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Get filing alertsValhi Q1 2026 net income falls 88% to $2.0M on weak TiO2 pricing and volumes
Filed May 7, 2026 · Period ending May 7, 2026 · ~1 min read
Key Changes
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high
Net income dropped to $2.0M ($0.07/share) from $16.9M ($0.59/share) in Q1 2025, driven by 65% decline in Chemicals Segment operating income to $14.5M.
Item 2.02 — Results of Operations and Financial Condition verify on EDGAR → -
high
TiO2 average selling prices fell 6% year-over-year and production volumes declined, though sequential pricing rose 2% during Q1 2026 as the company works to recover 2025 pricing losses.
Exhibit 99.1 view on EDGAR → -
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German tax audit triggered $2.0M uncertain tax position charge ($1.3M or $0.04/share net of noncontrolling interest) at Chemicals Segment.
Exhibit 99.1 view on EDGAR → -
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Real Estate segment sold final commercial parcel for $7.3M with immediate revenue recognition and received $5.4M tax increment reimbursement, boosting operating income to $11.3M vs. $3.0M in Q1 2025.
Exhibit 99.1 view on EDGAR →
Summary
Valhi reported a sharp earnings decline in Q1 2026, with net income falling 88% year-over-year to $2.0 million ($0.07 per share) from $16.9 million ($0.59 per share). The core Chemicals Segment drove the weakness, with operating income down 65% to $14.5 million as TiO2 selling prices averaged 6% lower than Q1 2025 and production volumes declined.
Unfavorable currency impacts of approximately $6 million and a $2.0 million German tax audit charge further pressured results. Higher sales volumes (up 4%) and lower production costs from Q4 2025 workforce reductions provided only partial offsets. The quarter showed early signs of stabilization: TiO2 prices rose 2% sequentially during Q1 2026 as the company works to recover pricing lost in 2025.
The Real Estate segment provided a bright spot, selling its final commercial parcel for $7.3 million and recognizing a $5.4 million tax increment reimbursement, which boosted segment operating income to $11.3 million. For retail holders, the key question is whether the sequential TiO2 pricing improvement can sustain and offset volume pressures as the year progresses.
Section-by-Section Diff
Event · Item 2.02 — Results of Operations and Financial Condition
Valhi announced Q1 2026 earnings results via press release furnished as Exhibit 99.1.
Added in current filing · verify on EDGAR →
The registrant hereby furnishes the information set forth in its press release entitled “Valhi Reports First Quarter 2026 Results” that the registrant issued on May 7, 2026, a copy of which is attached hereto as Exhibit 99.1 and incorporated herein by reference.
Valhi disclosed its first quarter 2026 financial results through a press release. The 8-K body does not contain the actual financial figures; those are in the attached Exhibit 99.1, which is not included in this filing excerpt. This is a standard earnings announcement filing under Item 2.02.
Event · Exhibit 99.1
Added in current filing · view on EDGAR →
Valhi, Inc. (NYSE: VHI) reported net income attributable to Valhi stockholders of $2.0 million, or $.07 per share, in the first quarter of 2026 compared to net income of $16.9 million, or $.59 per share, in the first quarter of 2025.
Valhi's Q1 2026 net income fell 88% year-over-year to $2.0 million ($0.07 per share) from $16.9 million ($0.59 per share) in Q1 2025. The decline was driven primarily by lower operating results from the Chemicals Segment, partially offset by higher operating income from the Component Products and Real Estate Management and Development Segments.
Added in current filing · view on EDGAR →
The Chemicals Segment’s operating income in the first quarter of 2026 was $14.5 million compared to operating income of $41.2 million in the first quarter of 2025. The Chemicals Segment’s operating income decreased in the first quarter of 2026 compared to the first quarter of 2025 primarily due to the effects of lower average TiO2 selling prices, lower production volumes, and the unfavorable impact of changes in currency exchange rates, partially offset by higher sales volumes and lower productions costs.
The Chemicals Segment's operating income fell 65% to $14.5 million in Q1 2026 from $41.2 million in Q1 2025. The decline was driven by lower average TiO2 selling prices (down 6% year-over-year), lower production volumes, and unfavorable currency exchange rate impacts of approximately $6 million. These negatives were partially offset by higher sales volumes (up 4%) and lower production costs from cost reduction initiatives implemented in Q4 2025, including workforce reductions.
Added in current filing · view on EDGAR →
Our Chemicals Segment started 2026 with average TiO2 selling prices lower than at the beginning of 2025; however, its average TiO2 selling prices increased 2% during the first quarter of 2026 as our Chemicals Segment works to recover pricing lost during 2025.
While TiO2 selling prices began 2026 lower than at the start of 2025, the Chemicals Segment achieved a 2% sequential price increase during Q1 2026 as it works to recover pricing lost during 2025. This represents an early sign of pricing stabilization after a difficult 2025.
Added in current filing · view on EDGAR →
Net sales increased $1.2 million in the first quarter of 2026 compared to the same period in 2025 primarily due to the sale of the final commercial parcel for $7.3 million, which had no further development obligations and was therefore recognized immediately as revenue.
The Real Estate Management and Development Segment sold its final commercial parcel for $7.3 million in Q1 2026, with the full amount recognized immediately as revenue since there were no further development obligations. The segment also recognized $5.4 million in tax increment infrastructure reimbursement ($2.8 million or $0.10 per share net of tax and noncontrolling interest), contributing to operating income of $11.3 million versus $3.0 million in Q1 2025.
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Figures/quotes linked to EDGAR · Narrative written by AI · Jun 23, 2026 · How we verify