Nli Holdings (NL) risk factors, FY2025 10-K

Nli Holdings's FY2025 10-K, filed Mar 09, 2026, lists 19 risk factors. Against the prior year's 17: 3 new, 1 dropped, 6 substantially reworded.

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Risk factors listed
190 groups
New this year
3vs 17 last year
Dropped
1since the prior 10-K
Substantially reworded
6of those kept
Section length
6k wordsItem 1A

What the changes say

  • CompX sales are heavily concentrated among ten top customers, led by a single customer accounting for 26% of net sales.

What changed since the prior 10-K

New

  • New

    Dependence on CompX’s significant customers could adversely affect our business and results of operations

    CompX relies on purchase orders rather than long-term contracts for 52% of its net sales through its ten largest customers.

  • New

    significantly affect its operating results and decrease liquidity as Kronos may not always be able to increase its selling prices to offset the impact of any higher costs or reduced production levels

    Kronos estimates feedstock purchases under supply contracts will be between $375 million and $450 million in 2026.

  • New

    Kronos’ acquisition of the remaining 50% interest in LPC may not generate benefits it anticipates and may otherwise affect its business and prospects

    Kronos integrated the remaining 50% interest in LPC into Kronos Louisiana, risking potential integration difficulties and diverted management time.

Dropped

  • Dropped

    Kronos recently completed the LPC acquisition in which it purchased the 50% ownership interest in LPC it did

Reworded

  • 60% rewritten

    Higher costs or limited availability of Kronos’ raw materials may reduce its earnings and decrease its liquidity. In addition, many of Kronos’ raw material contracts contain fixed quantities it is required to purchase

    Added a new heading emphasis on fixed quantity purchase requirements in Kronos raw material contracts and updated 2023 and 2024 margin impact phrasing.

  • 36% rewritten

    Kronos’ operating as a global business presents risks associated with global and regional economic, political, and regulatory environments

    Updated non-U.S. revenue percentages to cover 2023, 2024, and 2025, and adjusted wording regarding Canadian import tariffs.

  • 34% rewritten

    The TiO2 industry is concentrated and highly competitive and Kronos faces price pressures in the markets in which it operates, which may result in reduced earnings or operating losses

    Updated market concentration figures to state top four TiO2 producers account for 42% of world capacity rather than top five at 51%.

  • 26% rewritten

    Changes in currency exchange rates and interest rates can adversely affect Kronos’ net sales, profits and cash flows

    Updated European sales volume timeframes to cover 2024 and 2025 at 44% and 45%.

  • 24% rewritten

    Kronos’ leverage may impair our financial condition

    Removed the 3.75% Senior Secured Notes due 2025 from debt instruments and updated total consolidated debt figure to $557.4 million for 2025.

  • 24% rewritten

    Higher costs or unavailability of CompX’s raw materials could negatively impact our financial results

    Minor stylistic and phrasing updates regarding CompX commodity raw materials like zinc, brass, stainless steel, and aluminum.

All 19 risk factors

Headings as the filing states them, in filing order.

Other

  1. 01Demand for, and prices of, certain of Kronos’ products are influenced by changing market conditions for its products, which may result in reduced earnings or in operating losses
  2. 02The TiO2 industry is concentrated and highly competitive and Kronos faces price pressures in the markets in which it operates, which may result in reduced earnings or operating losses34% rewritten
  3. 03CompX operates in mature and highly competitive markets, resulting in pricing pressure and the need to continuously reduce costs
  4. 04CompX’s development of innovative features for current products is critical to sustaining and growing its sales
  5. 05Higher costs or unavailability of CompX’s raw materials could negatively impact our financial results24% rewritten
  6. 06Dependence on CompX’s significant customers could adversely affect our business and results of operationsNew
  7. 07Higher costs or limited availability of Kronos’ raw materials may reduce its earnings and decrease its liquidity. In addition, many of Kronos’ raw material contracts contain fixed quantities it is required to purchase60% rewritten
  8. 08significantly affect its operating results and decrease liquidity as Kronos may not always be able to increase its selling prices to offset the impact of any higher costs or reduced production levelsNew
  9. 09Kronos’ acquisition of the remaining 50% interest in LPC may not generate benefits it anticipates and may otherwise affect its business and prospectsNew
  10. 10Our assets consist primarily of investments in our operating subsidiaries and affiliate, and we are dependent upon distributions from our subsidiaries and affiliate
  11. 11Kronos’ leverage may impair our financial condition24% rewritten
  12. 12Indebtedness outstanding under Kronos’ Global Revolver accrues interest at variable rates. To the extent market interest rates rise, the cost of Kronos’ debt could increase, even if the amount borrowed remains the same, adversely affecting its financial condition, results of operations and cash flows
  13. 13Changes in currency exchange rates and interest rates can adversely affect Kronos’ net sales, profits and cash flows26% rewritten
  14. 14We could incur significant costs related to legal and environmental matters
  15. 15If Kronos or CompX must take legal action to protect, defend or enforce intellectual property rights, any suits or proceedings could result in significant costs, including attorney’s fees and diversion of resources and management’s attention, and Kronos or CompX may not prevail in any such suits or proceedings
  16. 16Global climate change laws and regulations could negatively impact our financial results or limit Kronos’ and CompX’s ability to operate their businesses
  17. 17Kronos’ operating as a global business presents risks associated with global and regional economic, political, and regulatory environments36% rewritten
  18. 18Technology failures or cybersecurity breaches could have a material adverse effect on our operations
  19. 19Physical impacts of climate change could have a material adverse effect on Kronos’ or CompX’s costs and operations

Other Nli Holdings 10-Ks

  • FY2024 10-K risk factors
    17 risks

    NLI Holdings relies heavily on its operating subsidiaries Kronos and CompX, exposing results to TiO2 and security products markets. Debt levels, raw material costs, and global environmental regulations heavily influence the company's financial condition.

    Filed Mar 06, 2025

About this page

The headings are the filing's own. The one-line readings and the overview are automated and can be wrong: read Item 1A of the 10-K for the exact wording.