Valhi's biggest risks in the FY2024 10-K
- Valhi relies heavily on the TiO2 chemicals segment, component manufacturing, and Nevada real estate development.
The risks most specific to Valhi
Demand for, and prices of, certain of our Chemicals Segment’s products are influenced by changing market conditions for its products, which may result in reduced earnings or operating losses
Approximately 90% of the Chemicals Segment's 2024 sales came from TiO2, making earnings vulnerable to global macroeconomic conditions.
Higher costs or limited availability of our raw materials may reduce our earnings and decrease our liquidity. In addition, many of our raw material contracts contain fixed quantities we are required to purchase
Titanium-containing feedstocks for TiO2 facilities are available from only a limited number of global suppliers.
raw material costs and ensure supply. Materials purchased outside of these arrangements are sometimes subject to unanticipated and sudden price increases
Component Products rely on foreign suppliers in China and elsewhere, exposing operations to global disruptions and tariffs.
Kronos’ recent acquisition of the remaining 50% interest in LPC may not generate benefits we anticipate and may otherwise affect our business and prospects
Kronos may fail to realize anticipated benefits or encounter technological difficulties in integrating its newly acquired 50% interest in LPC.
Our Real Estate Management and Development Segment has significant development obligations related to a residential/planned community in Henderson, Nevada. Increases in labor or construction costs related to the completion of such development obligations may reduce our earnings and decrease our liquidity
The Real Estate Segment faces significant development obligations for approximately 2,100 acres in Henderson, Nevada, subject to rising labor and construction costs.
Our leverage may impair our financial condition or limit our ability to operate our businesses
The company carries significant debt, including Kronos' 9.50% Senior Secured Notes due 2029 and 3.75% Senior Secured Notes due 2025.
We could incur significant costs related to legal and environmental remediation matters
NL faces ongoing legacy legal proceedings and potential remediation costs related to its former manufacture of lead pigments for paint.
All 18 risk factors
Headings as the filing states them, in filing order.
Other
- 01Demand for, and prices of, certain of our Chemicals Segment’s products are influenced by changing market conditions for its products, which may result in reduced earnings or operating losses
- 02The TiO2 industry is concentrated and highly competitive and our Chemical Segment faces price pressures in the markets in which it operates, which may result in reduced earnings or operating losses
- 03Many of the markets in which our Component Products Segment operates are mature and highly competitive resulting in pricing pressure and the need to continuously reduce costs
- 04Our development of innovative features for current products is critical to sustaining and growing our Component Product Segment’s sales
- 05Higher costs or limited availability of our raw materials may reduce our earnings and decrease our liquidity. In addition, many of our raw material contracts contain fixed quantities we are required to purchase
- 06raw material costs and ensure supply. Materials purchased outside of these arrangements are sometimes subject to unanticipated and sudden price increases
- 07Kronos’ recent acquisition of the remaining 50% interest in LPC may not generate benefits we anticipate and may otherwise affect our business and prospects
- 08Our Real Estate Management and Development Segment has significant development obligations related to a residential/planned community in Henderson, Nevada. Increases in labor or construction costs related to the completion of such development obligations may reduce our earnings and decrease our liquidity
- 09Our assets consist primarily of investments in our operating subsidiaries, and we are dependent upon distributions from our subsidiaries to service our liabilities
- 10cash dividends or other distributions to us, our ability to service our liabilities and to pay dividends on our common stock could be adversely affected
- 11Our leverage may impair our financial condition or limit our ability to operate our businesses
- 12Indebtedness outstanding under our loan from Contran and Kronos’ Global Revolver accrues interest at variable rates. To the extent market interest rates rise, the cost of our debt could increase, even if the amount borrowed remains the same, adversely affecting financial condition, results of operations and cash flows
- 13Changes in currency exchange rates and interest rates can adversely affect our net sales, profits, and cash flows
- 14We could incur significant costs related to legal and environmental remediation matters
- 15Global climate change laws and regulations could negatively impact our financial results or limit our ability to operate our businesses
- 16Operating as a global business presents risks associated with global and regional economic, political and regulatory environments
- 17Technology failures or cybersecurity breaches could have a material adverse effect on our operations
- 18Physical impacts of climate change could have a material adverse effect on our costs and operations
Other Valhi 10-Ks
- FY2025 10-K risk factors17 risks1 new2 dropped6 reworded
Valhi updated disclosures to reflect the LPC acquisition merger, reduced real estate development obligations in Henderson, Nevada, and added customer concentration risks for its Component Products Segment.
Filed Mar 10, 2026
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.