Valhi(US:VHI)2025-11-06 21:31Financial Performance - Valhi reported a net loss of $22.2 million, or $0.78 per share, in Q3 2025, compared to a net income of $57.5 million, or $2.01 per share, in Q3 2024[1] - For the first nine months of 2025, Valhi's net loss was $4.4 million, or $0.15 per share, compared to a net income of $85.2 million, or $2.99 per share, in the same period of 2024[1] - Net income attributable to Valhi stockholders for the nine months ended September 30, 2025, was a loss of $4.4 million, a significant decline from a profit of $85.2 million in the same period of 2024[15] - Basic and diluted net income per share for Q3 2025 was $(0.78), compared to $2.01 in Q3 2024[15] Segment Performance - The Chemicals Segment's net sales were $456.9 million in Q3 2025, a decrease of $27.8 million, or 6%, from Q3 2024, and $1.4 billion for the first nine months of 2025, down $22.9 million, or 2%, from the same period in 2024[3] - The Component Products Segment's net sales increased to $40.0 million in Q3 2025 from $33.6 million in Q3 2024, and $120.6 million in the first nine months of 2025 compared to $107.5 million in the same period of 2024[7] - The Real Estate Management and Development Segment's net sales decreased to $6.6 million in Q3 2025 from $15.3 million in Q3 2024, and $20.8 million in the first nine months of 2025 compared to $52.4 million in the same period of 2024[8] Operating Income and Expenses - The Chemicals Segment's operating loss in Q3 2025 was $15.9 million, down from an operating income of $42.6 million in Q3 2024, and operating income for the first nine months of 2025 was $35.6 million compared to $105.9 million in the same period of 2024[4] - Total operating income for the nine months ended September 30, 2025, was $94.2 million, down from $154.0 million in 2024[15] - Corporate expenses increased by 11% in Q3 2025 compared to Q3 2024, primarily due to higher litigation fees[9] Sales and Pricing Trends - Average TiO2 selling prices declined by 7% in Q3 2025 compared to Q3 2024 and by 2% in the first nine months of 2025 compared to the same period in 2024[3] - The chemicals segment reported net sales of $456.9 million for the three months ended September 30, 2025, down 5.7% from $484.7 million in 2024[15] - The chemicals segment experienced a 6% decrease in net sales for the three months ended September 30, 2025, compared to the same period in 2024[16] - TiO2 product pricing decreased by 7% for the three months ended September 30, 2025, compared to the same period in 2024[16] Interest and Production Costs - Interest expense rose by $1.5 million in Q3 2025 and $5.3 million in the first nine months of 2025 compared to the same periods in 2024, mainly due to higher debt levels and interest rates[9] - Interest expense increased to $41.9 million for the nine months ended September 30, 2025, compared to $36.6 million in the same period of 2024[15] - The Chemicals Segment's unabsorbed fixed production costs related to decreased production volumes in Q3 2025 were approximately $27 million[6] Other Financial Gains - The company reported a gain of $64.5 million on the remeasurement of investment in TiO2 manufacturing joint venture for the three months ended September 30, 2025[15]