VALHI REPORTS SECOND QUARTER 2026 RESULTS
Dallas, Texas, Aug. 06, 2026 (GLOBE NEWSWIRE) -- Valhi, Inc. (NYSE: VHI) reported net income attributable to Valhi stockholders of $22.3 million, or $.78 per share, in the second quarter of 2026 compared to net income of $.9 million, or $.03 per share, in the second quarter of 2025. For the first six months of 2026, Valhi reported net income attributable to Valhi stockholders of $24.3 million, or $.85 per share, compared to $17.8 million, or $.62 per share, in the first six months of 2025. Net income attributable to Valhi stockholders increased in the second quarter of 2026 as compared to the same period of 2025 primarily due to higher operating results from the Chemicals Segment. Net income attributable to Valhi stockholders increased in the first six months of 2026 as compared to the same period of 2025 primarily due to improved operating results across all business segments.
The Chemicals Segment’s net sales of $558.1 million in the second quarter of 2026 were $63.7 million, or 13%, higher than in the second quarter of 2025, and net sales of $1.1 billion in the first six months of 2026 were $83.7 million, or 9%, higher than in the first six months of 2025. The Chemicals Segment’s net sales increased in the second quarter and first six months of 2026 compared to the same periods of 2025 primarily due to market share gains across all markets and the favorable impact of changes in currency exchange rates (primarily the euro), which our Chemicals Segment estimates increased its net sales by approximately $10 million and $41 million, respectively. These favorable impacts were partially offset by lower average TiO 2 selling prices and the unfavorable impact of both lower average selling prices and sales volumes within the Chemicals Segment’s complementary businesses. Our Chemicals Segment started 2026 with average TiO 2 selling prices lower than at the beginning of 2025; however, its average TiO 2 selling prices increased 4% during the first six months of 2026. During the second quarter of 2026, our Chemicals Segment announced and implemented various price increases and surcharges in response to higher operating costs. The table at the end of this press release shows how each of these items impacted the Chemicals Segment’s net sales.
The Chemicals Segment’s operating income in the second quarter of 2026 was $40.4 million compared to $10.3 million in the second quarter of 2025. For the first six months of 2026, the Chemicals Segment’s operating income was $54.9 million compared to $51.5 million in the first six months of 2025. The Chemicals Segment’s operating income increased in both the second quarter and first six months of 2026 compared to the same periods of 2025 primarily due to higher sales volumes, lower production costs, including lower raw material costs (primarily feedstock) and lower unabsorbed fixed costs, as well as the benefits of the cost reduction initiatives implemented in the fourth quarter of 2025 designed to permanently improve our Chemicals Segment’s cost structure and operational efficiency. These favorable factors were partially offset by lower average TiO 2 selling prices and the unfavorable impact of changes in currency exchange rates. Fluctuations in currency exchange rates (primarily the euro) decreased our Chemicals Segment’s operating income by approximately $12 million in the second quarter of 2026 and approximately $18 million in the first six months of 2026 compared to the same prior year periods.
The Component Products Segment’s net sales were $43.6 million in the second quarter of 2026 compared to $40.3 million in the second quarter of 2025 and $84.2 million in the first six months of 2026 compared to $80.6 million in the same period of 2025. The Component Products Segment’s net sales increased in the second quarter and for the first six months of 2026 compared to the same periods in 2025 due to higher security products sales across a variety of markets including the healthcare, transportation, tool storage and distributor markets and higher marine components sales to the industrial market. Operating income attributable to the Component Products Segment was $8.9 million in the second quarter of 2026 compared to $6.3 million in the second quarter of 2025 and $16.0 million in the first six months of 2026 compared to $12.2 million for the same prior year period. The Component Products Segment’s operating income increased in the second quarter and for the first six months of 2026 compared to the same periods in 2025 due to higher sales and gross margin predominantly at the security products reporting unit and, to a lesser extent, the marine components reporting unit.
The Real Estate Management and Development Segment had net sales of $4.4 million in the second quarter of 2026 compared to $5.7 million in the second quarter of 2025. For the first six months of 2026, the Real Estate Management and Development Segment had net sales of $14.1 million compared to $14.2 million in the same period of 2025. Land sales revenue is generally recognized over time based on cost inputs, and land sales revenues are dependent on spending for development activities. Net sales decreased in the second quarter of 2026 and first six months compared to the same periods in 2025 due to the slower pace of development activity for previously sold parcels within the residential/planned community as our Real Estate Management and Development Segment nears completion of its development work. This decrease in net sales for the first six months of 2026 was mostly offset by the first quarter sale of the final commercial parcel for $7.3 million, which had no further development obligations and was therefore immediately recognized as revenue. The pace of development activities is dictated by a number of factors such as city permit and design approval, approvals from the Nevada Department of Environmental Protection, and labor and materials availability. The Real Estate Management and Development Segment also recognized tax increment infrastructure reimbursements of $16.7 million ($8.7 million, or $.30 per share, net of income tax and noncontrolling interest) and $17.2 million ($8.9 million, or $.31 per share, net of income tax and noncontrolling interest) in the first six months of 2026 and 2025, respectively. Additionally, during the second quarter of 2026 the Real Estate Management and Development Segment sold the office building used in its operations and recognized a gain on the sale of approximately $5.8 million ($3.0 million, or $.10 per share, net of income tax and noncontrolling interest).
Corporate expenses were 2% lower in the second quarter of 2026 and 5% lower in first six months of 2026 compared to the same respective periods in 2025 primarily due to lower environmental remediation and related costs. Interest income and other increased $.3 million in the second quarter of 2026 primarily due to increased interest income received on the Real Estate Management and Development note receivable offset by decreased average investment balances and lower average interest rates. Interest income and other decreased $.5 million in the first six months of 2026 compared to the same period of 2025 primarily due to decreased average investment balances and lower average interest rates partially offset by increased interest income received on the Real Estate Management and Development note receivable. Interest expense increased $.9 million and $2.4 million in the second quarter and first six months of 2026, respectively, compared to the same periods in 2025 primarily due to higher overall debt levels and higher average interest rates.
Our net income attributable to Valhi stockholders in the first six months of 2026 includes an income tax expense of $2.0 million ($1.3 million, or $.04 per share, net of noncontrolling interest) related to the recognition of an uncertain tax position at our Chemicals Segment in connection with a German tax audit in the first quarter.
The statements in this press release relating to matters that are not historical facts are forward-looking statements that represent management’s beliefs and assumptions based on currently available information. Although we believe the expectations reflected in such forward-looking statements are reasonable, we cannot give any assurances that these expectations will be correct. Such statements by their nature involve substantial risks and uncertainties that could significantly impact expected results, and actual future results could differ materially from those predicted. While it is not possible to identify all factors, we continue to face many risks and uncertainties. Among the factors that could cause our actual future results to differ materially include, but are not limited to, the following:
Should one or more of these risks materialize (or the consequences of such development worsen), or should the underlying assumptions prove incorrect, actual results could differ materially from those currently forecasted or expected. We disclaim any intention or obligation to update or revise any forward-looking statement whether as a result of changes in information, future events or otherwise.
Valhi, Inc. is engaged in the chemicals (TiO 2), component products (security products and recreational marine components) and real estate management and development industries.
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Investor Relations Contact
Bryan A. Hanley
Senior Vice President and Treasurer
Tel. 972-233-1700
VALHI, INC. AND SUBSIDIARIES
CONDENSED SUMMARY OF INCOME
(Unaudited)
(In millions, except earnings per share)
VALHI, INC. AND SUBSIDIARIES
IMPACT OF PERCENTAGE CHANGE IN CHEMICAL SEGMENT'S NET SALES
(Unaudited)