NL Industries Inc. 2025年季度报告

NL INDUSTRIES,INC. AND SUBSIDIARIES INDEX Part I.FINANCIAL INFORMATION Item 1.Financial StatementsCondensed Consolidated Balance Sheets -December 31, 2024; March 31, 2025 (unaudited)Condensed Consolidated Statements of Income (unaudited) -Three months ended March 31, 2024 and 2025Condensed Consolidated Statements of Comprehensive Income (unaudited) -Three months ended March 31, 2024 and 2025Condensed Consolidated Statements of Equity (unaudited) -Three months ended March 31, 2024 and 2025Condensed Consolidated Statements of Cash Flows (unaudited) -Three months ended March 31, 2024 and 2025Notes to Condensed Consolidated Financial Statements (unaudited)Item 2.Management’s Discussion and Analysis of Financial Condition and Results of OperationsItem 3.Quantitative and Qualitative Disclosure About Market RiskItem 4.Controls and ProceduresPart II.OTHER INFORMATIONItem 1.Legal ProceedingsItem 1A.Risk FactorsItem 6.Exhibits Items 2, 3, 4 and 5 of PartII are omitted because there is no information to report. NL INDUSTRIES,INC. AND SUBSIDIARIES NOTESTO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS March 31, 2025(unaudited) Note1– Organization and basis of presentation: Organization– At March 31, 2025, Valhi,Inc. (NYSE: VHI) held approximately 83% of ouroutstanding common stock and a wholly-owned subsidiary of Contran Corporation held approximately91% ofValhi’s outstanding common stock. A majority of Contran’soutstanding voting stock is held directly by Lisa K.Simmons and by family stockholders (Thomas C. Connelly (the husband of Ms. Simmons’ late sister), a family-owned entity and various family trusts established for the benefit of Ms.Simmons, Mr. Connelly and theirchildren) who are required to vote their shares of Contran voting stock in the same manner as Ms. Simmons. Suchvoting rights are personal to Ms.Simmons and last through April 22, 2030. The remainder of Contran’soutstanding voting stock is held by another trust (the “Family Trust”), which was established for the benefit of Basis of presentation– Consolidated in this Quarterly Report are the results of our majority-ownedsubsidiary, CompX InternationalInc. We also own approximately31% of Kronos Worldwide,Inc. (“Kronos”).CompX (NYSE American: CIX) and Kronos (NYSE: KRO) each file periodic reports with the Securities and The unaudited Condensed Consolidated Financial Statements contained in this Quarterly Report havebeen prepared on the same basis as the audited Consolidated Financial Statements in our Annual Report onForm10-K for theyear ended December 31, 2024 that we filed with the SEC on March6, 2025 (the “2024Annual Report”). In our opinion, we have made all necessary adjustments (which include only normal recurringadjustments) in order to state fairly, in all material respects, our consolidated financial position, results ofoperations and cash flows as of the dates and for the periods presented. We have condensed the ConsolidatedBalance Sheet at December31, 2024 contained in this Quarterly Report as compared to our audited ConsolidatedFinancial Statements at that date, and we have omitted certain information and footnote disclosures (including Unless otherwise indicated, references in this report to “NL,” “we,” “us” or “our” refer to NLIndustries,Inc. and its subsidiaries and affiliate, Kronos, taken as a whole. Note2 – Segment information: Our chief operating decision maker (“CODM”) evaluates segment performance based on net income andsegment profit (a non-GAAP measure), which we define as gross margin less selling, general and administrativeexpenses directly attributable to CompX.Differences between segment profit and the amounts included in netincome are included in the table below.Depreciation and amortization amounts included in the calculation of Note5– Marketable securities: Our noncurrent marketable securities are equity securities and consist of our investment in the publicly-traded shares of our immediate parent company Valhi,Inc. Our shares of Valhi common stock are accounted foras available-for-sale securities, which are carried at fair value using quoted market prices in active markets and Table of Contents by ASC Topic 820,Fair Value Measurements and Disclosures. We record any unrealized gains or losses on thesecurities in other income (expense) on our Condensed Consolidated Statements of Income. At December31, 2024 and March 31, 2025, we held approximately1.2million shares of common stockof our immediate parent company, Valhi,Inc. At December31, 2024 and March 31, 2025, the quoted per share The Valhi common stock we own is subject to restrictions on resale pursuant to certain provisions of theSEC Rule144. In addition, as a majority-owned subsidiary of Valhi, we cannot vote our shares of Valhi common Note6– Investment in Kronos Worldwide,Inc.: At December 31, 2024 and March 31, 2025, we owned approximately35.2million shares of Kronoscommon stock. At March 31, 2025, the quoted market price of Kronos’ common stock was $7.