GET DAILY SIGNALSNLI Holdings (NL) Turns to Profit in Q3 on Kronos Recovery and CompX Gains
Key Takeaways
- NLI Holdings (formerly NL Industries) reported third quarter 2026 net sales of $44.0 million, up 10% from $40.0 million a year earlier.
- Net income attributable to NLI stockholders swung to $12.7 million, or $0.26 per diluted share, from a net loss of $7.8 million, or $0.16 per share, in the prior-year period.
- Results topped the consensus earnings per share (EPS) estimate of roughly $0.21 and were essentially in line with the revenue estimate of about $44 million.
- The recovery was driven by a $10.6 million equity pickup from Kronos Worldwide, which reversed an $11.3 million equity loss a year ago.
- CompX segment profit climbed 33% to $6.4 million on stronger marine components and security products demand, while gross margin improved to 29.5% from 27.5%.
Earnings Context and Why It Matters
NLI Holdings operates as a holding company with two main interests: a controlling stake in CompX International, which produces security products and recreational marine components, and a significant equity investment in Kronos Worldwide, a titanium dioxide (TiO2) pigment producer. Because much of NLI's performance flows through the equity method from Kronos, changes in TiO2 demand, pricing, and capacity utilization can have a major impact on results. After a difficult 2025 that included production cuts and equity losses, the third quarter of 2026 provides a useful update on whether conditions are stabilizing. For investors, the report also shows whether the recovery extends across the component products business or remains tied mainly to the chemicals cycle. I also checked this using Tickeron’s AI Screener to compare the stock with peers in the industry.
Reported Results
For the third quarter of 2026, NLI Holdings reported net sales of $44.0 million, a 10% increase from $40.0 million in the same period a year earlier. Net income attributable to NLI stockholders reached $12.7 million, or $0.26 per diluted share, compared with a net loss of $7.8 million, or $0.16 per share, in the third quarter of 2025. The company's earnings per share beat the consensus estimate of about $0.21, while revenue aligned closely with the roughly $44 million analyst expectation.
The improvement was led by a $10.6 million equity-in-earnings contribution from Kronos Worldwide, which reversed an $11.3 million equity loss recorded a year ago. Kronos benefited from an 18% increase in its own net sales, driven by 14% higher TiO2 sales volumes and 5% higher average selling prices. Within NLI's component products segment, CompX delivered segment profit of $6.4 million, up about 33% from $4.8 million, as both marine components and security products posted higher sales. Gross margin expanded to 29.5% from 27.5%.
Market Reaction and Investor Sentiment
Heading into the report, sentiment was cautious. NLI Holdings had missed consensus EPS in six of its prior seven quarters, and the stock had traded near its 50-day moving average as investors questioned whether the company could end its streak of shortfalls. The return to profitability, along with the EPS beat, is likely to be viewed positively, though the market will probably assess how much of the gain stems from recurring operating strength versus non-operating items.
The recovery depends heavily on Kronos Worldwide, whose contribution can fluctuate from quarter to quarter because of the cyclical nature of TiO2 pricing and capacity utilization. Investors will likely examine the durability of the equity pickup and the quality of CompX's organic sales growth before giving lasting credit to the turnaround. From what I see, separating these elements remains important for assessing the quarter's quality.
Forward Outlook and Key Factors to Monitor
Looking ahead, the key variable remains Kronos Worldwide, which accounts for most of NLI's equity earnings. TiO2 pricing, sales volumes, and production capacity utilization will continue to shape results, and any reversal in those trends could affect the bottom line as quickly as they helped in the latest quarter.
Within the component products business, investors should watch whether CompX can maintain its momentum in marine components and security products, especially in healthcare and tool storage markets. Gross margin improvement is another signal to monitor, as it shows whether pricing and cost controls are holding. I'm watching this closely because non-operating factors such as marketable securities valuation changes, tax benefits, and environmental remediation costs can also influence reported income without reflecting core business performance. Separating operating results from one-time items will be essential when evaluating the sustainability of the recovery.
Using Tickeron Tools for Deeper Analysis
When reviewing names like NLI Holdings, I often turn to Tickeron’s AI Screener to apply filters for technical patterns, fundamentals, and performance metrics. It helps surface comparable opportunities and refine a watchlist with data-driven criteria, which proved useful here when cross-checking the earnings details against sector trends.
Disclaimer
The information on this webpage is provided for general informational and educational purposes only and is not intended as investment advice, a recommendation to purchase or sell any security, or an offer or solicitation related to investments. It does not consider your personal financial situation, goals, or risk profile, and all investing carries inherent risks, including the possibility of losing your entire investment. For more details, please review our full disclaimer.
Contributor
Sergey Savastiouk, Ph.D. has a degree in Applied Mathematics from Moscow University and has extensive experience as an entrepreneur, investor, manager, and mathematician. His professional expertise is in applied mathematics, mathematical modeling, system and pattern analysis, and software and hardware system integration. He has served as the CEO of several hi-tech start-up companies and nonprofit organizations, which has given him proven capabilities in business strategy for high-tech start-up companies, market assessment, company formation, team building, product development, marketing, and sales. He has published numerous articles in journals and magazines on related fields. As a retail investor, he spent 15 years developing his proprietary trading and quantitative algorithms (now Tickeron’s A.I.), which brought him significant returns in trading the stock market. His current work and goal in founding Tickeron is to bring professional, sophisticated stock market analysis capabilities to retail investors via an easy-to-use interface.
NL's MACD Histogram crosses above signal line
The Moving Average Convergence Divergence (MACD) for NL turned positive on October 28, 2026. Looking at past instances where NL's MACD turned positive, the stock continued to rise in 40 of 46 cases over the following month. The odds of a continued upward trend are 87%.
Technical Analysis (Indicators)
Bullish Trend Analysis
The Momentum Indicator moved above the 0 level on October 27, 2026. You may want to consider a long position or call options on NL as a result. In 89 of 120 past instances where the momentum indicator moved above 0, the stock continued to climb. The odds of a continued upward trend are 74%.
NL moved above its 50-day moving average on October 27, 2026 date and that indicates a change from a downward trend to an upward trend.
The 10-day moving average for NL crossed bullishly above the 50-day moving average on November 04, 2026. This indicates that the trend has shifted higher and could be considered a buy signal. In 9 of 16 past instances when the 10-day crossed above the 50-day, the stock continued to move higher over the following month. The odds of a continued upward trend are 56%.
Following a +5.87% 3-day Advance, the price is estimated to grow further. Considering data from situations where NL advanced for three days, in 185 of 257 cases, the price rose further within the following month. The odds of a continued upward trend are 72%.
The Aroon Indicator entered an Uptrend today. In 102 of 148 cases where NL Aroon's Indicator entered an Uptrend, the price rose further within the following month. The odds of a continued Uptrend are 69%.
Bearish Trend Analysis
The Stochastic Oscillator may be shifting from an upward trend to a downward trend. In 48 of 62 cases where NL's Stochastic Oscillator exited the overbought zone, the price fell further within the following month. The odds of a continued downward trend are 77%.
Following a 3-day decline, the stock is projected to fall further. Considering past instances where NL declined for three days, the price rose further in 50 of 62 cases within the following month. The odds of a continued downward trend are 69%.
NL broke above its upper Bollinger Band on November 04, 2026. This could be a sign that the stock is set to drop as the stock moves back below the upper band and toward the middle band. You may want to consider selling the stock or exploring put options.
Fundamental Analysis (Ratings)
The Tickeron Valuation Rating of 34 (best 1 - 100 worst) indicates that the company is fair valued in the industry. This rating compares market capitalization estimated by our proprietary formula with the current market capitalization. This rating is based on the following metrics, as compared to industry averages: P/B Ratio (0.991) is normal, around the industry mean (3.026). P/E Ratio (-14.154) is within average values for comparable stocks, (1.906). Projected Growth (PEG Ratio) (0.060) is also within normal values, averaging (5.749). Dividend Yield (0.054) settles around the average of (0.316) among similar stocks. P/S Ratio (2.099) is also within normal values, averaging (2.085).
The Tickeron Price Growth Rating for this company is 42 (best 1 - 100 worst), indicating steady price growth. NL’s price grows at a higher rate over the last 12 months as compared to S&P 500 index constituents.
The Tickeron Seasonality Score of 50 (best 1 - 100 worst) indicates that the company is fair valued in the industry. The Tickeron Seasonality score describes the variance of predictable price changes around the same period every calendar year. These changes can be tied to a specific month, quarter, holiday or vacation period, as well as a meteorological or growing season.
The Tickeron Profit vs. Risk Rating rating for this company is 55 (best 1 - 100 worst), indicating well-balanced risk and returns. The average Profit vs. Risk Rating rating for the industry is 68, placing this stock slightly better than average.
The Tickeron SMR rating for this company is 93 (best 1 - 100 worst), indicating weak sales and an unprofitable business model. SMR (Sales, Margin, Return on Equity) rating is based on comparative analysis of weighted Sales, Income Margin and Return on Equity values compared against S&P 500 index constituents. The weighted SMR value is a proprietary formula developed by Tickeron and represents an overall profitability measure for a stock.
The Tickeron PE Growth Rating for this company is 100 (best 1 - 100 worst), pointing to worse than average earnings growth. The PE Growth rating is based on a comparative analysis of stock PE ratio increase over the last 12 months compared against S&P 500 index constituents.
Industry description
Market Cap
High and low price notable news
Volume
Fundamental Analysis Ratings
The average fundamental analysis ratings, where 1 is best and 100 is worst, are as follows
Advertisement
General Information
a company which engages in the manufacture and sale of precision ball bearing slides, security products, and ergonomic computer support systems
Industry MiscellaneousCommercialServices
Advertisement