VALHI REPORTS FOURTH QUARTER 2024 RESULTS

Core Insights - Valhi, Inc. reported a significant increase in net income for the fourth quarter and full year of 2024, with net income attributable to stockholders reaching $22.8 million ($0.80 per share) in Q4 2024, compared to $4.9 million ($0.17 per share) in Q4 2023. For the full year, net income was $108.0 million ($3.79 per share), a turnaround from a net loss of $9.9 million ($0.35 per share) in 2023 [1][15]. Chemicals Segment Performance - The Chemicals Segment's net sales in Q4 2024 were $423.1 million, a 6% increase from $400.1 million in Q4 2023. For the full year, net sales reached $1.9 billion, up 13% from $1.666 billion in 2023 [3][15]. - The increase in net sales for the Chemicals Segment was driven by higher sales volumes and average selling prices for TiO2, with sales volumes up 4% in Q4 2024 and 20% for the full year compared to the previous year [3][17]. - Operating income for the Chemicals Segment improved significantly, reaching $32.6 million in Q4 2024 compared to an operating loss of $1.6 million in Q4 2023. For the full year, operating income was $138.5 million, a recovery from a loss of $41.1 million in 2023 [4][15]. Component Products Segment Performance - The Component Products Segment reported net sales of $38.4 million in Q4 2024, down from $43.2 million in Q4 2023. For the full year, net sales were $145.9 million, compared to $161.3 million in 2023 [7][15]. - Operating income for this segment decreased to $4.9 million in Q4 2024 from $7.4 million in Q4 2023, and for the full year, it fell to $17.0 million from $25.4 million in 2023, primarily due to lower sales and gross margins [7][15]. Real Estate Management and Development Segment Performance - The Real Estate Management and Development Segment saw net sales of $19.4 million in Q4 2024, up from $9.7 million in Q4 2023. However, for the full year, net sales decreased to $71.8 million from $93.9 million in 2023 [8][15]. - The decrease in full-year sales was attributed to a slower pace of development activities due to delays in obtaining necessary permits and approvals [8]. Acquisition Impact - The Chemicals Segment's acquisition of the 50% joint venture interest in Louisiana Pigment Company (LPC) was completed on July 16, 2024, resulting in LPC becoming a wholly-owned subsidiary. This acquisition contributed a non-cash gain of $64.5 million in net income for the full year of 2024 [2][15]. Financial Overview - Total net sales for Valhi, Inc. were $480.9 million in Q4 2024, compared to $453.0 million in Q4 2023. For the full year, total net sales increased to $2.1 billion from $1.921 billion in 2023 [15]. - Interest expense increased significantly due to higher interest rates and debt levels associated with the LPC acquisition, rising by $6.4 million in Q4 and $21.6 million for the full year compared to 2023 [10][15].