Customer concentration at CompX
A small number of customers account for a large share of sales, so order changes can quickly affect revenue.
- Scope
- United States Postal Service represented 26% of consolidated net sales in 2025
- Materiality
- high
NL INDUSTRIES INC
NL Industries is a U.S.-based holding company organized around two operating interests: a majority-owned component products business through CompX International and a noncontrolling equity stake in Kronos Worldwide. Through these subsidiaries and affiliates, the company is tied to engineered metal components and titanium dioxide pigments used in industrial and consumer applications.
2.8k
7.77
6.04
| % | |
|---|---|
| Security Products | 45% Mechanical and electronic locks and related locking mechanisms for cabinets and secure storage applications. |
| Marine Components | 25% Wake enhancement systems, exhaust systems, gauges, controls, trim tabs, and related marine hardware. |
| Industrial End-Market Components | 15% Engineered components sold into furniture, cabinetry, healthcare, vending, gas station, and industrial uses. |
| Titanium Dioxide Pigments | 15% Value-added TiO2 pigments used to add whiteness, brightness, opacity, and durability to many products. |
CompX sells engineered components to a broad mix of OEMs, distributors, and end-market customers in security, marine,...
- OEM and industrial component customersprimary
Buy locks, controls, gauges, and related engineered parts for incorporation into finished products.
- Distributor and locksmith channelprimary
Purchases standardized security products for resale into cabinet lock and access-control markets.
- Marine and recreational transportation customerssecondary
Buy marine hardware and control systems used in boats and related recreational vehicles.
- TiO2 end-market manufacturersprimary
Use titanium dioxide pigments in coatings, plastics, paper, inks, cosmetics, and pharmaceuticals.
NL is headquartered in Dallas, Texas, and its operating footprint is centered in the United States through CompX’s...
- •Headquartered in Dallas, Texas
- •CompX operates three production facilities in the United States
- •Kronos has production facilities in Europe and North America
- •Business is exposed to U.S. industrial demand and global TiO2 markets
- •International operations create energy, logistics, and currency exposure
NL’s strategy is centered on managing a portfolio of operating interests and using subsidiary cash flows to support...
01
Invest in CompX capacity and infrastructureshort-term
Keeps manufacturing assets aligned with customer demand and product quality requirements.
02
Defend premium positioning in engineered componentsmedium-term
Design, durability, and service are key differentiators in the markets CompX serves.
03
Preserve customer relationships in TiO2medium-term
Kronos depends on repeat industrial customers and technical support to sustain demand.
NL’s results are heavily influenced by CompX customer concentration and Kronos’ exposure to the cyclical TiO2 market...
TiO2 market cyclicality
Kronos depends on demand for titanium dioxide pigments, which moves with industrial production and discretionary spending.
- Scope
- Approximately 90% of Kronos sales were TiO2 in 2025
- Materiality
- high
Energy and raw material volatility
TiO2 manufacturing requires significant energy and specific feedstocks, so supply disruptions can hurt margins and liquidity.
- Scope
- Purchased slag, rutile ore, and ilmenite ore inputs
- Materiality
- high
Cybersecurity and IT disruption
Operations depend on integrated systems for manufacturing, order processing, billing, and vendor payments.
- Scope
- CompX and Kronos both rely on shared information systems
- Materiality
- medium
Environmental and remediation liabilities
Legacy industrial operations can generate cleanup obligations and settlement costs that affect cash flow and earnings.
- Scope
- Environmental remediation site settlement and related costs
- Materiality
- high
Equity method investment in Kronos
Can create large swings in reported net income
Fair value of marketable equity securities
Introduces mark-to-market volatility
Environmental remediation liabilities
Can materially affect operating cash flow and earnings
Goodwill and long-lived asset recoverability
Potential impairment charges
Pension and OPEB assumptions
Can alter reported benefit cost and balance sheet obligations
: 29.4.2026