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Valhi (VHI) guidance and outlook
Valhi's 10-Q filed Nov 5, 2026 makes 42 forward-looking statements.
Guidance and outlook
Forward-looking statements, 10-Q filed Nov 5, 2026
- We currently expect consolidated operating income for 2026 to be higher as compared to 2025 primarily due to the net effects of:
- Over the long-term, we expect demand for TiO 2 will grow by 2% to 3% per year, consistent with our expectations for the long-term growth in GDP.
- Additionally, we estimate that changes in currency exchange rates (primarily the euro) increased our Chemicals Segment’s net sales by approximately $39 million in the first nine months of 2026 as compared to the first nine months of 2025.
- We estimate that changes in currency exchange rates decreased operating income by approximately $5 million in the third quarter of 2026 compared to the same period in 2025, as discussed in the effects of currency exchange rates section below.
- We estimate that changes in currency exchange rates decreased operating income by approximately $23 million in the first nine months of 2026 compared to the same period in 2025, as discussed in the effects of currency exchange rates section below.
- Outlook – During the third quarter of 2026, our Chemicals Segment continued the positive momentum from the first half of the year, with sales volumes improving compared to the same period in 2025.
- Our Chemicals Segment’s order backlog entering the fourth quarter remains favorable compared to the prior year, and combined with planned maintenance activities at several of our Chemicals Segment’s facilities, it expects its finished goods inventory levels to remain below normal.
- Based on our Chemicals Segment’s performance during the first nine months of 2026, our Chemicals Segment expects full-year net sales and sales volumes to exceed 2025 levels, and it expects gross margin and operating income margins to improve compared to 2025.
- Our Chemicals Segment implemented additional price increases during the second and third quarters of 2026 in response to higher production, energy and distribution costs, and, based on price increases our Chemicals Segment has announced to its customers and continued cost pressures, our Chemicals Segment expects its average TiO2 selling prices in the fourth quarter of 2026 to be improved.
- Our Chemicals Segment operated its facilities within its normal capacity range during the first nine months of 2026, and our Chemicals Segment currently expects to continue operating within its normal capacity range for the remainder of the year.
- Our Chemicals Segment also continues to pursue targeted sales growth opportunities in regions affected by logistical challenges and trade measures that have reduced the competitiveness of certain imports.
- While our Chemicals Segment typically experiences significant seasonal cash usage in the first half of the year, it expects liquidity to improve over the remainder of 2026.
Valhi's latest quarter
Valhi, Q3 2026: revenue $589M (+17% year over year), operating margin 11.4%, net earnings $30.2M, operating cash flow $58.7M. The chart follows the revenue to costs, profit and cash.
Questions
What does Valhi expect?
We currently expect consolidated operating income for 2026 to be higher as compared to 2025 primarily due to the net effects of: Over the long-term, we expect demand for TiO 2 will grow by 2% to 3% per year, consistent with our expectations for the long-term growth in GDP. Additionally, we estimate that changes in currency exchange rates (primarily the euro) increased our Chemicals Segment’s net sales by approximately $39 million in the first nine months of 2026 as compared to the first nine months of 2025.
Updated Nov 8, 2026. Read automatically from SEC filings and public data; errors are possible. Not investment advice.