NL Industries (NL) Q1 2025 earnings summary

Executive summary

• Net income attributable to stockholders fell to $0.7 million ($0.01/share) in Q1 2025 from $6.8 million ($0.14/share) in Q1 2024, mainly due to an $8.5 million unrealized loss on marketable equity securities and lower dividends from Kronos.

• CompX segment profit rose 58% year-over-year to $5.9 million, driven by strong Marine Components sales and improved gross margin.

• Kronos equity earnings more than doubled to $5.5 million, reflecting higher TiO2 sales volumes, improved pricing, and the Louisiana Pigment Company acquisition.

Financial highlights

• Consolidated net sales increased 6% year-over-year to $40.3 million in Q1 2025.

• Gross margin rose to $12.2 million (30% of sales) from $9.7 million (25%) year-over-year.

• Operating income more than doubled to $3.1 million from $1.4 million year-over-year.

• Net cash used in operating activities was $47.5 million, mainly due to a $57.1 million environmental remediation settlement payment.

• Cash and equivalents at quarter-end were $131.0 million, down from $184.2 million at year-end 2024.

Outlook and guidance

• CompX expects modest improvement in Security Products sales and higher Marine Components sales in 2025, with gross margin and profit percentages slightly above 2024 due to price increases and improved product mix.

• Kronos anticipates stable TiO2 demand in Europe but continued uncertainty in North America due to tariff concerns; expects improved operating results in 2025 if current demand holds.

• Raw material and input costs are expected to moderate, but energy costs in Europe remain volatile.