Nli Holdings, Inc. (NL) · Nov 5, 2026 · Earnings

NLI earnings beat EPS, but Q3 sales miss estimates

Beat — EPS $0.26 vs ~$0.22 consensus

NLI earnings show a sharp profit recovery led by Kronos and CompX, though third-quarter sales missed published estimates.

NLI is a holding company whose operating story depends mainly on CompX’s component businesses and its equity stake in Kronos, a cyclical titanium-dioxide producer. The prior quarter had already shown improving CompX profit and a return to earnings, so this release is less about a new turnaround thesis than whether that recovery accelerated.

The headline earnings result beat the published bar, but the top line did not. Third-quarter EPS was $0.26 versus a published estimate of roughly $0.22, while CompX sales of $44.0 million fell short of the roughly $48.0 million consensus. The profit beat is meaningful, but calling the quarter broadly strong would overstate it: revenue growth was solid year over year, yet below expectations.

Q3 2026Q3 2025Consensus
CompX net sales (Financial Statements)$44.0M (+10.0%)$40.0M~$48.0M
NLI EPS (Financial Statements)$0.26$(0.16)~$0.22
CompX segment profit (Components of Income From Operations)$6.4M (+33.3%)$4.8M
Kronos equity earnings (Income Statement)$10.6M$(11.3M)
Kronos operating income (Kronos results)$57.9M$(19.2M)

Kronos did most of the work in the quarter. NLI’s equity contribution swung from a loss to $10.6 million, while Kronos operating income reached $57.9 million. The improvement came from 18% higher sales, 14% higher TiO2 volume, better third-quarter pricing and lower production costs, although currency reduced Kronos operating income by about $5 million.

CompX also improved, making the recovery broader than a one-subsidiary story. Segment profit rose to $6.4 million from $4.8 million as both Security Products and Marine Components delivered higher sales and gross margin. But the revenue gain was only 10%, below the market’s roughly 20% expectation implied by the published consensus, so execution improved without fully meeting the growth bar.

Reported EPS also benefited from items that are not recurring operating earnings. The quarter included a $2.9 million after-tax benefit from Kronos’ non-cash deferred-tax adjustment and a $0.9 million unrealized gain on marketable securities. That does not erase the operating improvement, but it makes the $0.26 EPS figure cleaner as a beat than as a measure of normalized earnings power.

Bottom line: This was a modestly better quarter than expected because Kronos’ recovery and CompX margin improvement outweighed a sales miss. The business is clearly healthier year over year, but the earnings beat is partly tax-assisted and does not yet amount to a full acceleration of the growth story.

Original filing on SEC EDGAR

More Nli Holdings, Inc. news

NLI earnings beat EPS, but Q3 sales miss estimates | NL Stock News
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