VALHI REPORTS FOURTH QUARTER 2025 RESULTS

Core Viewpoint - Valhi, Inc. reported significant financial losses in 2025, primarily driven by poor performance in its Chemicals Segment, which faced lower TiO2 selling prices and increased production costs [1][4][3]. Financial Performance - In Q4 2025, Valhi recorded a net loss of $53.2 million ($1.86 per share), a stark contrast to a net income of $22.8 million ($0.80 per share) in Q4 2024 [1]. - For the full year 2025, the net loss attributable to Valhi stockholders was $57.6 million ($2.02 per share), compared to a net income of $108.0 million ($3.79 per share) in 2024 [1]. - The Chemicals Segment's net sales were $418.3 million in Q4 2025, down 1% from $423.1 million in Q4 2024, and $1.9 billion for the full year 2025, also down 1% from $1.887 billion in 2024 [3][14]. Chemicals Segment Analysis - The Chemicals Segment's operating loss in Q4 2025 was $60.1 million, compared to an operating income of $32.6 million in Q4 2024 [4]. - For the full year 2025, the operating loss was $24.5 million, down from an operating income of $138.5 million in 2024 [4]. - Average TiO2 selling prices decreased by 10% from the beginning of 2025, with Q4 prices being 8% lower than Q4 2024 [3][4]. Component Products Segment - The Component Products Segment reported net sales of $37.7 million in Q4 2025, slightly down from $38.4 million in Q4 2024, but increased for the full year to $158.3 million from $145.9 million in 2024 [6][14]. - Operating income for this segment was $5.6 million in Q4 2025, up from $4.9 million in Q4 2024, and $22.6 million for the full year, compared to $17.0 million in 2024 [6][14]. Real Estate Management and Development Segment - This segment achieved net sales of $38.5 million in Q4 2025, up from $19.4 million in Q4 2024, but full-year sales decreased to $59.3 million from $71.8 million in 2024 [7][14]. - The segment recognized tax increment infrastructure reimbursements of $34.2 million in 2025, compared to $30.3 million in 2024 [7]. Corporate Expenses and Other Financial Metrics - Corporate expenses in 2025 were comparable to 2024, with interest income and other decreasing by $1.4 million in Q4 and $5.4 million for the full year [8]. - Interest expense increased by $1.9 million in Q4 2025 and $7.2 million for the full year, attributed to higher average debt balances and interest rates [8].