NLI Holdings, Inc
NL Industries, Inc. is a U.S.-based holding company with operating exposure to engineered component products through its majority-owned subsidiary CompX International and to industrial chemicals through its noncontrolling interest in Kronos Worldwide. CompX manufactures security and marine components at U.S. facilities, while Kronos produces and markets titanium dioxide pigments from production sites in North America and Europe.
Fiscal year 2025 · change from previous year
Development 2020–2025
Business
Share of revenueLocks and related security hardware for postal, furniture, cabinetry, tool storage and industrial applications.
Engineered hardware and components used primarily in recreational boats and marine equipment.
Value-added TiO2 pigments used in coatings, plastics, paper, inks and consumer applications.
Other Kronos chemical products and holding-company investment activities related to affiliates and securities.
Customers
CompX sells engineered components to original equipment manufacturers, distributors and end users across postal equipment, office and institutional furniture, cabinetry, tool storage, healthcare, gas stations, vending equipment and industrial markets. Security Products reaches a substantial portion of its market through locksmith distributors, while large OEM relationships support recurring component demand. Kronos sells titanium dioxide pigments to industrial and consumer-product manufacturers that require whiteness, brightness, opacity and durability in finished goods.
Buy CompX components for postal, furniture, cabinetry, healthcare, vending and industrial equipment.
Distribute standardized cabinet locks and security products to professional and end-user markets.
Purchase specialized security components for postal equipment and related infrastructure.
Use CompX marine hardware in recreational boats and other marine applications.
Buy Kronos TiO2 pigments for coatings, plastics, paper, inks, cosmetics and pharmaceuticals.
Strategy
NL Industries' strategy centers on owning and allocating capital among CompX, Kronos and other affiliated investments rather than operating as a single integrated manufacturer. CompX emphasizes engineered design, durability, service and innovation in middle- and high-end component markets, while Kronos provides exposure to value-added titanium dioxide products. The holding company also evaluates acquisitions, ownership restructurings, asset sales and other capital-allocation alternatives as part of managing subsidiary and affiliate value.
Product differentiation helps defend pricing in mature, competitive markets.
Kronos provides exposure to global titanium dioxide manufacturing and distribution.
The holding-company model requires balancing liquidity, ownership interests and investment returns.
Geography
NL Industries is headquartered in Dallas, Texas, and its consolidated operating footprint is concentrated in the United States through CompX's three production facilities. Kronos operates production facilities in North America and Europe and sells titanium dioxide into international industrial and consumer markets. The geographic mix creates exposure to cross-border sourcing, transportation, tariffs, regional demand and environmental requirements.
Risks
NL Industries' results depend on two distinct exposures: CompX's sensitivity to customer orders, competition and component supply, and Kronos' sensitivity to global demand, TiO2 pricing and raw-material costs. Customer concentration is material because CompX's largest customer represented 26% of consolidated sales and its ten largest customers represented approximately 52% in 2025, while purchases generally lack long-term volume commitments. Environmental liabilities, cybersecurity incidents, foreign sourcing, tariffs and holding-company dependence on subsidiary and affiliate cash flows can further affect liquidity and reported results.
- Competitive pricing pressureImpact: HighLikelihood: High
CompX competes with domestic and foreign manufacturers, including lower-cost Asian suppliers.
Exposure - Raw-material and supply-chain disruptionImpact: HighLikelihood: High
Limited availability, fixed-purchase commitments, tariffs or logistics disruptions can raise costs or interrupt production.
Exposure: CompX uses foreign suppliers, including suppliers in China; Kronos has raw-material exposure.
- Customer concentration at CompXImpact: HighLikelihood: Medium
A major customer's purchasing changes can materially reduce consolidated sales and production volumes.
Exposure: Largest customer was 26% of consolidated sales in 2025.
- Titanium dioxide cycle exposureImpact: HighLikelihood: Medium
Kronos depends heavily on TiO2 demand, pricing and global economic activity.
Exposure: Approximately 90% of Kronos sales were core TiO2 pigments in 2025.
- Environmental and legal contingenciesImpact: HighLikelihood: Medium
Remediation, litigation and other obligations can require significant cash payments and provisions.
Exposure: Environmental remediation payments affected holding-company cash flows.
- Cybersecurity and technology failureImpact: HighLikelihood: Medium
Manufacturing, order processing, billing and distribution depend on integrated information systems.
Exposure: CompX and Kronos have experienced phishing and other attempted attacks.
- Holding-company liquidity dependenceImpact: HighLikelihood: Medium
NL Industries relies on subsidiary cash flows, affiliate dividends, investments and capital-market alternatives to meet obligations.
Exposure: NL does not control all of CompX's cash flows and owns Kronos through a noncontrolling interest.
Accounting
Judgemental itemsNL recognizes its share of Kronos earnings or losses rather than consolidating Kronos revenue and expenses.
Impact: Reported earnings can move with Kronos results and dividend-related tax treatment.
Remediation, litigation, tax and legal obligations require estimates of probable costs and timing.
Impact: Changes can affect provisions, liabilities, earnings and operating cash flow.
Goodwill is concentrated in CompX's Security Products reporting unit and depends on qualitative and quantitative valuation judgments.
Impact: Lower forecasts or market values could create a material noncash impairment charge.
CompX and other operating assets are assessed using estimated future cash flows when impairment indicators arise.
Impact: Adverse operating assumptions can reduce asset carrying values and reported earnings.
Obligations depend on discount rates, expected returns and other actuarial assumptions.
Impact: Assumption changes can affect liabilities, accumulated other comprehensive income and periodic expense.
NL recognizes deferred taxes on undistributed equity earnings from Kronos and assesses realization of deferred tax assets.
Impact: Tax expense and deferred tax balances can vary with distributions, forecasts and tax-law changes.
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Last updated: 24/09/2026