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NLI Holdings, Inc.: Q1 FY2026 earnings call

What management said about Q1 FY2026, from the documents filed with the SEC on 6 May 2026: press release. The quarter’s numbers.

Key takeaways

  • Net income rose to $4.3 million: NL net income attributable to its stockholders was $4.3 million, or $.09 per share, against $.7 million, or $.01 per share, in the first quarter of 2025. Source
  • Securities gain versus prior-year loss: Marketable equity securities produced an unrealized gain of $2.7 million, compared with an $8.5 million unrealized loss a year earlier. Source
  • CompX segment profit increased: CompX segment profit was $7.1 million, up from $5.9 million a year earlier. Source
  • Kronos net sales rose 4%: Kronos net sales were $509.8 million, up $20.0 million or 4% on the first quarter of 2025. Source
  • TiO 2 prices rose 2%: Average TiO 2 selling prices rose 2% during the first quarter of 2026. Source
  • Kronos operating income fell: Kronos income from operations was $12.6 million, compared with $38.4 million in the first quarter of 2025. Source

“Kronos started 2026 with average TiO 2 selling prices lower than at the beginning of 2025”

NLI Holdings, Inc., press release

Net income and equity results

  • Net income rose to $4.3 million: NL net income attributable to its stockholders was $4.3 million, or $.09 per share, against $.7 million, or $.01 per share, in the first quarter of 2025. Source
  • Securities gain versus prior-year loss: Marketable equity securities produced an unrealized gain of $2.7 million, compared with an $8.5 million unrealized loss a year earlier. Source
  • Kronos equity result swung to loss: NL recorded equity in Kronos losses of $1.5 million, compared with $5.5 million of equity in Kronos earnings in the first quarter of 2025. Source

CompX segment results

  • CompX sales edged up: CompX net sales were $40.6 million against $40.3 million. Marine Components sales to industrial customers rose, while Security Products sales fell. Source
  • CompX segment profit increased: CompX segment profit was $7.1 million, up from $5.9 million a year earlier. Source
  • Security Products mix lifted margin: The company attributed the profit increase mainly to Security Products gross margin from customer and product mix, with Marine Components sales adding to profit to a lesser extent. Source

“which were designed to permanently improve Kronos’ cost structure and enable more efficient operation of its facilities at lower production rates for extended periods”

NLI Holdings, Inc., press release

Kronos sales drivers

  • Kronos net sales rose 4%: Kronos net sales were $509.8 million, up $20.0 million or 4% on the first quarter of 2025. Source
  • Volume gains in three regions: Higher sales volumes in North America, Latin America and export markets were the primary cited driver of the sales increase. Source
  • Currency added about $30 million: Changes in currency rates, mainly the euro, increased Kronos net sales by about $30 million, by its estimate. Source

Europe, pricing and cost actions

  • European volumes fell: Lower sales volumes in Europe partly offset the sales gains. Source
  • TiO 2 prices rose 2%: Average TiO 2 selling prices rose 2% during the first quarter of 2026. Source
  • Cost initiatives aided production costs: Lower production costs benefited partly from cost reduction initiatives implemented in Q4 2025, including workforce reductions and other measures. Source

Kronos operating income

  • Kronos operating income fell: Kronos income from operations was $12.6 million, compared with $38.4 million in the first quarter of 2025. Source
  • Lower prices and volumes weighed: The company primarily attributed the decline to lower average TiO 2 selling prices and lower production volumes. Source
  • Currency cut operating income: Currency fluctuations, mainly the euro, reduced Kronos income from operations by about $6 million in the quarter. Source

Corporate, interest and production costs

  • Production costs partly offset declines: Lower production costs partly offset the decline in Kronos operating income. Source
  • Corporate expenses rose slightly: Corporate expenses increased slightly, mainly on higher general and administrative expenses. Source
  • Interest and dividend income declined: Interest and dividend income fell $.7 million, reflecting lower average investment balances and lower average interest rates. Source

Figures management reported

FigureReported
TiO 2 sales volume change Source4 %
TiO 2 product pricing change Source(6)

Risks management discussed

  • Operational: Lower production volumes weighed on Kronos operating income in the quarter. Source
  • Demand: Lower sales volumes in the European market partly offset sales gains. Source
  • External: Currency fluctuations, mainly the euro, reduced Kronos income from operations by about $6 million. Source

Earlier plans management reported on

  • Not stated: Kronos is working to recover pricing lost during 2025. The release gives no timeline or status for this work. Source

Other quarters

Summarised with AI from the documents the company filed with the SEC. Every point is checked against the filing before it is shown: management’s own words word for word, figures against the line or table row they come from. A point that fails the check is left out. Source opens the filing at that line.