NL Industries (NL) Q3 2026 earnings summary

Executive summary

• Net income attributable to stockholders was $12.7 million, or $0.26 per share, in Q3 2026 versus a $7.8 million loss, or $0.16 per share; 9M income was $26.0 million versus a $6.8 million loss.

• Earnings improved with the return to Kronos equity earnings, higher CompX segment profit and gains rather than losses on marketable equity securities.

Financial highlights

• Net sales were $44.0 million in Q3 2026 versus $40.0 million, and $128.2 million in 9M versus $120.6 million.

• Gross margin was $13.0 million in Q3 versus $11.0 million, and $41.8 million in 9M versus $36.1 million.

• Operating income was $13.4 million in 9M 2026 versus $7.8 million; consolidated net income was $13.4 million in Q3 and $28.4 million in 9M, versus losses of $7.4 million and $5.0 million.

• Income before taxes was $15.9 million in Q3 and $34.8 million in 9M, compared with losses of $8.2 million and $5.9 million in 2025.

• Marketable equity securities recorded gains of $0.9 million in Q3 and $4.0 million in 9M, versus losses of $0.5 million and $9.1 million in 2025.

Outlook and guidance

• CompX expects FY2026 net sales, gross margin and segment profit to exceed 2025 levels; healthcare demand remains strong, while government security sales are expected slightly below prior-year levels.

• CompX expects Marine Components demand to be led by industrial markets, with towboat sales relatively consistent with 2025; capacity and efficiency investments are underway.

• Kronos expects FY2026 sales, volumes and gross margins above 2025, with improving operating margins; Q4 TiO2 prices are expected to improve, subject to negotiations and competition.

• Liquidity is expected to cover short-term obligations through September 30, 2027 and long-term obligations through September 30, 2031, subject to actual developments.