NLI HOLDINGS, INC. (NL) SEC Filings & Earnings Calls

Currency exchange rate fluctuations negatively impacted Kronos income from operations by ~$12M in Q2.

“Fluctuations in currency exchange rates (primarily the euro) decreased Kronos’ income from operations by approximately $12 million in the second quarter of 2026” · word for word

Environmental remediation liability

“At June 30, 2026, we had accrued approximately $13 million related to approximately 27 sites associated with remediation and related matters.” · word for word

Lead pigment litigation exposure

“We currently have no pending lead paint class action cases or pending lead paint cases brought by housing authorities, school districts or other government entities.” · word for word

Dependence on Kronos performance

“We account for our approximate 31% non-controlling interest in Kronos by the equity method.” · word for word

Kronos equity method losses

“Equity in losses of Kronos of $1.5 million in 2026 compared to equity in earnings of $5.5 million in 2025.” · word for word

Tariff-related cost pressure

“Beginning in the second quarter of 2025 and continuing through the first quarter of 2026, CompX incurred tariff-related surcharges on certain raw materials, primarily electronic components.” · word for word

Environmental remediation liability

“At March 31, 2026, we had accrued approximately $13 million related to approximately 27 sites associated with remediation and related matters.” · word for word

Lead pigment litigation

“We currently have no pending lead paint class action cases or pending lead paint cases brought by housing authorities, school districts or other government entities.” · word for word

TiO2 pricing pressure and volume decline in Europe

“Kronos average TiO2 selling prices lower than prior year; European sales volumes down; operating income fell 67%.”

Currency exchange risk (euro)

“Fluctuations in currency exchange rates (primarily the euro) decreased Kronos' income from operations by approximately $6 million.” · word for word

Cyclicality and industry capacity expansion risk

“Risk factors mention cyclicality of TiO2 operations and unexpected industry capacity expansion.”

Controlled Company Governance Risk

“Because of Valhi’s direct ownership of approximately 82.7% of the outstanding shares of our common stock, we are considered a controlled company under the listing standards of the NYSE.” · word for word

Related Party Transaction Risk

“We and other entities that may be deemed to be controlled by or related to Ms. Simmons and the Family Trust sometimes engage in intercorporate transactions, such as guarantees, management, expense and insurance sharing arrangements, tax sharing agreements, joint ventures, partnerships, loans, options, advances of funds on open account and sales, leases and e” · word for word

Reincorporation Approval Risk

“The Minority Vote Condition requires at least 5,650,136 shares not owned by Valhi to vote for the Reincorporation Proposal, in order for the proposal to be approved.” · word for word

Pension Plan Termination Cost Risk

“As of December 31, 2025, WTW’s estimate of the NL Deficit was approximately $2 million, in each case after the deduction of estimated plan termination fees and two months of transition benefit payments by the plan to plan participants.” · word for word

Heavy reliance on Kronos TiO2 investment, which is experiencing severe losses and production curtailments.

“Equity in losses of Kronos $25.3M in Q4 2025 vs $4.0M in Q4 2024; Kronos segment loss $59.4M.”

Pension plan termination resulted in a $19.7M after-tax charge, indicating potential future cash outflows.

“Loss of $19.7 million (or $.32 per share, net of tax) related to the termination of our U.S. pension plan.” · word for word

Marketable equity securities introduce volatility to earnings; unrealized losses of $4.5M in Q4.

“Unrealized loss of $4.5 million in the fourth quarter of 2025 related to the change in value of marketable equity securities.”

TiO2 pricing and demand cyclicality

“Pricing within the global TiO2 industry over the long term is cyclical and changes in economic conditions worldwide can significantly impact Kronos' earnings and operating cash flows.”

Tariff exposure on Canadian TiO2 production

“As Kronos currently manufactures a significant portion of its North American TiO2 in Canada, if sustained for an extended period of time, a tariff on Kronos' imports into the U.S. from Canada, would make its products manufactured in Canada and sold into the U.S. more expensive.” · word for word

Kronos high leverage

“As of December 31, 2025, Kronos' total consolidated debt was approximately $557.4 million.”

CompX customer concentration

“For the year ended December 31, 2025, CompX's ten largest customers accounted for approximately 52% of our consolidated net sales, with a single customer accounting for 26% of our consolidated net sales.” · word for word

Environmental and legal liabilities

“We could incur significant costs related to legal and environmental matters.” · word for word

TiO2 market downturn prolonged by trade policy uncertainty and geopolitical tensions.

“Kronos and the TiO2 industry have seen unprecedented global uncertainty related to U.S. trade policies, geopolitical tensions and general hesitancy by customers to build inventories.”

Unfavorable fixed cost absorption due to reduced operating rates at Kronos facilities.

“Kronos’ unabsorbed fixed production costs related to decreased production volumes in the third quarter of 2025 were approximately $27 million.” · word for word

Kronos equity method investment volatility

“Equity in earnings (losses) of Kronos Worldwide, Inc. $21,982 (Q3 2024) vs ($11,318) (Q3 2025)” · word for word

Environmental remediation liability

“At September 30, 2025, we had accrued approximately $13 million related to approximately 29 sites ... The upper end of the range of reasonably possible costs ... is approximately $38 million” · word for word

Cash depletion from environmental payments

“Cash and cash equivalents $101,923 (Sep 2025) vs $163,154 (Dec 2024); paid $56.1 million in Q1 2025 for Raritan Bay settlement”

Marketable securities (Valhi stock) exposure

“Marketable equity securities ($9,115) (9M 2025) vs $21,775 (9M 2024); Valhi stock price declined from $23.39 to $15.78”