Executive Summary

Q1 2025 EPS was $0.59, up from $0.27 YoY, driven by stronger Chemicals segment operating results; total net sales were $538.6M vs $530.6M YoY .
Chemicals segment net sales increased 2% to $489.8M and operating income rose to $41.2M (from $22.8M), supported by higher sales/production volumes, +2% YoY TiO2 pricing, and lower per-ton production costs; capacity utilization reached 93% vs 87% in Q1 2024 .
Average TiO2 selling prices declined 3% during Q1 due to regional market pressure and less favorable mix; FX reduced Chemicals net sales by ~$11M and operating income by ~$5M YoY .
EPS missed the S&P Global consensus of $0.655 by $0.065; revenue consensus was unavailable; dividend maintained at $0.08 per share (declared March 6 and May 22) providing income support . EPS consensus value from S&P Global*.

What Went Well and What Went Wrong

“Operating income increased… due to higher sales and production volumes, higher average TiO2 selling prices and decreases in per metric ton production costs” in Chemicals; operating income rose to $41.2M from $22.8M .
“TiO2 production volumes were 18% higher… facilities operated at overall average capacities of 93% vs 87%” indicating strong throughput and cost absorption .
Component Products net sales rose to $40.3M (from $38.0M) and operating income increased to $5.9M (from $3.7M), led by marine components strength and improved gross margin .

“Average TiO2 selling prices declined 3% during the first quarter of 2025 due to market pressure… and less favorable product sales mix,” partially offsetting volume gains .
Real Estate net sales fell to $8.5M (from $13.8M) as development pace slowed due to delays in city permits and environmental approvals, pressuring segment revenue recognition .
Interest expense increased $1.9M YoY, reflecting higher debt levels post Chemicals segment financings and the LPC acquisition; interest income and other fell $1.4M on lower rates and cash balances .

Metric	Q1 2024	Q4 2024	Q1 2025
Revenue ($USD Millions)	$530.6	$480.9	$538.6
Basic & Diluted EPS ($USD)	$0.27	$0.80	$0.59
Operating Income ($USD Millions)	$31.5	$56.7	$50.1
Operating Margin (%)	5.9%	11.8%	9.3%
Income Before Taxes ($USD Millions)	$18.0	$68.7	$30.8
Income Tax Expense ($USD Millions)	$4.4	$36.3	$8.0
Net Income ($USD Millions)	$13.6	$32.4	$22.8
Net Income Attributable to Valhi ($USD Millions)	$7.8	$22.8	$16.9
Weighted Avg Shares (Millions)	28.5	28.5	28.5

Consensus vs Actual (Q1 2025):

Metric	Consensus	Actual	Beat/Miss
Primary EPS ($USD)	$0.655*	$0.59	Miss by $0.065*
Revenue ($USD Millions)	N/A*	$538.6	N/A*
EBITDA ($USD Millions)	N/A*	$58.6*	N/A*

Values retrieved from S&P Global*.

Segment	Q1 2024 Net Sales ($MM)	Q1 2025 Net Sales ($MM)	YoY Change	Q1 2024 Op Inc ($MM)	Q1 2025 Op Inc ($MM)	YoY Change
Chemicals	$478.8	$489.8	+2%	$22.8	$41.2	+$18.4
Component Products	$38.0	$40.3	+$2.3	$3.7	$5.9	+$2.2
Real Estate Mgmt & Dev	$13.8	$8.5	-$5.3	$5.0	$3.0	-$2.0

KPI	Q1 2025
TiO2 average selling price YoY change	+2%
TiO2 average selling price change during quarter	-3%
TiO2 production volumes YoY change	+18%
Capacity utilization (Chemicals)	93% (vs 87% LY)
FX impact on Chemicals net sales	-$11M YoY
FX impact on Chemicals operating income	-$5M YoY
Interest expense change YoY	+$1.9M

Metric	Period	Previous Guidance	Current Guidance	Change
Quarterly Dividend per Share	Payable Jun 26, 2025	$0.08 (declared Mar 6, 2025)	$0.08 (declared May 22, 2025)	Maintained

No quantitative revenue/margin/OpEx/OI&E/tax rate guidance was provided in Q1 materials .

No Q1 2025 earnings call transcript was available in the document set. Themes below reflect press releases for Q3 2024, Q4 2024, and Q1 2025.

Topic	Previous Mentions (Q3 2024)	Previous Mentions (Q4 2024)	Current Period (Q1 2025)	Trend
TiO2 pricing	Avg prices -1% YoY; started 2024 ~13% below 2023; gradual increase through 9M	Avg prices +2% YoY in Q4; full-year -5%	Avg prices +2% YoY but -3% within Q1 due to market pressure/mix	Mixed (short-term down, YoY up)
Volume/Capacity	TiO2 sales volumes +21% YoY; production +37%; 93% utilization 9M	Strong production; 96% full-year utilization; unabsorbed fixed costs drastically lower	TiO2 production +18% YoY; facilities at 93% vs 87% LY	Improving utilization; strong volumes
FX impact	Minor in Q3; ~neutral	Nominal Q4; +$5M full-year net sales	-$11M net sales; -$5M op income YoY in Q1	Deteriorating in Q1
Component Products demand	Lower sales on gov’t security pilot ending; towboat softness	Q4 sales down vs LY; mixed gross margin by unit	Sales/op income up on marine demand; gov’t security market helped	Stabilizing/improving mix
Real Estate development pace	Lower due to permit/environmental delays; revenue recognized over time	Increased activity in Q4 with materials receipt; still lower full-year sales	Lower Q1 sales on delayed permits/environmental approvals	Mixed; Q1 softer again
Financing/Interest	Higher interest expense from refinancing and LPC acquisition	Interest expense notably higher from new debt and LPC; write-off of fees	Interest expense +$1.9M YoY; rates/debt levels higher	Higher cost of capital persists

Chemicals performance: “Operating income increased… due to higher sales and production volumes, higher average TiO2 selling prices and decreases in per metric ton production costs” .
Pricing dynamics: “Average TiO2 selling prices declined 3% during the first quarter of 2025 due to market pressure in certain regions and a less favorable product sales mix” .
Operational throughput: “TiO2 production volumes were 18% higher… operated… at 93% and 87% in the first quarters of 2025 and 2024, respectively” .
Component Products: “Net sales increased… due to higher marine components sales… and… higher security products sales primarily to the government security market” .
Real Estate: Development pace “decreased… due to delays in obtaining city permits and environmental approvals” .

No Q1 2025 earnings call transcript was available in the results set; therefore no Q&A themes or guidance clarifications could be extracted.

EPS: Actual $0.59 vs S&P Global consensus $0.655; a miss of $0.065. Only one EPS estimate in coverage for the quarter, limiting the robustness of consensus*.
Revenue and EBITDA consensus were unavailable; S&P Global shows actual revenue $538.6M and EBITDA $58.6M, but no corresponding consensus values*.

Values retrieved from S&P Global*.

Chemicals segment momentum remains the core driver: volumes and utilization are strong, cost per ton fell, and operating income nearly doubled YoY; watch near-term price pressure (-3% intra-quarter) and FX headwinds .
EPS growth YoY was solid, but the quarter missed the limited consensus estimate, which may temper near-term sentiment; monitor pricing mix normalization and FX stabilization . EPS consensus value from S&P Global*.
Component Products showed improvement with marine demand and government security orders; sustainability of demand and margin recovery into 2H are key .
Real Estate revenue recognition will ebb and flow with permitting and environmental approvals; Q1 softness underscores timing risk in the segment .
Interest expense is trending higher due to 2024 financing and LPC acquisition; consider earnings sensitivity to rate moves and leverage profile .
Dividend maintained at $0.08, supporting yield while operational execution continues in Chemicals; stability of cash generation is critical for payout continuity .
Medium-term, the full consolidation of LPC provides operating leverage and potential synergies; focus on pricing discipline, mix, and regional demand trends to sustain margin trajectory .