NLI Restores Kronos Equity Earnings After a Year-Ago Loss

The Tip Desk · August 5, 2026 · 3 min read

Net income attributable to NLI stockholders was $9.0 million, or $.18 a share, in the second quarter of 2026.

NLI Holdings, Inc. (NL) reported net income attributable to NLI stockholders of $9.0 million, or $0.18 a share, in the second quarter of 2026, compared with $0.3 million, or $0.01 a share, a year earlier.

The Dallas-based company, which operates component products and titanium dioxide chemicals, swung to $4.6 million in equity earnings of Kronos Worldwide from equity losses of $2.8 million in the year-ago quarter. That reversal, together with higher CompX profit, lifted income from operations to $6.1 million from $2.8 million.

Kronos, the titanium dioxide producer in which NLI holds an equity stake, posted net sales of $558.1 million, $63.7 million, or 13%, higher than in the second quarter of 2025. The increase came primarily from market share gains across all markets and from currency, mainly the euro, which Kronos estimated added about $10 million to sales. Those gains were partly offset by lower average TiO2 selling prices and by weaker prices and volumes in Kronos’ complementary businesses.

A percentage bridge in the release attributed the 13% sales increase to a 16% rise in TiO2 sales volume, a 3% drag from TiO2 product pricing, a 2% drag from mix and other items, and a 2% lift from currency.

Kronos’ income from operations was $37.6 million, compared with $7.4 million a year earlier. The increase came primarily from higher sales volumes, lower production costs including lower raw material costs (primarily feedstock) and lower unabsorbed fixed costs, and from cost-reduction initiatives Kronos implemented in the fourth quarter of 2025. Those items were partly offset by lower average TiO2 selling prices and by currency, which decreased Kronos’ income from operations by approximately $12 million versus the year-ago quarter.

Kronos started 2026 with average TiO2 selling prices lower than at the beginning of 2025. Average TiO2 selling prices increased 4% during the first six months of 2026. In the second quarter, Kronos announced and implemented various price increases and surcharges in response to higher operating costs.

CompX, the component-products business covering security products and recreational marine components, recorded net sales of $43.6 million, compared with $40.3 million a year earlier. The increase was driven by higher Security Products sales across healthcare, transportation, tool storage and distributor markets and higher Marine Components sales to the industrial market. CompX segment profit was $8.9 million, compared with $6.3 million, reflecting higher sales and gross margin predominantly at Security Products and, to a lesser extent, Marine Components.

Consolidated gross margin was $15.5 million, compared with $12.9 million. Corporate expenses were $2.8 million, down $0.7 million from a year earlier, primarily due to lower environmental remediation and related costs. Interest and dividend income was $1.2 million, compared with $1.5 million, reflecting lower average interest rates and decreased cash balances.

Results included an unrealized gain of $0.5 million on marketable equity securities, compared with an unrealized loss of $0.1 million a year earlier. Income before income taxes was $12.4 million, compared with $1.0 million. Income tax expense was $2.5 million, compared with zero.

The board declared a quarterly dividend of $0.10 a share for the third quarter of 2026, payable September 22, 2026, to stockholders of record September 3, 2026.