% higher than second quarter 2025
Chemicals operating income$40.4 millionSecond quarter 2026 versus $10.3 million in second quarter 2025
Component Products operating income$8.9 millionSecond quarter 2026 versus $6.3 million in second quarter 2025
Real Estate segment net sales$4.4 millionSecond quarter 2026 versus $5.7 million in second quarter 2025
Uncertain tax position expense$2.0 millionFirst six months of 2026, related to a German tax audit
Net income and operating income increased, led by stronger Chemicals and Component Products results.
24h Move is the share-price change in the day after each event; other market factors may also have contributed.
Pattern Detected
In the tag-specific history, four of five prior earnings events diverged from the stock's news sentiment based on their 24-hour reactions.
Key Terms
tio2, unabsorbed fixed costs, noncontrolling interest, uncertain tax position
4 terms
tio2technical
"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.
unabsorbed fixed costsfinancial
"lower unabsorbed fixed costs"
The portion of fixed production costs (like factory rent, salaries, and equipment depreciation) that are not allocated to manufactured units because output or sales are lower than the level assumed in cost allocations. Think of it as the unused share of a factory’s monthly bills that can’t be spread across products. It matters to investors because it can change reported profit and inventory values, affecting comparisons across quarters or companies.
noncontrolling interestfinancial
"net of income tax and 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.
uncertain tax positionfinancial
"includes an income tax expense of $2.0 million related to the recognition of an uncertain tax position"
An uncertain tax position is when a company takes a tax treatment on its returns but there is a real chance a tax authority could disagree, leading to additional taxes, interest or penalties. Investors care because resolving that disagreement can change a company’s reported profits and cash on hand — like getting a surprise bill after a meal — so it affects valuation, risk and future cash flow forecasts.
Dallas, Texas, Aug. 06, 2026 (GLOBE NEWSWIRE) -- Valhi, Inc. (NYSE: VHI) reported net income attributable to Valhi stockholders of $22.3 million, or $.78 per share, in the second quarter of 2026 compared to net income of $.9 million, or $.03 per share, in the second quarter of 2025.For the first six months of 2026, Valhi reported net income attributable to Valhi stockholders of $24.3 million, or $.85 per share, compared to $17.8 million, or $.62 per share, in the first six months of 2025. Net income attributable to Valhi stockholders increased in the second quarter of 2026 as compared to the same period of 2025 primarily due to higher operating results from the Chemicals Segment. Net income attributable to Valhi stockholders increased in the first six months of 2026 as compared to the same period of 2025 primarily due to improved operating results across all business segments.
The Chemicals Segment’s net sales of $558.1 million in the second quarter of 2026 were $63.7 million, or 13%, higher than in the second quarter of 2025, and net sales of $1.1 billion in the first six months of 2026 were $83.7 million, or 9%, higher than in the first six months of 2025. The Chemicals Segment’s net sales increased in the second quarter and first six months of 2026 compared to the same periods of 2025 primarily due to market share gains across all markets and the favorable impact of changes in currency exchange rates (primarily the euro), which our Chemicals Segment estimates increased its net sales by approximately $10 million and $41 million, respectively. These favorable impacts were partially offset by lower average TiO2 selling prices and the unfavorable impact of both lower average selling prices and sales volumes within the Chemicals Segment’s complementary businesses. Our Chemicals Segment started 2026 with average TiO2 selling prices lower than at the beginning of 2025; however, its average TiO2 selling prices increased 4% during the first six months of 2026. During the second quarter of 2026, our Chemicals Segment announced and implemented various price increases and surcharges in response to higher operating costs. 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 income in the second quarter of 2026 was $40.4 million compared to $10.3 million in the second quarter of 2025. For the first six months of 2026, the Chemicals Segment’s operating income was $54.9 million compared to $51.5 million in the first six months of 2025. The Chemicals Segment’s operating income increased in both the second quarter and first six months of 2026 compared to the same periods of 2025 primarily due to higher sales volumes, lower production costs, including lower raw material costs (primarily feedstock) and lower unabsorbed fixed costs, as well as the benefits of the cost reduction initiatives implemented in the fourth quarter of 2025 designed to permanently improve our Chemicals Segment’s cost structure and operational efficiency. These favorable factors were partially offset by lower average TiO2 selling prices and the unfavorable impact of changes in currency exchange rates. Fluctuations in currency exchange rates (primarily the euro) decreased our Chemicals Segment’s operating income by approximately $12 million in the second quarter of 2026 and approximately $18 million in the first six months of 2026 compared to the same prior year periods.
The Component Products Segment’s net sales were $43.6 million in the second quarter of 2026 compared to $40.3 million in the second quarter of 2025 and $84.2 million in the first six months of 2026 compared to $80.6 million in the same period of 2025. The Component Products Segment’s net sales increased in the second quarter and for the first six months of 2026 compared to the same periods in 2025 due to higher security products sales across a variety of markets including the healthcare, transportation, tool storage and distributor markets and higher marine components sales to the industrial market. Operating income attributable to the Component Products Segment was $8.9 million in the second quarter of 2026 compared to $6.3 million in the second quarter of 2025 and $16.0 million in the first six months of 2026 compared to $12.2 million for the same prior year period. The Component Products Segment’s operating income increased in the second quarter and for the first six months of 2026 compared to the same periods in 2025 due to higher sales and gross margin predominantly at the security products reporting unit and, to a lesser extent, the marine components reporting unit.
The Real Estate Management and Development Segment had net sales of $4.4 million in the second quarter of 2026 compared to $5.7 million in the second quarter of 2025. For the first six months of 2026, the Real Estate Management and Development Segment had net sales of $14.1 million compared to $14.2 million in the same period of 2025. Land sales revenue is generally recognized over time based on cost inputs, and land sales revenues are dependent on spending for development activities. Net sales decreased in the second quarter of 2026 and first six months compared to the same periods in 2025 due to the slower pace of development activity for previously sold parcels within the residential/planned community as our Real Estate Management and Development Segment nears completion of its development work. This decrease in net sales for the first six months of 2026 was mostly offset by the first quarter sale of the final commercial parcel for $7.3 million, which had no further development obligations and was therefore immediately recognized as revenue. 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, and labor and materials availability. The Real Estate Management and Development Segment also recognized tax increment infrastructure reimbursements of $16.7 million ($8.7 million, or $.30 per share, net of income tax and noncontrolling interest) and $17.2 million ($8.9 million, or $.31 per share, net of income tax and noncontrolling interest) in the first six months of 2026 and 2025, respectively. Additionally, during the second quarter of 2026 the Real Estate Management and Development Segment sold the office building used in its operations and recognized a gain on the sale of approximately $5.8 million ($3.0 million, or $.10 per share, net of income tax and noncontrolling interest).
Corporate expenses were 2% lower in the second quarter of 2026 and 5% lower in first six months of 2026 compared to the same respective periods in 2025 primarily due to lower environmental remediation and related costs. Interest income and other increased $.3 million in the second quarter of 2026 primarily due to increased interest income received on the Real Estate Management and Development note receivable offset by decreased average investment balances and lower average interest rates. Interest income and other decreased $.5 million in the first six months of 2026 compared to the same period of 2025 primarily due to decreased average investment balances and lower average interest rates partially offset by increased interest income received on the Real Estate Management and Development note receivable. Interest expense increased $.9 million and $2.4 million in the second quarter and first six months of 2026, respectively, compared to the same periods in 2025 primarily due to higher overall debt levels and higher average interest rates.
Our net income attributable to Valhi stockholders in the first six months of 2026 includes an income tax expense of $2.0 million ($1.3 million, or $.04 per share, net of noncontrolling interest) related to the recognition of an uncertain tax position at our Chemicals Segment in connection with a German tax audit in the first quarter.
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 NLI Holdings, 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 NLI Holdings’ 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 production 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 (Unaudited) (In millions, except earnings per share)
Three months ended
Six months ended
June 30,
June 30,
2025
2026
2025
2026
Net sales
Chemicals
$
494.4
$
558.1
$
984.2
$
1,067.9
Component products
40.3
43.6
80.6
84.2
Real estate management and development
5.7
4.4
14.2
14.1
Total net sales
$
540.4
$
606.1
$
1,079.0
$
1,166.2
Operating income
Chemicals
$
10.3
$
40.4
$
51.5
$
54.9
Component products
6.3
8.9
12.2
16.0
Real estate management and development
18.9
18.4
21.9
29.7
Total operating income
35.5
67.7
85.6
100.6
General corporate items:
Interest income and other
3.7
4.0
8.0
7.5
Other components of net periodic pension and OPEB expense
(.7)
(.8)
(1.5)
(1.6)
Changes in market value of Valhi common stock held by subsidiaries
—
.1
(1.7)
.6
General expenses, net
(9.2)
(9.0)
(17.1)
(16.3)
Interest expense
(13.8)
(14.7)
(27.0)
(29.4)
Income before income taxes
15.5
47.3
46.3
61.4
Income tax expense
8.0
11.8
16.0
18.1
Net income
7.5
35.5
30.3
43.3
Noncontrolling interest in net income of subsidiaries
6.6
13.2
12.5
19.0
Net income attributable to Valhi stockholders
$
.9
$
22.3
$
17.8
$
24.3
Amounts attributable to Valhi stockholders:
Basic and diluted net income per share
$
.03
$
.78
$
.62
$
.85
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,
2026 vs. 2025
2026 vs. 2025
Percentage change in TiO2 net sales:
TiO2 sales volumes
16
%
10
%
TiO2 product pricing
(3)
(4)
TiO2 product mix/other
(2)
(1)
Changes in currency exchange rates
2
4
Total
13
%
9
%
FAQ
How did Valhi (NYSE: VHI) perform in Q2 2026 in terms of net income and EPS?
Valhi reported Q2 2026 net income attributable to stockholders of $22.3 million, or $0.78 per share. According to Valhi, this compares with $0.9 million, or $0.03 per share, in Q2 2025, reflecting significantly improved profitability year over year.
What drove the Chemicals Segment results for Valhi (VHI) in the second quarter of 2026?
Valhi’s Chemicals Segment posted Q2 2026 net sales of $558.1 million and operating income of $40.4 million. According to Valhi, higher sales volumes, lower production and raw material costs, and cost reduction initiatives more than offset lower average TiO2 prices and adverse currency movements.
How did Valhi’s Component Products Segment perform in Q2 2026?
Valhi’s Component Products Segment generated Q2 2026 net sales of $43.6 million and operating income of $8.9 million. According to Valhi, higher security products and marine components sales, along with improved gross margins, supported the segment’s year-over-year growth in both sales and profitability.
What were the key drivers of Valhi (VHI) first-half 2026 net income compared to 2025?
For the first six months of 2026, Valhi reported net income attributable to stockholders of $24.3 million, or $0.85 per share. According to Valhi, improved operating results across all business segments, plus tax increment reimbursements and a gain on an office building sale, contributed to the increase versus 2025.
How did the Real Estate Management and Development Segment impact Valhi’s 2026 results?
Valhi’s Real Estate Segment reported lower Q2 2026 net sales of $4.4 million, but first-half results benefited from $16.7 million of tax increment infrastructure reimbursements. According to Valhi, a $5.8 million gain from selling its office building also supported segment operating income in 2026.
What currency and interest rate effects impacted Valhi (VHI) in Q2 and first half 2026?
Currency movements reduced Chemicals Segment operating income by about $12 million in Q2 2026 and $18 million in the first half. According to Valhi, higher debt levels and rates also increased interest expense by $0.9 million in Q2 and $2.4 million year-to-date.
Did Valhi record any notable tax items in the first six months of 2026?
Yes. Valhi’s first-half 2026 net income includes $2.0 million of income tax expense related to an uncertain tax position at the Chemicals Segment. According to Valhi, this item reduced net income attributable to stockholders by $1.3 million, or $0.04 per share, net of noncontrolling interest.
