VALHI REPORTS THIRD QUARTER 2026 RESULTS
Chemicals returned to quarterly operating profit, while real estate development slowed as its work neared completion.
Sentiment and the balance of points
Rhea-AI Sentiment reads the wording of the document, how positive or negative its language is on a 1 to 5 scale. The balance of points shown with the takes weighs what the document actually discloses, so the two can disagree, for example when a trial that missed its main goal is described in upbeat language.
Rhea-AI Summary
Valhi (NYSE: VHI) reported third-quarter 2026 net income attributable to stockholders of $30.2 million, reversing a year-earlier loss. Earnings were $1.06 per share, versus a loss of $22.2 million, or $0.78 per share. Nine-month net income reached $54.5 million, or $1.91 per share, versus a loss of $4.4 million, or $0.15 per share.
Chemicals sales rose 18% to $541.1 million in the quarter, while operating income reached $60.5 million versus a $15.9 million loss. Higher volumes and lower raw material and production costs supported the improvement. Component Products sales and operating income also increased. Real Estate Management and Development sales fell to $3.9 million from $6.6 million as development activity slowed near completion. Quarterly earnings included an $8.0 million non-cash tax benefit, net of noncontrolling interest.
How this balance works
Rhea-AI gives every point it takes from this document a weight. Minor counts 1, Moderate 3 and Major 9, so one Major point outweighs several Minor ones. The bar adds up the weights on each side, and when neither side holds more than 65% of the total the balance reads Mixed.
It reads the document as published, with the same rules for every company, and it does not look at what the market expected or at how the stock traded, so a point can be objectively good on a day the stock falls.
Rhea-AI Sentiment measures something else, the tone of the wording.
Hollow bars mark forward-looking points. How the balance works
Positive
- Major pointThird-quarter net income of $30.2 million, or $1.06 per share, reversed a $22.2 million year-earlier loss.
- Major pointChemicals quarterly operating income reached $60.5 million, versus a $15.9 million loss in 2025.
- Moderate pointChemicals quarterly sales rose 18% to $541.1 million; nine-month sales rose 12% to $1,609.0 million.
- Moderate pointNon-cash deferred tax benefit added $8.0 million, or $0.28 per share, after noncontrolling interest in both 2026 reporting periods. 1.9% of market cap
- Minor pointNine-month net income of $54.5 million, or $1.91 per share, reversed a $4.4 million year-earlier loss.
9 minor points
- Minor pointChemicals nine-month operating income rose to $115.4 million from $35.6 million in 2025.
- Minor pointHigher Chemicals volumes and production rates reduced unabsorbed fixed production costs in both 2026 reporting periods.
- Minor pointLower raw material and production costs supported Chemicals operating income in both 2026 reporting periods.
- Minor pointComponent Products quarterly sales rose to $44.0 million from $40.0 million; nine-month sales reached $128.2 million versus $120.6 million.
- Minor pointComponent Products quarterly operating income rose to $6.4 million from $4.8 million; nine-month income reached $22.4 million versus $17.0 million.
- Minor pointFinal commercial parcel sold for $7.3 million in first-quarter 2026, with no further development obligations.
- Minor pointOffice building sale generated approximately $5.8 million gain in second-quarter 2026, or $3.0 million after tax and noncontrolling interest.
- Minor pointCorporate expenses fell 13% quarterly and 8% over nine months versus the corresponding 2025 periods.
- Minor pointQuarterly interest expense decreased $1.1 million year over year, primarily from lower overall average debt balances.
Negative
- Moderate pointChemicals currency effects reduced operating income approximately $5 million quarterly and approximately $23 million over nine months versus 2025.
- Minor pointReal estate quarterly sales fell to $3.9 million from $6.6 million; nine-month sales fell to $18.0 million from $20.8 million.
- Minor pointSlower development activity reduced real estate revenue as development work neared completion.
- Minor pointNine-month infrastructure reimbursements fell to $16.7 million from $34.2 million in 2025.
- Minor pointHigher energy and distribution costs partly offset Chemicals operating improvements in both 2026 reporting periods.
4 minor points
- Minor pointNine-month titanium dioxide selling prices were 1% lower year over year, despite quarterly prices rising 5%.
- Minor pointNine-month interest expense increased $1.3 million year over year, primarily from higher average interest rates.
- Minor pointGerman tax audit expense totaled $2.0 million, or $1.3 million after noncontrolling interest, in nine-month 2026 results.
- Minor point. Forward-looking: it has not happened yet and may not happen.Development timing depends on permits, design and environmental approvals, as well as labor and materials availability.
Details
Market move: VHI +17.91% vs previous close. 3Q26 earnings report
On Nov 5, the day this news came out, the latest delayed price for VHI is 17.91% above the previous close. Our momentum scanner has recorded 5 alerts for this stock so far that day. The latest delayed price is $16.85.
Data tracked by StockTitan Argus (15 min delayed). Upgrade to Gold for real-time data.
Key Figures
- Q3 net income attributable to stockholders
- $30.2 million; prior-year loss of $22.2 million
- Third quarter 2026 versus third quarter 2025
- Q3 earnings per share
- $1.06; prior-year loss of $0.78 per share
- Third quarter 2026 versus third quarter 2025
- Nine-month net income attributable to stockholders
- $54.5 million; prior-year loss of $4.4 million
- First nine months of 2026 versus first nine months of 2025
- Chemicals net sales
- $541.1 million; 18% higher
- Third quarter 2026 versus third quarter 2025
- Chemicals net sales
- $1.6 billion; 12% higher
- First nine months of 2026 versus first nine months of 2025
- Chemicals operating income
- $60.5 million; prior-year loss of $15.9 million
- Third quarter 2026 versus third quarter 2025
- Chemicals operating income
- $115.4 million; prior-year $35.6 million
- First nine months of 2026 versus first nine months of 2025
Previous Earnings Reports
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Second-quarter net income rose year over year; the recorded 24-hour price reaction was negative.
-
First-quarter net income fell year over year; the recorded 24-hour price reaction was positive.
-
Third-quarter results were a net loss versus prior-year net income; the recorded price reaction was positive.
24h Move is the share-price change in the day after each event; other market factors may also have contributed.
Key Terms
anti-dumping duties regulatory
tio2 technical
noncontrolling interest financial
opeb financial
AI-generated analysis. How Rhea-AI works. Not financial advice.
Dallas, Texas, Nov. 05, 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 third 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
Income (loss) before taxes in the third quarter and first nine months of 2025 includes the recognition of a non-cash gain of
Our net income attributable to Valhi stockholders for the third quarter and first nine months of 2026 includes a non-cash deferred income tax benefit 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;
- Pricing pressure and changes in industry supply and production levels;
- 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, recreational marine components and custom fabricated metal parts) 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
(Unaudited)
(In millions, except earnings per share)
| Three months ended | Nine months ended | |||||||||||
| September 30, | September 30, | |||||||||||
| 2025 | 2026 | 2025 | 2026 | |||||||||
| Net sales | ||||||||||||
| Chemicals | $ | 456.9 | $ | 541.1 | $ | 1,441.1 | $ | 1,609.0 | ||||
| Component products | 40.0 | 44.0 | 120.6 | 128.2 | ||||||||
| Real estate management and development | 6.6 | 3.9 | 20.8 | 18.0 | ||||||||
| Total net sales | $ | 503.5 | $ | 589.0 | $ | 1,582.5 | $ | 1,755.2 | ||||
| Operating income (loss) | ||||||||||||
| Chemicals | $ | (15.9) | $ | 60.5 | $ | 35.6 | $ | 115.4 | ||||
| Component products | 4.8 | 6.4 | 17.0 | 22.4 | ||||||||
| Real estate management and development | 19.7 | .5 | 41.6 | 30.2 | ||||||||
| Total operating income | 8.6 | 67.4 | 94.2 | 168.0 | ||||||||
| General corporate items: | ||||||||||||
| Interest income and other | 4.6 | 4.1 | 12.6 | 11.6 | ||||||||
| Gain on remeasurement of earn-out liability | 4.6 | — | 4.6 | — | ||||||||
| Other components of net periodic pension and OPEB expense | (.9) | (.8) | (2.4) | (2.4) | ||||||||
| Changes in market value of Valhi common stock held by subsidiaries | (.1) | .2 | (1.8) | .8 | ||||||||
| General expenses, net | (9.5) | (8.3) | (26.6) | (24.6) | ||||||||
| Interest expense | (14.9) | (13.8) | (41.9) | (43.2) | ||||||||
| Income (loss) before income taxes | (7.6) | 48.8 | 38.7 | 110.2 | ||||||||
| Income tax expense | 14.3 | 8.0 | 30.3 | 26.1 | ||||||||
| Net income (loss) | (21.9) | 40.8 | 8.4 | 84.1 | ||||||||
| Noncontrolling interest in net income of subsidiaries | .3 | 10.6 | 12.8 | 29.6 | ||||||||
| Net income (loss) attributable to Valhi stockholders | $ | (22.2) | $ | 30.2 | $ | (4.4) | $ | 54.5 | ||||
| Amounts attributable to Valhi stockholders: | ||||||||||||
| Basic and diluted net income (loss) per share | $ | (.78) | $ | 1.06 | $ | (.15) | $ | 1.91 | ||||
| Basic and diluted weighted average shares outstanding | 28.5 | 28.6 | 28.5 | 28.6 | ||||||||
| Three months ended | Nine months ended | ||||||
| September 30, | September 30, | ||||||
| 2026 vs. 2025 | 2026 vs. 2025 | ||||||
| Percentage change in TiO2 net sales: | |||||||
| TiO2 sales volumes | 14 | % | 11 | % | |||
| TiO2 product pricing | 5 | (1) | |||||
| TiO2 product mix/other | (1) | (1) | |||||
| Changes in currency exchange rates | — | 3 | |||||
| Total | 18 | % | 12 | % |
FAQ
AI-generated questions and answers. How Rhea-AI works. Not financial advice.
What were Valhi's third-quarter 2026 earnings?
Valhi reported net income attributable to stockholders of $30.2 million, or $1.06 per share, compared with a loss of $22.2 million, or $0.78 per share, in third-quarter 2025. The improvement primarily reflected higher Chemicals operating income, partly offset by lower Real Estate Management and Development operating income.
How did tax items affect Valhi's 2026 earnings comparison?
Third-quarter and nine-month 2026 earnings included a $12.1 million non-cash deferred tax benefit related to proposed currency regulations issued in August 2026, equal to $8.0 million after noncontrolling interest. The corresponding 2025 periods included a $19.3 million non-cash deferred tax expense, or $12.8 million after noncontrolling interest, following German tax legislation.
How did currency movements affect Valhi's Chemicals sales in the first nine months of 2026?
Valhi estimates that currency movements, primarily involving the euro, increased Chemicals sales by approximately $39 million in the first nine months of 2026 compared with the same period of 2025. Currency movements nevertheless reduced the segment's operating income over that period.