Valhi (VHI) investor relations material

Executive summary

• Net income attributable to stockholders rose to $22.3M ($0.78/share) in Q2 2026 from $0.9M ($0.03/share) in Q2 2025, driven by higher operating income in all segments, especially Chemicals.

• Six-month net income attributable to stockholders increased to $24.3M ($0.85/share) from $17.8M ($0.62/share) year-over-year, reflecting broad-based segment improvements.

• Key non-recurring items: $0.21/share from tax increment infrastructure reimbursement and $0.10/share from a gain on building sale in Q2 2026.

Financial highlights

• Q2 2026 revenues rose to $627.6M from $571.5M in Q2 2025; six-month revenues increased to $1.19B from $1.11B year-over-year.

• Q2 2026 operating income was $67.7M, up from $35.5M in Q2 2025; six-month operating income reached $100.6M, up from $85.6M.

• Gross margin improved to 18% in Q2 2026 from 13% in Q2 2025; six-month gross margin stable at 17%.

• Cash provided by operating activities was $13.0M for the first six months of 2026, a $147.2M improvement over the prior year.

• Income before income taxes was $47.3M in Q2 2026, compared to $15.5M in Q2 2025.

Outlook and guidance

• Full-year 2026 consolidated operating income expected to exceed 2025, led by higher Chemicals segment results.

• Real Estate Management and Development segment operating income expected to decline as development activities wind down.

• Chemicals segment anticipates higher net sales, improved gross and operating margins, and continued benefit from cost reduction initiatives.

• Component Products segment expects full-year net sales, gross margin, and operating income margins to surpass 2025 levels.

• Management expects continued benefits from cost reduction initiatives and market share gains but notes substantial risks and uncertainties that could impact future results.