Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended March 31, 2025 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to Commission file number 1-640 NL INDUSTRIES, INC. (Exact name of Registrant as specified in its charter) New Jersey 13-5267260 (State or other jurisd ...

NL REPORTS FIRST QUARTER 2025 RESULTS DALLAS, TEXAS – May 7, 2025 – NL Industries, Inc. (NYSE: NL) today reported net income attributable to NL stockholders of $.7 million, or $.01 per share, in the first quarter of 2025 compared to $6.8 million, or $.14 per share, in the first quarter of 2024. NL's results include an unrealized loss of $8.5 million in the first quarter of 2025 compared to a $2.4 million unrealized gain in the first quarter of 2024 related to the change in value of marketable equity securit ...

Dallas, Texas, May 07, 2025 (GLOBE NEWSWIRE) -- NL Industries, Inc. (NYSE: NL) today reported net income attributable to NL stockholders of $.7 million, or $.01 per share, in the first quarter of 2025 compared to $6.8 million, or $.14 per share, in the first quarter of 2024. NL’s results include an unrealized loss of $8.5 million in the first quarter of 2025 compared to a $2.4 million unrealized gain in the first quarter of 2024 related to the change in value of marketable equity securities. CompX’s net sal ...

Dallas, Texas, April 15, 2025 (GLOBE NEWSWIRE) -- NL Industries, Inc. (NYSE: NL) today announced that, subject to the completion of quarter-end closing procedures, it expects to report first quarter 2025 earnings in a press release after market close on Wednesday, May 7, 2025. NL Industries, Inc. is engaged in the component products (security products and recreational marine components) and chemicals (TiO2) businesses. * * * * * Investor Relations Contact Bryan A. HanleySenior Vice President and TreasurerT ...

Sales and Market Conditions - Approximately 90% of Kronos' sales in 2024 were attributable to TiO2 products, which are linked to global economic conditions and discretionary spending [115]. - Approximately 44% of Kronos' sales volumes in 2023 and 2024 were sold into European markets, exposing the company to currency exchange risks [138]. - Kronos' revenue from non-U.S. markets accounted for approximately 68%, 66%, and 66% for the years ended December 31, 2022, 2023, and 2024, respectively [147]. - The top five TiO2 producers account for approximately 51% of the global production capacity, indicating a highly concentrated and competitive market [117]. Financial Obligations and Debt - Kronos' total consolidated debt as of December 31, 2024, was approximately $507.4 million, which may impact its ability to satisfy obligations and fund operations [133]. - Kronos has minimum purchase commitments of approximately $542 million for TiO2 feedstock starting in 2025, which could adversely affect financial results if production is reduced [127]. - Kronos has an outstanding principal amount of indebtedness of $0.5 million at December 31, 2024, bearing interest at prime plus 1.875% [339]. - The outstanding principal amount of the note receivable from an affiliate is $9.3 million at December 31, 2024, bearing interest at prime plus 1.0% [340]. Cost and Pricing Pressures - Kronos experienced increases in feedstock costs in 2023 and 2024, which affected its profit margins and overall financial condition [126]. - Pricing pressures from competitors, particularly those with lower costs, may affect Kronos' profitability and market position [118]. - Future variations in energy costs, primarily linked to oil and natural gas prices, may significantly impact Kronos' operating results and liquidity [126]. Competition and Market Risks - Kronos is experiencing increasing competition from China, which has lower operating costs due to less stringent regulatory requirements [150]. - The integration of the LPC acquisition may divert significant management attention and could fail to achieve expected synergies or sales increases [130]. - Actual future market conditions may differ materially from the assumptions made in forward-looking statements [343]. Legal and Environmental Liabilities - Environmental obligations related to former operations may incur costs exceeding current estimates, potentially leading to material liabilities [145]. - Legal proceedings related to lead pigment litigation have resulted in recognized material liabilities for Kronos [145]. - Global climate change laws and regulations could negatively impact Kronos' financial results and operational capabilities [146]. Cash Flow and Financial Performance - Kronos' ability to generate cash flow is subject to various external factors, which may impact its capacity to refinance debt and fund capital expenditures [136]. - A 10% change in the prices of marketable equity securities would result in a potential change in fair value of $1.8 million and $2.8 million at December 31, 2023, and 2024, respectively [341]. - The fair value of Kronos' equity securities was $18.2 million and $28.0 million at December 31, 2023, and 2024, respectively [341]. Supply Chain Management - CompX occasionally enters into short-term commodity-related raw material supply arrangements to mitigate future cost increases [342]. - CompX does not have long-term supply agreements for raw materials due to low risk of unavailability and high price volatility [342]. - CompX does not engage in commodity raw material hedging programs [342].

Financial Performance - NL Industries reported a net income of $16.5 million, or $0.34 per share, in Q4 2024, compared to $7.6 million, or $0.16 per share, in Q4 2023[2] - For the full year 2024, NL Industries achieved a net income of $67.2 million, or $1.38 per share, compared to a net loss of $2.3 million, or $0.05 per share, in 2023[2] - Kronos' net sales for Q4 2024 were $423.1 million, a 6% increase from $400.1 million in Q4 2023[6] - Kronos' full year net sales reached $1.9 billion, up 13% from $1.68 billion in 2023[6] - Kronos' income from operations in Q4 2024 was $28.6 million, compared to a loss of $5.7 million in Q4 2023[9] - For the full year 2024, Kronos reported an income from operations of $122.9 million, reversing a loss of $56.0 million in 2023[9] Sales and Production - Kronos' TiO2 sales volumes increased by 4% in Q4 2024 and 20% for the full year compared to 2023[6] - Kronos' production rates increased to 96% of practical capacity utilization in 2024, compared to 72% in 2023[9] - Kronos completed the acquisition of the 50% joint venture interest in Louisiana Pigment Company, making it a wholly-owned subsidiary, which contributed to its financial results starting July 16, 2024[5] Comparative Analysis - Net sales for the three months ended December 31, 2023, increased to $43.2 million, up 12.5% from $38.4 million in the same period of 2024[22] - Gross margin improved to $13.6 million for the three months ended December 31, 2023, compared to $11.0 million in 2024, reflecting a gross margin percentage increase[22] - Income from operations for the year ended December 31, 2023, was $14.1 million, a significant increase from $37.9 million in 2024[22] - Net income attributable to NL stockholders for the three months ended December 31, 2023, was $7.6 million, compared to $16.5 million in 2024, indicating a decrease[22] - The CompX segment reported a profit of $7.4 million for the three months ended December 31, 2023, compared to $4.9 million in 2024[24] - Kronos' net sales for the year ended December 31, 2024, increased by 13%, driven by a 20% increase in sales volume of TiO2[26] - The company experienced a 6% increase in net sales for the three months ended December 31, 2024, compared to the same period in 2023[26] Insurance and Equity - Insurance recoveries for the year ended December 31, 2023, amounted to $1.4 million, up from $0.5 million in 2024[22] - The company reported a loss of $1.6 million from equity in earnings of Kronos Worldwide, Inc. for the three months ended December 31, 2023[22] - The weighted average shares used in the calculation of net income per share remained constant at 48.8 million for both periods[22] Environmental Settlement - NL recognized an aggregate income of $31.4 million related to an environmental remediation settlement in 2024[2]

NL Industries, Inc. - NL Industries reported a net income of $16.5 million, or $0.34 per share, in Q4 2024, a significant increase from $7.6 million, or $0.16 per share, in Q4 2023 [1] - For the full year 2024, net income attributable to NL stockholders was $67.2 million, or $1.38 per share, compared to a net loss of $2.3 million, or $0.05 per share, in 2023 [1] - The results for 2024 included an aggregate income of $31.4 million related to an environmental remediation settlement [1] CompX - CompX's net sales for Q4 2024 were $38.4 million, down from $43.2 million in Q4 2023, and for the full year 2024, net sales were $145.9 million compared to $161.3 million in 2023 [2] - The decrease in sales was primarily due to lower Security Products sales to a government customer, partially offset by higher Marine Components sales [2] - Segment profit for CompX in Q4 2024 was $4.9 million, down from $7.4 million in Q4 2023, and for the full year, it was $17.0 million compared to $25.4 million in 2023 [2] Kronos Worldwide, Inc. - Kronos reported net sales of $423.1 million in Q4 2024, a 6% increase from Q4 2023, and $1.9 billion for the full year 2024, a 13% increase from 2023 [5] - The increase in sales was driven by higher sales volumes and average selling prices for TiO2 [5] - Kronos' income from operations in Q4 2024 was $28.6 million, compared to a loss of $5.7 million in Q4 2023, and for the full year, it was $122.9 million compared to a loss of $56.0 million in 2023 [7] Equity in Kronos - NL recognized equity in losses of Kronos of $4.0 million in Q4 2024, compared to losses of $1.6 million in Q4 2023, but reported equity in earnings of $26.4 million for the full year 2024, compared to losses of $15.0 million in 2023 [3][8] - The equity in earnings for 2024 included a non-cash gain of $64.5 million related to the acquisition of Louisiana Pigment Company [4] Environmental and Corporate Expenses - NL's corporate expenses in Q4 2024 were comparable to the same period in 2023, while interest and dividend income increased by $1.4 million for the full year 2024 compared to 2023 [10] - The net income per share for the full year 2024 included $1.4 million related to insurance recoveries [11]

Core Viewpoint - NL Industries, Inc. has declared a quarterly dividend of $0.09 per share, reflecting the company's ongoing commitment to returning value to shareholders [1] Company Summary - NL Industries, Inc. operates in two primary business segments: component products, which include security products and recreational marine components, and chemicals, specifically titanium dioxide (TiO2) [1] Dividend Announcement - The declared dividend of $0.09 per share is payable on March 27, 2025, to shareholders of record as of March 11, 2025 [1]

Core Insights - The article introduces Md Ashraful Malek as a new contributing analyst for Seeking Alpha, encouraging others to share investment ideas for publication and potential earnings [1] Group 1 - The new analyst has three years of experience in the finance sector, specializing in market trend analysis and financial assessments [2] - The analyst focuses on momentum and factor investing, employing both quantitative and qualitative methods to identify investment opportunities and manage risks [2]

Financial Performance - NL Industries reported a net income of $36.0 million, or $0.74 per share, in Q3 2024, compared to a net loss of $0.1 million in Q3 2023[1] - For the first nine months of 2024, NL Industries reported a net income of $50.7 million, or $1.04 per share, compared to a net loss of $9.9 million in the same period of 2023[1] - Net income attributable to NL stockholders for the three months ended September 30, 2024, was $36.0 million, a significant increase from a loss of $0.1 million in the same period of 2023[17] Kronos Performance - Kronos recognized equity in earnings of $21.9 million in Q3 2024, a significant improvement from equity in losses of $6.2 million in Q3 2023[3] - Kronos' net sales reached $484.7 million in Q3 2024, an increase of $87.8 million, or 22%, compared to Q3 2023[5] - Kronos' income from operations was $38.9 million in Q3 2024, compared to a loss of $25.3 million in Q3 2023[7] - Kronos' production volumes increased by 37% in Q3 2024 compared to Q3 2023, leading to improved operational efficiency[7] - TiO2 sales volume increased by 21% for the three months ended September 30, 2024, compared to the same period in 2023[19] Sales and Revenue - Total net sales for the nine months ended September 30, 2024, were $118.1 million, compared to $107.5 million in the same period of 2023[17] - Net sales for the three months ended September 30, 2024, increased by 22% compared to the same period in 2023, reaching $40.3 million[19] - Kronos' average TiO2 selling prices were 1% lower in Q3 2024 compared to Q3 2023, despite increased sales volumes[6] Corporate Expenses - Corporate expenses decreased by $0.9 million in Q3 2024 compared to Q3 2023, primarily due to lower litigation and environmental remediation costs[8] - Corporate expenses for the three months ended September 30, 2024, were $(3.2) million, slightly higher than $(2.3) million in the same period of 2023[18] Other Financial Metrics - Gross margin for the nine months ended September 30, 2024, was $35.6 million, up from $30.3 million in the same period of 2023[17] - Insurance recoveries for the nine months ended September 30, 2024, totaled $1.3 million, compared to $0.4 million in the same period of 2023[18] Strategic Considerations - The acquisition of Louisiana Pigment Company resulted in a non-cash gain of $64.5 million for Kronos in Q3 2024[4] - The company has expressed uncertainties regarding the development of new products and potential changes in government regulations affecting operations[13]