10-K · March 10, 2026
Valhi’s 2025 Form 10-K emphasizes its Chemicals Segment (majority‑controlled Kronos) as a scale TiO2 producer with meaningful market share in Europe and North America and a broadened footprint following the July 16,…
Earnings analysis · 10-Q
VHI earnings analysis
Filed May 7, 2026 · Our reading of the company's report
The latest report
Valhi, Inc. reported a decline in revenue during Q1 2026 with total revenue at $489.8 million, down 4% from $509.8 million in Q1 2025. The company experienced a decrease in gross margin to 16% compared to 22% in the…
Read full summary
Valhi, Inc. reported a decline in revenue during Q1 2026 with total revenue at $489.8 million, down 4% from $509.8 million in Q1 2025. The company experienced a decrease in gross margin to 16% compared to 22% in the prior year, alongside a decline in diluted EPS to $0.07 from $0.59 year-over-year. Segment performance differed, with increases in the Component Products segment, while the Chemicals segment continued to face pressure from lower TiO2 prices and reduced operating income.
Gross and operating margin
How much of each revenue dollar the business keeps.
One point per quarterly or annual filing. Both margins are shares of that report's revenue.
How we read each report
Our analysis across the last few reports.
Our model's reading of each filing, not the share price or the market's reaction. Annual and quarterly reports each occupy one position.
Reported figures
- Earnings per share
- $0.07
- Gross margin
- 16%
- Segment
- Chemicals
- Segment
- Component Products
- Segment
- Real Estate Management and Development
What stood out
-
Revenue Decline Year-over-Year
Total revenue decreased to $489.8 million from $509.8 million in Q1 2025, representing a 4% decline.
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Drop in Gross Margin
Gross margin percentage fell to 16% in Q1 2026, down from 22% in the same quarter last year.
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Lower Operating Income in Chemicals
Chemicals segment operating income dropped to $14.5 million in Q1 2026 from $41.2 million in Q1 2025, a decline of 65%.
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Increased Operating Income in Component Products
Component Products segment reported an increase in operating income to $7.1 million, up from $5.9 million in Q1 2025.
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Inventory Management Improvement
Chemicals segment's cost of sales per metric ton decreased, showing improvement due to cost reduction initiatives.
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Cash Used in Operating Activities
Cash used in operating activities decreased significantly to $46.1 million, down from $155.9 million in the same period the previous year.
What to watch
-
Continued Margin Pressure
The Chemicals segment's gross margin decreased to 16% due to lower average TiO2 selling prices, down 6% from Q1 2025.
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Liquidity Concerns
Operating cash flow remains negative with $46.1 million used in Q1 2026, raising liquidity concerns.
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Increased Debt Levels and Costs
Interest expense rose to $6.5 million in Q1 2026, up from $5 million in Q1 2025, due to higher overall debt and interest rates.
Management's outlook
Forward guidance remains deferred to future earnings calls.
Earlier filings 4
10-Q · November 6, 2025
Valhi reported Q3 2025 net sales of $503.5M and a net loss attributable to Valhi stockholders of $22.2M (diluted EPS $(0.78)). Revenue, gross margin and operating income all declined materially versus the prior-year…
10-Q · August 7, 2025
Valhi reported Q2 2025 net sales of $540.4M and EPS of $0.03, with consolidated operating income falling to $35.5M from $54.8M a year earlier. The chemicals segment drove the profit decline (operating income down to…
10-K · March 6, 2025
Valhi’s 2024 Form 10-K highlights consolidation of Kronos’ formerly joint‑ventured LPC (acquired July 16, 2024 for $185 million less a working capital adjustment), a rebound in Kronos’ TiO2 production to 535,000 metric…
This is our reading of a public filing, not the filing itself. Analysis can contain errors; check the source document for full context.