Valhi Raises Net Sales to $589.0 Million in Third Quarter of 2026
Key Facts
Valhi reported third-quarter 2026 results on November 5, posting net sales of $589.0 million, compared with $503.5 million in the same period of 2025. The company said the year-over-year improvement in net income was driven mainly by higher operating income in the chemicals segment. This partly offset lower operating income in the real estate management and development segment. The results put the two segments on diverging paths during the quarter. The company had previously said it expected to release results after the market close on Thursday, November 5, subject to completion of closing procedures.
The chemicals segment posted sales of $541.1 million for the quarter, up $84.2 million, or 18%, from the third quarter of 2025. Valhi attributed the increase to market-share gains in Europe and North America, along with anti-dumping duties and changing supply conditions. Higher average titanium dioxide prices also supported sales. Selling prices for the material rose 5% year over year in the third quarter, despite a 1% decline in the average price during the first nine months compared with the same period of 2025. The difference in direction shows that the price improvement was more pronounced in the quarter than in the year-to-date average.
The chemicals segment returned to operating income of $60.5 million in the third quarter of 2026, after posting an operating loss of $15.9 million in the same period of 2025. The company said higher sales and production volumes contributed to the improvement, along with lower raw-material costs and costs associated with cost-reduction initiatives. Energy, distribution and currency costs, by contrast, limited the gains. Foreign-exchange movements, particularly the euro, reduced the segment’s operating income by about $5 million in the quarter compared with the same period a year earlier. The negative currency impact was about $23 million in the first nine months of 2026 on a year-over-year basis.
Sales in the real estate management and development segment fell to $3.9 million in the third quarter from $6.6 million in the same period of 2025. The company linked the lower activity to a slowdown in residential lot development as work neared completion. Valhi said revenue from residential land sales is generally recognized over time using a cost-input method, tying revenue to spending on development work. The company recorded the sale of its last commercial tract for $7.3 million in the first quarter of 2026. In the first nine months, tax-related infrastructure reimbursements totaled $16.7 million, compared with $34.2 million in the same period of 2025.
In the component products segment, operating income rose to $6.4 million in the third quarter of 2026 from $4.8 million in the same period of 2025. The company attributed the improvement to higher sales and gross margins at its security products and marine components units. In cash flow, operating activities provided $71.7 million in the first nine months of 2026, compared with cash used of $136.1 million in the same period of 2025. The comparison reflects an improvement in cash generated from operations during the period, alongside the operational improvement in the chemicals segment. The November 5 release after the market close was the timing the company had previously set for its third-quarter results.