Valhi (VHI) Q1 2026 earnings summary

Executive summary

• Net income attributable to stockholders fell to $2.0 million ($0.07/share) in Q1 2026 from $16.9 million ($0.59/share) in Q1 2025, mainly due to lower operating income in the Chemicals segment, partially offset by gains in Component Products and Real Estate Management and Development segments.

• Revenue rose 5% year-over-year to $564.2 million, driven by higher sales volumes and favorable currency impacts, despite lower average selling prices in the Chemicals segment.

• Operating income declined to $32.9 million from $50.1 million, reflecting margin compression in Chemicals.

Financial highlights

• Q1 2026 revenue: $564.2 million, up from $539.4 million in Q1 2025.

• Net income: $7.8 million (consolidated), with $2.0 million attributable to stockholders.

• Gross margin decreased to 18% from 23% year-over-year.

• EPS: $0.07 (basic and diluted), down from $0.59.

• Cash used in operating activities improved to $(46.1) million from $(155.9) million.

Outlook and guidance

• Expect higher consolidated operating income for 2026, led by improved performance in Chemicals due to increased operating rates, higher sales volumes, and lower costs.

• Real Estate Management and Development segment operating income expected to decline as development activities wind down.

• Component Products segment anticipates modest sales growth and stable margins for the full year.

• Management notes ongoing efforts to recover TiO2 pricing lost in 2025, with a 2% sequential increase in Q1 2026.

• Cost reduction initiatives in Chemicals Segment are expected to yield permanent improvements in cost structure.