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]

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]