VALHI REPORTS SECOND QUARTER 2026 RESULTS
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.
Rhea-AI Summary
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.
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
Details
News Market Reaction – VHI
In the Aug 7 session, VHI declined 0.69%, reflecting a mild negative market reaction.
Data tracked by StockTitan Argus on the day of publication.
Key Figures
- Q2 net income
- $22.3 million
- Second quarter 2026 versus $0.9 million in second quarter 2025
- Q2 EPS
- $0.78 per share
- Second quarter 2026 versus $0.03 per share in second quarter 2025
- Six-month net income
- $24.3 million
- First six months of 2026 versus $17.8 million in the prior-year period
- Chemicals net sales
- $558.1 million
- Second quarter 2026, 13% higher than second quarter 2025
- Chemicals operating income
- $40.4 million
- Second quarter 2026 versus $10.3 million in second quarter 2025
- Component Products operating income
- $8.9 million
- Second quarter 2026 versus $6.3 million in second quarter 2025
- Real Estate segment net sales
- $4.4 million
- Second quarter 2026 versus $5.7 million in second quarter 2025
- Uncertain tax position expense
- $2.0 million
- First six months of 2026, related to a German tax audit
Previous Earnings Reports
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Net income fell sharply despite higher sales and improved real estate operating income.
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Quarterly and full-year net losses reflected weaker Chemicals results and lower TiO2 prices.
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Net loss and weaker Chemicals performance contrasted with improving Component Products results.
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Chemicals sales and operating income declined amid lower TiO2 prices and production curtailments.
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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.
Key Terms
tio2 technical
unabsorbed fixed costs financial
noncontrolling interest financial
uncertain tax position financial
AI-generated analysis. How Rhea-AI works. Not financial advice.
Dallas, Texas, Aug. 06, 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 second 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 were
Our net income attributable to Valhi stockholders in the first six months 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 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
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