Executive Summary

Q1 2025 headline EPS was $0.01 with net income attributable to NL stockholders of $0.7M, down sharply year over year due to an $8.5M unrealized loss on marketable equity securities (vs. a $2.4M unrealized gain in Q1 2024), despite stronger operating performance at CompX and higher equity earnings from Kronos .
CompX delivered solid growth: net sales rose to $40.3M from $38.0M YoY and segment profit increased to $5.9M from $3.7M, driven by Marine Components (towboat and government markets) and improved gross margin .
Kronos contributed $5.5M of equity earnings (vs. $2.5M YoY) as TiO2 demand and operating rates improved; Kronos’ Q1 net sales were $489.8M (+2% YoY) and income from operations was $38.4M (vs. $19.5M), though TiO2 prices declined 3% sequentially during Q1 amid regional pressure and mix, and FX reduced sales by ~$11M and op income by ~$5M .
Dividends remained intact: NL declared $0.09 per share on Feb 27 (paid Mar 27) and again on May 15 (payable Jun 24), underscoring capital return stability through market volatility .

What Went Well and What Went Wrong

What Went Well
- “CompX’s segment profit increased to $5.9 million in the first quarter of 2025 compared to $3.7 million in the first quarter of 2024 primarily due to higher Marine Components sales and gross margin.” (company press release) .
- “Kronos’ income from operations in the first quarter of 2025 was $38.4 million as compared to $19.5 million in the first quarter of 2024,” driven by “higher sales and production volumes, higher average TiO2 selling prices, and decreases in per metric ton production costs” (company press release) .
- “Kronos operated its production facilities at overall average capacities of 93% and 87% in the first quarters of 2025 and 2024, respectively,” with TiO2 production volumes +18% YoY (company press release) .
What Went Wrong
- Unrealized loss on marketable equity securities of $8.5M weighed on results (vs. $2.4M unrealized gain in Q1 2024), depressing EPS to $0.01 .
- TiO2 average selling prices fell 3% during Q1 2025 due to “market pressure in certain regions and less favorable product sales mix,” offsetting otherwise higher YoY pricing .
- FX was a notable headwind for Kronos: approximately $11M unfavorable impact on net sales and ~$5M unfavorable impact on income from operations in Q1 2025 ; corporate expenses at NL also rose by $0.3M YoY due to higher environmental remediation and G&A .

Financial Results

Consolidated P&L (oldest → newest)

Metric ($USD)	Q3 2024	Q4 2024	Q1 2025
Net sales ($M)	$33.6	$38.4	$40.3
Gross margin ($M)	$9.5	$11.0	$12.2
SG&A ($M)	$6.2	$6.1	$6.3
Corporate income (expense) ($M)	$(2.3)	$28.7	$(2.7)
Income from operations ($M)	$2.1	$33.7	$3.2
Equity in earnings (losses) of Kronos ($M)	$21.9	$(4.0)	$5.5
Interest & dividend income ($M)	$2.7	$3.1	$2.0
Marketable equity securities (unrealized) ($M)	$18.6	$(12.0)	$(8.5)
Net income attributable to NL stockholders ($M)	$36.0	$16.5	$0.7
Diluted EPS ($)	$0.74	$0.34	$0.01

Notes: Q4 2024 corporate income reflects a significant environmental remediation settlement gain embedded in corporate income (expense) .

Segment and Affiliate Detail

Metric ($USD)	Q3 2024	Q4 2024	Q1 2025
CompX net sales ($M)	$33.6	$38.4	$40.3
CompX segment profit ($M)	$3.3	$4.9	$5.9
Kronos net sales ($M)	$484.7	$423.1	$489.8
Kronos income from operations ($M)	$38.9	$28.6	$38.4

Selected KPIs and Drivers

KPI	Q3 2024	Q4 2024	Q1 2025
Kronos TiO2 sales volume YoY	+21%	+4%	—
Kronos TiO2 production volume YoY	+37%	—	+18%
Kronos utilization	92% (Q3)	97% (Q4)	93% (Q1)
Avg TiO2 price YoY	−1%	+2%	+2%
Avg TiO2 price seq change	—	—	−3% (Q1 2025)
FX impact on Kronos net sales	~neutral	~neutral	−$11M
FX impact on Kronos op income	+$13M	nominal	−$5M

Guidance Changes

Metric	Period	Previous Guidance	Current Guidance	Change
Dividend per share	Q1 2025 (paid Mar 27)	$0.09 (prior declaration)	$0.09	Maintained
Dividend per share	Q2 2025 (payable Jun 24)	$0.09 (Q1 declaration)	$0.09	Maintained

Note: No quantitative revenue/margin/OpEx/segment guidance disclosed in company materials for Q1 2025 .

Earnings Call Themes & Trends

Topic	Previous Mentions (Q3 2024)	Previous Mentions (Q4 2024)	Current Period (Q1 2025)	Trend
TiO2 demand/pricing	Stronger demand; net sales +22% YoY; avg price −1% YoY	Demand improved; avg price +2% YoY	Avg price +2% YoY but −3% q/q on regional pressure/mix	Stabilizing YoY, softer sequentially
Production/utilization	Higher production; first 9M 2024 at 93% utilization; Q3 at 92%	Full-year 2024 at 96%; Q4 at 97%	Q1 2025 at 93% utilization; production +18% YoY	Healthy run-rates sustained
FX/macro	FX ~neutral on sales; +$13M to op income	FX nominal impact	FX −$11M sales, −$5M op income	Headwind in Q1 2025
LPC acquisition (Kronos)	Remeasurement gain recognized; integration underway	Full-year commentary on LPC and non-cash gain	LPC included in results since July 16, 2024; ongoing	Integration ongoing
Environmental/legal	—	Large environmental remediation settlement impacted Q4	Corporate expense +$0.3M on higher environmental and G&A	Normalizing, modest cost uptick
CompX end-markets	Government security customer slowdown; Marine softer	Net sales down YoY on Security Products; Marine mixed	Marine towboat/government strength; Security gov’t demand helped	Marine recovery; gov’t demand aiding Security

Management Commentary

“CompX’s first quarter 2025 net sales increased over the comparable 2024 period due to higher Marine Components sales primarily to the towboat and government markets and to a lesser extent higher Security Products sales primarily to the government security market.” (company press release)
“Kronos’ income from operations in the first quarter of 2025 was $38.4 million as compared to $19.5 million in the first quarter of 2024,” driven by “higher sales and production volumes, higher average TiO2 selling prices, and decreases in per metric ton production costs.” (company press release)
“Kronos operated its production facilities at overall average capacities of 93% and 87% in the first quarters of 2025 and 2024, respectively.” (company press release)

Q&A Highlights

No Q1 2025 earnings call transcript was available in our document set; therefore, no Q&A highlights could be extracted for this period.

Estimates Context

S&P Global consensus for NL’s Q1 2025 EPS and revenue was not available at the time of analysis, so we cannot assess beat/miss versus Street. When consensus becomes available, the key bridge items to monitor are unrealized gains/losses on marketable securities, equity earnings from Kronos, and CompX segment profit composition .
For context, NL’s Q1 2025 EPS was $0.01 and net income attributable to stockholders was $0.7M, with a $(8.5)M unrealized loss on marketable securities materially affecting year-over-year comparability .

Key Takeaways for Investors

Core operating performance improved beneath the headline EPS: CompX segment profit rose to $5.9M on mix and margin, and Kronos operating income nearly doubled YoY; the primary EPS drag was non-operating, i.e., the $(8.5)M mark-to-market loss on marketable securities .
TiO2 backdrop is mixed: demand and utilization remain solid, but pricing dipped 3% sequentially during Q1 on regional pressure/mix; FX was a headwind to Kronos (−$11M sales, −$5M op income) .
CompX demand trends skew positive in Marine (towboat/government) with some government-related Security Products lift; watch sustainability into Q2 seasonality .
Dividend stability (two $0.09 declarations spanning Q1 and Q2) provides a floor to total return while earnings are sensitive to marketable securities valuation and Kronos cyclicality .
Near-term focus: sequential TiO2 pricing trajectory, FX trends, and Kronos operating rates; any stabilization or rebound in TiO2 pricing could be a positive catalyst for NL’s equity earnings contribution .
Medium-term: benefits from LPC integration at Kronos and ongoing cost tailwinds (raw materials, utilities) are supportive if demand holds .
Risk checks: sensitivity to commodity pricing, FX, and environmental/legal items at the holdco level; corporate expenses rose modestly on environmental and G&A in Q1 .

NL INDUSTRIES INC (NL)·Q1 2025 Earnings Summary