Why Valhi (VHI) Sank Into the Red as Its Chemicals Business Unraveled

Valhi, Inc. (NYSE:VHI) is one of the best short-term stocks to buy now. On March 10, 2026, the company reported a net loss attributable to stockholders of $53.2 million, or $1.86 per share, for the fourth quarter of 2025, compared with net income of $22.8 million, or $0.80 per share, in the year-earlier quarter. For full-year 2025, Valhi posted a net loss of $57.6 million, or $2.02 per share, versus net income of $108.0 million, or $3.79 per share, in 2024. Management said the decline was driven primarily by weaker operating results in its Chemicals segment.

That business remained the main drag. Chemicals segment net sales slipped 1% to $418.3 million in the fourth quarter and 1% to $1.9 billion for the full year. The segment swung to a $60.1 million operating loss in the quarter from operating income of $32.6 million a year earlier, as lower TiO2 selling prices, reduced operating rates, and about $10.3 million of workforce-reduction costs hit results.

For the full year, the segment recorded a $24.5 million operating loss versus $138.5 million of operating income in 2024. Valhi also said fourth-quarter results included an $8.5 million non-cash deferred income tax expense tied to a valuation allowance in the Chemicals segment’s German deferred tax asset.

Valhi, Inc. (NYSE: VHI) operates in chemicals, component products, and real estate management and development.

READ NEXT: 33 Stocks That Should Double in 3 Years and 15 Stocks That Will Make You Rich in 10 Years.

Disclosure: None. Follow Insider Monkey on Google News.