CompX's net sales were $40.6 million in the first quarter of 2026 compared to $40.3 million in the first quarter of 2025. CompX's first quarter 2026 net sales increased over the comparable 2025 period due to higher Marine Components sales to the industrial market partially offset by lower Security Products sales. CompX's segment profit increased to $7.1 million in the first quarter of 2026 compared to $5.9 million in the first quarter of 2025 primarily due to higher gross margin at Security Products as a result of a more favorable customer and product mix and, to a lesser extent, the impact of higher sales at Marine Components.
NL recognized equity in losses of Kronos of $1.5 million in the first quarter of 2026 compared to equity in earnings of $5.5 million in the same period of 2025. Kronos' net sales of $509.8 million in the first quarter of 2026 were $20.0 million, or 4%, higher than in the first quarter of 2025. Kronos' net sales increased in the first quarter of 2026 compared to the first quarter of 2025 primarily due to the effects of higher sales volumes in its North American, Latin American and export markets and the favorable impact of changes in currency exchange rates (primarily the euro), which it estimates increased its net sales by approximately $30 million. These increases were partially offset by lower sales volumes in its European market and lower average TiO2 selling prices. Kronos started 2026 with average TiO2 selling prices lower than at the beginning of 2025; however, its average TiO2 selling prices increased 2% during the first quarter of 2026 as Kronos works to recover pricing lost during 2025. The table at the end of this press release shows how each of these items impacted Kronos' net sales.
Kronos' income from operations in the first quarter of 2026 was $12.6 million as compared to $38.4 million in the first quarter of 2025. Kronos' income from operations decreased in the first quarter of 2026 compared to the first quarter of 2025 primarily due to the effects of lower average TiO2 selling prices, lower production volumes, and the unfavorable impact of changes in currency exchange rates, partially offset by higher sales volumes and lower production costs. Lower production costs benefited in part from cost reduction initiatives implemented in the fourth quarter of 2025, including workforce reductions and other measures, which were designed to permanently improve Kronos' cost structure and enable more efficient operation of its facilities at lower production rates for extended periods. Fluctuations in currency exchange rates (primarily the euro) decreased Kronos' income from operations by approximately $6 million in the first quarter of 2026 compared to the first quarter of 2025.
Corporate expenses increased slightly in the first quarter of 2026 compared to the first quarter of 2025 primarily due to higher general and administrative expenses. Interest and dividend income decreased $.7 million in the first quarter of 2026 compared to the same period of 2025 primarily due to decreased average investment balances and lower average interest rates. Marketable equity securities represent the change in unrealized gains (losses) on our portfolio of marketable equity securities during the period.
The statements in this release relating to matters that are not historical facts are forward-looking statements that represent management's beliefs and assumptions based on currently available information. Although we believe the expectations reflected in such forward-looking statements are reasonable, we cannot give any assurances that these expectations will prove to be correct. Such statements by their nature involve substantial risks and uncertainties that could significantly impact expected results, and actual future results could differ materially from those described in such forward-looking statements. While it is not possible to identify all factors, we continue to face many risks and uncertainties. Factors that could cause actual future results to differ materially include, but are not limited to:
Future supply and demand for our products;
Kronos' ability to realize expected cost savings from strategic and operational initiatives;
Kronos' ability to integrate acquisitions into its operations and realize expected synergies and innovations;
The extent of the dependence of certain of our businesses on certain market sectors;
The cyclicality of our businesses (such as Kronos' TiO2 operations);
Customer and producer inventory levels;
Unexpected or earlier-than-expected industry capacity expansion (such as the TiO2 industry);
Changes in raw material and other operating costs (such as energy, ore, zinc, aluminum, steel and brass costs) or the implementation of tariffs on imported raw materials and our ability to pass those costs on to our customers or offset them with reductions in other operating costs;
Changes in the availability of raw materials (such as ore);
General global economic and political conditions that harm the worldwide economy, disrupt our supply chain, increase material and energy costs or reduce demand or perceived demand for TiO2 and our products or impair our ability to operate our facilities (including changes in the level of gross domestic product in various regions of the world, tariffs, natural disasters, terrorist acts, global conflicts and public health crises);
Operating interruptions (including, but not limited to, labor disputes, leaks, natural disasters, fires, explosions, unscheduled or unplanned downtime, transportation interruptions, certain regional and world events or economic conditions and public health crises);
Technology related disruptions (including, but not limited to, cyber-attacks; software implementation, upgrades, or improvements; technology processing failures; or other events) related to our technology infrastructure (including manufacturing and accounting systems) that could impact our ability to continue operations, or at key vendors which could impact our supply chain, or at key customers which could impact their operations and cause them to curtail or pause orders;
Competitive products and substitute products;
Competition from Chinese suppliers with less stringent regulatory and environmental compliance requirements;
Customer and competitor strategies;
Our ability to retain key customers;
Potential consolidation of Kronos' competitors;
Potential consolidation of Kronos' customers;
The impact of pricing and production decisions;
Competitive technology positions;
Our ability to protect or defend intellectual property rights;
Potential difficulties in integrating future acquisitions;
The introduction of new, or changes in existing, tariffs, trade barriers or trade disputes;
