Valhi, Inc. reported net income attributable to stockholders of $0.9 million, or $0.03 per diluted share, for the second quarter of 2025. This represents a substantial decrease from $19.9 million, or $0.70 per diluted share, in the second quarter of 2024. The decline was primarily due to lower operating results from the Chemicals Segment, partially offset by improved performance in the Real Estate Management and Development Segment.
The Chemicals Segment's net sales decreased by 1% to $494.4 million in the second quarter of 2025, driven by lower average TiO2 selling prices and reduced sales volumes in export markets. Operating income for the Chemicals Segment fell sharply to $10.3 million, down from $40.5 million in Q2 2024. This decrease was attributed to unfavorable fixed cost absorption from reduced operating rates at manufacturing facilities and higher cost inventory.
Production facilities in the Chemicals Segment operated at an average of 81% capacity in Q2 2025, a notable drop from 99% in Q2 2024, resulting in approximately $20 million in unabsorbed fixed production costs. The Component Products Segment showed strength, with net sales increasing to $40.3 million and operating income rising to $6.3 million. The Real Estate Management and Development Segment's net sales decreased to $5.7 million, but operating income benefited from $17.2 million in tax increment infrastructure reimbursements.
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