NL Industries (NL) investor relations material

Executive summary

• Net income attributable to stockholders rose to $9.0M ($0.18/share) in Q2 2026 from $0.3M ($0.01/share) in Q2 2025, driven by higher segment profit, improved equity earnings from Kronos, and marketable securities gains.

• Six-month net income attributable to stockholders increased to $13.3M ($0.27/share) from $1.0M ($0.02/share) year-over-year, reflecting higher segment profit, equity earnings, and reversal of prior marketable securities losses.

Financial highlights

• Q2 2026 net sales for CompX were $43.6M, up from $40.3M in Q2 2025; six-month sales were $84.2M, up from $80.6M.

• Q2 2026 gross margin increased to $15.5M from $12.9M; six-month gross margin up to $28.8M from $25.1M.

• Income from operations in Q2 2026 was $6.1M, up from $2.8M; six-month operating income rose to $10.2M from $6.0M.

• Kronos net sales rose 13% year-over-year in Q2 2026 to $558.1M and 9% for the first six months to $1.1B.

• Kronos income from operations was $37.6M in Q2 2026, up from $7.4M in Q2 2025.

Outlook and guidance

• CompX expects full-year 2026 net sales, gross margin, and segment profit margin to exceed 2025 levels, with strong demand in healthcare, transportation, and industrial markets.

• Kronos anticipates full-year 2026 net sales, gross margin, and operating income margins to improve over 2025, supported by price increases and cost reduction initiatives.

• Kronos implemented price increases and surcharges in Q2 2026 to address higher operating costs.