NL Industries (NL) Q2 2025 earnings summary

Executive summary

• Net income attributable to stockholders fell to $0.3M–$0.4M ($0.01/share) in Q2 2025 from $7.9M ($0.16/share) in Q2 2024, mainly due to equity losses in Kronos and unrealized losses on marketable securities.

• Six-month net income dropped to $1.0M ($0.02/share) from $14.7M ($0.30/share) year-over-year, with unrealized losses on securities and lower Kronos earnings as key drivers.

• CompX segment profit rose 24% in Q2 and 39% for the first half, driven by higher sales and improved gross margin in both Security Products and Marine Components.

• Kronos' acquisition of full control of Louisiana Pigment Company (LPC) in July 2024 is expected to add long-term value, though near-term results are limited by soft demand and higher debt service.

Financial highlights

• Q2 2025 net sales for CompX increased to $40.4M; six-month sales up to $80.6M year-over-year.

• Q2 gross margin rose to $12.9M; six-month gross margin up to $25.1M.

• CompX segment profit reached $6.3M in Q2 (24% increase) and $12.2M for six months (39% increase).

• Kronos' Q2 net sales were $494.4M, down 1% year-over-year; income from operations dropped to $7.4M from $35.9M.

• Equity in earnings of Kronos swung to a $2.8M loss in Q2 2025 from $6.0M profit in Q2 2024; six-month Kronos earnings fell to $2.7M from $8.5M.

• Unrealized loss on marketable equity securities was $8.6M for the first half of 2025, compared to a $3.2M gain in 2024.

• Net cash used in operating activities was $40.2M for the first half of 2025, down from $22.3M provided in 2024, mainly due to a $56.8M environmental settlement payment.

Outlook and guidance

• CompX expects Security Products sales to improve in 2025, led by government and healthcare markets, but gross margin will be pressured by higher raw material costs and tariffs.

• Marine Components sales and profit are projected to rise in 2025, benefiting from government and industrial market demand.

• Kronos anticipates continued weak demand and pricing pressure for TiO2, with lower operating results expected for full-year 2025.

• Kronos is integrating LPC and expects long-term synergies, but near-term gains are limited by soft demand and increased debt service.