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NL Industries (NL) investor relations material

NL Industries Q3 2025 earnings summary

Complete event summary combining all related documents: earnings call transcript, report, and slide presentation.
Logotype for NL Industries Inc
Q3 2025 earnings summary6 Nov, 2025

Executive summary

  • Reported a net loss attributable to stockholders of $7.8 million ($0.16/share) for Q3 2025, compared to net income of $36.0 million ($0.74/share) in Q3 2024, mainly due to equity losses in Kronos and unrealized losses on marketable securities.

  • For the first nine months of 2025, net loss attributable to stockholders was $6.8 million ($0.14/share), down from net income of $50.7 million ($1.04/share) in the same period of 2024.

  • Results were impacted by significant equity losses from Kronos and lower dividends.

Financial highlights

  • Q3 2025 net sales rose to $39.95 million from $33.67 million in Q3 2024; nine-month sales increased to $120.6 million from $107.5 million.

  • CompX segment profit grew 42% in Q3 2025 to $4.8 million and 40% for the nine months to $17.0 million.

  • Kronos reported equity losses of $11.3 million in Q3 2025 versus $21.9 million in earnings in Q3 2024; nine-month equity losses were $8.6 million versus $30.4 million in earnings.

  • Recognized an unrealized loss of $0.5 million on marketable equity securities in Q3 2025, compared to an $18.6 million gain in Q3 2024.

  • Interest and dividend income decreased to $2.1 million in Q3 2025 from $2.7 million in Q3 2024, with corporate expenses rising due to higher litigation fees.

Outlook and guidance

  • CompX expects Security Products sales to improve in 2025, mainly from government security markets, but softness in transportation and tool storage markets will partially offset gains.

  • Marine Components sales are expected to increase, driven by government and industrial demand and a one-time stocking event.

  • Kronos anticipates continued weak demand and lower operating rates in Q4 2025, with full-year results expected to be below 2024 due to pricing pressure and lower fixed cost absorption.

  • Management highlighted ongoing global uncertainty, trade policy impacts, and customer hesitancy to build inventories, prolonging the market downturn for TiO2.

  • Kronos is implementing cost reduction initiatives and expects to benefit from recent industry capacity reductions and anti-dumping duties in 2026.

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Frequently asked questions

NL Industries Inc. is a holding company primarily engaged in the manufacture and sale of titanium dioxide pigments through its majority-owned subsidiary, Kronos Worldwide, Inc. Titanium dioxide is a white pigment used in a variety of applications, including coatings, plastics, paper, and other industrial and consumer products. The company also has operations in the environmental services sector, where it focuses on the management of closed environmental sites. The company is headquartered in Dallas, Texas, and its shares are listed on the NYSE.

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