NL Industries (NL) Q3 2025 earnings summary

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.