NLI Swings to Profit as Kronos Sales Growth Accelerates

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

Net income attributable to stockholders was $12.7 million, or $.26 a share, after a $7.8 million loss a year earlier.

NLI Holdings, Inc. (NL), a maker of security products, marine components and a chemicals business, swung to net income attributable to stockholders of $12.7 million, or $.26 a share, in the third quarter of 2026 from a $7.8 million, or $.16 a share, loss a year earlier.

The turn was driven by a sharp recovery at Kronos Worldwide, in which NLI records equity earnings. NLI recognized equity in earnings of Kronos of $10.6 million, versus equity in losses of $11.3 million a year earlier. That equity pickup more than offset a still-modest CompX contribution and lifted the company into profit.

Kronos net sales were $541.1 million, $84.2 million, or 18%, higher than in the third quarter of 2025. The company attributed the increase primarily to market-share gains in European and North American markets, reflecting anti-dumping duties that remain in effect in certain markets and changing supply conditions, and to higher average TiO2 selling prices. A sales decomposition for the quarter showed TiO2 volume up 14%, product pricing up 5%, mix/other down 1%, and no currency contribution, totaling the 18% increase.

Average TiO2 selling prices in the third quarter were 5% higher than a year earlier. Kronos said it implemented price increases and surcharges in response to rising operating costs, including energy and distribution. Kronos income from operations was $57.9 million, versus a $19.2 million loss a year earlier. The company tied the operating swing to higher sales volumes and production rates that reduced unabsorbed fixed production costs, lower raw-material costs (primarily feedstock) and lower production costs from cost-reduction initiatives implemented in the fourth quarter of 2025, partially offset by higher energy and distribution costs and currency. Currency, primarily the euro, decreased Kronos income from operations by approximately $5 million versus the year-ago quarter.

CompX net sales were $44.0 million, compared with $40.0 million a year earlier. The company said the increase was primarily due to higher Marine Components sales to the towboat and industrial markets and, to a lesser extent, higher Security Products sales to the healthcare and tool storage markets. CompX segment profit was $6.4 million, versus $4.8 million a year earlier, which the company said reflected higher sales and gross margin at Security Products and Marine Components. Gross margin was $13.0 million, versus $11.0 million a year earlier. NLI income from operations was $3.2 million, versus $1.8 million a year earlier.

Corporate expenses increased $.2 million versus the year-ago quarter, primarily due to higher environmental remediation and related costs. Interest and dividend income fell to $1.2 million from $2.1 million a year earlier due to decreased interest rates. Marketable equity securities swung to an unrealized gain of $.9 million from an unrealized loss of $.5 million a year earlier.

Third-quarter results included $3.7 million ($2.9 million, or $.06 a share, net of tax) of Kronos non-cash deferred income tax benefit related to proposed currency regulations under Section 987 released in August 2026.