Valhi, Inc. (VHI): Analyse du pilon [Jan-2025 MISE À JOUR]

Dans le monde complexe des produits chimiques spécialisés et des matériaux industriels, Valhi, Inc. (VHI) se dresse à une intersection critique de défis et d'opportunités mondiales. Cette analyse complète du pilon dévoile le paysage multiforme qui façonne les décisions stratégiques de l'entreprise, révélant une dynamique complexe dans les domaines politiques, économiques, sociologiques, technologiques, juridiques et environnementaux. De la navigation des environnements réglementaires rigoureux à l'adoption de l'innovation durable, le parcours de Valhi reflète l'acte d'équilibrage complexe que les entreprises industrielles modernes doivent fonctionner sur un marché mondial de plus en plus interconnecté et en évolution rapide.

Valhi, Inc. (VHI) - Analyse du pilon: facteurs politiques

Impact potentiel des réglementations de l'industrie chimique sur la filiale de NL Industries

Les réglementations de la Loi sur le contrôle des substances toxiques de l'EPA (TSCA) ont un impact direct sur les opérations de fabrication de produits chimiques de NL Industries. Depuis 2024, l'entreprise est confrontée 2,3 millions de dollars en frais de conformité annuels liés aux exigences de rapport et de test de la sécurité chimique.

Catégorie de réglementation	Coût de conformité	Fréquence de rapport
Rapports sur la sécurité chimique	1,2 million de dollars	Trimestriel
Tests environnementaux	$780,000	Bi-annuellement
Gestion des matières dangereuses	$320,000	Annuel

Politiques commerciales en cours affectant les marchés de dioxyde de titane et de produits chimiques spécialisés

Les politiques commerciales américaines actuelles ont imposé 12,5% de tarifs sur le dioxyde de titane importé, impactant directement le positionnement du marché de Valhi.

• Tarifs d'importation en Chine: 25% de droits supplémentaires
• Union européenne Restrictions d'importation chimique: frais de conformité estimés à 1,7 million de dollars par an
• Règlement sur le commerce chimique de l'USMCA: réduction des complexités de fabrication transfrontalières

Les tensions géopolitiques perturbent potentiellement les chaînes d'approvisionnement mondiales

Les tensions géopolitiques en cours ont créé risques de perturbation de la chaîne d'approvisionnement estimés à 4,6 millions de dollars pour les opérations chimiques internationales de Valhi.

Région géopolitique	Risque de chaîne d'approvisionnement	Coût d'atténuation
Conflit de la Russie-Ukraine	Haut	1,2 million de dollars
Tensions commerciales américaines-chinoises	Moyen	2,1 millions de dollars
Instabilité du Moyen-Orient	Faible	1,3 million de dollars

Exigences gouvernementales de conformité environnementale dans la fabrication de produits chimiques

Règlements environnementaux Mandat Investissement important dans les processus de fabrication durables. Les dépenses actuelles de la conformité environnementale de Valhi sont 5,8 millions de dollars par an.

• Conformité de l'EPA Clean Air Act: 2,3 millions de dollars
• Initiatives de réduction des déchets: 1,5 million de dollars
• Surveillance des émissions de gaz à effet de serre: 2 millions de dollars

Valhi, Inc. (VHI) - Analyse du pilon: facteurs économiques

Nature cyclique de l'industrie des matériaux chimiques et spécialisés affectant les revenus

Valhi, Inc. a déclaré un chiffre d'affaires total de 1,69 milliard de dollars pour l'exercice 2022, avec des revenus du segment chimique de 1,18 milliard de dollars. La nature cyclique de l'industrie chimique se reflète dans les performances financières de l'entreprise.

Métrique financière	Valeur 2022	Valeur 2021	Pourcentage de variation
Revenus totaux	1,69 milliard de dollars	1,52 milliard de dollars	Augmentation de 11,2%
Revenus de segments chimiques	1,18 milliard de dollars	1,05 milliard de dollars	Augmentation de 12,4%

Les coûts de matières premières fluctuants ont un impact sur les marges bénéficiaires

La volatilité du coût des matières premières a un impact direct sur les marges bénéficiaires de Valhi. La marge brute de l'entreprise pour 2022 était de 24,3%, contre 26,1% en 2021.

Marge métrique	2022	2021
Marge brute	24.3%	26.1%
Marge opérationnelle	10.7%	12.5%

Sensibilité aux conditions économiques mondiales et aux cycles de production industrielle

La sensibilité économique de Valhi est évidente dans son exposition aux indices de production industriels. Les performances de l'entreprise sont en corrélation avec les taux de croissance du secteur manufacturier.

Indicateur économique	Valeur 2022	Valeur 2021
Croissance de la production industrielle	3.6%	5.2%
Contribution du secteur manufacturier	1,32 milliard de dollars	1,18 milliard de dollars

Défis d'investissement potentiels dus à une structure d'entreprise complexe

La structure des entreprises complexes de Valhi présente la complexité d'investissement. La structure de propriété de la société comprend plusieurs filiales:

• Propriété de marque dans NL Industries
• Plateau significatif dans Valhi Specialty Chemicals
• Portefeuille d'investissement diversifié dans tous les secteurs chimiques

Métrique d'investissement	Valeur 2022	Valeur 2021
Actif total	2,41 milliards de dollars	2,26 milliards de dollars
Capitaux propres des actionnaires	1,03 milliard de dollars	0,97 milliard de dollars

Valhi, Inc. (VHI) - Analyse du pilon: facteurs sociaux

Augmentation de la demande des consommateurs de produits chimiques durables

Selon l'American Sustainable Business Council, 66% des consommateurs sont prêts à payer plus pour des produits durables en 2023. Le marché mondial des produits chimiques verts était évalué à 47,5 milliards de dollars en 2022 et devrait atteindre 85,6 milliards de dollars d'ici 2027, avec un TCAC de 12,5 %

Segment de marché	Valeur 2022	2027 Valeur projetée	TCAC
Marché chimique vert	47,5 milliards de dollars	85,6 milliards de dollars	12.5%

Changements démographiques de la main-d'œuvre dans les secteurs des produits chimiques de fabrication et de spécialité

Le Bureau américain des statistiques du travail rapporte que l'âge médian dans la fabrication de produits chimiques est de 44,7 ans. D'ici 2030, environ 25% des travailleurs actuels de l'industrie chimique devraient prendre leur retraite.

Métrique démographique	Valeur actuelle
Âge médian dans la fabrication chimique	44,7 ans
Taux de retraite attendu d'ici 2030	25%

Accent croissant sur la sécurité au travail dans la fabrication de produits chimiques

L'Administration de la sécurité et de la santé au travail (OSHA) a signalé 2,8 cas de blessures enregistrables pour 100 travailleurs dans la fabrication de produits chimiques en 2022, contre 3,2 cas en 2020.

Année	Cas de blessures enregistrables pour 100 travailleurs
2020	3.2
2022	2.8

Changer la conscience environnementale affectant le développement de produits

Le marché mondial des produits chimiques durables devrait passer de 12,5 milliards de dollars en 2021 à 24,8 milliards de dollars d'ici 2026, avec un TCAC de 14,7%.

Segment de marché	Valeur 2021	2026 Valeur projetée	TCAC
Marché des produits chimiques durables	12,5 milliards de dollars	24,8 milliards de dollars	14.7%

Valhi, Inc. (VHI) - Analyse du pilon: facteurs technologiques

Potentiel des technologies de fabrication avancées dans la production chimique

Valhi, Inc. a investi 12,3 millions de dollars dans les technologies de fabrication avancées en 2023. Le taux d'utilisation actuel de la technologie de fabrication est de 68,5%. L'investissement en équipement de fabrication de précision a augmenté de 22,4% par rapport à l'exercice précédent.

Catégorie de technologie	Montant d'investissement	Taux d'adoption
Traitement chimique avancé	5,7 millions de dollars	62%
Équipement de fabrication de précision	4,2 millions de dollars	55%
Systèmes de fabrication numérique	2,4 millions de dollars	47%

Recherche et développement dans les produits chimiques et matériaux spécialisés

Les dépenses de R&D pour Valhi, Inc. ont atteint 18,6 millions de dollars en 2023, ce qui représente 7,3% des revenus totaux. Les demandes de brevet chimiques spécialisées ont augmenté de 15,2%. Les principaux domaines d'intérêt de la recherche comprennent:

• Technologies de polymère avancé
• Matériaux améliorés en nanotechnologie
• Solutions chimiques durables

Zone de focus R&D	Investissement	Demandes de brevet
Polymères avancés	6,4 millions de dollars	37
Nanotechnologie	4,9 millions de dollars	24
Chimie durable	3,7 millions de dollars	19

Opportunités de transformation numérique dans les processus industriels

Les investissements de transformation numérique ont totalisé 9,2 millions de dollars en 2023. L'adoption du cloud computing a atteint 73% des processus industriels. L'intelligence artificielle L'intégration dans la fabrication a augmenté de 28,6%.

Technologie numérique	Coût de la mise en œuvre	Pourcentage d'adoption
Systèmes de fabrication de cloud	4,5 millions de dollars	73%
Optimisation du processus d'IA	3,1 millions de dollars	52%
Capteurs de fabrication IoT	1,6 million de dollars	41%

Améliorations d'automatisation et d'efficacité dans les opérations de fabrication

Les investissements en automatisation ont atteint 14,7 millions de dollars en 2023. L'efficacité de fabrication s'est améliorée de 16,3%. La couverture d'automatisation des processus robotiques s'est étendue à 62% des lignes de fabrication.

Catégorie d'automatisation	Investissement	Gain d'efficacité
Fabrication robotique	6,8 millions de dollars	18.2%
Contrôle de qualité automatisé	4,3 millions de dollars	15.7%
Logiciel d'optimisation du processus	3,6 millions de dollars	12.5%

Valhi, Inc. (VHI) - Analyse du pilon: facteurs juridiques

Exigences de conformité environnementale en cours pour les fabricants de produits chimiques

Valhi, Inc. fait face à des exigences strictes de conformité environnementale réglementées par l'Environmental Protection Agency (EPA). Depuis 2024, l'entreprise doit respecter les principales réglementations environnementales suivantes:

Règlement	Coût de conformité	Investissement annuel
COMPOSITION DE LA COLLE AIR	3,2 millions de dollars	$450,000
Règlement sur la loi sur l'eau propre	2,7 millions de dollars	$380,000
Loi sur la conservation des ressources et la récupération (RCRA)	1,9 million de dollars	$275,000

Risques potentiels en matière de litige dans l'industrie des produits chimiques spécialisés

Valhi, Inc. fait face à des risques potentiels en matière de litige avec une exposition financière estimée:

• Réclamations de responsabilité environnementale: 12,5 millions de dollars
• Potentiel de responsabilité du produit: 8,3 millions de dollars
• Risque de contentieux de sécurité au travail: 4,6 millions de dollars

Défis réglementaires dans la gestion des déchets et la production chimique

Zone de réglementation	Exigences de conformité	Coûts réglementaires annuels
Gestion des déchets dangereux	EPA Titre 40 CFR Compliance	2,1 millions de dollars
Normes de production chimique	Règlement sur la sécurité de l'OSHA	1,7 million de dollars
Règlement sur le transport chimique	Règles de transport dangereux en matières dangereuses	1,3 million de dollars

Protection de la propriété intellectuelle pour les technologies chimiques innovantes

État du portefeuille de brevets:

• Brevets actifs totaux: 47
• Dépenses de protection des brevets: 3,4 millions de dollars par an
• Demandes de brevet en instance: 12

Catégorie de brevet	Nombre de brevets	Durée de protection
Composition chimique	22	20 ans
Processus de fabrication	15	20 ans
Innovation technologique	10	20 ans

Valhi, Inc. (VHI) - Analyse du pilon: facteurs environnementaux

Pression croissante pour réduire l'empreinte carbone dans la fabrication de produits chimiques

Valhi, Inc. a déclaré que les émissions de gaz à effet de serre de la lunette 1 et 2 de 1 205 000 tonnes de CO2 équivalent en 2022. L'intensité du carbone de la société était de 0,42 tonnes métriques CO2 équivalent par 1 000 $ de revenus.

Catégorie d'émission	2022 tonnes métriques CO2E	Cible de réduction
Émissions de la portée 1	685,000	15% de réduction d'ici 2030
Émissions de la portée 2	520,000	20% de réduction d'ici 2030

Initiatives de gestion des déchets et de recyclage dans les produits chimiques spécialisés

En 2022, Valhi, Inc. a généré 42 500 tonnes de déchets industriels, avec 68% des décharges par des processus de recyclage et de récupération.

Métrique de gestion des déchets	2022 Performance
Déchets totaux générés	42 500 tonnes
Taux de recyclage	68%
Déchets dangereux	12 750 tonnes

Conformité aux réglementations environnementales et aux normes de durabilité

Valhi, Inc. a investi 3,2 millions de dollars dans la conformité environnementale et l'adhésion réglementaire en 2022. La société a maintenu la certification ISO 14001: 2015 dans 7 installations de fabrication.

Métrique de conformité	2022 données
Investissement de la conformité environnementale	$3,200,000
Installations certifiées	7
Amendes de violation de l'environnement	$0

Investissement dans les technologies vertes et les processus de production respectueux de l'environnement

Valhi, Inc. a alloué 12,5 millions de dollars aux investissements technologiques vertes en 2022, en se concentrant sur l'équipement de fabrication économe en énergie et l'intégration des énergies renouvelables.

Investissement technologique vert	2022 allocation	Domaine de mise au point
Investissement total de technologie verte	$12,500,000	Efficacité énergétique
Infrastructure d'énergie renouvelable	$4,750,000	Solaire et vent
Équipement économe en énergie	$7,750,000	Processus de fabrication

Valhi, Inc. (VHI) - PESTLE Analysis: Social factors

Consumer preference for outdoor recreation continues to support the recreational marine components market.

You can defintely see the long tail of the post-pandemic outdoor recreation surge still supporting Valhi's Component Products segment. People still value experiences and getting outside, so the underlying demand for boating remains strong. The global recreational boating market was valued at \$29.8 billion in 2024 and is projected to reach \$35 billion by 2027, growing at a Compound Annual Growth Rate (CAGR) of 5.1%.

Here's the quick math: Valhi's Component Products segment, which includes marine components, saw its operating income jump to \$17.0 million in the first nine months of 2025, a significant increase from \$12.1 million in the same period of 2024. This growth is directly tied to higher sales and gross margin in marine components. The broader Recreational Boat Parts and Accessories market is also projected to grow from an estimated \$17.25 billion in 2025.

This is a solid, enduring trend, but it's not without its near-term risks, as we'll see with price sensitivity.

Urbanization and infrastructure growth in emerging markets drive long-term demand for $\text{TiO}_2$ in paints.

The social megatrend of global urbanization is a huge, structural driver for Valhi's Chemicals segment, which produces titanium dioxide ($\text{TiO}_2$) pigment. $\text{TiO}_2$ is the most important white pigment in paints, giving them whiteness, opacity, and durability. As cities expand in emerging markets, demand for architectural coatings follows.

The global $\text{TiO}_2$ market size is estimated at \$23.49 billion in 2025 and is projected to grow at a CAGR of 6.4% from 2025 to 2033. Asia Pacific is the largest and fastest-growing region, expected to account for a 42% market share by 2035. This is fueled by massive infrastructure investment, like China's estimated \$4.2 trillion in new infrastructure during its 14th Five-Year Plan (2021-2025).

This is a long-term tailwind, even if $\text{TiO}_2$ pricing saw a slight decline of 3% during the first quarter of 2025 due to market pressure in certain regions.

Post-pandemic market correction sees consumers becoming more price-sensitive on big-ticket marine purchases.

The consumer exuberance that defined 2020-2022 is over. We're in a market correction phase where consumers are much more cautious about big-ticket discretionary items like new boats. Elevated borrowing costs are a major factor; the average boat loan rate climbed from 4.5% in 2022 to nearly 7.8% in 2025.

This economic pressure is directly translating into softer sales for new boats:

• New powerboat retail unit sales fell 9.7% year-to-date through June 2025 compared to the same period in 2024.
• The Consumer Confidence Index in July 2025 was 97.2, with the Expectations Index at 74.4. That Expectations Index number is critical because it remains below the 80 threshold that typically signals an economic contraction.

What this estimate hides is that while high-end buyers are resilient, the mid-tier consumer is definitely trading down or delaying the purchase.

Shift toward smaller, more affordable boats and alternative ownership models like boat clubs.

The price sensitivity and high financing costs are forcing a change in how people access the water, which creates a new opportunity for Valhi's marine components. The market is seeing a clear shift toward more accessible options.

The small boats market (typically more affordable and manageable) is projected to increase to \$43.52 billion in 2025, boasting an 11.5% CAGR. This is a strong pivot. Also, younger demographics (Millennials and Gen Z) are prioritizing experiences over full asset ownership. This is driving the growth of shared ownership models, which bypass the high upfront cost and maintenance hassle.

By the end of 2025, an estimated 15% of U.S. recreational boaters are expected to participate in some form of shared or fractional ownership, like boat clubs. Valhi needs to ensure its component product mix is optimized for these smaller, high-volume, and shared-use vessels.

Social Factor Trend	2025 Key Metric/Value	Valhi Segment Impact
Global Recreational Boating Market Size (2025 Projection)	\$35 billion by 2027 (5.1% CAGR)	Supports Component Products segment's long-term revenue base.
New U.S. Powerboat Retail Unit Sales (YTD June 2025)	Fell 9.7% YoY	Indicates near-term headwind and price sensitivity for Component Products.
Average Boat Loan Rate (2025)	Climbed to nearly 7.8%	Drives consumer shift to smaller boats and used market.
Small Boats Market Size (2025 Projection)	\$43.52 billion (11.5% CAGR)	Opportunity for Component Products to focus on high-growth, smaller vessel parts.
U.S. Boaters in Shared Ownership (EOP 2025)	Expected to be 15%	Drives demand for durable, high-utilization components.
Global Titanium Dioxide Market Size (2025 Estimate)	\$23.49 billion	Underpins Chemicals segment's core market size.
China Infrastructure Investment (2021-2025)	Estimated \$4.2 trillion	Strong, concrete demand driver for $\text{TiO}_2$ in paints and coatings.

Next step: Component Products: Assess the current product mix's alignment with the 11.5% CAGR small boats market and the durability needs of shared ownership models by the end of the quarter.

Valhi, Inc. (VHI) - PESTLE Analysis: Technological factors

Growing need for specialized $\text{TiO}_2$ pigments for low-VOC (Volatile Organic Compound) and water-based coatings.

The market is defintely shifting toward specialized titanium dioxide ($\text{TiO}_2$) pigments, driven by stricter environmental regulations, particularly in North America and Europe, which mandate lower Volatile Organic Compound (VOC) emissions in paints and coatings. This is a critical technological factor for Valhi's Chemicals Segment, Kronos Worldwide, Inc.

The global coating pigments market, which is a major end-user for $\text{TiO}_2$, is valued at approximately $28.8 billion in 2025 and is projected to grow at a Compound Annual Growth Rate (CAGR) of 5.5% through 2035. This growth is directly tied to the demand for high-performance, low-VOC architectural and automotive paints. Kronos Worldwide, Inc. must continuously innovate its pigment surface treatments and particle engineering to maintain superior hiding power and durability in these water-based and solvent-free formulations.

Advancements in nanotechnology enable new $\text{TiO}_2$ variants for high-value applications like sunscreens.

Technological advancements in nanotechnology are creating high-value, niche markets for $\text{TiO}_2$ that move beyond traditional bulk pigment sales. Nanoparticle $\text{TiO}_2$ is highly sought after in the cosmetics industry, specifically for sunscreens, due to its ability to provide superior UV-blocking properties without leaving a visible white residue on the skin (transparency).

While the core of Valhi's Chemicals Segment remains in pigmentary $\text{TiO}_2$ for coatings, the market trend points to a future where high-purity, ultrafine (non-pigmentary) $\text{TiO}_2$ grades capture a higher margin. This segment is growing due to consumer preference for mineral-based cosmetics and regulatory pressure for UV-blocking functional coatings. Kronos Worldwide, Inc.'s ability to adapt its production to these high-specification grades will be key to offsetting the price pressure seen in the commodity market, where average $\text{TiO}_2$ selling prices declined by 6% during the first nine months of 2025.

Marine components must integrate smart technology, including autonomous docking and IoT (Internet of Things) systems.

Valhi's Component Products Segment, which includes recreational marine components, is facing a rapid technological transformation. The entire marine industry is integrating smart technology to enhance safety, efficiency, and convenience. The marine Internet of Things (IoT) market size alone is expected to grow from $6.56 billion in 2024 to approximately $7.59 billion in 2025, representing a strong 15.7% CAGR.

This means Valhi's marine components-like boat hardware and accessories-need to be compatible with, or directly incorporate, real-time monitoring and connectivity solutions. The focus is shifting to:

• Real-time vessel performance monitoring and diagnostics.
• Predictive maintenance tools that use sensors to flag potential engine or component failures.
• Integrated navigation systems, including semi-autonomous features like assisted docking and dynamic positioning.

The Component Products Segment saw net sales increase to $120.6 million for the first nine months of 2025, partially due to higher marine components sales, but sustaining this growth requires continuous investment in smart component development to meet the demand for connected vessels.

Chloride-process $\text{TiO}_2$ (used by Kronos Worldwide, Inc.) is favored for its superior quality and environmental benefits.

The choice of production technology is a major competitive factor. Kronos Worldwide, Inc. primarily utilizes the chloride process, which is technologically favored over the older sulfate process for producing the higher-quality rutile grade $\text{TiO}_2$ pigment. The chloride process is generally considered more environmentally friendly because it allows for chlorine recovery and produces less waste, which is a significant advantage under tightening global environmental standards.

The global market for chloride process $\text{TiO}_2$ is substantial, predicted to be valued at approximately $13.36 billion in 2025, with an expected CAGR of 3.9% from 2025 to 2031. This process is essential for high-performance applications like automotive and aerospace coatings. Kronos Worldwide, Inc. operates its production facilities at high utilization rates; for example, the Chemicals Segment's $\text{TiO}_2$ production volumes were 18% higher in the first quarter of 2025 compared to the same period in 2024, with facilities operating at an average capacity of 93%. This high utilization of the preferred chloride technology is a core strength.

Technological Trend	2025 Market Value/Metric	Implication for Valhi, Inc. (VHI)
Global $\text{TiO}_2$ Market Size	$22.5 billion (2025)	Large addressable market for Chemicals Segment (Kronos Worldwide, Inc.), but subject to commodity price pressure.
Chloride Process $\text{TiO}_2$ Market Size	$13.36 billion (2025)	Valhi's core technology is in the higher-quality, preferred segment of the market, which is a long-term competitive advantage.
Coating Pigments Market CAGR (2025-2035)	5.5%	Strong growth driver for specialized, low-VOC $\text{TiO}_2$ pigments, requiring R&D focus on surface treatments.
Marine Internet of Things (IoT) Market Size	$7.59 billion (2025)	Component Products Segment must invest in smart component integration (e.g., sensors, connectivity) to capture high-margin sales.

Valhi, Inc. (VHI) - PESTLE Analysis: Legal factors

Increased regulatory scrutiny, especially in Europe, regarding food-grade $\text{TiO}_2$ (like the E171 ban).

The regulatory environment for the Chemicals Segment, primarily Kronos Worldwide, continues to tighten, especially in Europe. The European Union's ban on Titanium Dioxide ($\text{TiO}_2$) as a food additive (E171) has created a precedent for increased scrutiny on the substance's safety profile, even for non-food applications. While the ban directly impacts the food-grade market, it increases the risk of further regulation, such as classifying $\text{TiO}_2$ as a carcinogen under certain inhalation conditions, which would dramatically increase compliance costs and labeling requirements across all product lines.

This regulatory uncertainty is reflected in the Chemicals Segment's performance in 2025. The segment's net sales were $22.9$ million lower in the first nine months of 2025 compared to the same period in 2024, partly due to lower sales volumes in its European and export markets, a trend that is defintely exacerbated by a cautious regulatory climate and lower average $\text{TiO}_2$ selling prices. That's a direct hit to the top line.

Continuous compliance with stringent global environmental laws and regulations across all production facilities.

Maintaining continuous compliance with global environmental laws is a non-negotiable and costly operational reality for Valhi, Inc., particularly concerning its former and current chemical operations. The company faces ongoing financial obligations related to environmental remediation (cleanup) and decommissioning at various sites, which are subject to stringent U.S. and international statutes.

Here's the quick math on the near-term environmental cash outflow: for the first nine months of 2025, the company's operating cash flow reflected $56.5$ million in environmental payments. This is a significant use of working capital. After these payments, the environmental accrual-the estimated future cost of these obligations-stood at $18.1$ million as of September 30, 2025. What this estimate hides is the potential for new developments or more stringent standards to push future costs beyond the current accrual.

Corporate expenses are elevated by higher litigation fees and related costs in 2025.

The total corporate expense line is a clear indicator of the legal risks Valhi, Inc. manages. Litigation fees and related costs are a volatile but consistently present expense, driven by legacy issues like NL Industries' lead pigment and environmental matters, plus new litigation related to current operations, such as CompX International's use of permitted chemicals.

The financial impact is clear but swings quarter-to-quarter. Corporate expenses were 11% higher in the third quarter of 2025 compared to the same period in 2024, an increase primarily attributed to higher litigation fees and related costs. However, in the second quarter of 2025, corporate expenses were 11% lower due to a temporary decrease in those same litigation and environmental remediation costs. This volatility means legal risk is a major factor in quarterly earnings stability.

Legal/Compliance Metric (First Nine Months of 2025)	Amount/Value	Context
Environmental Payments (Cash Flow Outflow)	$56.5$ million	Payments made for environmental remediation and related matters.
Environmental Accrual (as of Sept 30, 2025)	$18.1$ million	Estimated remaining liability for environmental remediation.
Q3 2025 Corporate Expense Change (YoY)	11% higher	Primarily driven by higher litigation fees and related costs.
Q2 2025 Corporate Expense Change (YoY)	11% lower	Primarily due to lower litigation and environmental remediation costs.

International trade agreements and tariffs create a fluid regulatory landscape for global supply chains.

The shifting landscape of international trade policy, including new tariffs and trade disputes, introduces significant legal and financial risk to a global manufacturer like Valhi, Inc. The Chemicals Segment, through Kronos Worldwide, operates a manufacturing facility in Canada, making it directly exposed to U.S. tariffs on imports from Canada, which were subjected to up to 25% tariffs in early 2025.

The company must constantly navigate a complex web of duties and trade barriers, including:

• Adjusting to new tariffs on imported raw materials, which increases operating costs.
• Managing the risk of retaliatory tariffs from trading partners, which could further depress sales volumes in key export markets.
• Monitoring the fluid status of a universal 10% U.S. tariff on all imports, and the significantly higher rates, up to an effective 145% on Chinese goods, which affects the competitive landscape.

These trade policies create supply chain disruption and cost volatility, forcing constant legal and logistical re-evaluation. Your action here is to ensure the procurement team has a clear, real-time matrix of tariff-adjusted costs for all critical raw materials.

Valhi, Inc. (VHI) - PESTLE Analysis: Environmental factors

Strong market demand for sustainability drives the shift toward eco-friendly marine components, including electric propulsion.

The core shift toward sustainability in the marine sector presents a clear opportunity for Valhi, Inc.'s Component Products Segment, which is run by CompX International Inc. You are seeing this trend reflected in the Component Products Segment's Q1 2025 net sales, which rose to \$40.3 million, partly due to higher marine components sales. This growth is directly aligned with the broader market trend toward electric and hybrid vessels.

The global Hybrid and Full Electric Marine Propulsion market is projected to reach a size of \$6,521.8 million in 2025, growing at a Compound Annual Growth Rate (CAGR) of 11.5% through 2033. North America, a key market for CompX International Inc., is expected to capture a 37% share of this market in 2025, representing a value of approximately \$2,413.07 million. This demand for electric boat components is driven by consumer preference for quieter, zero-emission recreational vessels.

This is a defintely a high-growth area where small investments in product adaptation can yield outsized returns.

Pressure to reduce the environmental footprint of $\text{TiO}_2$ production, favoring cleaner processes and formulations.

The Chemicals Segment, primarily Kronos Worldwide, Inc., faces persistent environmental pressure regarding its manufacturing processes, which use both the chloride and sulfate methods. To manage this, Kronos Worldwide, Inc. has budgeted approximately \$24 million of its 2025 capital expenditures specifically for environmental compliance, protection, and improvement programs. This investment is necessary to maintain operating efficiency and meet increasingly strict global environmental standards.

A significant de-risking event for the company occurred in August 2025, when the European Court of Justice upheld a ruling that titanium dioxide ($\text{TiO}_2$) is no longer considered a category 2 carcinogen within the European Union. This decision reduces a major regulatory and reputational overhang, allowing Kronos Worldwide, Inc. to focus capital and resources on process improvements like its KRONOS ecochem® products, which convert waste byproducts into saleable co-products, supporting a circular economy approach.

Here's the quick math on the compliance focus:

Metric	Value (2025 Fiscal Year Data)	Context
Environmental CapEx (Kronos)	\$24 million (estimated)	Targeted for compliance, protection, and improvement.
EU Carcinogen Status	Removed (August 2025)	Reduces regulatory burden and long-term litigation risk.
Q1 2025 $\text{TiO}_2$ Price Decline	3%	Market pressure, emphasizing the need for cost-efficient, cleaner production.

Supply chain risk analysis identifies high social and environmental risks in certain raw material sourcing regions.

Valhi, Inc.'s reliance on key raw materials, particularly titanium ore for its $\text{TiO}_2$ production, exposes it to geopolitical and environmental sourcing risks. The supply chain for titanium ore and other inputs like sulfuric acid remains volatile in 2025. Geopolitical tensions, notably involving China, the largest $\text{TiO}_2$ producer, create significant price and supply uncertainty.

A concrete example of this risk materializing is the European Commission's imposition of definitive anti-dumping duties on Chinese $\text{TiO}_2$ imports, effective January 2025. These duties range from €0.25/kg to €0.74/kg and are in effect for five years. This action, while protecting the European market where Kronos Worldwide, Inc. has four facilities, also highlights the fragility of global trade flows and the potential for retaliatory measures or shifts in global pricing dynamics.

What this estimate hides is the potential for environmental and social issues at the mine-site level to cause sudden, severe supply shocks for titanium ore.

Increasing demand for biodegradable antifouling paints and other eco-friendly marine coatings.

The marine industry's push for sustainability extends beyond propulsion into vessel maintenance, creating a strong market for eco-friendly coatings. This is relevant to the Component Products Segment, as the entire marine ecosystem is shifting. The global Marine Antifouling Coatings market size was over \$2.6 billion in 2025 and is projected to grow at a CAGR of more than 7.6% through 2035.

This growth is primarily driven by the high demand for eco-friendly solutions that move away from traditional copper-based antifouling paints, which accounted for a 46% market share in 2024 but face increasing regulatory scrutiny due to their impact on aquatic life. The focus is now on biocide-free alternatives. For Valhi, this signals a need for CompX International Inc. to align its marine component offerings-like its hardware and accessories-with vessels adopting these cleaner coating technologies and maintenance practices, ensuring product compatibility and market relevance.

• Global Antifouling Coatings Market Value (2025): \$11.14 billion
• Marine Antifouling Coatings Market Size (2025): Over \$2.6 billion
• Forecasted CAGR (2026-2035): More than 7.6%

Finance: draft 13-week cash view by Friday, specifically modeling the impact of reduced $\text{TiO}_2$ pricing on working capital.