Valhi Inc.: Q3 FY2026 earnings call

What management said about Q3 FY2026, from the documents filed with the SEC on 5 November 2026: press release. The quarter’s numbers.

Read the filing

Key takeaways

• Third-quarter net income turned positive: Net income for the third quarter was $30.2 million, or $1.06 per share, against a $22.2 million loss, or $.78 per share, a year earlier. Source
• Chemicals net sales rose 18%: Chemicals net sales were $541.1 million in the third quarter, up $84.2 million, or 18%, from a year earlier. Source
• Market share gains and anti-dumping duties: Management tied the sales increase to market share gains in Europe and North America, to anti-dumping duties still in effect in some markets, and to changing supply conditions. Source
• Chemicals operating income turned to profit: Chemicals operating income was $60.5 million in the third quarter, against a $15.9 million loss a year earlier. Source
• Land sales fell as development slowed: Real Estate Management and Development net sales were $3.9 million in the third quarter, against $6.6 million a year earlier, as development of previously sold parcels slowed. Source
• Feedstock and production costs fell: Lower feedstock costs and lower production costs, tied to cost reduction initiatives from the fourth quarter of 2025, supported Chemicals operating income. Source
• Deferred tax benefit from §987 proposal: The third quarter includes a non-cash deferred income tax benefit of $12.1 million, or $.28 per share after noncontrolling interest, tied to proposed §987 currency regulations. Source

“Throughout this period, our Chemicals Segment successfully implemented price increases and surcharges in response to rising operating costs, including energy and distribution costs.”

Valhi Inc., press release

What changed from last quarter

• New: The company's description of its component products now includes custom fabricated metal parts. The previous release listed only security products and recreational marine components. Source

Results and net income

• Third-quarter net income turned positive: Net income for the third quarter was $30.2 million, or $1.06 per share, against a $22.2 million loss, or $.78 per share, a year earlier. Source
• Chemicals income drove the increase: Management attributed the third-quarter increase primarily to higher Chemicals operating income, partly offset by lower Real Estate Management and Development operating income. Source
• Nine-month results reversed prior-year loss: For the first nine months, net income attributable to Valhi stockholders was $54.5 million, or $1.91 per share, compared with a net loss of $4.4 million, or $.15 per share, a year earlier. Source

Chemicals sales and operating income

• Chemicals net sales rose 18%: Chemicals net sales were $541.1 million in the third quarter, up $84.2 million, or 18%, from a year earlier. Source
• Market share gains and anti-dumping duties: Management tied the sales increase to market share gains in Europe and North America, to anti-dumping duties still in effect in some markets, and to changing supply conditions. Source
• Chemicals operating income turned to profit: Chemicals operating income was $60.5 million in the third quarter, against a $15.9 million loss a year earlier. Source
• Volumes and lower unit costs lifted income: Higher sales volumes and higher production rates, which reduced unabsorbed fixed production costs, drove the increase in Chemicals operating income. Source
• Currency reduced Chemicals operating income: Currency movements, mainly the euro, reduced Chemicals operating income by about $5 million in the third quarter against the prior-year quarter. Source

“Land sales revenue is generally recognized over time based on cost inputs, and land sales revenues are dependent on spending for development activities.”

Valhi Inc., press release

Pricing and currency effects

• Nine-month TiO2 prices fell 1%: Average TiO2 selling prices for the first nine months were 1% lower than in the same period of 2025. Source
• Prices began 2026 lower, then rose: Prices began 2026 below the level at the start of 2025 and rose 11% during the first nine months of 2026. Source
• Currency added to nine-month sales: Changes in currency exchange rates, primarily the euro, are estimated to have increased Chemicals net sales by about $39 million in the first nine months. Source

Component Products segment

• Component net sales rose to $44.0 million: Component Products net sales were $44.0 million in the third quarter, up from $40.0 million a year earlier. Source
• Marine and security sales grew: Higher marine components sales to the towboat and industrial markets drove the increase, with a smaller contribution from security products sales to healthcare and tool storage. Source
• Component operating income rose: Operating income attributable to the Component Products Segment was $6.4 million in the third quarter, against $4.8 million a year earlier. Source

Real Estate Management and Development

• Land sales fell as development slowed: Real Estate Management and Development net sales were $3.9 million in the third quarter, against $6.6 million a year earlier, as development of previously sold parcels slowed. Source
• Final commercial parcel sold in first quarter: The final commercial parcel was sold for $7.3 million in the first quarter, with no further development obligations, so it was recognized as revenue immediately. Source
• Tax increment reimbursements declined: Tax increment infrastructure reimbursements were $16.7 million in the first nine months, or $.30 per share after tax and noncontrolling interest. Source
• Office building sold in second quarter: The segment sold the office building it used in operations in the second quarter, recognizing a gain of about $5.8 million, or $.10 per share after tax. Source

Costs, interest and expenses

• Feedstock and production costs fell: Lower feedstock costs and lower production costs, tied to cost reduction initiatives from the fourth quarter of 2025, supported Chemicals operating income. Source
• Energy and distribution costs rose: Higher energy and distribution costs partly offset the gains in Chemicals operating income. Source
• Corporate expenses fell in the quarter: Corporate expenses were 13% lower in the third quarter, mainly on lower general and administrative costs, partly offset by higher environmental remediation costs. Source
• Quarter interest expense declined: Interest expense fell $1.1 million in the third quarter, mainly on lower average debt balances. Source
• Nine-month interest expense rose: Interest expense rose $1.3 million in the first nine months, mainly on higher average interest rates. Source

Tax items

• Deferred tax benefit from §987 proposal: The third quarter includes a non-cash deferred income tax benefit of $12.1 million, or $.28 per share after noncontrolling interest, tied to proposed §987 currency regulations. Source
• Prior-year German deferred tax charge: In 2025, a $19.3 million non-cash deferred tax expense reduced the net German deferred tax asset after German legislation enacted in the third quarter of 2025. Source

Coming up, as management said on 5 November 2026

• Land development nearing completion: Management said the segment nears completion of its development work, so land sales depend on remaining development spending. Source

Figures management reported

Risks management discussed

• External: Euro-related currency movements reduced Chemicals operating income by about $23 million in the first nine months. Source
• Operational: Pace of land development depends on city permits, Nevada environmental approvals, and the availability of labor and materials. Source
• Regulatory: An uncertain tax position tied to a German tax audit was recognized, adding $2.0 million of income tax expense in the first nine months. Source

Earlier plans management reported on

• Not stated: The company said the fourth-quarter 2025 cost reduction initiatives were designed to permanently improve the Chemicals cost structure and efficiency.

Other quarters

• Q2 FY2026 earnings call
• Q1 FY2026 earnings call
• Q4 FY2025 earnings call
• Q3 FY2025 results

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.