$NL

NL INDUSTRIES INC

CIK:0000072162|SEC Filings

CONDENSED CONSOLIDATED STATEMENTS OF INCOME - USD ($) shares in Thousands, $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2026	Jun. 30, 2025	Jun. 30, 2026	Jun. 30, 2025
CONDENSED CONSOLIDATED STATEMENTS OF INCOME
Net sales	$ 43,614	$ 40,366	$ 84,183	$ 80,638
Cost of sales	28,078	27,476	55,395	55,585
Gross margin	15,536	12,890	28,788	25,053
Selling, general and administrative expense	6,615	6,570	12,817	12,864
Corporate expense	2,788	3,519	5,731	6,240
Income from operations	6,133	2,801	10,240	5,949
Equity in earnings (losses) of Kronos Worldwide, Inc.	4,644	(2,811)	3,167	2,714
Other income (expense):
Interest and dividend income	1,144	1,504	2,396	3,542
Marketable equity securities	443	(108)	3,138	(8,659)
Other components of net periodic pension and OPEB cost		(285)		(570)
Interest expense	(11)	(90)	(22)	(666)
Income before income taxes	12,353	1,011	18,919	2,310
Income tax expense (benefit)	2,462	(43)	3,934	(66)
Net income	9,891	1,054	14,985	2,376
Noncontrolling interest in net income of subsidiary	937	699	1,687	1,354
Net income attributable to NLI stockholders	$ 8,954	$ 355	$ 13,298	$ 1,022
Amounts attributable to NLI stockholders:
Basic net income per share	$ 0.18	$ 0.01	$ 0.27	$ 0.02
Diluted net income per share			$ 0.27	$ 0.02
Weighted average shares used in the calculation of net income per share - basic	48,881	48,855	48,872	48,852
Weighted average shares used in the calculation of net income per share - diluted			48,872	48,852

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands	6 Months Ended
	Jun. 30, 2026	Jun. 30, 2025
Cash flows from operating activities:
Net income	$ 14,985	$ 2,376
Depreciation and amortization	1,725	1,868
Deferred income taxes	3,082	(84)
Equity in earnings of Kronos Worldwide, Inc.	(3,167)	(2,714)
Dividends received from Kronos Worldwide, Inc.	3,522	3,522
Marketable equity securities	(3,138)	8,659
Benefit plan expense greater than cash funding		621
Noncash interest expense		157
Other, net	637	268
Change in assets and liabilities:
Accounts and other receivables, net	(5,782)	6,757
Inventories, net	(1,452)	(4,664)
Prepaid expenses and other	(213)	474
Accounts payable and accrued liabilities	(2,605)	(1,155)
Accounts with affiliates	179	(73)
Accrued environmental remediation and related costs	(310)	(55,977)
Other noncurrent assets and liabilities, net	(39)	(223)
Net cash provided by (used in) operating activities	7,424	(40,188)
Cash flows from investing activities:
Capital expenditures	(1,522)	(2,165)
Note receivable from affiliate:
Collections	8,800	6,400
Loans	(7,600)	(6,000)
Other		10
Net cash used in investing activities	(322)	(1,755)
Cash flows from financing activities:
Dividends paid	(9,776)	(8,794)
Dividends paid to noncontrolling interests in subsidiary	(944)	(939)
Net cash used in financing activities	(10,720)	(9,733)
Cash and cash equivalents and restricted cash and cash equivalents - net change from:
Operating, investing and financing activities	(3,618)	(51,676)
Balance at beginning of year	114,053	184,190
Balance at end of period	110,435	132,514
Supplemental disclosures:
Cash paid for interest	21	509
Income taxes, net	586	93
Noncash investing and financing activities:
Change in accruals for capital expenditures	(23)	$ (424)
Right-of-use asset obtained in exchange for a lease liability	$ 1,014

CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands	Jun. 30, 2026	Dec. 31, 2025
Current assets:
Cash and cash equivalents	$ 106,988	$ 110,615
Restricted cash and cash equivalents	3,130	3,123
Accounts and other receivables, net	19,574	13,801
Inventories, net	31,756	30,410
Prepaid expenses and other	2,177	1,954
Total current assets	163,625	159,903
Other assets:
Note receivable from affiliate	6,800	8,000
Marketable securities	17,571	14,433
Investment in Kronos Worldwide, Inc.	230,017	230,088
Goodwill	27,156	27,156
Operating lease right-of-use asset	993
Other assets, net	928	931
Total other assets	283,465	280,608
Property and equipment:
Land	5,390	5,390
Buildings	23,634	23,634
Equipment	78,948	78,021
Construction in progress	818	477
Property and equipment, gross	108,790	107,522
Less accumulated depreciation	85,309	83,813
Net property and equipment	23,481	23,709
Total assets	470,571	464,220
Current liabilities:
Accounts payable	3,949	2,697
Accrued and other current liabilities	11,263	15,021
Accrued environmental remediation and related costs	1,951	2,071
Payables to affiliates	969	791
Total current liabilities	18,132	20,580
Noncurrent liabilities:
Long-term debt from affiliate	500	500
Accrued environmental remediation and related costs	10,778	10,969
Deferred income taxes	57,246	54,103
Operating lease liability	908
Other	1,168	1,277
Total noncurrent liabilities	70,600	66,849
NLI stockholders' equity:
Preferred stock
Common stock	6,112	6,107
Additional paid-in capital	299,939	299,349
Retained earnings	252,902	249,380
Accumulated other comprehensive loss	(195,920)	(196,067)
Total NLI stockholders' equity	363,033	358,769
Noncontrolling interest in subsidiary	18,806	18,022
Total equity	381,839	376,791
Total liabilities and equity	470,571	464,220
Commitments and contingencies (Notes 12 and 14)