NL Industries stock gets Outperform upgrade on margin gains

NL Industries stock received an Outperform upgrade from Zacks on September 23, 2026, as stronger operating trends at CompX and Kronos improved the earnings outlook. The company had a market capitalization of USD 341.8 million as of September 29, 2026.

CompX margins provide the lift

According to Zacks on September 23, 2026, NL was upgraded from Neutral to Outperform. The assessment points to CompX 2026 net sales exceeding the 2025 level and to higher full-year gross and segment-profit margins.

The Q2 2026 figures explain the change in tone. CompX gross margin increased to USD 15.5 million from USD 12.9 million in the prior-year quarter, lifting the margin rate to 36 percent from 32 percent. Segment profit rose 41 percent to USD 8.9 million, while the segment-profit margin expanded to 20 percent from 16 percent.

Kronos adds a second earnings driver

Zacks also cited Kronos Worldwide, in which NL holds an approximately 31 percent noncontrolling interest. Kronos operating income rose to USD 37.6 million from USD 7.4 million in the prior-year quarter, while gross margin improved to 18 percent from 13 percent.

The operating picture is not uniform. MarketBeat reported Q2 EPS of USD 0.18 against USD 0.21 consensus, while revenue matched estimates at USD 43.61 million. The quarterly dividend was USD 0.10 per share.

Market value and yearly range

NL Industries had a market capitalization of USD 341.8 million as of September 29, 2026. Its 52-week range was USD 5.04 to USD 8.60, leaving the company valued against a wide yearly trading span.

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