Free cash flow has recovered to $41.9M in 2026Q2, but this improvement is heavily influenced by erratic working capital swings, such as the $194.9M cash use in 2025Q1 versus the $146.5M source in 2025Q4.
Valhi, Inc. (VHI) cash flow statement — 30-year operating, investing & financing cash flows
| 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 | 111.7M | -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 % | 248.36% | -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 | -37.9M | -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 | 70.9M | 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 | -500K | -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 | 28.9M | 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 | 60.2M | -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 | -65.6M | 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 | 178M | 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 | -72.1M | -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 | -44.3M | -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 | -49M | -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 | 2.26% | 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 | 4.2M | 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 | -68M | -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) | -34.9M | -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 | -24M | -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 | -600K | -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 | 62.7M | -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 % | 2.9% | -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 % | 151.23% | -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 | 2.20 | -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) | -1.65x | 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 | 52.6M | 51.8M | 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 | 17M | 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 |
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.
Key Metrics
Top Statement Risk
Extreme working capital volatility
Metrics are mathematically derived from official filings.
Earnings Quality Highly Volatile
The relationship between net income and operating cash flow is erratic, with the OCF/NI ratio swinging from -23.05 in 2026Q1 to 24.11 in 2025Q2, indicating that reported earnings are a poor predictor of near-term cash generation.
This extreme volatility suggests that non-cash items and working capital swings are dominating the cash flow statement, making it difficult to assess underlying operational cash generation. The wide dispersion implies that investors should not rely on net income as a proxy for cash flow in any given quarter.
FCF Recovery Masked by Working Capital
Free cash flow has swung from a loss of $168.7M in 2025Q1 to a profit of $41.9M in 2026Q2, but this recovery is heavily influenced by massive quarterly swings in working capital rather than consistent operational improvement.
The FCF margin has rebounded to 6.9% in 2026Q2, but this follows a period of deeply negative margins. The trajectory is positive but unstable, as the underlying operating cash flow remains inconsistent, with the most recent positive quarter following a significant cash burn.
Working Capital Swings Dominate Cash Flow
Working capital changes have been the primary driver of cash flow volatility, with swings from a $194.9M use of cash in 2025Q1 to a $146.5M source in 2025Q4, indicating a highly cyclical and unpredictable cash conversion cycle.
These massive swings suggest that Valhi's cash flow is heavily tied to inventory and receivables cycles, which are likely driven by volatile chemical pricing and demand. This makes forecasting quarterly cash flow extremely challenging and exposes the company to significant liquidity risk during downturns.
Capital Intensity Rising with Recovery
Capital expenditure as a percentage of revenue has increased from 0.7% in 2024Q2 to 2.8% in 2026Q2, suggesting management is investing more aggressively as the business cycle improves.
The rising capital intensity may indicate a shift from maintenance to growth spending, but it also consumes a larger portion of the recovering cash flow. This trend warrants monitoring to ensure that investments are generating adequate returns in a cyclical industry.
Cash Flow Obscured by Non-Operational Items
The cash flow statement is heavily distorted by working capital volatility and a significant acquisition in 2024Q3, which obscured the underlying cash generation of the core business.
The $156.8M acquisition in 2024Q3 and the subsequent massive working capital swings make it difficult to assess the true cash-generating ability of Valhi's operations. These factors suggest that the reported operating cash flow may not be a reliable indicator of sustainable, core business performance.