NL Industries (NL) Q1 2026 earnings summary

Executive summary

• Net income attributable to stockholders rose to $4.3 million ($0.09/share) in Q1 2026 from $0.7 million ($0.01/share) in Q1 2025, driven by higher segment profit and a swing to unrealized gains on marketable securities.

• Income before income taxes increased to $6.6 million in Q1 2026 from $1.3 million in Q1 2025.

• CompX segment profit increased 20% year-over-year, with Security Products benefiting from favorable mix and Marine Components from higher industrial sales.

• Equity in losses of Kronos was $1.5 million in Q1 2026 versus $5.5 million in earnings in Q1 2025, reflecting lower TiO2 prices and margins.

Financial highlights

• Net sales were $40.6 million in Q1 2026, up slightly from $40.3 million in Q1 2025.

• Gross margin improved to $13.3 million (33% of sales) from $12.2 million (30%) year-over-year.

• Income from operations rose 30% to $4.1 million.

• Kronos net sales rose 4% to $509.8 million, but income from operations fell 67% to $12.6 million due to lower TiO2 prices and higher costs.

• Net cash used in operating activities was $3.5 million, a significant improvement from $47.5 million used in Q1 2025, mainly due to lower environmental remediation payments.

Outlook and guidance

• CompX expects modest net sales growth for 2026, with Marine Components driven by industrial demand and Security Products sales stable.

• Gross and reporting unit profit margins are expected to remain comparable to 2025, with some moderation at Security Products.

• Kronos anticipates continued TiO2 price increases in 2026 to offset rising costs, but margins will remain below historical levels.

• Kronos expects improved cash flow and sufficient liquidity for operations and capital needs.