What Valhi, Inc. told the SEC could break it.

Valhi's Component Products Segment (CompX) had USPS at 26% of net sales and its top ten customers at 52% in 2025, and its Chemicals Segment (Kronos TiO2) top-ten customers were ~35% of net sales — concentrating both operating segments' revenue.

“Our Component Products Segment sells to a diverse customer base with only one customer representing 10% or more of its consolidated net sales in 2025 (United States Postal Service – 26%). Our Component Products Segment's largest ten customers accounted for approximately 52% of its consolidated net sales in 2025.”

Valhi's Chemicals Segment (Kronos) depends on TiO2 — a 'quality of life' product whose demand tracks GDP — and on titanium-containing feedstock available only from a limited number of geographically concentrated suppliers (Australia, South Africa, Norway, Canada, India), exposing it to commodity and feedstock-availability risk.

“Titanium-containing feedstocks suitable for use in our Chemicals Segment's TiO 2 facilities are available from a limited number of suppliers around the world. Political and economic instability or increased regulations in the countries from which our Chemicals Segment purchases or mines its raw material supplies could adversely affect raw material availability.”

Valhi is a controlled, multi-tier holding company (Contran/Simmons family) that operates through majority-owned subsidiaries (Kronos, CompX, NL) and uses intercompany financing (e.g. a Valhi credit facility with Contran and an NL-subsidiary facility sized to 50% of Kronos' stock price), concentrating control and exposing minority holders to related-party and structural risks.

“we repaid $28.0 million on Valhi's credit facility with Contran; and ● Kronos acquired 313,814 shares of its common stock for an aggregate purchase price of $2.8 million.”

Valhi's Component Products Segment sources electronic components from China/Asia and began incurring tariff-related surcharges in 2025, while Kronos' cross-border TiO2 production (incl. Canada) faces tariff exposure — raising input costs the segments may not fully recover from customers.

“Our Component Products Segment also sources certain components, primarily electronic components, from suppliers located in Asia, including China. Early in the first quarter of 2025, in anticipation of the U.S. federal government tariffs announcements, our Component Products Segment increased purchases of certain electronic and other components to mitigate the potential near-term tariff impacts.”