# VALHI INC /DE/ (VHI)

Informational only - not investment advice.

CIK: 0000059255
SIC: 2810 Industrial Inorganic Chemicals
SIC breadcrumb: [Manufacturing](/division/D/) > [Chemicals And Allied Products](/major-group/28/) > [SIC 2810 Industrial Inorganic Chemicals](/industry/2810/)
Latest 10-K filed: 2026-03-10
SEC page: https://www.sec.gov/edgar/browse/?CIK=59255
Filing source: https://www.sec.gov/Archives/edgar/data/59255/000110465926025847/vhl-20251231x10k.htm

## At a glance

FY2025 · period end 2025-12-31 · filed 2026-03-10 · accession 0001104659-26-025847 · source: https://data.sec.gov/api/xbrl/companyfacts/CIK0000059255.json

| Metric | Value | FY | Provenance |
| --- | ---: | ---: | --- |
| Revenue | 2,077,000,000 USD | 2025 | verified |
| Net income | -57,600,000 USD | 2025 | verified |
| Assets | 2,632,300,000 USD | 2025 | verified |
| Free cash flow | -82,100,000 USD | 2025 | computed |
| Net margin | -2.77% | 2025 | computed |
| Operating margin | 3.05% | 2025 | computed |
| Revenue YoY | -1.32% | 2025 | computed |
| ROE | -5.63% | 2025 | computed |

Computed values are grepcent-computed from the verified facts above and may differ from ratios the company itself reports. Free cash flow = operating cash flow − capital expenditures. Net margin = net income ÷ revenue. Operating margin = operating income ÷ revenue. Revenue YoY = FY2025 revenue ÷ FY2024 revenue − 1 (consecutive fiscal years only). ROE = net income ÷ period-end stockholders' equity.

No market price, no rating, no forecast on this site. Not investment advice.

### Peer percentile fingerprint

| Ratio | VHI | Peer median | Percentile | N |
| --- | ---: | ---: | ---: | ---: |
| Net margin | -2.8% | -2.8% | 50 | 9 |
| Operating margin | 3.0% | 3.0% | 50 | 9 |
| Revenue growth | -1.3% | -1.3% | 50 | 9 |
| FCF margin | -4.0% | -2.2% | 38 | 9 |
| ROE | -5.6% | -4.1% | 44 | 10 |
| ROA | -2.2% | -1.6% | 44 | 10 |
| Liabilities / equity | 1.57 | 1.24 | 78 | 10 |
| Current ratio | 2.80 | 2.58 | 78 | 10 |

Percentile = share of the N covered peers reporting that ratio whose value is lower (ties counted half); computed among grepcent-covered companies in SIC industry 2810 Industrial Inorganic Chemicals, not the whole market. A higher percentile means a higher value of the ratio, not a better company. Ratios with fewer than 8 reporting peers are omitted. Latest reported values per company; fiscal periods may differ. Descriptive arithmetic - not a score, rating, or ranking.

## Selected Fundamentals
| Metric | Value | Unit | FY | Filed |
| --- | ---: | --- | ---: | --- |
| Revenue | 2077000000 | USD | 2025 | 2026-03-10 |
| Net income | -57600000 | USD | 2025 | 2026-03-10 |
| Assets | 2632300000 | USD | 2025 | 2026-03-10 |

## Financials

Annual standardized facts from SEC companyfacts as of latest extracted filing date 2026-03-10. Source: https://data.sec.gov/api/xbrl/companyfacts/CIK0000059255.json. Derived margins, ratios, and free cash flow are computed from the extracted annual SEC facts.

| Metric | 2016 | 2017 | 2018 | 2019 | 2020 | 2021 | 2022 | 2023 | 2024 | 2025 |
| --- | ---: | ---: | ---: | ---: | ---: | ---: | ---: | ---: | ---: | ---: |
| Revenue | 1,519,400,000 | 1,879,400,000 | 1,820,100,000 | 1,897,500,000 | 1,849,700,000 | 2,296,400,000 | 2,222,500,000 | 1,921,700,000 | 2,104,800,000 | 2,077,000,000 |
| Net income | -15,900,000 | 207,500,000 | 262,200,000 | 49,200,000 | 55,200,000 | 127,200,000 | 87,200,000 | -9,900,000 | 108,000,000 | -57,600,000 |
| Operating income | 119,200,000 | 380,300,000 | 370,700,000 | 192,700,000 | 186,100,000 | 318,600,000 | 239,400,000 | 34,200,000 | 210,700,000 | 63,300,000 |
| Gross profit | 307,900,000 | 612,900,000 | 609,200,000 | 434,600,000 | 412,100,000 | 580,200,000 | 490,400,000 | 245,200,000 | 424,500,000 | 295,400,000 |
| Diluted EPS |  |  |  | 1.73 | 1.94 | 4.46 | 3.06 | -0.35 | 3.79 | -2.02 |
| Operating cash flow | 79,800,000 | 259,300,000 | 165,500,000 | 177,200,000 | 152,200,000 | 459,700,000 | 34,900,000 | 3,900,000 | 44,000,000 | -35,500,000 |
| Capital expenditures | 58,900,000 | 71,300,000 | 61,400,000 | 59,900,000 | 65,500,000 | 64,100,000 | 67,600,000 | 48,500,000 | 30,900,000 | 46,600,000 |
| Dividends paid | 27,100,000 | 27,200,000 | 27,100,000 | 27,100,000 | 13,600,000 | 9,000,000 | 9,000,000 | 9,100,000 | 9,100,000 | 9,100,000 |
| Assets | 2,443,200,000 | 2,907,500,000 | 2,709,600,000 | 2,794,400,000 | 2,889,300,000 | 3,005,200,000 | 2,835,700,000 | 2,737,000,000 | 2,800,200,000 | 2,632,300,000 |
| Stockholders' equity | 200,900,000 | 424,400,000 | 635,400,000 | 640,000,000 | 682,500,000 | 829,500,000 | 958,600,000 | 950,500,000 | 1,036,100,000 | 1,023,200,000 |
| Cash and cash equivalents | 159,700,000 | 435,700,000 | 499,800,000 | 523,800,000 | 518,600,000 | 698,400,000 | 478,500,000 | 407,000,000 | 348,300,000 | 214,000,000 |
| Free cash flow | 20,900,000 | 188,000,000 | 104,100,000 | 117,300,000 | 86,700,000 | 395,600,000 | -32,700,000 | -44,600,000 | 13,100,000 | -82,100,000 |

### Ratios

ROE and ROA use period-end equity/assets. Liabilities / equity uses total liabilities divided by stockholders' equity. Current ratio uses current assets divided by current liabilities when both are reported.

| Metric | 2016 | 2017 | 2018 | 2019 | 2020 | 2021 | 2022 | 2023 | 2024 | 2025 |
| --- | ---: | ---: | ---: | ---: | ---: | ---: | ---: | ---: | ---: | ---: |
| Net margin | -1.05% | 11.04% | 14.41% | 2.59% | 2.98% | 5.54% | 3.92% | -0.52% | 5.13% | -2.77% |
| Operating margin | 7.85% | 20.24% | 20.37% | 10.16% | 10.06% | 13.87% | 10.77% | 1.78% | 10.01% | 3.05% |
| Return on equity | -7.91% | 48.89% | 41.27% | 7.69% | 8.09% | 15.33% | 9.10% | -1.04% | 10.42% | -5.63% |
| Return on assets | -0.65% | 7.14% | 9.68% | 1.76% | 1.91% | 4.23% | 3.08% | -0.36% | 3.86% | -2.19% |
| Liabilities / equity | 11.16 | 5.85 | 3.26 | 3.37 | 3.23 | 2.62 | 1.96 | 1.88 | 1.70 | 1.57 |
| Current ratio | 2.85 | 3.81 | 4.01 | 4.42 | 4.57 | 3.61 | 3.23 | 2.91 | 2.26 | 2.80 |

## As-reported value updates

7 tracked differences above grepcent's stated thresholds were found between the earliest XBRL-filed value and the value currently on file for the same fiscal period.

Ledger: /company/VHI/revisions/


## Quarterly

Quarterly standardized facts from SEC companyfacts as of latest extracted filing date 2026-08-06. Source: https://data.sec.gov/api/xbrl/companyfacts/CIK0000059255.json.

Flow metrics use discrete quarter-length periods from 10-Q/10-Q/A filings. Q4 revenue and net income are derived only when annual FY and nine-month YTD facts exist for the same fiscal year; derived Q4 values are labeled. EPS Q4 is not derived.

| Quarter | End date | Revenue | Net income | Diluted EPS | Method |
| --- | --- | ---: | ---: | ---: | --- |
| 2022-Q3 | 2022-09-30 |  |  | 0.92 | reported discrete quarter |
| 2023-Q1 | 2023-03-31 |  |  | -0.17 | reported discrete quarter |
| 2023-Q2 | 2023-06-30 |  |  | -0.18 | reported discrete quarter |
| 2023-Q3 | 2023-09-30 | 468,900,000 | -6,000,000 | -0.21 | reported discrete quarter |
| 2023-Q4 | 2023-12-31 | 453,000,000 | 3,900,000 |  | derived Q4 = FY annual - nine-month YTD |
| 2024-Q1 | 2024-03-31 | 530,600,000 | 7,800,000 | 0.27 | reported discrete quarter |
| 2024-Q2 | 2024-06-30 | 559,700,000 | 19,900,000 | 0.70 | reported discrete quarter |
| 2024-Q3 | 2024-09-30 | 533,600,000 | 57,500,000 | 2.01 | reported discrete quarter |
| 2024-Q4 | 2024-12-31 | 480,900,000 | 22,800,000 |  | derived Q4 = FY annual - nine-month YTD |
| 2025-Q1 | 2025-03-31 | 538,600,000 | 16,900,000 | 0.59 | reported discrete quarter |
| 2025-Q2 | 2025-06-30 | 540,400,000 | 900,000 | 0.03 | reported discrete quarter |
| 2025-Q3 | 2025-09-30 | 503,500,000 | -22,200,000 | -0.78 | reported discrete quarter |
| 2025-Q4 | 2025-12-31 | 494,500,000 | -53,200,000 |  | derived Q4 = FY annual - nine-month YTD |
| 2026-Q1 | 2026-03-31 | 560,100,000 | 2,000,000 | 0.07 | reported discrete quarter |
| 2026-Q2 | 2026-06-30 | 606,100,000 | 22,300,000 | 0.78 | reported discrete quarter |

## Filed narrative (10-K & 10-Q)

## Business

Verbatim Item 1 Business section from VHI's latest 10-K: [/company/VHI/business/](/company/VHI/business/).

## Risk Factors

Verbatim Item 1A Risk Factors from VHI's latest 10-K: [/company/VHI/risk-factors/](/company/VHI/risk-factors/).

## Latest quarter (10-Q)

Latest 10-Q source: https://www.sec.gov/Archives/edgar/data/59255/000110465926092027/vhl-20260630x10q.htm

Extracted structurally from real Item 2 body heading to real Item 3/4 boundary. Published MD&A gate trimmed front/tail over-capture.
Confidence: high
Filing date: 2026-08-06
Report date: 2026-06-30

ITEM 2. MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS

RESULTS OF OPERATIONS

Business Overview

We are primarily a holding company. We operate through our wholly-owned and majority-owned subsidiaries, including NLI Holdings, Inc. (formerly NL Industries, Inc.), Kronos Worldwide, Inc., CompX International Inc., Tremont LLC, Basic Management, Inc. (“BMI”) and The LandWell Company (“LandWell”). Kronos (NYSE: KRO), NLI (NYSE: NL) and CompX (NYSE American: CIX) each file periodic reports with the SEC.

We have three consolidated reportable operating segments:

[[GREPCENT_TABLE]]
[["","\u25cf","Chemicals \u2013 Our Chemicals Segment is operated through our majority control of Kronos. Kronos is a leading global producer and marketer of value-added titanium dioxide pigments (\u201cTiO2\u201d). TiO2 is used to impart whiteness, brightness, opacity and durability to a wide variety of products, including paints, plastics, paper, fibers and ceramics. Additionally, TiO2 is a critical component of everyday applications, such as coatings, plastics and paper, as well as many specialty products such as inks, cosmetics and pharmaceuticals."]]
[[/GREPCENT_TABLE]]

[[GREPCENT_TABLE]]
[["","\u25cf","Component Products \u2013 We operate in the component products industry through our majority control of CompX. CompX is a leading manufacturer of security products used in the postal, recreational transportation, office and institutional furniture, cabinetry, tool storage, healthcare applications and a variety of other industries. CompX is also a leading manufacturer of wake enhancement systems, stainless steel exhaust systems, custom metal fabricated parts, gauges, throttle controls, trim tabs and related hardware and accessories primarily for the recreational marine and other industries."]]
[[/GREPCENT_TABLE]]

[[GREPCENT_TABLE]]
[["","\u25cf","Real Estate Management and Development \u2013 We operate in real estate management and development through our majority control of BMI and LandWell. BMI and LandWell own real property in Henderson, Nevada. LandWell is engaged in efforts to develop certain land holdings for commercial, industrial and residential purposes in Henderson, Nevada."]]
[[/GREPCENT_TABLE]]

General

This Quarterly Report on Form 10-Q contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, as amended. Statements in this Quarterly Report that are not historical facts are forward-looking in nature and represent management’s beliefs and assumptions based on currently available information. In some cases, you can identify forward-looking statements by the use of words such as “believes,” “intends,” “may,” “should,” “could,” “anticipates,” “expects” or comparable terminology, or by discussions of strategies or trends. Although we believe that the expectations reflected in such forward-looking statements are reasonable, we do not know if these expectations will be correct. Such statements by their nature involve substantial risks and uncertainties that could significantly impact expected results. Actual future results could differ materially from those predicted. The factors that could cause actual future results to differ materially from those described herein are the risks and uncertainties discussed in this Quarterly Report and those described from time to time in our other filings with the SEC and include, but are not limited to, the following:

[[GREPCENT_TABLE]]
[["","\u25cf","Future supply and demand for our products;"]]
[[/GREPCENT_TABLE]]

[[GREPCENT_TABLE]]
[["","\u25cf","Our ability to realize expected cost savings from strategic and operational initiatives;"]]
[[/GREPCENT_TABLE]]

[[GREPCENT_TABLE]]
[["","\u25cf","Our ability to integrate acquisitions into Kronos\u2019 operations and realize expected synergies and innovations;"]]
[[/GREPCENT_TABLE]]

[[GREPCENT_TABLE]]
[["","\u25cf","The extent of the dependence of certain of our businesses on certain market sectors;"]]
[[/GREPCENT_TABLE]]

[[GREPCENT_TABLE]]
[["","\u25cf","The cyclicality of certain of our businesses (such as Kronos\u2019 TiO2 operations);"]]
[[/GREPCENT_TABLE]]

[[GREPCENT_TABLE]]
[["","\u25cf","Customer and producer inventory levels;"]]
[[/GREPCENT_TABLE]]

[[GREPCENT_TABLE]]
[["","\u25cf","Unexpected or earlier-than-expected industry capacity expansion (such as the TiO2 industry);"]]
[[/GREPCENT_TABLE]]

[[GREPCENT_TABLE]]
[["","\u25cf","Changes in raw material and other operating costs (such as ore, zinc, brass, aluminum, steel and energy costs) or the implementation of tariffs on imported raw materials;"]]
[[/GREPCENT_TABLE]]

[[GREPCENT_TABLE]]
[["","\u25cf","Changes in the availability of raw materials (such as ore);"]]
[[/GREPCENT_TABLE]]

24

Table of Contents‌

[[GREPCENT_TABLE]]
[["","\u25cf","General global economic and political conditions that harm the worldwide economy, disrupt our supply chain, increase material and energy costs, reduce demand or perceived demand for TiO2, component products and land held for development or impair our ability to operate our facilities (including changes in the level of gross domestic product in various regions of the world, tariffs, natural disasters, terrorist acts, global conflicts and public health crises);"]]
[[/GREPCENT_TABLE]]

[[GREPCENT_TABLE]]
[["","\u25cf","Operating interruptions (including, but not limited to, labor disputes, leaks, natural disasters, fires, explosions, unscheduled or unplanned downtime, transportation interruptions, certain regional and world events or economic conditions and public health crises);"]]
[[/GREPCENT_TABLE]]

[[GREPCENT_TABLE]]
[["","\u25cf","Technology related disruptions (including, but not limited to, cyber-attacks; software implementation, upgrades or improvements; technology processing failures; or other events) related to our technology infrastructure (including manufacturing and accounting systems) that could impact our ability to continue operations, or at key vendors which could impact our supply chain, or at key customers which could impact their operations and cause them to curtail or pause orders;"]]
[[/GREPCENT_TABLE]]

[[GREPCENT_TABLE]]
[["","\u25cf","Competitive products and substitute products;"]]
[[/GREPCENT_TABLE]]

[[GREPCENT_TABLE]]
[["","\u25cf","Competition from Chinese suppliers with less stringent regulatory and environmental compliance requirements;"]]
[[/GREPCENT_TABLE]]

[[GREPCENT_TABLE]]
[["","\u25cf","Customer and competitor strategies;"]]
[[/GREPCENT_TABLE]]

[[GREPCENT_TABLE]]
[["","\u25cf","Potential consolidation of our competitors;"]]
[[/GREPCENT_TABLE]]

[[GREPCENT_TABLE]]
[["","\u25cf","Potential consolidation of our customers;"]]
[[/GREPCENT_TABLE]]

[[GREPCENT_TABLE]]
[["","\u25cf","Our ability to retain key customers;"]]
[[/GREPCENT_TABLE]]

[[GREPCENT_TABLE]]
[["","\u25cf","The impact of pricing and production decisions;"]]
[[/GREPCENT_TABLE]]

[[GREPCENT_TABLE]]
[["","\u25cf","Competitive technology positions;"]]
[[/GREPCENT_TABLE]]

[[GREPCENT_TABLE]]
[["","\u25cf","Our ability to protect or defend intellectual property rights;"]]
[[/GREPCENT_TABLE]]

[[GREPCENT_TABLE]]
[["","\u25cf","The introduction of new, or changes in existing, tariffs, trade barriers or trade disputes;"]]
[[/GREPCENT_TABLE]]

[[GREPCENT_TABLE]]
[["","\u25cf","The ability of our subsidiaries to pay us dividends;"]]
[[/GREPCENT_TABLE]]

[[GREPCENT_TABLE]]
[["","\u25cf","Uncertainties associated with new product development and the development of new product features;"]]
[[/GREPCENT_TABLE]]

[[GREPCENT_TABLE]]
[["","\u25cf","Fluctuations in currency exchange rates (such as changes in the exchange rate between the U.S. dollar and each of the euro, the Norwegian krone and the Canadian dollar and between the euro and the Norwegian krone) or possible disruptions to our business resulting from uncertainties associated with the euro or other currencies;"]]
[[/GREPCENT_TABLE]]

[[GREPCENT_TABLE]]
[["","\u25cf","Decisions to sell operating assets other than in the ordinary course of business;"]]
[[/GREPCENT_TABLE]]

[[GREPCENT_TABLE]]
[["","\u25cf","The timing and amounts of insurance recoveries;"]]
[[/GREPCENT_TABLE]]

[[GREPCENT_TABLE]]
[["","\u25cf","Our ability to renew or refinance credit facilities or other debt instruments in the future;"]]
[[/GREPCENT_TABLE]]

[[GREPCENT_TABLE]]
[["","\u25cf","Changes in interest rates;"]]
[[/GREPCENT_TABLE]]

[[GREPCENT_TABLE]]
[["","\u25cf","Our ability to maintain sufficient liquidity;"]]
[[/GREPCENT_TABLE]]

[[GREPCENT_TABLE]]
[["","\u25cf","The ultimate outcome of income tax audits, tax settlement initiatives or other tax matters, including future tax reform;"]]
[[/GREPCENT_TABLE]]

[[GREPCENT_TABLE]]
[["","\u25cf","Our ability to utilize income tax attributes, the benefits of which may or may not have been recognized under the more-likely-than-not recognition criteria;"]]
[[/GREPCENT_TABLE]]

[[GREPCENT_TABLE]]
[["","\u25cf","Environmental matters (such as those requiring compliance with emission and discharge standards for existing and new facilities, or new developments regarding environmental remediation or decommissioning obligations at sites related to our former operations);"]]
[[/GREPCENT_TABLE]]

[[GREPCENT_TABLE]]
[["","\u25cf","Government laws and regulations and possible changes therein (such as changes in government regulations which might impose various obligations on former manufacturers of lead pigment and lead-based paint, including NLI, with respect to asserted health concerns associated with the use of such products) including new environmental, sustainability, health and safety or other regulations (such as those seeking to limit or classify TiO2 or its use);"]]
[[/GREPCENT_TABLE]]

[[GREPCENT_TABLE]]
[["","\u25cf","The ultimate resolution of pending litigation (such as NLI\u2019s lead pigment and environmental matters);"]]
[[/GREPCENT_TABLE]]

[[GREPCENT_TABLE]]
[["","\u25cf","Our ability to comply with covenants contained in our revolving bank credit facilities;"]]
[[/GREPCENT_TABLE]]

25

Table of Contents‌

[[GREPCENT_TABLE]]
[["","\u25cf","Our ability to complete and comply with the conditions of our licenses and permits;"]]
[[/GREPCENT_TABLE]]

[[GREPCENT_TABLE]]
[["","\u25cf","Changes in construction costs in Henderson, Nevada; and"]]
[[/GREPCENT_TABLE]]

[[GREPCENT_TABLE]]
[["","\u25cf","Pending or possible future litigation (such as litigation related to CompX\u2019s use of certain permitted chemicals in its production process) or other actions."]]
[[/GREPCENT_TABLE]]

Should one or more of these risks materialize (or the consequences of such development worsen), or should the underlying assumptions prove incorrect, actual results could differ materially from those currently forecasted or expected. We disclaim any intention or obligation to update or revise any forward-looking statement whether as a result of changes in information, future events or otherwise.

Operations Overview

Quarter Ended June 30, 2026 Compared to the Quarter Ended June 30, 2025 –

We reported net income attributable to Valhi stockholders of $22.3 million, or $.78 per diluted share, in the second quarter of 2026 compared to net income attributable to Valhi stockholders of $.9 million, or $.03 per diluted share, in the second quarter of 2025. Our net income attributable to Valhi stockholders increased from 2025 to 2026 primarily due to higher operating income from our Chemicals Segment of $40.4 million in 2026 compared to operating income of $10.3 million in 2025.

Our diluted net income per share in the second quarter of 2026 includes:

[[GREPCENT_TABLE]]
[["","\u25cf","income of $.21 per share related to tax increment infrastructure reimbursement; and"]]
[[/GREPCENT_TABLE]]

[[GREPCENT_TABLE]]
[["","\u25cf","income of $.10 per share related to the gain on the sale of an office building within our Real Estate Management and Development Segment."]]
[[/GREPCENT_TABLE]]

[Excerpt truncated for page length; source filing is linked above.]

## Latest 10-K MD&A (excerpt)

Latest 10-K Item 7 source: https://www.sec.gov/Archives/edgar/data/59255/000110465926025847/vhl-20251231x10k.htm
Complete FY 2025 MD&A: /company/VHI/mda/fy2025/

Extracted structurally from real Item 7 body heading to real Item 7A/8 boundary. Published MD&A gate trimmed front/tail over-capture.
Confidence: high
Filing date: 2026-03-10
Report date: 2025-12-31

ITEM 7. MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS

RESULTS OF OPERATIONS

Business Overview

We are primarily a holding company. We operate through our wholly-owned and majority-owned subsidiaries, including NL Industries, Inc., Kronos Worldwide, Inc., CompX International Inc., Tremont LLC, Basic Management, Inc. (“BMI”) and the LandWell Company (“LandWell”).  Kronos (NYSE: KRO), NL (NYSE: NL) and CompX (NYSE American: CIX) each file periodic reports with the SEC.

We have three consolidated reportable operating segments:

[[GREPCENT_TABLE]]
[["","\u25cf","Chemicals \u2013 Our Chemicals Segment is operated through our majority control of Kronos. Kronos is a leading global producer and marketer of value-added TiO2. TiO2 is used to impart whiteness, brightness, opacity and durability to a wide variety of products, including paints, plastics, paper, fibers and ceramics. Additionally, TiO2 is a critical component of everyday applications, such as coatings, plastics and paper, as well as many specialty products such as inks, cosmetics and pharmaceuticals."]]
[[/GREPCENT_TABLE]]

[[GREPCENT_TABLE]]
[["","\u25cf","Component Products \u2013 We operate in the component products industry through our majority control of CompX. CompX is a leading manufacturer of security products used in the postal, recreational transportation, office and institutional furniture, cabinetry, tool storage, healthcare applications and a variety of other industries. CompX is also a leading manufacturer of wake enhancements systems, stainless steel exhaust systems, gauges, throttle controls, trim tabs and related hardware and accessories for the recreational marine and other industries."]]
[[/GREPCENT_TABLE]]

[[GREPCENT_TABLE]]
[["","\u25cf","Real Estate Management and Development \u2013 We operate in real estate management and development through our majority control of BMI and LandWell. BMI and LandWell own real property in Henderson, Nevada. LandWell is engaged in efforts to develop certain land holdings for commercial, industrial and residential purposes in Henderson, Nevada. Prior to 2023, BMI was responsible for the delivery of water to the City of Henderson and various other users and provided utility services to certain industrial customers."]]
[[/GREPCENT_TABLE]]

​

-37-

‌​

Operations Overview

Year Ended December 31, 2025 Compared to Year Ended December 31, 2024 –

We reported a net loss attributable to Valhi stockholders of $57.6 million or $2.02 per diluted share in 2025 compared to net income of $108.0 million or $3.79 per diluted share in 2024.

Our net income attributable to Valhi stockholders decreased from 2024 to 2025 primarily due to the net effects of:

[[GREPCENT_TABLE]]
[["","\u25cf","an operating loss from our Chemicals Segment of $24.5 million in 2025 compared to operating income of $138.5 million in 2024;"]]
[[/GREPCENT_TABLE]]

[[GREPCENT_TABLE]]
[["","\u25cf","a non-cash gain of $64.5 million resulting from the remeasurement of the Chemicals Segment\u2019s investment in the TiO2 manufacturing joint venture in 2024;"]]
[[/GREPCENT_TABLE]]

[[GREPCENT_TABLE]]
[["","\u25cf","aggregate income of $31.4 million in 2024 related to the settlement of a liability for an environmental remediation site;"]]
[[/GREPCENT_TABLE]]

[[GREPCENT_TABLE]]
[["","\u25cf","a non-cash settlement loss of $28.7 million on the termination and buy-out of our pension plan in the United States in 2025;"]]
[[/GREPCENT_TABLE]]

[[GREPCENT_TABLE]]
[["","\u25cf","a non-cash deferred income tax expense of $19.3 million to reduce the Chemicals Segment\u2019s net German deferred tax asset as a result of the German tax rate reduction in 2025;"]]
[[/GREPCENT_TABLE]]

[[GREPCENT_TABLE]]
[["","\u25cf","aggregate charges of $10.3 million related to restructuring costs associated with workforce reductions in our Chemicals Segment in 2025;"]]
[[/GREPCENT_TABLE]]

[[GREPCENT_TABLE]]
[["","\u25cf","a non-cash deferred income tax expense of $8.5 million related to the recognition of a valuation allowance on our Chemicals Segment\u2019s German interest deduction limitation deferred tax asset recognized in the fourth quarter;"]]
[[/GREPCENT_TABLE]]

[[GREPCENT_TABLE]]
[["","\u25cf","a non-cash gain of $4.6 million resulting from the remeasurement of the Chemicals Segment\u2019s acquisition earn-out liability in 2025; and"]]
[[/GREPCENT_TABLE]]

[[GREPCENT_TABLE]]
[["","\u25cf","income from tax increment infrastructure reimbursement of $34.2 million in 2025 compared to $30.3 million in 2024."]]
[[/GREPCENT_TABLE]]

​

Our diluted net loss per share in 2025 includes:

[[GREPCENT_TABLE]]
[["","\u25cf","income of $.62 per share related to tax increment infrastructure reimbursements recognized in the second and third quarters;"]]
[[/GREPCENT_TABLE]]

[[GREPCENT_TABLE]]
[["","\u25cf","a loss of $.62 per share due to the termination and buy-out of our pension plan in the United States in the fourth quarter;"]]
[[/GREPCENT_TABLE]]

[[GREPCENT_TABLE]]
[["","\u25cf","a loss of $.45 per share related to the recognition of a non-cash deferred income tax expense to reduce the Chemicals Segment\u2019s net German deferred tax asset as a result of the German tax rate reduction in the third quarter;"]]
[[/GREPCENT_TABLE]]

[[GREPCENT_TABLE]]
[["","\u25cf","a loss $.18 per share related to restructuring costs related to our Chemicals Segment\u2019s workforce reductions in the fourth quarter;"]]
[[/GREPCENT_TABLE]]

[[GREPCENT_TABLE]]
[["","\u25cf","a loss of $.20 per share related to the recognition of a non-cash deferred income tax expense related to the recognition of a valuation allowance on our Chemicals Segment\u2019s German net deferred tax asset in the fourth quarter; and"]]
[[/GREPCENT_TABLE]]

[[GREPCENT_TABLE]]
[["","\u25cf","income of $.08 per share due to the recognition of a non-cash gain resulting from the remeasurement of the Chemicals Segment\u2019s acquisition earn-out liability in the third quarter."]]
[[/GREPCENT_TABLE]]

​

-38-

‌​

Our diluted net income per share in 2024 includes:

[[GREPCENT_TABLE]]
[["","\u25cf","income of $1.18 per share due to the recognition of a non-cash gain resulting from the remeasurement of the Chemicals Segment\u2019s investment in the TiO2 manufacturing joint venture recognized in the third quarter;"]]
[[/GREPCENT_TABLE]]

[[GREPCENT_TABLE]]
[["","\u25cf","aggregate income of $.72 per share related to the settlement of a liability for an environmental remediation site recognized in the fourth quarter;"]]
[[/GREPCENT_TABLE]]

[[GREPCENT_TABLE]]
[["","\u25cf","income of $.55 per share related to tax increment infrastructure reimbursements recognized in the third and fourth quarters;"]]
[[/GREPCENT_TABLE]]

[[GREPCENT_TABLE]]
[["","\u25cf","a loss of $.38 per share due to the recognition of a non-cash deferred income tax expense related to final tax regulations on the treatment of certain currency translation gains and losses related to our Chemicals Segment in the fourth quarter; and"]]
[[/GREPCENT_TABLE]]

[[GREPCENT_TABLE]]
[["","\u25cf","a loss of $.19 per share due to the recognition of a non-cash deferred income tax expense related to the recognition of a valuation allowance on our Chemicals Segment\u2019s Belgian net deferred tax assets in the fourth quarter."]]
[[/GREPCENT_TABLE]]

Year Ended December 31, 2024 Compared to Year Ended December 31, 2023 –

We reported net income attributable to Valhi stockholders of $108.0 million or $3.79 per diluted share in 2024 compared to a net loss of $9.9 million or $.35 per diluted share in 2023.

Our net income attributable to Valhi stockholders increased from 2023 to 2024 primarily due to the net effects of:

[[GREPCENT_TABLE]]
[["","\u25cf","operating income from our Chemicals Segment of $138.5 million in 2024 compared to an operating loss of $41.1 million in 2023;"]]
[[/GREPCENT_TABLE]]

[[GREPCENT_TABLE]]
[["","\u25cf","a non-cash gain of $64.5 million in 2024 resulting from the remeasurement of the Chemicals Segment\u2019s investment in the TiO2 manufacturing joint venture;"]]
[[/GREPCENT_TABLE]]

[[GREPCENT_TABLE]]
[["","\u25cf","aggregate income of $31.4 million in 2024 related to the settlement of a liability for an environmental remediation site;"]]
[[/GREPCENT_TABLE]]

[[GREPCENT_TABLE]]
[["","\u25cf","income from tax increment infrastructure reimbursement of $30.3 million in 2024 compared to $25.2 million in 2023;"]]
[[/GREPCENT_TABLE]]

[[GREPCENT_TABLE]]
[["","\u25cf","a non-cash deferred income tax expense of $16.5 million in 2024 related to final tax regulations on the treatment of certain currency translation gains and losses related to our Chemicals Segment;"]]
[[/GREPCENT_TABLE]]

[[GREPCENT_TABLE]]
[["","\u25cf","a non-cash deferred income tax expense of $8.2 million in 2024 related to the recognition of a deferred income tax asset valuation allowance related to our Chemicals Segment\u2019s Belgian net deferred tax assets;"]]
[[/GREPCENT_TABLE]]

[[GREPCENT_TABLE]]
[["","\u25cf","a non-cash loss on the termination of our U.K. pension plan of $6.2 million in 2023; and"]]
[[/GREPCENT_TABLE]]

[[GREPCENT_TABLE]]
[["","\u25cf","higher interest expense in 2024 as a result of refinancing of the Chemicals Segment\u2019s Senior Secured Notes in the first quarter and debt incurred to finance the LPC acquisition in the third quarter."]]
[[/GREPCENT_TABLE]]

In addition to the 2024 items noted above, our diluted net loss per share in 2023 includes:

[[GREPCENT_TABLE]]
[["","\u25cf","income of $.46 per share related to tax increment infrastructure reimbursements recognized in the third and fourth quarters;"]]
[[/GREPCENT_TABLE]]

[[GREPCENT_TABLE]]
[["","\u25cf","a loss of $.13 per share due to the termination of our U.K. pension plan recognized in the second quarter;"]]
[[/GREPCENT_TABLE]]

[[GREPCENT_TABLE]]
[["","\u25cf","a loss of $.10 per share related to workforce reductions by our Chemicals Segment recognized in the fourth quarter;"]]
[[/GREPCENT_TABLE]]

[[GREPCENT_TABLE]]
[["","\u25cf","a loss of $.06 per share related to the write-off of certain costs resulting from a capital project termination recognized in the fourth quarter; and"]]
[[/GREPCENT_TABLE]]

-39-

‌​

[[GREPCENT_TABLE]]
[["","\u25cf","a gain of $.05 per share related to a business interruption insurance claim arising from Hurricane Laura in 2020 at our Chemicals Segment recognized in the first, second and third quarters."]]
[[/GREPCENT_TABLE]]

We discuss these amounts more fully below.

Current Forecast for 2026 –

We currently expect consolidated operating income for 2026 to be higher as compared to 2025 primarily due to the net effects of:

[[GREPCENT_TABLE]]
[["","\u25cf","higher operating income from our Chemicals Segment in 2026 primarily due to the positive impacts of increased operating rates, higher sales volumes and selling prices, and lower operating costs;"]]
[[/GREPCENT_TABLE]]

[[GREPCENT_TABLE]]
[["","\u25cf","lower operating income from our Real Estate Management and Development Segment in 2026 due to the wind down of development activities; and"]]
[[/GREPCENT_TABLE]]

[[GREPCENT_TABLE]]
[["","\u25cf","a non-cash settlement loss of $28.7 million related to the termination of the U.S. pension plan in 2025."]]
[[/GREPCENT_TABLE]]

Our expectations for our future operating results are based upon a number of factors beyond our control, including worldwide growth of gross domestic product, competition in the marketplace, continued operation of competitors, technological advances, worldwide production capacity, public health crises, the effect of tariffs, and the impact of economic conditions and geopolitical events on demand for our products or our customers’ and suppliers’ operations, all of which remain uncertain and cannot be predicted. If actual developments differ from our expectations, our results of operations could be unfavorably affected.

Segment Operating Results – 2025 Compared to 2024 and 2024 Com

[Excerpt truncated for page length; the complete text is on the linked full-MD&A page.]

Read the full FY 2025 MD&A: /company/VHI/mda/fy2025/
All MD&A years: /company/VHI/mda/


## MD&A history

Prior-year 10-K MD&A spans are extracted from SEC filings with the same bounded parser used for the latest filing. Each year's full verbatim text is on its own sub-page.

- [FY 2024 MD&A](/company/VHI/mda/fy2024/): filed 2025-03-06; accession 0001558370-25-002409 (https://www.sec.gov/Archives/edgar/data/59255/000155837025002409/vhl-20241231x10k.htm)
- [FY 2023 MD&A](/company/VHI/mda/fy2023/): filed 2024-03-07; accession 0001558370-24-002728 (https://www.sec.gov/Archives/edgar/data/59255/000155837024002728/vhl-20231231x10k.htm)
- [FY 2022 MD&A](/company/VHI/mda/fy2022/): filed 2023-03-09; accession 0001558370-23-003319 (https://www.sec.gov/Archives/edgar/data/59255/000155837023003319/vhl-20221231x10k.htm)
- [FY 2021 MD&A](/company/VHI/mda/fy2021/): filed 2022-03-10; accession 0001558370-22-003285 (https://www.sec.gov/Archives/edgar/data/59255/000155837022003285/vhl-20211231x10k.htm)




## Macro cross-references

Indicators mapped to this company's SIC classification (industry 2810 Industrial Inorganic Chemicals) by grepcent's deterministic macro-sector crosswalk. A navigational mapping, not a statistical or causal claim.

- [INDPRO](/indicator/INDPRO/): Industrial Production: Total Index
- [TCU](/indicator/TCU/): Capacity Utilization: Total Index
- [PPIACO](/indicator/PPIACO/): Producer Price Index by Commodity: All Commodities
- [GDPC1](/indicator/GDPC1/): Real Gross Domestic Product
- [DGS10](/indicator/DGS10/): Market Yield on U.S. Treasury Securities at 10-Year Constant Maturity
- [FEDFUNDS](/indicator/FEDFUNDS/): Federal Funds Effective Rate
- [CES0500000003](/indicator/CES0500000003/): Average Hourly Earnings of All Employees, Total Private
- [PAYEMS](/indicator/PAYEMS/): All Employees, Total Nonfarm

Macro-to-micro threads including this sector: [Inflation (CPI / PCE / PPI)](/thread/inflation-cpi-pce-ppi/), [US labor market](/thread/us-labor-market/), [Growth & output](/thread/growth-output/), [Money & trade](/thread/money-trade/), [Government finances](/thread/government-finances/), [Sector employment](/thread/sector-employment/), [Industrial orders & inventories](/thread/industrial-orders/), [Trade & external](/thread/trade-external/).

All macro indicators: /indicators/


## For LLMs & downloads

Markdown twin: /company/VHI.md · JSON record: /company/VHI.json · verified financials: /company/VHI/financials.json / /company/VHI/financials.csv · machine TOC for the whole site: /llms.txt