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 September 30, 2023 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 1-5467 VALHI, INC. (Exact name of Registrant as specified in its charter) Delaware 87-0110150 (State or other jurisdictio ...

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, 2023 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 1-5467 5430 LBJ Freeway, Suite 1700 Dallas, Texas 75240-2620 (Address of principal executive office) Registrant's telephone nu ...

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, 2023 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 1-5467 VALHI, INC. (Exact name of Registrant as specified in its charter) Delaware 87-0110150 (State or other jurisdiction of incorporation or ...

Production and Capacity - Kronos produced 492,000 metric tons of TiO2 in 2022, with production volumes impacted by reduced customer demand in European and export markets [39]. - Kronos' average production capacity utilization rates were approximately 89% in 2022, down from full practical capacity in 2021 [39]. - Kronos expects to operate its TiO2 plants at 80% to 90% capacity in the first half of 2023, with near full practical capacity levels anticipated by the second half of 2023 [41]. - Kronos' expected 2023 manufacturing capacity is divided as follows: 79% chloride process and 21% sulfate process [42]. - The Leverkusen facility accounts for approximately one-third of Kronos' current TiO2 production capacity [47]. - In 2022, Kronos purchased 488,000 metric tons of chloride process feedstock and mined 220,000 metric tons of ilmenite for sulfate process [53]. Market Position and Sales - Sales of Kronos' core TiO2 pigments represented approximately 92% of the Chemicals Segment's net sales in 2022 [27]. - Kronos is the largest TiO2 producer in Europe, with 45% of its 2022 sales volumes attributable to European markets [25]. - The company has an estimated 7% share of worldwide TiO2 sales volume in 2022, ranking among the top five producers globally [26]. - Kronos sells TiO2 to approximately 4,000 customers in 100 countries, with the majority of sales in Europe, North America, and the Asia Pacific region [20]. - Kronos' largest ten customers accounted for approximately 33% of its Chemicals Segment's net sales in 2022 [57]. - The TiO2 industry is characterized by high barriers to entry, with significant capital costs and proprietary technology [65]. Research and Development - The company expects to spend approximately $17 million on research and development in 2023, consistent with previous years [66]. - Kronos has added nine new grades for pigments and applications since 2017 to enhance product offerings [67]. Environmental Compliance and Sustainability - Kronos has implemented various policies to comply with environmental laws and improve sustainability, which may require future capital expenditures due to stricter regulations [71]. - Kronos' capital expenditures for environmental compliance and improvement programs were $17.6 million in 2022 and are expected to be approximately $20 million in 2023 [80]. - Kronos' production facilities are strategically located near water sources to manage water-related risks and minimize usage [74]. - Kronos' operations are subject to various environmental laws, and while no material liabilities are anticipated, future expenditures for environmental remediation may be required [75]. Financial Overview - As of December 31, 2022, the company has $74.5 million invested in marketable debt securities with an average interest rate of approximately 3% [391]. - The company's aggregate indebtedness consists of 78% fixed-rate instruments and 22% variable-rate borrowings as of December 31, 2022, compared to 74% and 26% respectively in 2021 [392]. - Total fixed-rate indebtedness amounts to $437.0 million with a weighted average interest rate of 3.78% [393]. - The company has $121.4 million in variable-rate indebtedness under the Valhi Contran credit facility with an interest rate of 8.50% [393]. - At December 31, 2022, the company had $426.5 million outstanding under Kronos' euro-denominated Senior Notes, with a potential increase of approximately $43 million from a hypothetical 10% adverse change in exchange rates [396]. Risk Management - The Chemicals Segment is exposed to market risk from changes in commodity prices, with many raw material contracts negotiated quarterly or semi-annually [398]. - The Component Products Segment occasionally enters into short-term commodity-related raw material supply arrangements to mitigate future cost increases [399]. - The company does not engage in commodity raw material hedging programs due to perceived low risk of unavailability and high price volatility [399]. - The company has not entered into currency forward contracts as of December 31, 2022, but may consider them in the future to manage currency exchange rate risk [395]. - The company acknowledges that actual future market conditions may differ materially from the assumptions used in sensitivity analyses regarding market risks [401]. Employee and Safety Metrics - As of December 31, 2022, the Chemicals Segment employed 2,266 people, with 88% of the workforce organized under collective bargaining agreements [118][119]. - Kronos' global total frequency rate for safety incidents was 1.01 in 2022, down from 1.08 in 2021 and 1.61 in 2020 [123]. Strategic Initiatives - Kronos operates a joint venture with Venator Investments, sharing production from the Louisiana Pigment Company equally [45]. - The company routinely evaluates acquisitions of interests in companies perceived to be undervalued in the marketplace [131]. - The company has a history of successfully developing and selling various types of projects in the Henderson, Nevada area since its formation [103]. Real Estate Management - LandWell has approximately 2,100 acres zoned for residential/planned community purposes and 400 acres zoned for commercial and light industrial use [102]. - As of December 31, 2022, approximately 90 saleable acres remain in the residential/planned community, and 20 saleable acres remain for commercial and light industrial use [105]. - In 2022, two customers accounted for 49% of the Real Estate Management and Development Segment's net sales, with CCR 270 at 30% and Richmond American Homes at 19% [108]. Component Products Segment - CompX's primary raw materials accounted for approximately 17% of the Component Products Segment's total cost of sales in 2022, with total material costs representing about 47% of the segment's cost of sales [90]. - The largest ten customers of CompX's Component Products Segment accounted for approximately 52% of its sales in 2022, with the United States Postal Service and Malibu Boats, LLC representing 14% and 12% of sales, respectively [96]. - CompX operates three low-emission manufacturing facilities and has received a ReWa Gold Award for exemplary performance in water management [98]. - CompX focuses on the middle and high-end segments of the market, competing on product design, quality, and service [97]. - Prices for primary commodity-related raw materials used by CompX, such as zinc and brass, began to stabilize in the latter half of 2022, although at elevated levels [91].

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 September 30, 2022 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 1-5467 VALHI, INC. (Exact name of Registrant as specified in its charter) Delaware 87-0110150 (State or other jurisdictio ...

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, 2022 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 1-5467 VALHI, INC. (Exact name of Registrant as specified in its charter) Delaware 87-0110150 (State or other jurisdiction of ...

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, 2022 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 1-5467 VALHI, INC. (Exact name of Registrant as specified in its charter) Delaware 87-0110150 (State or other jurisdiction of ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-K ☒ ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the fiscal year ended December 31, 2021 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 1-5467 VALHI, INC. (Exact name of Registrant as specified in its charter) (State or other jurisdiction of Incorporation or organization) Delaware 87 ...

Financial Performance - Net income attributable to Valhi stockholders for Q3 2021 was $39.0 million or $1.36 per diluted share, compared to $15.4 million or $0.54 per diluted share in Q3 2020, reflecting a significant increase [88]. - For the first nine months of 2021, net income attributable to Valhi stockholders was $75.2 million or $2.64 per diluted share, up from $30.7 million or $1.08 per diluted share in the same period of 2020 [89]. - Consolidated net sales for Q3 2021 were $499.8 million, a 20% increase from $416.9 million in Q3 2020; for the first nine months of 2021, net sales were $1,443.4 million, an 18% increase from $1,223.9 million in the same period of 2020 [96]. - The company expects higher consolidated operating income for 2021 compared to 2020, driven by improved demand across all operating segments [90]. - The company anticipates continued elevated demand for its products through the remainder of 2021, following improvements since late 2020 [90]. Chemicals Segment Performance - The Chemicals Segment reported a gross margin of $122.7 million in Q3 2021, a 54% increase from $79.6 million in Q3 2020; operating income for the segment was $60.3 million, up 179% from $21.6 million in Q3 2020 [96]. - TiO2 average selling prices increased by 11% in Q3 2021 compared to Q3 2020 and were 4% higher in the first nine months of 2021 compared to the same period in 2020 [97]. - TiO2 sales volumes increased by 6% in Q3 2021 and by 8% in the first nine months of 2021 compared to the same periods in 2020 [96]. - The Chemicals Segment operated at an average capacity utilization rate of 99% in the first nine months of 2021, compared to 92% in the same period of 2020 [98]. - The Chemicals Segment's net sales increased by 20%, or $82.9 million, in Q3 2021 compared to Q3 2020, driven by an 11% increase in average TiO2 selling prices and a 6% increase in sales volumes [100]. - Sales volumes in the Chemicals Segment rose by 6% in Q3 2021 compared to Q3 2020, primarily due to higher demand in European and North American markets [101]. - For the first nine months of 2021, net sales increased by 18%, or $219.5 million, compared to the same period in 2020, attributed to an 8% increase in sales volumes and a 4% increase in average TiO2 selling prices [102]. - The Chemicals Segment's gross margin as a percentage of net sales improved to 25% in Q3 2021 from 19% in Q3 2020, due to higher production and sales volumes [105]. - Operating income for the Chemicals Segment surged by $38.7 million, or 179%, in Q3 2021 compared to Q3 2020, with operating income as a percentage of net sales increasing to 12% [108]. - The Chemicals Segment's cost of sales increased by 12% in Q3 2021 compared to Q3 2020, influenced by a 6% increase in sales volumes and higher production costs [104]. - The Chemicals Segment anticipates rising TiO2 selling prices through the remainder of 2021 to mitigate increases in production costs [117]. Currency Impact - Currency exchange rate fluctuations contributed an estimated $5 million increase in net sales and a $2 million increase in operating income in Q3 2021 compared to Q3 2020 [113][114]. - For the first nine months of 2021, currency exchange rate fluctuations resulted in a $47 million increase in net sales but a $15 million decrease in operating income compared to the same period in 2020 [116]. Component Products Segment Performance - Component Products Segment's operating income increased to $5.1 million in Q3 2021, up 146% from $2.1 million in Q3 2020 [120]. - Net sales for Component Products Segment rose by $6.1 million in Q3 2021, totaling $34.5 million, a 22% increase compared to Q3 2020 [121]. - Security products sales increased by 22% to $25.8 million in Q3 2021, while marine components sales rose by 21% to $8.7 million [121]. - Gross margin for Component Products Segment improved to 32% in Q3 2021, up from 26% in Q3 2020, driven by higher production volumes [122]. - Operating income for the first nine months of 2021 reached $16.7 million, a 76% increase from $9.5 million in the same period of 2020 [120]. - The Component Products Segment has faced challenges in maintaining staffing levels due to tight labor markets [125]. Real Estate Management and Development Segment Performance - Land sales in the Real Estate Management and Development Segment surged to $41.9 million in Q3 2021, compared to $10.6 million in Q3 2020 [128]. - Total net sales for the Real Estate Management and Development Segment increased to $44.6 million in Q3 2021, up from $13.3 million in Q3 2020 [128]. - The company expects strong demand to continue for the remainder of 2021, with increased sales and operating income anticipated compared to 2020 [126]. Financial Position and Liquidity - Cash provided by operating activities increased to $189.2 million in the first nine months of 2021, up from $45.2 million in the same period of 2020, a $144.0 million increase [149]. - Consolidated operating income was $188.1 million in the first nine months of 2021, an increase of $48.9 million compared to $139.2 million in the same period of 2020 [150]. - Kronos' average days sales outstanding (DSO) decreased from 68 days in Q3 2020 to 66 days in Q3 2021, indicating improved collection efficiency [150]. - Capital expenditures totaled $39.2 million during the first nine months of 2021, with net proceeds from the sale of land amounting to $23.4 million [153]. - At September 30, 2021, consolidated indebtedness included $35.9 million in the Chemicals Segment and $2.3 million in the Component Products Segment [155]. - Kronos entered into a new $225 million global revolving credit facility in April 2021, with no outstanding borrowings as of September 30, 2021 [157]. - As of September 30, 2021, the company had $621.3 million in total cash, cash equivalents, and marketable securities, with $111.2 million held by non-U.S. subsidiaries [163]. - The company expects capital expenditures for 2021 to be approximately $79 million, primarily funded through cash generated from operations and existing credit facilities [165]. - The company anticipates sufficient liquidity to meet both short-term and long-term obligations based on expected operating performance [161]. - The company does not have any off-balance sheet financing arrangements [178].

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, 2021 (Exact name of Registrant as specified in its charter) Delaware 87-0110150 (State or other jurisdiction of incorporation or organization) (IRS Employer Identification No.) 5430 LBJ Freeway, Suite 1700 Dallas, Texas 75240-2620 (Address of principal executive office) Registrant's telephone number ...