{"id":872088,"date":"2025-08-06T18:52:49","date_gmt":"2025-08-06T22:52:49","guid":{"rendered":"https:\/\/www.marketnewsdesk.com\/index.php\/nl-reports-second-quarter-2025-results\/"},"modified":"2025-08-06T18:52:49","modified_gmt":"2025-08-06T22:52:49","slug":"nl-reports-second-quarter-2025-results","status":"publish","type":"post","link":"https:\/\/www.marketnewsdesk.com\/index.php\/nl-reports-second-quarter-2025-results\/","title":{"rendered":"NL REPORTS SECOND QUARTER 2025 RESULTS"},"content":{"rendered":"
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Dallas, Texas, Aug. 06, 2025 (GLOBE NEWSWIRE) — NL Industries, Inc. (NYSE: NL) today reported net income attributable to NL stockholders of $.3 million, or $.01 per share, in the second quarter of 2025 compared to $7.9 million, or $.16 per share, in the second quarter of 2024. NL\u2019s results include an unrealized loss of $.1 million in the second quarter of 2025 related to the change in value of marketable equity securities compared to an unrealized gain of $.8 million in the second quarter of 2024. For the first six months of 2025, NL reported net income attributable to NL stockholders of $1.0 million, or $.02 per share, compared to $14.7 million, or $.30 per share for the first six months of 2024. NL results include an unrealized loss of $8.6 million in the first six months of 2025 related to the change in value of marketable equity securities compared to an unrealized gain of $3.2 million in the first six months of 2024.\u00a0 <\/p>\n

CompX\u2019s net sales were $40.3 million for the second quarter of 2025 compared to $35.9 million in the second quarter of 2024 and $80.6 million for the first six months of 2025 compared to $73.9 million for the same prior year period. The increase in sales for both periods is due to higher Security Products sales primarily to the government security market and higher Marine Components sales primarily to the government and towboat markets. CompX\u2019s segment profit was $6.3 million for the second quarter of 2025 compared to $5.1 million for the second quarter of 2024 and $12.2 million for the first six months of 2025 compared to $8.8 million for the same prior year period. CompX\u2019s segment profit increased in the second quarter and for the first six months of 2025 compared to the same periods in 2024 due to higher sales and gross margin at each of the Security Products and Marine Components segments.<\/p>\n

NL recognized equity in losses of Kronos of $2.8 million in the second quarter of 2025 compared to equity in earnings of $6.0 million in the second quarter of 2024. NL recognized equity in earnings of $2.7 million in the first six months of 2025 compared to $8.5 million in the same period of 2024. As previously reported, effective July 16, 2024, Kronos acquired the 50% joint venture interest in Louisiana Pigment Company, L.P. (\u201cLPC\u201d) previously held by Venator Investments, Ltd. Prior to the acquisition, Kronos held a 50% joint venture interest in LPC. Following the acquisition, LPC became a wholly-owned subsidiary of Kronos. The results of operations of LPC have been included in Kronos\u2019 results of operations beginning as of the acquisition date.<\/p>\n

Kronos\u2019 net sales of $494.4 million in the second quarter of 2025 were $6.1 million, or 1%, lower than in the second quarter of 2024. Kronos\u2019 net sales of $984.2 million in the first six months of 2025 were $4.9 million, or 1%, higher than in the first six months of 2024. Kronos\u2019 net sales decreased in the second quarter of 2025 compared to the second quarter of 2024 primarily due to the effects of lower average TiO2<\/sub> selling prices, changes in product mix and lower sales volumes in its export markets somewhat offset by higher sales volumes in its North American market. Kronos\u2019 net sales increased in the first six months of 2025 compared to the same period in 2024 due to net effects of higher sales volumes in its North American and European markets somewhat offset by lower sales volumes in its export markets and changes in product mix. During the first six months of 2025, Kronos and the TiO2 <\/sub>industry have been operating in a market impacted by global uncertainty related to U.S. trade policies, geopolitical tensions and general hesitancy by customers to build inventories which have deferred any anticipated market recovery and which have also impacted Kronos\u2019 sales volumes and pricing momentum. Kronos started 2025 with average TiO2<\/sub> selling prices 2% higher than at the beginning of 2024 but its average TiO2<\/sub> selling prices declined 4% during the first six months of 2025. Kronos\u2019 average TiO2<\/sub> selling prices were 1% lower in the second quarter of 2025 as compared to the second quarter of 2024 and comparable in the first six months of 2025 as compared to the first six months of 2024. Fluctuations in currency exchange rates (primarily the euro) also affected net sales comparisons, increasing net sales by approximately $8 million in the second quarter of 2025 and decreasing net sales by approximately $3 million in the first six months of 2025 as compared to the same prior year periods in 2024. The table at the end of this press release shows how each of these items impacted Kronos\u2019 net sales.\u00a0 <\/p>\n

Kronos\u2019 income from operations in the second quarter of 2025 was $7.4 million as compared to $35.9 million in the second quarter of 2024. For the first six months of 2025, the Kronos\u2019 income from operations was $45.8 million as compared to $55.4 million in the first six months of 2024. Income from operations decreased in the second quarter of 2025 compared to the second quarter of 2024 primarily due to the effects of unfavorable fixed cost absorption due to reduced operating rates at certain of Kronos\u2019 manufacturing facilities, higher cost inventory produced in the first quarter and included in cost of sales in the second quarter and currency fluctuations (primarily the euro). Kronos\u2019 unabsorbed fixed production costs related to decreased production volumes in the second quarter of 2025 were approximately $20 million. Kronos\u2019 income from operations decreased in the first six months of 2025 compared to the first six months of 2024 primarily due to the net effects of approximately $18 million in additional unabsorbed fixed production costs Kronos recognized as a result of operating its production facilities at reduced rates and higher production costs (primarily raw materials) and a 2% increase in TiO2 sales volumes. Kronos\u2019 income from operations in both the second quarter and first six months of 2024 includes a charge of approximately $2 million related to workforce reductions and approximately $10 million in non-cash charges primarily related to accelerated depreciation in connection with the closure of its sulfate process line in Canada in the second quarter of 2024. Kronos operated its production facilities at overall average capacities of 87% of practical capacity utilization in the first six months of 2025 (93% and 81% in the first and second quarters of 2025, respectively) compared to 93% in the first six months of 2024 (87% and 99% in the first and second quarters of 2024, respectively). Fluctuations in currency exchange rates (primarily the euro) increased Kronos\u2019 income from operations by approximately $14 million in the second quarter of 2025 and approximately $9 million in the first six months of 2025 as compared to the same prior year periods.\u00a0 <\/p>\n

Corporate expenses decreased $.8 million in the second quarter of 2025 compared to the second quarter of 2024 primarily due to lower litigation fees and related costs and lower environmental remediation and related costs. Corporate expenses decreased $.5 million in the first six months of 2025 compared to the same period of 2024 primarily due to lower litigation fees and related costs, partially offset by higher environmental remediation and related costs. Interest and dividend income decreased in the second quarter and for the first six months of 2025 compared to the same periods of 2024 primarily due to lower average interest rates and decreased cash balances. Marketable equity securities represent the change in unrealized gains (losses) on our portfolio of marketable equity securities during the periods.<\/p>\n

Net income attributable to NL stockholders for the first six months of 2024 includes a loss of $.3 million ($.01 per share, net of tax) due to Kronos\u2019 recognition of an aggregate charge related to a write-off of deferred financing costs.<\/p>\n

The statements in this release relating to matters that are not historical facts are forward-looking statements that represent management’s beliefs and assumptions based on currently available information. Although we believe the expectations reflected in such forward-looking statements are reasonable, we cannot give any assurances that these expectations will prove to be correct. Such statements by their nature involve substantial risks and uncertainties that could significantly impact expected results, and actual future results could differ materially from those described in such forward-looking statements. While it is not possible to identify all factors, we continue to face many risks and uncertainties. Factors that could cause actual future results to differ materially include, but are not limited to:<\/p>\n