NL Industries Reports Decrease in Quarterly Earnings Performance

NL Industries, Inc. Reports Financial Performance for Second Quarter 2025

NL Industries, Inc. revealed its financial results for the second quarter of 2025, showing a notable shift from the previous year. The company reported a net income of $0.3 million, or $0.01 per share, representing a significant drop from the $7.9 million, or $0.16 per share, achieved in the second quarter of 2024. This downturn includes an unrealized loss of $0.1 million linked to fluctuations in marketable equity securities, contrasting sharply with an unrealized gain of $0.8 million during the same period last year.

Key Sales Insights from CompX Segment

In terms of sales, CompX reported a considerable increase, with net sales rising to $40.3 million in the second quarter of 2025 from $35.9 million in the previous year. For the first half of 2025, sales jumped to $80.6 million, up from $73.9 million in the same timeframe of 2024. This growth can be attributed to stronger demand in security products primarily directed at government sectors and notable increases in marine components sales, bolstered by government contracts and easing market conditions.

Analysis of Kronos' Performance

Meanwhile, Kronos Worldwide, Inc. faced challenges with net sales totaling $494.4 million in the second quarter of 2025, a decrease of 1% compared to $500.5 million in the same quarter last year. Over the first six months, Kronos saw slightly better performance with net sales reaching $984.2 million, an increase of 1% from $979.3 million in 2024. The decline in the second quarter was attributed to lower average selling prices for TiO₂, unfavorable product mix, and reduced volumes in export markets despite increased sales in domestic markets.

Operational Challenges Impacting Income

Kronos reported an income from operations of $7.4 million in the second quarter of 2025 compared to a hefty $35.9 million in the prior year's quarter. The first half showed income from operations at $45.8 million, down from $55.4 million in 2024. The significant drop in income is primarily related to unfavorable fixed cost absorption, higher production costs, and the impact of currency fluctuations affecting the euro against the dollar.

Outlook for the Future

As NL Industries navigates through this challenging landscape, they continue to focus on operational efficiencies and adjustments. The company acknowledged it faces several risks related to market conditions, commodity prices, and geopolitical factors that could further influence performance. Key management strategies will be essential for addressing these challenges and ensuring sustainability in performance moving forward.

Investor Relations and Contact Information

Investors looking for further insights or wishing to engage with the company may reach out through the following contact:

Investor Relations Contact

Bryan A. Hanley
Senior Vice President and Treasurer
(972) 233-1700

Frequently Asked Questions

What were NL Industries' earnings in the second quarter of 2025?

NL Industries reported a net income of $0.3 million, down from $7.9 million in the second quarter of 2024.

How did CompX's sales perform compared to the previous year?

CompX saw an increase in net sales to $40.3 million in Q2 2025 from $35.9 million in Q2 2024.

What are the main factors impacting Kronos' performance?

Factors include lower TiO₂ selling prices, changes in the product mix and reduced export sales.

What operational challenges did Kronos face in 2025?

Kronos faced unfavorable fixed cost absorption and higher production costs impacting its overall income.

How can investors contact NL Industries for more information?

Investors can contact Bryan A. Hanley, Senior Vice President and Treasurer, at (972) 233-1700 for investor relations inquiries.

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