VHI earnings analysis
What we found in VHI's 10-Q: the parts that mattered, the offsets in the same document, and what the company said about what comes next.
Our reading of the filing · Free to read, no account needed
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.
The parts that mattered.
Pulled out of the filing itself, with the figures the company reported.
- Revenue Decline Year-over-Year
- Total revenue decreased to $489.8 million from $509.8 million in Q1 2025, representing a 4% decline.
- Drop in Gross Margin
- Gross margin percentage fell to 16% in Q1 2026, down from 22% in the same quarter last year.
- 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%.
- 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.
- Inventory Management Improvement
- Chemicals segment's cost of sales per metric ton decreased, showing improvement due to cost reduction initiatives.
- 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.
And the other side of it.
The offsets in the same document — the things a summary that only listed the good news would have left out.
- Continued Margin Pressure
- The Chemicals segment's gross margin decreased to 16% due to lower average TiO2 selling prices, down 6% from Q1 2025.
- Liquidity Concerns
- Operating cash flow remains negative with $46.1 million used in Q1 2026, raising liquidity concerns.
- 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.
What they reported.
What the company itself reported, taken out of the document.
- Earnings per share
- $0.07
- Gross margin
- 16%
- Segment
- Chemicals
- Segment
- Component Products
- Segment
- Real Estate Management and Development
What they said about what is next.
Forward guidance remains deferred to future earnings calls.
The filing reads worse than the one before it.
What came before.
- 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,…
- 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. Read the original on SEC.gov · Educational only. Nothing here is investment advice.
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