NLI Holdings Q2 Net Income Surges to $9.0M on CompX Strength and Kronos Rebound
NL is trading near its 52-week low of $5.04 (14% above the low).
Summary
NLI Holdings reported Q2 2026 net income of $9.0 million ($0.18/share), up from $0.3 million a year ago, fueled by a rebound at its Kronos investment and stronger CompX margins. Operating cash flow turned positive, and the company disclosed a new $27.5 million environmental cost ruling.
Key Events · Earnings and Guidance · NL
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Net Income Surges to $9.0M
Q2 2026 net income attributable to NLI stockholders was $9.0 million ($0.18/share), up from $0.3 million ($0.01/share) in Q2 2025. Six-month net income rose to $13.3 million ($0.27/share) from $1.0 million.
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Kronos Investment Swings to Profit
Equity in earnings of Kronos was a $4.6 million gain in Q2 2026 versus a $2.8 million loss a year ago, driven by higher TiO2 sales volumes and lower production costs.
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CompX Segment Profit Jumps 41%
CompX segment profit increased to $8.9 million in Q2 2026 from $6.3 million in Q2 2025, reflecting higher sales and improved gross margins in Security Products and Marine Components.
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Operating Cash Flow Turns Positive
Net cash provided by operating activities was $7.4 million in the first six months of 2026, compared to a $40.2 million use of cash in the prior year period, primarily due to a $55.7 million reduction in environmental remediation payments.
Analysis · NL · Industrial Applications And Services
Second-quarter net income at NLI Holdings vaulted to $9.0 million, or $0.18 per share, from a mere $0.3 million a year ago. The dramatic improvement reflects a sharp recovery at its Kronos investment—swinging from a $2.8 million loss to a $4.6 million gain—and a 41% jump in CompX segment profit. Operating cash flow flipped to a $7.4 million inflow from a $40.2 million drain last year, largely because environmental remediation payments fell by $55.7 million. The balance sheet remains solid with $110 million in cash and only $0.5 million in debt. A new legal disclosure—a California court set past environmental costs at $27.5 million—adds a risk to watch, but the overall earnings trajectory is sharply higher.
At the time of this filing, NL was trading at $5.75 on NYSE in the Industrial Applications And Services sector, with a market capitalization of approximately $281M. The 52-week trading range was $5.04 to $8.60. This filing was assessed with positive market sentiment and an importance score of 7 out of 10.