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NLI REPORTS SECOND QUARTER 2026 RESULTS

globenewswire.com
NL NLI Holdings reported significantly improved net income and earnings per share for Q2 2026 compared to Q2 2025, driven by strong performance in its Security Products and Marine Components segments, as well as improved equity in earnings from Kronos. The company also saw increased net sales and segment profit. KRO Kronos reported substantial increases in net sales and income from operations for Q2 2026 compared to the prior year, driven by market share gains, favorable currency exchange rates, and lower production costs. The company also implemented price increases.

NLI REPORTS SECOND QUARTER 2026 RESULTS Dallas, Texas, Aug. 05, 2026 (GLOBE NEWSWIRE) -- NLI Holdings, Inc. (NYSE: NL) reported net income attributable to NLI stockholders of $9.0 million, or $.18 per share, in the second quarter of 2026 compared to $.3 million, or $.01 per share, in the second quarter of 2025. NLI’s results include an unrealized gain of $.5 million in the second quarter of 2026 related to the change in value of marketable equity securities compared to an unrealized loss of $.1 million in the second quarter of 2025. For the first six months of 2026, NLI reported net income attributable to NLI stockholders of $13.3 million, or $.27 per share, compared to $1.0 million, or $.02 per share for the first six months of 2025. NLI results include an unrealized gain of $3.1 million in the first six months of 2026 related to the change in value of marketable equity securities compared to an unrealized loss of $8.6 million in the first six months of 2025.

CompX’s net sales were $43.6 million for the second quarter of 2026 compared to $40.3 million in the second quarter of 2025 and $84.2 million for the first six months of 2026 compared to $80.6 million for the same prior year period. The increase in sales for both periods is due to higher Security Products sales across a variety of markets including the healthcare, transportation, tool storage and distributor markets and higher Marine Components sales to the industrial market. CompX’s segment profit was $8.9 million for the second quarter of 2026 compared to $6.3 million for the second quarter of 2025 and $16.0 million for the first six months of 2026 compared to $12.2 million for the same prior year period. CompX’s segment profit increased in the second quarter and for the first six months of 2026 compared to the same periods in 2025 due to higher sales and gross margin predominantly at the Security Products segment and to a lesser extent the Marine Components segment.

NLI recognized equity in earnings of Kronos of $4.6 million in the second quarter of 2026 compared to equity in losses of $2.8 million in the second quarter of 2025. NLI recognized equity in earnings of $3.2 million in the first six months of 2026 compared to $2.7 million in the same period of 2025. Kronos’ net sales of $558.1 million in the second quarter of 2026 were $63.7 million, or 13%, higher than in the second quarter of 2025. Kronos’ net sales of $1.1 billion in the first six months of 2026 were $83.7 million, or 9% higher than the first six months of 2025. Kronos’ net sales increased in the second quarter and first six months of 2026 compared to the same periods of 2025 primarily due to market share gains across all markets and the favorable impact of changes in currency exchange rates (primarily the euro), which Kronos estimates increased its net sales by approximately $10 million and $41 million, respectively. These favorable impacts were partially offset by lower average TiO 2 selling prices and the unfavorable impact of both lower average selling prices and sales volumes within Kronos’ complementary businesses. Kronos started 2026 with average TiO 2 selling prices lower than at the beginning of 2025; however, its average TiO 2 selling prices increased 4% during the first six months of 2026. During the second quarter of 2026, Kronos announced and implemented various price increases and surcharges in response to higher operating costs. The table at the end of this press release shows how each of these items impacted Kronos’ net sales.

Kronos’ income from operations in the second quarter of 2026 was $37.6 million as compared to $7.4 million in the second quarter of 2025. For the first six months of 2026, Kronos’ income from operations was $50.2 million as compared to $45.8 million in the first six months of 2025. Kronos’ income from operations increased in both the second quarter and first six months of 2026 compared to corresponding 2025 periods primarily due to higher sales volumes, lower production costs, including lower raw material costs (primarily feedstock) and lower unabsorbed fixed costs, and the benefits of the cost reduction initiatives implemented in the fourth quarter of 2025 designed to permanently improve its cost structure and operational efficiency. These favorable factors were partially offset by lower average TiO 2 selling prices and the unfavorable impact of changes in currency exchange rates. Fluctuations in currency exchange rates (primarily the euro) decreased Kronos’ income from operations by approximately $12 million in the second quarter of 2026 and approximately $18 million in the first six months of 2026 compared to the same prior year periods.

Corporate expenses decreased $.7 million in the second quarter of 2026 compared to the second quarter of 2025 primarily due to lower environmental remediation and related costs. Corporate expenses decreased $.4 million in the first six months of 2026 compared to the same period of 2025 primarily due to lower environmental remediation and related costs, partially offset by higher general and administrative costs. Interest and dividend income decreased in the second quarter and for the first six months of 2026 compared to the same periods of 2025 primarily due to lower average interest rates and decreased cash balances. Marketable equity securities represent the change in unrealized gains (losses) on our portfolio of marketable equity securities during the periods.

The statements in this release relating to matters that are not historical facts are forward-looking statements that represent management's beliefs and assumptions based on currently available information. Although we believe the expectations reflected in such forward-looking statements are reasonable, we cannot give any assurances that these expectations will prove to be correct. Such statements by their nature involve substantial risks and uncertainties that could significantly impact expected results, and actual future results could differ materially from those described in such forward-looking statements. While it is not possible to identify all factors, we continue to face many risks and uncertainties. Factors that could cause actual future results to differ materially include, but are not limited to:

Should one or more of these risks materialize (or if the consequences of such a development worsen), or should the underlying assumptions prove incorrect, actual results could differ materially from those currently forecasted or expected. We disclaim any intention or obligation to update or revise any forward-looking statement whether as a result of changes in information, future events or otherwise.

NLI Holdings, Inc. is engaged in component products (security products and recreational marine components) and chemicals (TiO 2) businesses.

Investor Relations Contact

Bryan A. Hanley

Senior Vice President and Treasurer

(972) 233-1700

NLI HOLDINGS, INC.

CONDENSED CONSOLIDATED STATEMENTS OF INCOME

(Unaudited)

(In millions, except earnings per share)

NLI HOLDINGS, INC.

COMPONENTS OF INCOME FROM OPERATIONS

(Unaudited)

(In millions)

IMPACT OF PERCENTAGE CHANGE IN KRONOS’ NET SALES

(Unaudited)