NL · NL Industries, Inc.

NL Industries' Q1 2026 results showed significant improvement in net income attributable to stockholders, rising to $4.3 million or $0.09 per share from $0.7 million or $0.01 per share in the prior year quarter. This turnaround was primarily driven by a $11.2 million swing in unrealized gains on marketable equity securities, from an $8.5 million loss to a $2.7 million gain, and stronger CompX segment performance. CompX net sales edged up to $40.6 million from $40.3 million, with segment profit increasing to $7.1 million from $5.9 million due to higher gross margins at Security Products from a favorable customer and product mix, and higher Marine Components sales to the industrial market. Consolidated gross margin expanded to $13.3 million from $12.2 million, while income from operations rose to $4.1 million from $3.2 million, despite slightly higher corporate expenses of $3.0 million. Offsetting these gains were equity losses from Kronos of $1.5 million versus $5.5 million earnings last year. Kronos' net sales grew 4% to $509.8 million, boosted by higher volumes in North America, Latin America, and export markets, plus a $30 million favorable currency impact (primarily euro), though partially offset by lower European volumes and a 6% decline in average TiO2 selling prices. Kronos' operating income fell sharply to $12.6 million from $38.4 million due to lower prices, production volumes, and a $6 million negative currency effect, mitigated somewhat by lower production costs from 2025 cost reduction initiatives including workforce reductions. Interest and dividend income declined $0.7 million due to lower investment balances and rates. No forward guidance was provided, but management highlighted ongoing pricing recovery efforts at Kronos and operational efficiencies.