NL Industries Inc Q2 2025 Earnings: EPS at $0.01, CompX Sales Growth Amidst Challenges

NL Industries Inc reported Q2 2025 earnings with EPS at $0.01, a decline from $0.16 in Q2 2024. Net income attributable to stockholders was $0.3 million, down from $7.9 million. CompX, a subsidiary, saw net sales increase to $40.3 million, up from $35.9 million in the previous year, driven by higher sales in Security Products and Marine Components. Kronos, a significant contributor, faced a 1% decrease in net sales to $494.4 million, primarily due to lower TiO2 selling prices and reduced sales volumes in export markets.

NL Industries Inc. (NYSE: NL) reported its second quarter 2025 earnings today, revealing a significant decline in net income and earnings per share (EPS). The company's net income attributable to NL stockholders for the quarter was $0.3 million, a 96% drop from $7.9 million in the second quarter of 2024 [1]. GAAP earnings per share fell sharply to $0.01, missing GAAP analyst estimates by 94.7% and down from $0.16 (GAAP) in Q2 2024 [2].

The primary driver of the earnings decline was the company's equity investment in Kronos Worldwide, which swung from $6.0 million in earnings to $2.8 million in losses. Kronos, a significant contributor to NL Industries, faced a 1% decrease in net sales to $494.4 million, primarily due to lower TiO2 selling prices and reduced sales volumes in export markets [1]. The company's chemicals business, focusing on TiO2 production, faced significant challenges, with a 79.4% decline in operating income, dropping to $7.4 million from $35.9 million in Q2 2024 [1].

In contrast, the company's CompX subsidiary saw net sales increase to $40.3 million, up from $35.9 million in the previous year, driven by higher sales in Security Products and Marine Components. The CompX segment profit jumped 23.5% to $6.3 million [1].

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 [1]. 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 [1].

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 [1].

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://www.ainvest.com/news/nl-industries-q2-profit-falls-0-3mln-7-9mln-yoy-2508/
[2] https://www.nasdaq.com/articles/nl-industries-nl-q2-eps-drops-94