Valhi, Inc. Reports Strong 2024 Financial Turnaround

Valhi Inc ( (VHI) ) has released its Q4 earnings. Here is a breakdown of the information Valhi Inc presented to its investors.

Valhi, Inc. is a diversified company operating in the chemicals, component products, and real estate management and development sectors. The company is known for its involvement in the production of titanium dioxide (TiO2), security products, recreational marine components, and real estate development.

Valhi, Inc. reported a significant improvement in its financial performance for the fourth quarter of 2024, with net income attributable to stockholders reaching $22.8 million, or $0.80 per share, compared to $4.9 million, or $0.17 per share, in the same period of 2023. For the full year, the company achieved a net income of $108.0 million, or $3.79 per share, a notable turnaround from a net loss of $9.9 million, or $0.35 per share, in 2023.

The Chemicals Segment was a key driver of Valhi’s improved results, with net sales increasing by 6% in the fourth quarter and 13% for the full year, primarily due to higher sales volumes and increased TiO2 prices. The acquisition of the remaining 50% interest in Louisiana Pigment Company, L.P. also contributed to the segment’s performance, resulting in a non-cash gain of $64.5 million. The Component Products Segment, however, experienced a decline in net sales and operating income due to reduced demand from a government security customer.

The Real Estate Management and Development Segment saw a rise in net sales in the fourth quarter but a decline for the full year, largely due to delays in development activities. Despite these challenges, the segment managed to maintain a stable operating income, supported by tax increment infrastructure reimbursements.

Looking ahead, Valhi’s management remains focused on optimizing its operations and integrating recent acquisitions to drive future growth. The company is poised to navigate the challenges and opportunities within its diverse sectors, aiming to sustain its financial momentum into 2025.