NL Industries | 10-Q: FY2025 Q3 Revenue: USD 39.95 M

Revenue: As of FY2025 Q3, the actual value is USD 39.95 M.

EPS: As of FY2025 Q3, the actual value is USD -0.16.

EBIT: As of FY2025 Q3, the actual value is USD -135 K.

CompX International Inc.

Segment Profit

• CompX’s segment profit in Q3 2025 was $4.8 million, up from $3.3 million in Q3 2024, and $17.0 million for the first nine months of 2025, up from $12.1 million in the same period of 2024. This increase was due to higher sales and gross margin in both Security Products and Marine Components.

Net Sales

• Net sales increased by $6.4 million in Q3 2025 and $13.1 million for the first nine months of 2025 compared to the same periods in 2024, driven by higher sales in Security Products to the government security market and Marine Components to various markets.

Cost of Sales and Gross Margin

• Cost of sales as a percentage of sales increased by 0.5% in Q3 2025 compared to Q3 2024, while gross margin as a percentage of net sales decreased. For the first nine months of 2025, cost of sales as a percentage of net sales improved by 1.7% compared to the same period in 2024, leading to an increase in gross margin percentage.

Selling, General and Administrative Expenses

• These expenses were comparable in Q3 2025 to Q3 2024 but increased by $0.9 million for the first nine months of 2025 compared to the same period in 2024, primarily due to higher employee-related costs.

Kronos Worldwide, Inc.

Net Sales

• Kronos’ net sales in Q3 2025 decreased by 6% compared to Q3 2024, primarily due to a 7% decrease in average TiO2 selling prices and a 3% decrease in sales volumes. For the first nine months of 2025, net sales decreased by 2% compared to the same period in 2024.

Cost of Sales and Gross Margin

• Cost of sales increased by 7% in Q3 2025 compared to Q3 2024, primarily due to unfavorable fixed cost absorption and higher cost inventory. Gross margin as a percentage of net sales decreased to 10% in Q3 2025 from 21% in Q3 2024. For the first nine months of 2025, cost of sales increased by 3% compared to the same period in 2024, with gross margin decreasing to 15% from 19%.

Income (Loss) from Operations

• Income from operations decreased by $58.1 million to a loss of $19.2 million in Q3 2025 compared to income of $38.9 million in Q3 2024. For the first nine months of 2025, income from operations decreased by $67.7 million to $26.6 million compared to $94.3 million in the same period of 2024.

Outlook

• CompX expects Security Products net sales in 2025 to improve over 2024, primarily due to higher sales to the government security market, though softness in other markets may offset these gains. Marine Components net sales are expected to increase in 2025 due to higher expected sales to the government and industrial markets. Kronos anticipates lower operating results for the full year of 2025 compared to 2024 due to weaker demand, continued pricing pressure, and lower fixed cost absorption.