Valhi Reports Sharp Increase in Net Income

By Bobby Samwell • Friday, March 07 10:06 • Permanent Link

Valhi, Inc. (NYSE: VHI) reported a significant increase in net income attributable to Valhi stockholders for the fourth quarter of 2024 compared to the same period in 2023. The net income rose to $22.8 million, or $.80 per share, in Q4 2024 from $4.9 million, or $.17 per share, in Q4 2023. For the full year of 2024, the company reported net income of $108.0 million, or $3.79 per share, compared to a net loss of $9.9 million, or $.35 per share, for the full year of 2023.

Valhi attributed the increase in net income to higher operating results from its chemical segment and an aggregate income of $31.4 million related to the settlement of a liability for an environmental remediation site in 2024. However, there was also an increase in the company’s tax expense resulting from final tax regulations on the chemicals segment’s treatment of certain currency translation gains and losses.

The chemicals segment's net sales in the fourth quarter of 2024 were $423.1 million, a 6% increase from the fourth quarter of 2023. For the full year of 2024, net sales were $1.9 billion, a 13% increase from 2023. The segment's operating income in Q4 2024 was $32.6 million, compared to an operating loss of $1.6 million in Q4 2023. For the full year of 2024, the chemicals segment’s operating income was $138.5 million, compared to an operating loss of $41.1 million in 2023.

The component products segment's net sales decreased to $38.4 million in Q4 2024 from $43.2 million in Q4 2023. For the full year of 2024, net sales were $145.9 million, a decrease from $161.3 million in 2023. The segment's operating income was $4.9 million in Q4 2024, compared to $7.4 million in Q4 2023, and $17.0 million for the full year of 2024, compared to $25.4 million in 2023.

The real estate management and development segment had net sales of $19.4 million in Q4 2024, compared to $9.7 million in Q4 2023. However, for the full year of 2024, net sales were $71.8 million, a decrease from $93.9 million in 2023.

Today the company's shares have moved 3.2% to a price of $16.89. For the full picture, make sure to review Valhi's 8-K report.

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