NL Industries (NL) Q4 2024 earnings summary

Executive summary

• Net income attributable to stockholders rose to $16.5M ($0.34/share) in Q4 2024 from $7.6M ($0.16/share) in Q4 2023; full-year net income was $67.2M ($1.38/share) vs. a net loss of $2.3M ($0.05/share) in 2023.

• Q4 and full-year results include significant environmental remediation settlement income and unrealized gains/losses on marketable equity securities.

Financial highlights

• Q4 2024 net income includes a $31.4M pre-tax environmental settlement, with $24.8M ($0.51/share) net of tax.

• Full-year 2024 includes a $9.8M unrealized gain on marketable securities, compared to an $8.1M loss in 2023.

• Q4 2024 saw a $12.0M unrealized loss on securities, compared to a $2.4M gain in Q4 2023.

• Insurance recoveries contributed $1.4M ($1.1M net of tax) to 2024 net income.

Segment performance

• CompX net sales fell to $38.4M in Q4 2024 from $43.2M in Q4 2023; full-year sales were $145.9M vs. $161.3M in 2023, mainly due to lower Security Products sales.

• CompX segment profit dropped to $4.9M in Q4 2024 from $7.4M in Q4 2023; full-year profit was $17.0M vs. $25.4M in 2023.

• Kronos net sales rose 6% to $423.1M in Q4 2024 and 13% to $1.9B for 2024, driven by higher TiO2 volumes and prices.

• Kronos income from operations was $28.6M in Q4 2024 (vs. a $5.7M loss in Q4 2023) and $122.9M for 2024 (vs. a $56.0M loss in 2023).