Valhi Inc /de/ (VHI) · Nov 5, 2026 · Earnings
Beat — EPS $1.06 vs ~$0.85 consensus; revenue $589.0M vs ~$605.7M
Valhi earnings show a sharp TiO2 operating rebound and EPS beat, but revenue missed expectations and tax benefits boosted the bottom line.
Valhi is a diversified holding company whose earnings are currently being driven by a recovery in Kronos’ cyclical titanium-dioxide business, after 2025 production curtailments and weak demand. The core chemicals rebound was real and stronger than the headline EPS alone suggests. Chemicals operating income rose to $60.5 million from a $15.9 million loss, as higher volumes, better production rates, lower feedstock costs and cost-cutting more than offset higher energy, distribution and currency costs.
The quarter beat on earnings but missed on sales. EPS of $1.06 exceeded the published consensus of roughly $0.85, while revenue of $589.0 million fell short of the roughly $605.7 million expectation. The sales miss matters because the improvement was concentrated in chemicals, with TiO2 volume up 14% and pricing up 5% year over year; it was not a broad-based acceleration across the portfolio.
| Q3 2026 | Q3 2025 | Consensus | |
|---|---|---|---|
| Net sales (Condensed Summary of Operations) | $589.0M | $503.5M (+17.0%) | $605.7M |
| Chemicals operating income (Condensed Summary of Operations) | $60.5M | $(15.9)M | |
| Total operating income (Condensed Summary of Operations) | $67.4M | $8.6M (+683.7%) | |
| Net income attributable to stockholders (Condensed Summary of Operations) | $30.2M | $(22.2)M | |
| Diluted EPS (Condensed Summary of Operations) | $1.06 | $(0.78) | ~$0.85 |
The quality of the EPS beat is mixed. The operating turnaround is meaningful, but third-quarter profit included an $8.0 million, or $0.28 per share, deferred-tax benefit tied to proposed currency regulations. That makes the reported beat larger than the underlying operating improvement alone, even though the chemicals margin recovery appears substantive.
The smaller businesses were not adding much momentum. Component Products improved modestly, while real estate operating income fell to $0.5 million from $19.7 million as development activity slowed near project completion. That weakness, plus the revenue miss, keeps this from being a clean portfolio-wide beat. 〔0〕
Bottom line: Valhi’s main TiO2 business is recovering faster operationally than the market’s earnings estimate implied, but the revenue miss and tax benefit make this a modest, not decisive, improvement in the overall story.
Fourth-quarter earnings report, expected early March 2027
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