Valhi (VHI) investor relations material

Executive summary

• Reported a net loss attributable to stockholders of $53.2 million ($1.86/share) in Q4 2025, compared to net income of $22.8 million ($0.80/share) in Q4 2024.

• Full year 2025 net loss was $57.6 million ($2.02/share), versus net income of $108.0 million ($3.79/share) in 2024.

• Losses primarily driven by lower operating results in the Chemicals Segment and significant non-cash deferred tax expenses.

Financial highlights

• Chemicals Segment net sales in Q4 2025 were $418.3 million, down 1% year-over-year; full year 2025 net sales were $1.86 billion, also down 1%.

• Operating loss for Chemicals Segment in Q4 2025 was $60.1 million, compared to operating income of $32.6 million in Q4 2024.

• Component Products Segment net sales in Q4 2025 were $37.7 million (down slightly), but full year sales rose to $158.3 million from $145.9 million.

• Real Estate Management and Development Segment net sales in Q4 2025 were $38.5 million (up from $19.4 million); full year sales declined to $59.3 million from $71.8 million.

• Interest expense increased $1.9 million in Q4 and $7.2 million for the year due to higher debt balances and rates.

Segment performance

• Chemicals Segment faced lower TiO2 selling prices (down 8% in Q4 and 4% for the year), higher unabsorbed fixed production costs, and workforce reduction costs of $10.3 million in Q4.

• Component Products Segment saw improved operating income in both Q4 ($5.6 million vs $4.9 million) and full year ($22.6 million vs $17.0 million), driven by higher sales and improved gross margins.

• Real Estate Management and Development Segment benefited from higher Q4 land sales but saw lower full year revenue due to slower development activity.