NL Industries, Inc. (NL): History, Ownership, Mission, How It Works & Makes Money

NL Industries, Inc. has a history stretching back to 1891, but how does this industrial holding company-an entity that owns controlling stock in other companies-with a market capitalization of roughly $0.26 Billion USD as of November 2025, navigate today's volatile markets? You see the headlines: despite consolidated sales hitting $120.59 million for the first nine months of 2025, the company reported a net loss of $6.85 million for that same period, a sharp reversal from prior year's income. Do you know which underlying segment, the security products of CompX International Inc. or the titanium dioxide (TiO2) business of Kronos Worldwide, Inc., is driving the sales increase and which is causing the financial drag? We'll break down the ownership structure and the specific mechanics of how NL Industries makes money, so you can defintely understand where the near-term risks and opportunities lie.

NL Industries, Inc. (NL) History

You are looking for the origin story of NL Industries, Inc. (NL), and the direct takeaway is this: the company is a century-spanning enterprise that successfully transitioned from a commodity lead producer to a diversified holding company focused on specialty chemicals and engineered component products. Its history is a masterclass in strategic pivot, moving away from its original, environmentally-challenged core to a more resilient, two-pronged business model.

Given Company's Founding Timeline

Year established

The company's formal origins trace back to 1891, established as the National Lead Company, a New Jersey corporation.

Original location

Initial operations were centered in St. Louis, Missouri, as the consolidation effort began to establish a major presence in the lead industry.

Founding team members

NL Industries was founded through the consolidation of 25 separate lead mining and smelting operations across the U.S. to eliminate competition and gain efficiency. Key figures involved in this initial consolidation included individuals like James Eads How.

Initial capital/funding

The initial funding structure was a consolidation of the existing assets and capital from the 25 merging companies, effectively pooling their resources to form a general holding company. The specific initial capital amount is not public, but the immediate result was a dominant market position in bulk refined lead products.

Given Company's Evolution Milestones

Given Company's Transformative Moments

The biggest transformative moment was the pivot away from lead, a necessary move as environmental regulations tightened and consumer demand for lead-based paint vanished. The company recognized its future was not in its founding product, so it aggressively diversified.

The late 1980s control by entrepreneur Harold Simmons marked a new era of strategic restructuring and focus on the chemicals and component products that define the company today. This shift allowed NL to manage the legacy liabilities from its lead past while building new, profitable segments through its majority-owned subsidiary, CompX International Inc., and its noncontrolling interest in Kronos Worldwide, Inc.

Here's the quick math on recent performance: despite a net loss of $6.85 million for the first nine months of 2025, driven largely by unrealized losses and equity losses from Kronos, CompX's segment profit still climbed to $17.0 million in that period. The Component Products business is defintely a bright spot.

• Major Environmental Liability Resolution: In Q1 2025, NL Industries made a substantial cash outflow of approximately $56.1 million plus $0.5 million in interest toward the Raritan Bay Slag global settlement, significantly reducing a major environmental accrual.
• Strategic Dividend Payouts: The company continues to return capital to shareholders, declaring a quarterly dividend for the fourth quarter of 2025 of $0.09 per share.
• Focus on Component Products Growth: CompX's net sales for the nine months ended September 30, 2025, reached $120.59 million, up from $107.53 million in the prior year period, mainly due to higher sales in the government security and marine component markets.

If you want to dive deeper into the current state of their balance sheet and cash flow, you should look at Breaking Down NL Industries, Inc. (NL) Financial Health: Key Insights for Investors.

NL Industries, Inc. (NL) Ownership Structure

NL Industries, Inc. (NL) operates as a publicly traded company on the New York Stock Exchange (NYSE: NL), but its ownership structure is heavily concentrated, meaning a small group of related entities holds a controlling majority of the shares.

The company is effectively controlled by its parent corporation, Contran Corporation, and other affiliated entities, a structure that significantly limits the public float (shares available for trading) and dictates the long-term strategic direction. This concentration of power is a key factor to remember when evaluating the stock, which traded at a price of $5.55 per share as of November 21, 2025.

Given Company's Current Status

NL Industries, Inc. is a publicly traded holding company listed on the NYSE under the ticker symbol NL. The company's financial performance for the first nine months of the 2025 fiscal year showed a net loss attributable to stockholders of $6.8 million, or $0.14 per share.

This loss, which included an unrealized loss of $0.5 million in the third quarter of 2025, contrasts sharply with the net income of $50.7 million in the same period of 2024.

Its subsidiary, CompX International Inc., saw net sales increase to $40.0 million in the third quarter of 2025, but the overall financial results reflect market pressures, especially in its investment in Kronos Worldwide, Inc. (titanium dioxide segment).

For a deeper dive into the company's strategic direction, you can review the Mission Statement, Vision, & Core Values of NL Industries, Inc. (NL).

Given Company's Ownership Breakdown

The ownership of NL Industries is highly skewed toward its corporate insiders, specifically the parent company, Contran Corporation, and its related trusts. This means that while you can buy shares on the open market, the controlling interest is not subject to the same pressures as a widely held public company.

Here's the quick math: Contran and its affiliates hold over four-fifths of the company, leaving a small percentage for all other investors. This control structure is defintely a defining characteristic of the stock.

Given Company's Leadership

The leadership team is a mix of seasoned executives with long tenures, many of whom also hold positions within the affiliated Contran-controlled companies, ensuring alignment with the controlling shareholder's interests.

The board and executive team steer the company's strategy across its component products and chemical segments, navigating the volatile titanium dioxide (TiO2) market through its stake in Kronos Worldwide, Inc.

• President and Chief Executive Officer: Courtney J. Riley
• Executive Vice President and Chief Financial Officer: Amy Allbach Samford
• Vice Chairman of the Board: Michael S. Simmons
• Chair of the Board: Loretta J. Feehan
• Senior Vice President and Treasurer: Bryan A. Hanley

NL Industries, Inc. (NL) Mission and Values

NL Industries, Inc.'s core purpose is to drive shareholder value by strategically managing its diversified holdings, specifically in engineered components and titanium dioxide (TiO2) pigments, all while maintaining a strong commitment to environmental and ethical standards. This focus is critical, especially as the company navigates market shifts that led to a $7.8 million net loss in Q3 2025, largely due to its Kronos Worldwide, Inc. interest.

Given Company's Core Purpose

As a holding company, NL Industries, Inc. does not publish a traditional, consumer-facing mission statement. Instead, its core purpose is defined by its financial and operational mandates for its subsidiaries, CompX International Inc. and Kronos Worldwide, Inc.

Official mission statement (Inferred from Corporate Mandate)

The company's mission is to maximize long-term return on capital for stockholders through the strategic oversight and efficient operation of its industrial portfolio, balancing growth with prudent risk management and a defintely firm adherence to corporate governance.

• Generate consistent returns from the $0.15 Billion USD in trailing twelve-month revenue (TTM) as of November 2025.
• Provide strategic capital and management support to its operating companies.
• Maintain high standards of ethical business practices and integrity across all entities.

Vision statement (Inferred from Strategic Focus)

NL Industries, Inc.'s vision centers on sustained operational resilience and market leadership within its core segments, adapting swiftly to global economic uncertainty and trade policy impacts.

• Strengthen CompX International Inc.'s market position in security products and marine components, which saw segment profit grow 42% in Q3 2025.
• Support Kronos Worldwide, Inc. in navigating the weak demand and pricing pressure in the global TiO2 market.
• Expand asset value through strategic investments and efficient deployment of capital.

Given Company slogan/tagline (Inferred)

Since the company lacks a public slogan, its operational reality suggests a focus on its structure and goal. It's a holding company, so the value is in the portfolio.

• Diversified Assets, Focused Value.

If you want to understand how these mandates translate into stock performance, check out Exploring NL Industries, Inc. (NL) Investor Profile: Who's Buying and Why?

NL Industries, Inc. (NL) How It Works

NL Industries, Inc. is essentially a holding company, which means it doesn't make products itself but generates value by owning and managing two distinct operating businesses: the stable component products manufacturer, CompX International Inc., and the highly cyclical chemicals producer, Kronos Worldwide, Inc. The company's financial results in 2025 show this split clearly, with a net loss attributable to NL stockholders of $6.8 million year-to-date through nine months, largely due to the volatility in the chemicals segment.

NL Industries, Inc.'s Product/Service Portfolio

NL's value delivery comes from two core, but very different, product lines managed by its subsidiaries. CompX offers a diverse portfolio of engineered components, while Kronos is a major global player in a single, high-volume industrial chemical.

NL Industries, Inc.'s Operational Framework

The company's operational framework is a study in industrial diversification, running two separate models under one holding structure. The component products side is all about precision manufacturing and niche market penetration, while the chemicals side is a global, capital-intensive commodity operation.

• Component Products (CompX): Operates three production facilities in the United States, focusing on manufacturing engineered components like high-security locks and marine parts. They sell directly to original equipment manufacturers (OEMs) and through distributors, prioritizing the middle and high-end market where customers pay for product quality and design.
• Chemicals (Kronos): Produces titanium dioxide (TiO2) pigments from its global network of facilities in Europe and North America. This segment is heavily influenced by global commodity prices and industrial demand; for instance, Kronos' Q3 2025 results were hit hard by approximately $27 million in unabsorbed fixed production costs due to reduced operating volumes.
• Holding Company Function: NL Industries itself acts as the financial and strategic umbrella, allocating capital and managing legacy liabilities, such as environmental remediation payments which amounted to around $56.6 million in the first half of 2025.

It's a tale of two companies: one is a steady, resilient manufacturer, and the other is a massive, volatile chemical producer. You can read more about the company's long-term view here: Mission Statement, Vision, & Core Values of NL Industries, Inc. (NL).

NL Industries, Inc.'s Strategic Advantages

NL's market success is rooted in a few key areas, but the stability of CompX is defintely the near-term bright spot offsetting the headwinds in the chemicals market.

• Diversified Revenue Base: The holding company structure provides a hedge. When the TiO2 market is down, as seen in 2025 with Kronos' Q2 equity in losses of $2.8 million, the component products segment often shows resilience, with CompX sales rising to $40.0 million in Q3 2025.
• Niche Market Dominance (CompX): CompX focuses on the high-end of its markets, competing on design and quality rather than just price. This strategy is working, driving a segment profit improvement from $3.3 million to $4.8 million in Q3 2025.
• Global Scale in TiO2 (Kronos): Kronos is a leading global producer of a base industrial product, giving it a significant market position and the ability to serve large, multinational customers across various end-use markets like coatings and plastics.
• Strong Customer Relationships: CompX sells to a diverse base, including a significant relationship with the United States Postal Service, which represented 21% of its sales in 2024, demonstrating deep integration with key customers.

NL Industries, Inc. (NL) How It Makes Money

NL Industries, Inc. is fundamentally a holding company that generates its consolidated revenue by manufacturing specialized components and derives a significant portion of its overall financial performance from its noncontrolling equity stake in a global chemicals producer.

In simple terms, the company makes money in two distinct ways: first, by selling security products and marine components through its majority-owned subsidiary, CompX International Inc. (CompX); and second, by recognizing its share of the profits or losses from its noncontrolling investment in Kronos Worldwide, Inc. (Kronos), a major producer of titanium dioxide (TiO2) pigment.

NL Industries' Revenue Breakdown

The company's reported consolidated revenue is entirely driven by its majority-owned subsidiary, CompX, as the results of Kronos are accounted for using the equity method (meaning only the net income or loss is recorded, not the gross sales). For the third quarter of 2025, NL Industries' consolidated revenue totaled $40.0 million, all from the Component Products segment.

The Component Products segment is defintely the engine for consolidated sales, with CompX focusing on engineered components like mechanical and electrical cabinet locks for industries ranging from recreational transportation to government security.

Business Economics

The economics of NL Industries are a tale of two very different businesses. The CompX segment enjoys a relatively stable, high-margin business selling specialized components, often to original equipment manufacturers (OEMs) in North America.

• Component Pricing Power: CompX's products, like security locks and marine exhaust systems, are specialized, giving them some pricing power, especially in niche markets like government security and towboats.
• Chemicals Volatility: The Kronos segment, which produces titanium dioxide (TiO2), is a commodity-driven business subject to global supply/demand cycles and raw material costs. TiO2 average selling prices were 7% lower in the third quarter of 2025 compared to the prior year, directly impacting profitability.
• Cost Structure Headwinds: Kronos faced significant operational challenges in Q3 2025, including approximately $27 million in unabsorbed fixed production costs due to lower production volumes. This is a huge drag on their equity earnings contribution.

The company's overall financial health is therefore tied to two levers: the steady, increasing sales of CompX, and the highly cyclical, global performance of Kronos. You need to watch both. For a deeper dive into who is betting on these levers, you can check out Exploring NL Industries, Inc. (NL) Investor Profile: Who's Buying and Why?

NL Industries' Financial Performance

The consolidated financial results for the first nine months of 2025 show a clear picture of the current market headwinds, primarily from the chemicals side of the business. The holding company structure means the overall bottom line is heavily influenced by non-operational factors, like the value of its marketable equity securities.

• Net Loss: NL Industries reported a consolidated net loss of $7.8 million for the third quarter of 2025, a sharp decline from a net income of $36.0 million in the same quarter of 2024.
• Earnings Per Share (EPS): This translated to a loss of $0.16 per share for Q3 2025, compared to earnings of $0.74 per share in Q3 2024.
• Segment Profit Divergence: CompX's segment profit actually increased to $4.8 million in Q3 2025 from $3.3 million in Q3 2024, showing the component business is robust. However, this was overwhelmed by NL's equity in losses of Kronos, which was $11.3 million in Q3 2025.
• Non-Operating Impact: The unrealized loss on marketable equity securities was $0.5 million in Q3 2025, contributing to the net loss, compared to an unrealized gain of $18.6 million in the prior-year period. Here's the quick math: the swing in Kronos's contribution and the unrealized securities loss account for almost the entire year-over-year decline.

NL Industries, Inc. (NL) Market Position & Future Outlook

NL Industries, Inc. (NL) maintains a niche market position as a diversified holding company, with its future trajectory heavily dependent on the performance of its two core assets: the resilient CompX component manufacturing subsidiary and its non-controlling equity stake in the cyclical Kronos Worldwide, Inc. (titanium dioxide pigment) business. Despite an overall net loss attributable to stockholders of $7.8 million in the third quarter of 2025, the company's strength lies in CompX's specialized growth in government and marine markets, which is currently offsetting the volatility in the global titanium dioxide market.

Competitive Landscape

In a complex structure like this, measuring NL's single market share is tricky; it's a holding company. So, we map the competitive landscape based on its two core operating segments: engineered components and the titanium dioxide (TiO2) market, where its equity in Kronos Worldwide, Inc. competes.

Opportunities & Challenges

You need to look at both the CompX and Kronos segments to get a clear picture of near-term moves. CompX is defintely the steady hand right now, while Kronos offers the high-beta (high-volatility) upside.

Industry Position

NL Industries operates as a holding entity, so its industry standing is a blend of two distinct, highly competitive markets. The component products segment, run by CompX, focuses on precision-engineered locking systems and marine components, where it holds a strong position in specialized, higher-margin niches like government security and recreational marine. This specialization is its core competitive advantage against giants like ASSA ABLOY Group, which dominate the broader mechanical lock market. CompX's net sales reached $120.6 million for the first nine months of 2025, up from $107.5 million in the prior year period.

The chemical segment is tied to Kronos Worldwide, Inc., a major global producer of titanium dioxide (TiO2) pigments, competing directly with industry leaders like The Chemours Company and Tronox Holdings Plc. Kronos is a significant player, but it is highly exposed to the global TiO2 price cycle, which can be brutal. Here's the quick math: Kronos's Q2 2025 net sales of $494.4 million were impacted by lower TiO2 selling prices, demonstrating the segment's exposure to commodity price volatility.

• NL's overall Trailing Twelve-Month (TTM) revenue as of Q3 2025 was approximately $159.0 million, placing it as a small-cap entity in the broader industrial sector with a market capitalization of around $288 million.
• The strategic acquisition of full ownership of the LPC facility, a chloride-process TiO2 plant with 156,000 metric tons of annual capacity, positions Kronos for long-term efficiency gains and better service to the North American market.
• The company's resilience is currently driven by CompX's ability to increase sales to the government and industrial markets, providing a stable earnings base to weather the Kronos segment's cyclical pressures.

Finance: Monitor Kronos's Q4 2025 unabsorbed fixed costs and CompX's margin expansion to gauge the success of the dual-segment strategy.