NL REPORTS SECOND QUARTER 2025 RESULTS DALLAS, TEXAS – August 6, 2025 – NL Industries, Inc. (NYSE: NL) today reported net income attributable to NL stockholders of $.3 million, or $.01 per share, in the second quarter of 2025 compared to $7.9 million, or $.16 per share, in the second quarter of 2024. NL's results include an unrealized loss of $.1 million in the second quarter of 2025 related to the change in value of marketable equity securities compared to an unrealized gain of $.8 million in the second qu ...

Dallas, Texas, Aug. 06, 2025 (GLOBE NEWSWIRE) -- NL Industries, Inc. (NYSE: NL) today announced that its board of directors has declared a special cash dividend of twenty-one cents ($0.21) per share and a quarterly dividend of nine cents ($0.09) per share, in each case on its common stock. The special dividend, which is being funded from excess cash flows, is payable on August 28, 2025 to shareholders of record at the close of business on August 18, 2025. The quarterly dividend of $.09 per share is payable ...

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 June 30, 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 jurisdi ...

NL Industries, Inc. Summary - NL Industries reported a net income attributable to stockholders of $0.3 million, or $0.01 per share, in Q2 2025, a significant decrease from $7.9 million, or $0.16 per share, in Q2 2024 [1] - For the first half of 2025, net income was $1.0 million, or $0.02 per share, compared to $14.7 million, or $0.30 per share, in the same period of 2024 [1] - The results included an unrealized loss of $0.1 million in Q2 2025 related to marketable equity securities, contrasting with an unrealized gain of $0.8 million in Q2 2024 [1] CompX Summary - CompX's net sales increased to $40.3 million in Q2 2025 from $35.9 million in Q2 2024, and for the first six months, sales rose to $80.6 million from $73.9 million [2] - The increase in sales was attributed to higher Security Products sales to the government security market and increased Marine Components sales to government and towboat markets [2] - Segment profit for CompX was $6.3 million in Q2 2025, up from $5.1 million in Q2 2024, and $12.2 million for the first six months of 2025, compared to $8.8 million in the same prior year period [2] Kronos Worldwide Summary - Kronos reported net sales of $494.4 million in Q2 2025, a decrease of $6.1 million, or 1%, compared to Q2 2024, while net sales for the first half of 2025 were $984.2 million, an increase of $4.9 million, or 1%, from the same period in 2024 [4] - The decline in Q2 sales was primarily due to lower average TiO2 selling prices, changes in product mix, and lower sales volumes in export markets, partially offset by higher sales volumes in North America [4] - Kronos' income from operations fell to $7.4 million in Q2 2025 from $35.9 million in Q2 2024, and for the first six months, it decreased to $45.8 million from $55.4 million in the same period of 2024 [5][6] Market Conditions and Currency Impact - The TiO2 industry faced challenges due to global uncertainties related to U.S. trade policies and geopolitical tensions, affecting sales volumes and pricing momentum [4] - Kronos experienced a 4% decline in average TiO2 selling prices during the first half of 2025, despite starting the year with prices 2% higher than at the beginning of 2024 [4] - Currency fluctuations, particularly with the euro, impacted net sales, increasing them by approximately $8 million in Q2 2025 but decreasing them by about $3 million in the first half of 2025 compared to the same prior year periods [4]

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Core Viewpoint - NL Industries, Inc. is set to announce its second quarter 2025 earnings on August 6, 2025, after market close, pending the completion of quarter-end closing procedures [1] Company Overview - 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]

Part I. FINANCIAL INFORMATION [Financial Statements](index=4&type=section&id=Item%201.%20Financial%20Statements) The financial statements for the quarter ended March 31, 2025, show a decrease in total assets to $520.0 million from $578.3 million at year-end 2024, primarily due to a significant reduction in cash and cash equivalents, with net income attributable to NL stockholders falling sharply to $0.7 million from $6.8 million in the prior-year quarter, driven by an $8.5 million unrealized loss on marketable equity securities, and cash flow from operations turning negative, showing a use of $47.5 million, largely due to a $56.1 million payment for an environmental settlement [Condensed Consolidated Balance Sheets](index=4&type=section&id=Condensed%20Consolidated%20Balance%20Sheets) Total assets decreased from $578.3 million at December 31, 2024, to $520.0 million at March 31, 2025, mainly driven by a decrease in cash and cash equivalents from $163.2 million to $110.0 million and a significant reduction in current accrued environmental remediation costs, while total equity remained relatively stable at $416.8 million Condensed Consolidated Balance Sheet Summary (In thousands) | Account | Dec 31, 2024 | Mar 31, 2025 | Change | | :--- | :--- | :--- | :--- | | **Total Current Assets** | $237,958 | $179,619 | ($58,339) | | Cash and cash equivalents | $163,154 | $109,999 | ($53,155) | | **Total Assets** | **$578,258** | **$520,025** | **($58,233)** | | **Total Current Liabilities** | $91,062 | $30,937 | ($60,125) | | Accrued environmental remediation costs (Current) | $58,135 | $1,773 | ($56,362) | | **Total Liabilities** | $162,355 | $103,195 | ($59,160) | | **Total Equity** | **$415,903** | **$416,830** | **$927** | [Condensed Consolidated Statements of Income](index=6&type=section&id=Condensed%20Consolidated%20Statements%20of%20Income) For the three months ended March 31, 2025, net income attributable to NL stockholders was $0.7 million ($0.01 per share), a significant decrease from $6.8 million ($0.14 per share) in the same period of 2024, primarily due to an $8.5 million unrealized loss on marketable equity securities, which contrasted with a $2.4 million gain in the prior year, partially offset by higher income from operations, which more than doubled to $3.1 million, and increased equity in earnings from Kronos Worldwide, Inc Condensed Consolidated Statements of Income (In thousands, except per share data) | Metric | Q1 2024 | Q1 2025 | Change | | :--- | :--- | :--- | :--- | | Net sales | $37,971 | $40,272 | +6.1% | | Gross margin | $9,667 | $12,163 | +25.8% | | Income from operations | $1,356 | $3,148 | +132.1% | | Equity in earnings of Kronos | $2,476 | $5,525 | +123.1% | | Marketable equity securities | $2,383 | ($8,552) | -458.9% | | **Net income attributable to NL stockholders** | **$6,839** | **$667** | **-90.2%** | | **Basic and diluted net income per share** | **$0.14** | **$0.01** | **-92.9%** | [Condensed Consolidated Statements of Cash Flows](index=9&type=section&id=Condensed%20Consolidated%20Statements%20of%20Cash%20Flows) Net cash used in operating activities was $47.5 million in Q1 2025, a stark reversal from the $6.7 million provided by operating activities in Q1 2024, primarily driven by a $56.5 million cash outflow for accrued environmental remediation costs related to a settlement, while net cash used in financing activities increased slightly due to higher dividend payments Summary of Cash Flows (In thousands) | Cash Flow Activity | Q1 2024 | Q1 2025 | Change | | :--- | :--- | :--- | :--- | | **Net cash provided by (used in) operating activities** | **$6,744** | **($47,475)** | **($54,219)** | | Net cash provided by (used in) investing activities | $24,495 | ($812) | ($25,307) | | Net cash used in financing activities | ($4,373) | ($4,864) | ($491) | | **Net change in cash** | **$26,866** | **($53,151)** | **($80,017)** | - The significant shift in operating cash flow was mainly due to a payment for accrued environmental remediation and related costs, which amounted to a **$56.5 million** use of cash in Q1 2025[22](index=22&type=chunk) [Notes to Condensed Consolidated Financial Statements](index=11&type=section&id=Notes%20to%20Condensed%20Consolidated%20Financial%20Statements) The notes provide details on the company's structure, investments, and contingencies, highlighting Valhi, Inc.'s 83% stake, the increase in Kronos Worldwide, Inc.'s carrying value to $259.5 million, and a significant $56.1 million payment plus interest in Q1 2025 to settle claims related to the Raritan Bay Slag Superfund Site, which substantially reduced accrued environmental liabilities - At March 31, 2025, Valhi, Inc. held approximately **83%** of NL Industries' outstanding common stock, with Valhi itself controlled by Contran Corporation[24](index=24&type=chunk) - The carrying value of the investment in Kronos increased from **$250.3 million** at year-end 2024 to **$259.5 million** at March 31, 2025, primarily due to **$5.5 million** in equity earnings and **$5.3 million** from currency translation[38](index=38&type=chunk)[39](index=39&type=chunk) - In Q1 2025, the company paid **$56.1 million** plus interest to settle all claims related to the Raritan Bay Slag Superfund Site, resolving a lawsuit and representing a major use of cash during the quarter[69](index=69&type=chunk)[70](index=70&type=chunk)[71](index=71&type=chunk) Change in Accrued Environmental Remediation Costs (In thousands) | Description | Amount | | :--- | :--- | | Balance at beginning of period | $69,278 | | Additions charged to expense, net | $578 | | Payments, net | ($57,089) | | **Balance at end of period** | **$12,767** | [Management's Discussion and Analysis of Financial Condition and Results of Operations](index=28&type=section&id=Item%202.%20Management%27s%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management attributes the sharp decline in net income to a significant unrealized loss on marketable equity securities ($8.5 million loss vs. $2.4 million gain in Q1 2024), partially offset by strong operational performance from its subsidiary CompX, whose segment profit grew 58%, and higher equity earnings from its affiliate Kronos, which increased 123%, noting that while the company's liquidity was impacted by a large environmental settlement payment, management believes it has sufficient resources for its short- and long-term obligations, supported by cash flows, affiliate dividends, and a credit facility with its parent company, Valhi [Results of Operations](index=28&type=section&id=Results%20of%20Operations) Overall operating income increased to $3.2 million from $1.3 million in the prior-year quarter, driven by a 58% increase in CompX's segment profit, though a significant unrealized loss on marketable equity securities and lower dividend income led to a decrease in income before taxes from $8.3 million to $1.3 million - The decrease in net income attributable to NL stockholders from Q1 2024 to Q1 2025 was primarily due to the net effects of: - An **$8.5 million** unrealized loss on marketable equity securities in 2025 versus a **$2.4 million** gain in 2024 - Higher equity in earnings of Kronos (**$5.5 million** in 2025 vs. **$2.5 million** in 2024) - Higher CompX segment profit (**$5.9 million** in 2025 vs. **$3.7 million** in 2024)[95](index=95&type=chunk) Income from Operations and Other Income (Expense) (In millions) | Component | Q1 2024 | Q1 2025 | % Change | | :--- | :--- | :--- | :--- | | **Income from operations** | **$1.3** | **$3.2** | **+132%** | | CompX segment profit | $3.7 | $5.9 | +58% | | Corporate expense | ($2.4) | ($2.7) | +15% | | **Other Income (Expense)** | | | | | Equity in earnings of Kronos | $2.5 | $5.5 | +123% | | Marketable equity securities | $2.4 | ($8.5) | -459% | | Interest and dividend income | $2.6 | $2.0 | -20% | [CompX International Inc.](index=33&type=section&id=CompX%20International%20Inc.) CompX's segment profit increased by 58% to $5.9 million in Q1 2025, driven by a 24% sales increase in its Marine Components unit, which saw higher sales to the towboat and government markets and expanded its gross margin significantly from 11% to 32%, while the Security Products unit had comparable profit to the prior year, with higher sales to the government security market offset by softness in other OEM markets CompX Performance Summary (In millions) | Metric | Q1 2024 | Q1 2025 | % Change | | :--- | :--- | :--- | :--- | | Net Sales | $38.0 | $40.3 | +6% | | Gross Margin | $9.7 | $12.2 | +26% | | **Segment Profit** | **$3.7** | **$5.9** | **+58%** | | Segment Profit % | 10% | 15% | | - Marine Components net sales increased **24%** due to higher sales to the towboat market (**$1.7 million**) and government market (**$1.2 million**), with its gross margin percentage increasing from **11%** to **32%** due to lower cost inventory and better fixed cost absorption[105](index=105&type=chunk) - CompX expects modest sales improvement in 2025 for Security Products and increased sales for Marine Components, driven by government and industrial markets, but faces continued raw material price increases and potential tariff impacts[108](index=108&type=chunk)[109](index=109&type=chunk) [Equity in earnings of Kronos Worldwide, Inc.](index=39&type=section&id=Equity%20in%20earnings%20of%20Kronos%20Worldwide%2C%20Inc.) NL's equity in earnings from Kronos more than doubled, rising to $5.5 million in Q1 2025 from $2.5 million in Q1 2024, as Kronos's income from operations nearly doubled to $38.4 million, driven by a 5% increase in TiO2 sales volumes and a 2% increase in average selling prices, with production volumes rising 18% as facilities operated at 93% capacity, up from 87%, leading to lower per-unit costs and improved gross margins from 15% to 22% Kronos Performance Summary (In millions, except volumes) | Metric | Q1 2024 | Q1 2025 | % Change | | :--- | :--- | :--- | :--- | | Net Sales | $478.8 | $489.8 | +2% | | Income from Operations | $19.5 | $38.4 | +97% | | Net Income | $8.1 | $18.1 | +123% | | **NL's Equity in Earnings** | **$2.5** | **$5.5** | **+120%** | | TiO2 Sales Volumes (k tons) | 130 | 136 | +5% | | TiO2 Production Volumes (k tons) | 121 | 143 | +18% | - Kronos operated its production facilities at **93%** of practical capacity in Q1 2025, up from **87%** in Q1 2024, in response to increased customer demand[125](index=125&type=chunk) - Kronos's outlook suggests demand may be challenging in North America due to tariff uncertainty, but has improved in Europe, with the company focused on cost reduction and integrating the LPC acquisition, which is expected to positively impact 2025 earnings[143](index=143&type=chunk)[145](index=145&type=chunk) [Liquidity and Capital Resources](index=45&type=section&id=Liquidity%20and%20Capital%20Resources) The company's liquidity decreased, with cash and cash equivalents falling to $131.0 million from $184.2 million at year-end, primarily due to a $57.1 million payment for an environmental settlement, while primary sources of liquidity are operating cash flow, expected annual dividends of $20.3 million from affiliates, and a $50 million revolving credit facility from parent company Valhi, of which $49.5 million was available at quarter-end, leading management to believe liquidity is sufficient for short- and long-term needs - Net cash used in operating activities was **$47.5 million**, primarily due to a **$57.1 million** payment for an environmental remediation settlement[149](index=149&type=chunk)[155](index=155&type=chunk) Cash and Cash Equivalents by Entity (In millions) | Entity | Amount at Mar 31, 2025 | | :--- | :--- | | CompX | $56.1 | | NL Parent and wholly-owned subsidiaries | $74.9 | | **Total** | **$131.0** | Expected Annual Dividends from Affiliates (In millions) | Affiliate | Expected Annual Dividend | | :--- | :--- | | Kronos | $7.0 | | CompX | $12.9 | | Valhi | $0.4 | | **Total** | **$20.3** | - The company has access to a **$50 million** revolving credit facility from its parent, Valhi, with **$0.5 million** outstanding and **$49.5 million** available as of March 31, 2025[165](index=165&type=chunk) [Quantitative and Qualitative Disclosure About Market Risk](index=53&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosure%20About%20Market%20Risk) The company states that there have been no material changes in its exposure to market risks, which include currency exchange rates, interest rates, and equity security prices, since the filing of its 2024 Annual Report - There have been no material changes in market risks (currency exchange rates, interest rates, equity security prices) since the 2024 Annual Report[176](index=176&type=chunk) [Controls and Procedures](index=53&type=section&id=Item%204.%20Controls%20and%20Procedures) Management, including the CEO and CFO, evaluated the company's disclosure controls and procedures and concluded they were effective as of March 31, 2025, with no material changes to the company's internal control over financial reporting during the quarter - The President and CEO, and the Executive VP and CFO, evaluated disclosure controls and procedures and concluded they are effective as of March 31, 2025[177](index=177&type=chunk) - No changes to internal control over financial reporting occurred during the quarter that have materially affected, or are reasonably likely to materially affect, internal controls[180](index=180&type=chunk) Part II. OTHER INFORMATION [Legal Proceedings](index=55&type=section&id=Item%201.%20Legal%20Proceedings) The report refers to Note 15 of the Condensed Consolidated Financial Statements and the company's 2024 Annual Report for descriptions of its legal proceedings - For information on legal proceedings, the report directs readers to Note 15 of the financial statements and the 2024 Annual Report[183](index=183&type=chunk) [Risk Factors](index=55&type=section&id=Item%201A.%20Risk%20Factors) For a discussion of risk factors related to the business, the report refers to Item 1A, "Risk Factors," in the company's 2024 Annual Report - The report references the 2024 Annual Report for a full discussion of business-related risk factors[184](index=184&type=chunk) [Exhibits](index=55&type=section&id=Item%206.%20Exhibits) This section lists the exhibits filed with the Form 10-Q, including officer certifications (31.1, 31.2, 32.1) and Inline XBRL data files - Exhibits filed include CEO and CFO certifications pursuant to Sarbanes-Oxley Act sections 302 and 906, as well as Inline XBRL documents[187](index=187&type=chunk)

[Q1 2025 Financial Highlights](index=1&type=section&id=NL%20REPORTS%20FIRST%20QUARTER%202025%20RESULTS) NL Industries reported a significant decrease in Q1 2025 net income, primarily due to an unrealized loss on marketable equity securities, despite improved segment profitability [Overall Performance](index=1&type=section&id=Overall%20Performance) NL Industries reported a significant decrease in net income for the first quarter of 2025, falling to $0.7 million from $6.8 million in the prior-year period. This decline was primarily driven by an $8.5 million unrealized loss on marketable equity securities, contrasting with a $2.4 million gain in Q1 2024 Q1 2025 vs Q1 2024 Key Financial Metrics (In millions, except EPS) | Metric | Q1 2025 | Q1 2024 | | :--- | :--- | :--- | | Net Income Attributable to NL Stockholders | $0.7 million | $6.8 million | | Earnings Per Share (EPS) | $0.01 | $0.14 | | Unrealized Gain/(Loss) on Marketable Equity Securities | ($8.5 million) | $2.4 million | [Segment Performance](index=1&type=section&id=Segment%20Performance) Both CompX and Kronos segments demonstrated strong operational improvements in Q1 2025, driven by increased sales and improved margins [CompX Segment](index=1&type=section&id=CompX%20Segment) CompX reported strong growth in the first quarter of 2025, with net sales increasing to $40.3 million from $38.0 million in Q1 2024. The segment's profit saw a substantial rise to $5.9 million, up from $3.7 million, driven by higher sales and gross margins in its Marine Components division CompX Q1 Performance (In millions) | Metric | Q1 2025 | Q1 2024 | | :--- | :--- | :--- | | Net Sales | $40.3 million | $38.0 million | | Segment Profit | $5.9 million | $3.7 million | - The sales increase was primarily due to higher Marine Components sales to the towboat and government markets, along with increased Security Products sales to the government security market[3](index=3&type=chunk) [Kronos Worldwide, Inc. Segment](index=1&type=section&id=Kronos%20Worldwide%2C%20Inc.%20Segment) NL's equity in earnings from Kronos increased to $5.5 million. Kronos' net sales rose 2% to $489.8 million, driven by higher sales volumes in North America and Europe and a 2% increase in average TiO2 selling prices year-over-year. Operating income more than doubled to $38.4 million, benefiting from higher sales, increased production volumes, and lower per-ton production costs. Production facility operating rates increased to 93% from 87% in the prior year - Effective July 16, 2024, Kronos acquired the remaining 50% interest in Louisiana Pigment Company, L.P. (LPC), making it a wholly-owned subsidiary. LPC's results are included in Kronos' operations from the acquisition date[4](index=4&type=chunk) Kronos Q1 Performance (In millions) | Metric | Q1 2025 | Q1 2024 | | :--- | :--- | :--- | | Net Sales | $489.8 million | $478.8 million* | | Income from Operations | $38.4 million | $19.5 million | | Equity in Earnings for NL | $5.5 million | $2.5 million | *Calculated from Q1 2025 sales of $489.8M, which was $11.0M higher than Q1 2024. - Key drivers for Kronos' improved performance include: - **Sales:** Higher volumes in North America and Europe and a **2% YoY increase** in average TiO2 selling prices, partially offset by lower export volumes and negative currency effects of **$11 million** - **Operating Income:** Higher sales and production volumes, better selling prices, and lower per-metric-ton production costs - **Production:** TiO2 production volumes were **18% higher YoY**, with plant capacity utilization rising to **93% from 87%**[5](index=5&type=chunk)[6](index=6&type=chunk) [Corporate Expenses and Other Income](index=1&type=section&id=Corporate%20Expenses%20and%20Other%20Income) Corporate expenses increased slightly in Q1 2025, while interest and dividend income decreased, and a significant unrealized loss was recorded on marketable equity securities [Changes in Corporate and Other Items](index=1&type=section&id=Changes%20in%20Corporate%20and%20Other%20Items) In Q1 2025, corporate expenses saw a slight increase of $0.3 million due to higher environmental and administrative costs. Interest and dividend income decreased by $0.6 million, attributed to lower interest rates and cash balances. The most significant change was the $8.5 million unrealized loss from marketable equity securities - **Corporate Expenses:** Increased by **$0.3 million** due to higher environmental remediation and administrative costs, partially offset by lower litigation fees[7](index=7&type=chunk) - **Interest and Dividend Income:** Decreased by **$0.6 million** primarily due to lower average interest rates and reduced cash balances[7](index=7&type=chunk) - **Marketable Equity Securities:** Recorded an unrealized loss of **$8.5 million**, a significant negative swing from the **$2.4 million gain** in Q1 2024[2](index=2&type=chunk)[7](index=7&type=chunk) [Forward-Looking Statements and Risk Factors](index=3&type=section&id=Forward-Looking%20Statements%20and%20Risk%20Factors) The company's forward-looking statements are subject to significant risks, including market dynamics, operational costs, economic conditions, competition, and regulatory changes [Summary of Risks](index=3&type=section&id=Summary%20of%20Risks) The company highlights that forward-looking statements are subject to substantial risks and uncertainties. Key factors that could materially affect future results include supply and demand for products, the cyclicality of the TiO2 business, raw material costs, global economic conditions, competition from Chinese suppliers, currency fluctuations, and regulatory changes - The company faces numerous risks that could cause actual results to differ from expectations, including but not limited to[10](index=10&type=chunk) - **Market & Operations:** Future supply/demand, business cyclicality, customer inventory levels, and industry capacity expansion - **Costs & Supply Chain:** Changes in raw material and energy costs, availability of raw materials, and supply chain disruptions from global events - **Economic & Political:** General global economic conditions, tariffs, trade disputes, and currency exchange rate fluctuations - **Competition:** Competitive products, strategies from competitors (including Chinese suppliers), and potential consolidation of customers or competitors - **Regulatory & Legal:** Environmental regulations, changes in laws (e.g., regarding lead pigment), and the outcome of pending litigation[10](index=10&type=chunk)[13](index=13&type=chunk) [Financial Statements](index=6&type=section&id=Financial%20Statements) The financial statements detail the company's Q1 2025 performance, including consolidated income, operational components, and Kronos' sales changes [Condensed Consolidated Statements of Income](index=6&type=section&id=Condensed%20Consolidated%20Statements%20of%20Income) The condensed consolidated statement of income shows net sales of $40.3 million and income from operations of $3.2 million for Q1 2025. After accounting for equity earnings from Kronos, a significant loss on marketable securities, and other items, net income attributable to NL stockholders was $0.7 million, or $0.01 per share, down from $6.8 million, or $0.14 per share, in Q1 2024 Condensed Consolidated Statements of Income (In millions, except EPS) | | Three months ended March 31, | | :--- | :---: | :---: | | | **2024** | **2025** | | **Net sales** | **$38.0** | **$40.3** | | Cost of sales | 28.3 | 28.1 | | **Gross margin** | **9.7** | **12.2** | | Selling, general and administrative expense | 6.0 | 6.3 | | Corporate expense | 2.4 | 2.7 | | **Income from operations** | **1.3** | **3.2** | | Equity in earnings of Kronos Worldwide, Inc. | 2.5 | 5.5 | | Interest and dividend income | 2.6 | 2.0 | | Marketable equity securities | 2.4 | (8.5) | | Other components of net periodic pension and OPEB cost | (0.3) | (0.3) | | Interest expense | (0.2) | (0.6) | | **Income before income taxes** | **8.3** | **1.3** | | Income tax expense | 1.0 | — | | **Net income** | **7.3** | **1.3** | | Noncontrolling interest in net income of subsidiary | 0.5 | 0.6 | | **Net income attributable to NL stockholders** | **$6.8** | **$0.7** | | **Net income per share attributable to NL stockholders** | **$0.14** | **$0.01** | [Components of Income from Operations](index=7&type=section&id=Components%20of%20Income%20from%20Operations) The company's income from operations increased to $3.2 million in Q1 2025 from $1.3 million in Q1 2024. This improvement was entirely driven by a $2.2 million increase in CompX's segment profit, which was partially offset by a $0.3 million increase in corporate expenses Components of Income from Operations (In millions) | | Three months ended March 31, | | :--- | :---: | :---: | | | **2024** | **2025** | | CompX segment profit | $3.7 | $5.9 | | Corporate expense | (2.4) | (2.7) | | **Income from operations** | **$1.3** | **$3.2** | [Change in Kronos' Net Sales](index=7&type=section&id=Change%20in%20Kronos%27%20Net%20Sales) Kronos' net sales increased by a net 2% in Q1 2025 compared to Q1 2024. This was composed of a 5% increase from TiO2 sales volume and a 2% increase from pricing, which were partially offset by a 2% decrease from product mix/other and a 3% decrease from currency exchange rates Percentage Change in Kronos' Net Sales (Q1 2025 vs. Q1 2024) | Component | Percentage Change | | :--- | :---: | | TiO2 Sales Volume | 5% | | TiO2 Product Pricing | 2% | | TiO2 Product Mix/Other | (2%) | | Changes in Currency Exchange Rates | (3%) | | **Total** | **2%** |

Core Insights - NL Industries, Inc. reported a significant decline in net income for Q1 2025, with net income attributable to NL stockholders at $0.7 million ($0.01 per share), down from $6.8 million ($0.14 per share) in Q1 2024, primarily due to an unrealized loss in marketable equity securities [1][6][16] - CompX experienced an increase in net sales to $40.3 million in Q1 2025, up from $38.0 million in Q1 2024, driven by higher sales in Marine Components and Security Products [2][18] - Kronos' net sales rose to $489.8 million in Q1 2025, a 2% increase from the previous year, attributed to higher sales volumes in North America and Europe, despite lower export volumes [4][20] NL Industries Financial Performance - The company recognized an unrealized loss of $8.5 million in Q1 2025 compared to a gain of $2.4 million in Q1 2024 related to marketable equity securities [1][6] - Corporate expenses increased by $0.3 million in Q1 2025, mainly due to higher environmental remediation costs [6][16] - Interest and dividend income decreased by $0.6 million in Q1 2025, attributed to lower average interest rates and decreased cash balances [6][16] CompX Performance - CompX's segment profit increased to $5.9 million in Q1 2025 from $3.7 million in Q1 2024, primarily due to higher Marine Components sales and improved gross margins [2][18] - The increase in net sales was primarily driven by higher demand in the towboat and government markets [2][18] Kronos Performance - Kronos' income from operations surged to $38.4 million in Q1 2025, up from $19.5 million in Q1 2024, driven by increased sales and production volumes, as well as reduced production costs [5][20] - TiO2 production volumes increased by 18% in Q1 2025 compared to the same period in 2024, with production facilities operating at average capacities of 93% [5][20] - Average TiO2 selling prices were 2% higher at the start of 2025 compared to the beginning of 2024, although they declined by 3% during Q1 2025 due to market pressures [4][5]

Core Viewpoint - NL Industries, Inc. is set to announce its first quarter 2025 earnings on May 7, 2025, after market close, pending the completion of quarter-end closing procedures [1] Company Overview - 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]