Marine equipment supplier NL Industries has reported net income attributable to NL stockholders of US$.3 million, or US$0.01 per share, in the second quarter of 2025 compared to US$7.9 million, or US$0.16 per share, in the second quarter of 2024.
NL’s results include an unrealised loss of US$0.1 million in the second quarter of 2025 related to the change in value of marketable equity securities compared to an unrealized gain of US$0.8 million in the second quarter of 2024.
For the first six months of 2025, NL reported net income attributable to NL stockholders of US$1.0 million, or US$0.02 per share, compared to US$14.7 million, or US$0.30 per share for the first six months of 2024.
NL results include an unrealised loss of US$8.6 million in the first six months of 2025 related to the change in value of marketable equity securities compared to an unrealized gain of US$3.2 million in the first six months of 2024.
NL subsidiary CompX’s net sales were US$40.3 million for the second quarter of 2025 compared to US$35.9 million in the second quarter of 2024 and US$80.6 million for the first six months of 2025 compared to US$73.9 million for the same prior year period.
The increase in sales for both periods is due to higher security products sales primarily to the government security market and higher marine components sales primarily to the government and towboat markets.
CompX’s segment profit was US$6.3 million for the second quarter of 2025 compared to US$5.1 million for the second quarter of 2024 and US$12.2 million for the first six months of 2025 compared to US$8.8 million for the same prior year period.
CompX’s segment profit increased in the second quarter and for the first six months of 2025 compared to the same periods in 2024 due to higher sales and gross margin at each of the security products and marine components segments.
NL recognised equity in losses of its subsidiary Kronos of US$2.8 million in the second quarter of 2025 compared to equity in earnings of US$6.0 million in the second quarter of 2024. NL recognised equity in earnings of US$2.7 million in the first six months of 2025 compared to US$8.5 million in the same period of 2024.
As previously reported, effective July 16, 2024, Kronos acquired the 50 per cent joint venture interest in Louisiana Pigment Company (LPC) previously held by Venator Investments. Prior to the acquisition, Kronos held a 50 per cent joint venture interest in LPC.
Following the acquisition, LPC became a wholly-owned subsidiary of Kronos. The results of operations of LPC have been included in Kronos’ results of operations beginning as of the acquisition date.
Kronos’ net sales of US$494.4 million in the second quarter of 2025 were US$6.1 million, or one per cent, lower than in the second quarter of 2024. Kronos’ net sales of US$984.2 million in the first six months of 2025 were US$4.9 million, or one per cent, higher than in the first six months of 2024.
Kronos’ net sales decreased in the second quarter of 2025 compared to the second quarter of 2024 primarily due to the effects of lower average TiO2 selling prices, changes in product mix and lower sales volumes in its export markets somewhat offset by higher sales volumes in its North American market.
Kronos’ net sales increased in the first six months of 2025 compared to the same period in 2024 due to net effects of higher sales volumes in its North American and European markets somewhat offset by lower sales volumes in its export markets and changes in product mix.
During the first six months of 2025, Kronos and the TiO2 industry have been operating in a market impacted by global uncertainty related to US trade policies, geopolitical tensions and general hesitancy by customers to build inventories, which have deferred any anticipated market recovery and which have also impacted Kronos’ sales volumes and pricing momentum.
Kronos started 2025 with average TiO2 selling prices two per cent higher than at the beginning of 2024 but its average TiO2 selling prices declined four per cent during the first six months of 2025. Kronos’ average TiO2 selling prices were one per cent lower in the second quarter of 2025 as compared to the second quarter of 2024 and comparable in the first six months of 2025 as compared to the first six months of 2024.
Fluctuations in currency exchange rates (primarily the euro) also affected net sales comparisons, increasing net sales by approximately US$8 million in the second quarter of 2025 and decreasing net sales by approximately US$3 million in the first six months of 2025 as compared to the same prior year periods in 2024.
Kronos’ income from operations in the second quarter of 2025 was US$7.4 million as compared to US$35.9 million in the second quarter of 2024. For the first six months of 2025, the Kronos’ income from operations was US$45.8 million as compared to US$55.4 million in the first six months of 2024.
Income from operations decreased in the second quarter of 2025 compared to the second quarter of 2024 primarily due to the effects of unfavourable fixed cost absorption due to reduced operating rates at certain of Kronos’ manufacturing facilities, higher cost inventory produced in the first quarter and included in cost of sales in the second quarter and currency fluctuations (primarily the euro).
Kronos’ unabsorbed fixed production costs related to decreased production volumes in the second quarter of 2025 were approximately US$20 million.
Kronos’ income from operations decreased in the first six months of 2025 compared to the first six months of 2024 primarily due to the net effects of approximately US$18 million in additional unabsorbed fixed production costs Kronos recognised as a result of operating its production facilities at reduced rates and higher production costs (primarily raw materials) and a two per cent increase in TiO2 sales volumes.
Kronos’ income from operations in both the second quarter and first six months of 2024 includes a charge of approximately US$2 million related to workforce reductions and approximately US$10 million in non-cash charges primarily related to accelerated depreciation in connection with the closure of its sulfate process line in Canada in the second quarter of 2024.
Kronos operated its production facilities at overall average capacities of 87 per cent of practical capacity utilisation in the first six months of 2025 (93 per cent and 81 per cent in the first and second quarters of 2025, respectively) compared to 93 per cent in the first six months of 2024 (87 per cent and 99 per cent in the first and second quarters of 2024, respectively).
Fluctuations in currency exchange rates (primarily the euro) increased Kronos’ income from operations by approximately US$14 million in the second quarter of 2025 and approximately US$9 million in the first six months of 2025 as compared to the same prior year periods.