Valhi posts $60.5 million in chemicals operating income after a loss last year
Key Facts
Valhi said on November 5, 2026, that its chemicals segment generated operating income of $60.5 million in the third quarter, compared with an operating loss of $15.9 million in the same period of 2025. The company’s net sales rose to $589.0 million from $503.5 million, according to its results statement. The chemicals segment’s improved operating income came despite lower income from the real estate management and development segment. The company said higher sales and production volumes and lower material and production costs supported performance. Valhi shares closed at $16.22 on November 9, according to EL7 data.
Chemicals segment sales were $541.1 million, up $84.2 million, or 18%, year over year. The company attributed the increase to market-share gains in Europe and North America, the effect of anti-dumping duties in force in some markets, changing supply conditions and higher average selling prices. Titanium dioxide sales volumes also rose 14% compared with the third quarter of 2025, while its average price increased 5%. Valhi said higher volumes and production rates reduced unabsorbed fixed costs. It added that lower raw material costs, particularly feedstock costs, and production costs supported operating income, with lower production costs primarily reflecting cost-reduction initiatives implemented in the fourth quarter of 2025.
Currency movements limited the impact of the operating improvement. Valhi said exchange-rate volatility, particularly in the euro, reduced chemicals segment operating income by about $5 million in the third quarter compared with the corresponding period of 2025. For the first nine months, the negative impact was about $23 million. From January through September 2026, segment sales were $1.6 billion, up $167.9 million, or 12%, from the corresponding period of 2025. The segment’s operating income for the nine months rose to $115.4 million from $35.6 million. The company’s figures indicate that the improvement extended across the segment’s performance through the end of September, despite the cost of currency movements.
By contrast, sales in the real estate management and development segment fell to $3.9 million in the third quarter of 2026 from $6.6 million a year earlier. The company attributed the decline to slower land development activity as work neared completion. For the first nine months, segment sales were $18.0 million, compared with $20.8 million in the same period of 2025. Valhi said the segment’s lower operating income was linked to the winding down of development activity. The decline partially offset the improvement in chemicals in the group’s results, according to the company’s statement.
Valhi expects consolidated operating income in 2026 to be above its 2025 level. The company attributes this mainly to improved operating income in the chemicals segment, driven by higher sales volumes and lower operating costs. In contrast, it expects income from the real estate management and development segment to decline as development activity falls. On November 5, the company announced a quarterly cash dividend of $0.08 per share. The dividend is payable on December 17 to shareholders of record at the close of business on November 19, 2026.