Cash flow generation remains inconsistent, highlighted by a massive $155.9 million operating cash outflow in 2025Q1 that contrasts sharply with the $146.5 million inflow from working capital changes in 2025Q4.
| Metric | TTM | Dec'25 | Dec'24 | Dec'23 | Dec'22 | Dec'21 | Dec'20 | Dec'19 | Dec'18 | Dec'17 | Dec'16 | Dec'15 | Dec'14 | Dec'13 | Dec'12 | Dec'11 | Dec'10 | Dec'09 | Dec'08 | Dec'07 | Dec'06 | Dec'05 | Dec'04 | Dec'03 | Dec'02 | Dec'01 | Dec'00 | Dec'99 | Dec'98 | Dec'97 | Dec'96 |
|---|
| Cash from Operations | 74.3M | -35.5M | 44M | 3.9M | 34.9M | 459.7M | 152.2M | 177.2M | 165.5M | 259.3M | 79.8M | 22.5M | 67.3M | 117.1M | 71.9M | 292.4M | 76M | 76M | -24.5M | 63.5M | 86.3M | 104.29M | 142.13M | 108.55M | 106.83M | 158.65M | 162.44M | 151.5M | 17M | 93M | 81.2M |
| Operating CF Margin % | - | -1.71% | 2.09% | 0.2% | 1.57% | 20.02% | 8.23% | 9.34% | 9.09% | 13.8% | 5.09% | 1.47% | 3.61% | 6.28% | 3.44% | 13.85% | 5.66% | 5.66% | -1.55% | 4.06% | 5.15% | 6.82% | 10.42% | 8.62% | 9.37% | 14.97% | 13.63% | 13.23% | 1.6% | 8.51% | 6.82% |
| Operating CF Growth % | 40.78% | -180.68% | 1028.21% | -88.83% | -92.41% | 202.04% | -14.11% | 7.07% | -36.17% | 224.94% | 254.67% | -66.57% | -42.53% | 62.87% | -75.41% | 284.74% | 0% | 410.2% | -138.58% | -26.42% | -17.26% | -26.62% | 30.94% | 1.61% | -32.66% | -2.33% | 7.22% | 791.18% | -81.72% | 14.53% | -53.23% |
| Net Income | -72.5M | -57.6M | 161.3M | -12.1M | 136.1M | 197.7M | 89M | 78.2M | 301M | 302.6M | -3M | -171.1M | 79.5M | -126.9M | 222.1M | 295M | -38.1M | -38.1M | -800K | -45.7M | 141.68M | 81.45M | 312.39M | 39.49M | 1.24M | 93.2M | 77.09M | 49.4M | 225.8M | 60.7M | 42M |
| Depreciation & Amortization | 67.9M | 66.4M | 66.7M | 54.1M | 58.5M | 59.3M | 68.5M | 56.8M | 58.4M | 59M | 67.5M | 69.9M | 78.4M | 74.5M | 69.4M | 63.8M | 67.4M | 67.4M | 66.1M | 66.3M | 72.51M | 74.53M | 78.35M | 72.97M | 61.78M | 74.49M | 71.09M | 64.7M | 59M | 62.3M | 69.9M |
| Stock-Based Compensation | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Deferred Taxes | -5.8M | -9.5M | 43.5M | -48.1M | 600K | 12.1M | -7M | 7.4M | -73.5M | -293.2M | -39.1M | 85.7M | 10M | -114.8M | 51.5M | 95.3M | -21.9M | -21.9M | -12.4M | 86.4M | 37.29M | 41.6M | -300.22M | 29.55M | -9.65M | 7.72M | 42.91M | -92.8M | 143.1M | -18.8M | 33.8M |
| Other Non-Cash Items | 35.2M | 29.4M | -66.9M | 27.6M | 28.8M | 4.4M | 8.2M | 2.3M | 15.9M | -800K | 4.5M | 10.3M | 10.3M | 8M | -15.2M | 8.1M | -5.6M | -3.8M | -57.1M | 12M | -4.88M | -649K | 500K | -9.19M | 50.92M | 1.56M | -12.91M | -2.6M | 8.8M | -4.4M | -29.4M |
| Working Capital Changes | 52.8M | -64.2M | -160.6M | -17.6M | -189.1M | 186.2M | -6.5M | 32.5M | -63M | 9.1M | 36.8M | 17.5M | -119M | 304.3M | -192.3M | -174.6M | 69.6M | 69.6M | -47.4M | -22.7M | -38.29M | -38.54M | 3.96M | -24.27M | 2.55M | 8.38M | -15.27M | -16.7M | -106.1M | 53M | -35.1M |
| Change in Receivables | -12.8M | 37.1M | -16.7M | -44.6M | 81.1M | -64.6M | -3.1M | 9.7M | -11.1M | -47.5M | -47.4M | 22.2M | -27.2M | 22.9M | -6.7M | -47.9M | 6M | 6M | 15M | 9.1M | 8.24M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Change in Inventory | 175.4M | 74.7M | -41M | 56.7M | -204.2M | 58.3M | 13.1M | -8.5M | -137.3M | -5.5M | 39.6M | -8.4M | -55.1M | 220M | -184.6M | -184.3M | 105.2M | 105.2M | -93M | 3.9M | -3.84M | -48.86M | 46.94M | -20.94M | 45.3M | -28.62M | -30.82M | 18.7M | -51.9M | 20.3M | 6.7M |
| Change in Payables | -99.5M | -106.3M | -60.2M | 11.2M | 3.9M | 154.3M | -32.8M | -14.6M | 65.7M | 12.9M | -300K | -13.9M | -26.4M | 73.4M | -44.2M | 96.1M | -15.1M | 4.3M | 15.6M | -4.8M | -6.77M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Cash from Investing | -45M | -47.8M | -125M | -29M | -146.7M | -37.4M | -57M | -50.7M | -57M | -74.4M | -61.6M | -57M | -55.1M | -56.2M | 100.9M | -220.9M | -44.5M | -44.5M | -60M | -65.4M | -89.51M | 20.37M | -58.09M | -33.77M | -67.14M | -53.79M | -150.92M | -130.4M | 153.5M | -33.8M | 49.9M |
| Capital Expenditures | -44.4M | -46.6M | -30.9M | -48.5M | -67.6M | -64.1M | -65.5M | -59.9M | -61.4M | -73.5M | -60.4M | -55.9M | -73M | -76.1M | -102.9M | -155.1M | -66.9M | -66.9M | -84.9M | -63.8M | -63.77M | -62.78M | -48.52M | -45.33M | -45.99M | -70.82M | -67.12M | -120.9M | -77.2M | -36.7M | -75.9M |
| CapEx % of Revenue | 2.12% | 2.24% | 1.47% | 2.52% | 3.04% | 2.79% | 3.54% | 3.16% | 3.37% | 3.91% | 3.85% | 3.65% | 3.92% | 4.08% | 4.93% | 7.34% | 4.99% | 4.99% | 5.38% | 4.08% | 3.8% | 4.11% | 3.56% | 3.6% | 4.03% | 6.68% | 5.63% | 10.56% | 7.29% | 3.36% | 6.37% |
| Acquisitions | 0 | 0 | -156.8M | -1.7M | -8.6M | 0 | 4.9M | 2.9M | 61.4M | 73.5M | 60.4M | 55.9M | 73M | 22.1M | 165.6M | -4.5M | 6.7M | 66.9M | 300K | 600K | -9.83M | -7.34M | 2.96M | 0 | -9.15M | 0 | 0 | 0 | 435.1M | 0 | 0 |
| Investments | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - |
| Other Investing | 0 | 0 | 8.4M | 1.9M | 200K | 25.5M | 2.7M | 6.9M | -70.8M | -73.7M | -60.9M | -58.4M | -53.9M | -5.4M | 16.4M | -7.2M | 11.6M | -67.6M | 22.8M | -7.4M | 31.4M | 109.72M | 2.36M | 11.57M | -12M | 225K | 945K | -16.1M | -207.5M | 15M | 142.8M |
| Cash from Financing | -48.5M | -71.1M | -2.3M | -75.9M | -114M | -189.1M | -122.5M | -64.1M | -59.8M | 93.6M | -45.5M | -10.6M | 110.2M | -286.2M | 96M | -299.8M | -4.7M | -4.7M | -12.9M | -56.1M | -87.55M | -115.76M | 78.44M | -71.24M | -103.07M | -84.45M | -27.04M | -67.4M | -298.2M | 48.7M | -43.5M |
| Debt Issued (Net) | -13.8M | -35M | 41.4M | -29.8M | -62M | -102.3M | -58.5M | 3.7M | -12.6M | 147.9M | 3.2M | 31.5M | 172.5M | -199.5M | 186.8M | -207.5M | -46M | 46.5M | 40.9M | 6.7M | 21.1M | 2.8M | 103.83M | -36.52M | -40.1M | -47.48M | 2.98M | -41.3M | -380.9M | 50.1M | 55M |
| Equity Issued (Net) | 0 | 0 | 0 | -2.9M | -4M | -1.5M | -1M | -3.1M | 0 | 0 | 0 | 0 | 0 | -700K | 0 | -9.2M | 335.7M | -900K | -1M | -8.7M | -43.71M | -59.55M | 9.2M | 1.74M | 454K | 0 | -19K | 0 | 106.7M | 0 | 0 |
| Dividends Paid | -9.1M | -9.1M | -9.1M | -9.1M | -9M | -9M | -13.6M | -27.1M | -27.1M | -27.2M | -27.1M | -27.1M | -37.3M | -67.9M | -65M | -53.7M | -45.4M | -50.3M | -45.5M | -45.6M | -47.98M | -48.8M | -29.8M | -29.8M | -27.87M | -27.82M | -24.33M | -26.8M | -23.1M | -23.1M | -23.1M |
| Share Repurchases | 0 | 0 | 0 | -2.9M | -4M | -1.5M | -1M | -3.1M | 0 | 0 | 0 | 0 | 0 | -700K | 0 | -9.5M | -2M | -2M | -1M | -11.1M | -43.79M | -62.06M | 0 | 0 | 0 | 0 | -19K | 0 | -3.7M | 0 | 0 |
| Other Financing | -25.6M | -27M | -34.6M | -34.1M | -39M | -76.3M | -49.4M | -37.6M | -20.1M | -27.1M | -21.6M | -15M | -25M | -18.1M | -25.8M | -29.4M | -15.6M | -4.9M | -7.3M | -8.5M | -16.97M | -10.21M | -4.79M | -6.67M | -35.75M | -9.15M | -5.67M | -3M | -900K | 21.7M | -75.4M |
| Net Change in Cash | -16.6M | -150.5M | -83.4M | -100M | -230.9M | 222.6M | -13.5M | 60.1M | 34.3M | 292.9M | -32.6M | -53.5M | 113M | -224.1M | 270.5M | -228.7M | 31.7M | 31.7M | -101.3M | -50.9M | -85.81M | 7.13M | 164.44M | 8.71M | -59.73M | 19.4M | -17.69M | -49.6M | -135.8M | 104.7M | 84.8M |
| Free Cash Flow | 29.9M | -82.1M | 13.1M | -44.6M | -32.7M | 395.6M | 86.7M | 117.3M | 104.1M | 185.8M | 19.4M | -33.4M | -5.7M | 41M | -31M | 137.3M | 9.1M | 9.1M | -109.4M | -300K | 22.52M | 41.51M | 93.61M | 63.22M | 60.83M | 87.83M | 95.32M | 30.6M | -60.2M | 56.3M | 5.3M |
| FCF Margin % | 1.42% | -3.95% | 0.62% | -2.32% | -1.47% | 17.23% | 4.69% | 6.18% | 5.72% | 9.89% | 1.24% | -2.18% | -0.31% | 2.2% | -1.49% | 6.5% | 0.68% | 0.68% | -6.93% | -0.02% | 1.34% | 2.71% | 6.86% | 5.02% | 5.34% | 8.29% | 8% | 2.67% | -5.68% | 5.15% | 0.45% |
| FCF Growth % | 129.37% | -726.72% | 129.37% | -36.39% | -108.27% | 356.29% | -26.09% | 12.68% | -43.97% | 857.73% | 158.08% | -485.96% | -113.9% | 232.26% | -122.58% | 1408.79% | 0% | 108.32% | -36366.67% | -101.33% | -45.75% | -55.65% | 48.08% | 3.91% | -30.74% | -7.86% | 211.51% | 150.83% | -206.93% | 962.26% | -90.02% |
| FCF per Share | 1.05 | -2.88 | 0.46 | -1.56 | -1.15 | 13.88 | 3.04 | 4.11 | 3.65 | 6.52 | 0.68 | -1.17 | -0.20 | 1.44 | -1.09 | 4.82 | 0.32 | 0.32 | -3.83 | -0.01 | 0.77 | 1.40 | 3.11 | 2.11 | 2.10 | 3.05 | 3.28 | 1.05 | -2.07 | 1.96 | 0.19 |
| FCF Conversion (FCF/Net Income) | -0.41x | 0.62x | 0.41x | -0.39x | 0.40x | 3.61x | 2.76x | 3.60x | 0.63x | 1.25x | -5.02x | -0.17x | 1.25x | -1.19x | 0.45x | 1.34x | -2.22x | -2.22x | 30.63x | -1.39x | 0.61x | 1.28x | 0.45x | 2.75x | 86.36x | 1.70x | 2.12x | 3.07x | 0.08x | 1.65x | 1.93x |
| Interest Paid | 26.7M | 0 | 45.1M | 26.6M | 25.8M | 29.2M | 33.1M | 37.9M | 53.9M | 59.3M | 60.6M | 56.6M | 53.9M | 55M | 65.5M | 67M | 64.5M | 64.5M | 66.7M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Taxes Paid | 46.5M | 0 | 41.8M | 27.4M | 43.7M | 65.9M | 24.1M | 33.4M | 68.5M | 62.3M | 20.3M | 10.2M | 33.4M | 15.6M | 71M | 73.8M | 6.4M | 6.2M | 15.2M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
Cyclical TiO2 margin compression
According to recent SEC filings, VHI's operating cash flow frequently decouples from net income, as evidenced by the 2025Q1 period where the company reported $16.9 million in net income while simultaneously suffering a massive $155.9 million outflow from operations, indicating significant volatility in working capital management.
The extreme variance between net income and operating cash flow suggests that accounting earnings are poor proxies for actual liquidity generation. Investors should monitor these recurring discrepancies, as they imply that the company's reported profitability is highly sensitive to non-cash accruals and timing differences in the chemical pigment cycle.
As reported in financial statements, VHI's free cash flow trajectory remains erratic, swinging from a $59.3 million inflow in 2023Q4 to a $168.7 million outflow in 2025Q1, reflecting the company's struggle to maintain consistent cash generation amidst fluctuating demand for its core chemical products.
The lack of a stable free cash flow trend complicates valuation, as the business appears unable to consistently convert revenue into surplus cash. This instability warrants further investigation into whether the current cash flow profile is a structural byproduct of the TiO2 industry or a temporary operational challenge.
Based on VHI's reported figures, working capital changes are the primary driver of cash flow volatility, with a massive $194.9 million outflow in 2025Q1 followed by a $146.5 million inflow in 2025Q4, highlighting the company's susceptibility to inventory and receivable cycles in the chemical sector.
These dramatic swings suggest that management's ability to optimize the cash conversion cycle is limited by the cyclical nature of pigment demand. The reliance on large working capital adjustments to bridge liquidity gaps may indicate that the company's underlying cash generation is less predictable than the income statement implies.
Data from the last ten quarters shows that VHI's capital expenditure as a percentage of revenue has remained relatively contained, fluctuating between 0.7% and 2.6%, which suggests that the company is prioritizing maintenance over aggressive capacity expansion in its current chemical manufacturing footprint.
While the low capital intensity may appear favorable, it may also indicate a lack of investment in modernizing facilities to improve efficiency. Investors should monitor whether this level of spending is sufficient to maintain competitive parity with larger peers in the global TiO2 market.
Quick answers to the most common questions about buying VHI stock.
Valhi, Inc. (VHI) generated $-35.5M in net cash from operating activities in 2025. This reflects the cash generated directly from core business operations.
Valhi, Inc. (VHI) reported negative free cash flow of $82.1M in 2025, indicating capital requirements exceeded cash from operations.
Valhi, Inc. (VHI) spent $46.6M on capital expenditures in 2025. CapEx represents the cash invested in physical assets like property, plant, and equipment to maintain or grow the business.
In 2025, Valhi, Inc. (VHI) returned $9.1M to shareholders via cash dividends. This shows the company's commitment to returning capital to its equity investors.