NL Industries: A Tale of Two Subsidiaries in Fiscal 2025

NL Industries posted a $37.8M net loss for 2025, driven by Kronos Worldwide's struggles, while CompX International remained profitable. The dividend was maintained.

NL Industries has reported its financial results for the challenging 2025 fiscal year, revealing a performance defined by starkly contrasting contributions from its two main holdings. The company’s overall net loss of $37.8 million underscores a difficult period, with investors now awaiting first-quarter 2026 figures for signs of a turnaround.

Subsidiary Performance Drives Holding Company Results

As a holding company, NL Industries’ fortunes are directly tied to its subsidiaries. The final quarter of 2025 highlighted a dramatic divergence in their operational health. Kronos Worldwide, a major producer of titanium dioxide pigments, reported a substantial operating loss of $63.1 million for the quarter. This result was the primary driver behind the parent company's full-year net loss.

Providing a counterbalance, CompX International—which manufactures security products and marine components—posted a segment profit of $5.6 million in the fourth quarter, demonstrating resilience. Beyond Kronos's operational challenges, NL Industries’ annual results were also affected by one-time items, including the termination of a pension plan and losses on its marketable securities portfolio.

Dividend Maintained Amid Market Pressure

Despite closing the year in the red, NL Industries’ board has continued its commitment to returning capital to shareholders. A quarterly cash dividend of $0.10 per share was distributed as recently as Thursday, March 26. On the markets, the stock has faced recent headwinds. Shares closed at $5.77 this past Friday, marking a daily decline of approximately three percent. This price level sits about twelve percent below the stock’s 52-week high, which was reached in January.

All Eyes on the First Quarter Report

The investment community is anticipating the next significant catalyst for the stock in early to mid-May 2026. At that time, NL Industries will release its financial report for the first quarter of the new fiscal year. Market participants will scrutinize the data for clear signals on two key fronts: whether the difficult conditions in the pigment sector have eased for Kronos Worldwide, and if CompX International can sustain its profitable trajectory. These insights will be crucial for assessing the holding company's capacity to move past the losses of the previous year.