NL Industries Q2 profit falls to $0.3mln, down from $7.9mln YoY.

• NL Industries Q2 2025 net income at $0.3 million, down from $7.9 million in Q2 2024. • Unrealized loss of $0.1 million in Q2 2025, compared to $0.8 million gain in Q2 2024. • Six-month net income at $1.0 million, down from $14.7 million in 2024. • Unrealized loss of $8.6 million in six-month period.

NL Industries, Inc. (NYSE: NL) reported its second quarter 2025 earnings today, showing a significant decline in net income compared to the same period last year. The company announced its earnings release date on July 2, 2025, and investors are encouraged to stay tuned for the subsequent conference call [1].

The company's net income attributable to NL stockholders for the second quarter of 2025 was $0.3 million, a 96% drop from $7.9 million in the second quarter of 2024. This decline was primarily driven by the company's equity investment in Kronos Worldwide, which swung from $6.0 million in earnings to $2.8 million in losses. The bright spot came from the CompX subsidiary, which posted a 12.3% increase in quarterly sales to $40.3 million, with segment profit jumping 23.5% to $6.3 million [3].

The company's six-month net income attributable to NL stockholders was $1.0 million, down from $14.7 million in the first six months of 2024. This period also saw an unrealized loss of $8.6 million, compared to an unrealized gain of $3.2 million in the same period last year. The company's operating income in the second quarter of 2025 was $7.4 million, a 79.4% decline from $35.9 million in the second quarter of 2024 [3].

NL Industries' component products business, including security products and recreational marine components, saw increased sales of $40.3 million in Q2 2025, up from $35.9 million in Q2 2024. This was driven by higher Security Products and Marine Components sales to government markets [3].

The company's chemicals business, focusing on TiO2 production, faced significant challenges. Kronos, a subsidiary of NL Industries, reported a 79.4% decline in operating income, dropping to $7.4 million from $35.9 million in Q2 2024. This collapse was primarily due to lower TiO2 selling prices, unfavorable fixed cost absorption, and reduced operating rates. The TiO2 market continues to face headwinds from global uncertainty related to U.S. trade policies, geopolitical tensions, and customer hesitancy to build inventories [3].

The company's interest and dividend income also decreased due to lower interest rates and reduced cash balances, further pressuring overall results. While corporate expenses decreased by $0.8 million due to lower litigation fees and environmental remediation costs, this offered minimal offset to the broader earnings deterioration [3].

NL Industries operates at 87% capacity utilization in H1 2025, down from 93% in H1 2024, indicating a slower pace of operations. The company's interest in the Louisiana Pigment Company, L.P., also played a role in the earnings decline, as the acquisition led to a change in the company's financial structure and reporting [3].

Investors should closely watch the earnings call for more detailed commentary on the company's performance and future outlook. NL Industries' stock market capitalization stands at $315.56 million, with insider ownership at 83.03% and institutional ownership at 12.58% [1].

References:
[1] https://markets.financialcontent.com/wral/article/gnwcq-2025-7-15-nl-industries-announces-expected-second-quarter-2025-earnings-release-date
[2] https://www.stocktitan.net/news/NL/nl-industries-announces-expected-second-quarter-2025-earnings-otinjutvq3bq.html
[3] https://finance.yahoo.com/news/nl-industries-announces-expected-second-201500456.html