COMPX INTERNATIONAL INC

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UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 10-Q

☒QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF

THE SECURITIES EXCHANGE ACT OF 1934

For the quarter ended March 31, 2026

☐TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF

THE SECURITIES EXCHANGE ACT OF 1934

For the transition period from _________ to _________

Commission file number 1-13905

COMPX INTERNATIONAL INC.

(Exact name of Registrant as specified in its charter)


DELAWARE		57-0981653
(State or other jurisdiction of incorporation or organization)		(IRS Employer Identification No.)

5430 LBJ Freeway, Suite 1700

Dallas, Texas 75240-2620

(Address of principal executive offices)

Registrant’s telephone number, including area code (972) 448-1400

Securities registered pursuant to Section 12(b) of the Act:


Title of each class	Trading Symbol(s)	Name of each exchange on which registered
Class A common stock	CIX	NYSE American

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months and (2) has been subject to such filing requirements for the past 90 days. Yes ☒ No ☐

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). Yes ☒ No ☐

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, smaller reporting company, or an emerging growth company. See definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act.


Large accelerated filer	☐	Accelerated filer	☐
Non-accelerated filer	☒	Smaller reporting company	☐
Emerging growth company	☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes ☐ No ☒.

As of April 30, 2026, the registrant had 12,323,057 shares of Class A common stock, $.01 par value per share, outstanding.

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COMPX INTERNATIONAL INC.

CONDENSED CONSOLIDATED BALANCE SHEETS

(In thousands)


	December 31,		March 31,
ASSETS	2025		2026
			(unaudited)
Current assets:
Cash and cash equivalents	$	54,096	$	49,438
Accounts receivable, net		13,766		18,959
Inventories, net		30,410		30,070
Prepaid expenses and other		1,826		1,607
Total current assets		100,098		100,074

Other assets:
Note receivable from affiliate		8,000		7,400
Goodwill		23,742		23,742
Operating lease right-of-use asset		—		1,014
Other noncurrent assets		645		679
Total other assets		32,387		32,835

Property and equipment:
Land		5,390		5,390
Buildings		23,634		23,634
Equipment		78,021		78,137
Construction in progress		477		937
		107,522		108,098
Less accumulated depreciation		83,813		84,645
Net property and equipment		23,709		23,453
Total assets	$	156,194	$	156,362

LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Accounts payable and accrued liabilities	$	15,320	$	10,424
Operating lease liability		—		88
Income taxes payable to affiliate		1,726		3,795
Total current liabilities		17,046		14,307

Noncurrent liabilities:
Deferred income taxes		405		243
Operating lease liability		—		926
Other		113		101
Total noncurrent liabilities		518		1,270

Stockholders' equity:
Preferred stock		—		—
Class A common stock		123		123
Additional paid-in capital		53,513		53,513
Retained earnings		84,994		87,149
Total stockholders' equity		138,630		140,785
Total liabilities and stockholders’ equity	$	156,194	$	156,362

Commitments and contingencies (Note 8)

See accompanying Notes to Condensed Consolidated Financial Statements.

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COMPX INTERNATIONAL INC.

CONDENSED CONSOLIDATED STATEMENTS OF INCOME

(In thousands, except per share data)


		Three months ended
		March 31,
		2025			2026

		(unaudited)
Net sales		$	40,272		$	40,569
Cost of sales			28,109			27,317
Gross margin			12,163			13,252
Selling, general and administrative expense			6,294			6,202
Operating income			5,869			7,050
Interest income			873			677
Income before income taxes			6,742			7,727
Income tax expense			1,611			1,875
Net income		$	5,131		$	5,852

Basic and diluted net income per common share		$	.42		$	.48

Basic and diluted weighted average shares outstanding			12,319			12,323

See accompanying Notes to Condensed Consolidated Financial Statements.

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COMPX INTERNATIONAL INC.

CONDENSED CONSOLIDATED STATEMENTS OF STOCKHOLDERS’ EQUITY

(In thousands)


		Three months ended March 31, 2025 and 2026 (unaudited)
		Class A			Additional						Total
		common			paid-in			Retained			stockholders'
		stock			capital			earnings			equity
Balance at December 31, 2024		$	123		$	53,396		$	92,626		$	146,145
Net income			—			—			5,131			5,131
Cash dividends ($.30 per share)			—			—			(3,695)			(3,695)
Balance at March 31, 2025		$	123		$	53,396		$	94,062		$	147,581

Balance at December 31, 2025		$	123		$	53,513		$	84,994		$	138,630
Net income			—			—			5,852			5,852
Cash dividends ($.30 per share)			—			—			(3,697)			(3,697)
Balance at March 31, 2026		$	123		$	53,513		$	87,149		$	140,785

See accompanying Notes to Condensed Consolidated Financial Statements.

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COMPX INTERNATIONAL INC.

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

(In thousands)


		Three months ended
		March 31,
		2025			2026

		(unaudited)
Cash flows from operating activities:
Net income		$	5,131		$	5,852
Depreciation and amortization			945			868
Deferred income taxes			(95)			(194)
Other, net			75			72
Change in assets and liabilities:
Accounts receivable, net			(3,921)			(5,193)
Inventories, net			(863)			268
Accounts payable and accrued liabilities			(3,515)			(5,104)
Accounts with affiliates			1,696			2,069
Prepaids and other, net			410			205
Net cash used in operating activities			(137)			(1,157)

Cash flows from investing activities:
Capital expenditures, net			(822)			(404)
Note receivable from affiliate:
Collections			500			3,700
Advances			(500)			(3,100)
Net cash provided by (used in) investing activities			(822)			196

Cash flows from financing activities -
Dividends paid			(3,695)			(3,697)

Cash and cash equivalents - net change from:
Operating, investing and financing activities			(4,654)			(4,658)
Balance at beginning of period			60,782			54,096
Balance at end of period		$	56,128		$	49,438

Supplemental disclosures -
Noncash investing and financing activities -
Change in accruals for capital expenditures		$	(352)		$	208
Right-of-use asset obtained in exchange for a lease liability			—			1,014

See accompanying Notes to Condensed Consolidated Financial Statements.

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COMPX INTERNATIONAL INC.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

March 31, 2026

(unaudited)

Note 1 – Organization and basis of presentation:

Organization. We (NYSE American: CIX) were approximately 87% owned by NL Industries, Inc. (NYSE: NL) at March 31, 2026. At March 31, 2026, Valhi, Inc. (NYSE: VHI) owned approximately 83% of NL’s outstanding common stock and a wholly-owned subsidiary of Contran Corporation owned approximately 91% of Valhi’s outstanding common stock. A majority of Contran’s outstanding voting stock is held directly by Lisa K. Simmons, and by family stockholders (Thomas C. Connelly (the husband of Ms. Simmons’ late sister), a family-owned entity and various family trusts established for the benefit of Ms. Simmons, Mr. Connelly and their children) who are required to vote their shares of Contran voting stock in the same manner as Ms. Simmons. Such voting rights are personal to Ms. Simmons and last through April 22, 2030. The remainder of Contran’s outstanding voting stock is held by another trust (the “Family Trust”), which was established for the benefit of Ms. Simmons and her late sister and their children and for which a third-party financial institution serves as trustee. Consequently, at March 31, 2026, Ms. Simmons and the Family Trust may be deemed to control Contran, and therefore may be deemed to indirectly control the wholly-owned subsidiary of Contran, Valhi, NL and us.

Basis of presentation. Consolidated in this Quarterly Report are the results of CompX International Inc. and its subsidiaries. The unaudited Condensed Consolidated Financial Statements contained in this Quarterly Report have been prepared on the same basis as the audited Consolidated Financial Statements included in our Annual Report on Form 10-K for the year ended December 31, 2025 that we filed with the Securities and Exchange Commission (“SEC”) on March 4, 2026 (the “2025 Annual Report”). In our opinion, we have made all necessary adjustments (which include only normal recurring adjustments) in order to state fairly, in all material respects, our consolidated financial position, results of operations and cash flows as of the dates and for the periods presented. We have condensed the Consolidated Balance Sheet at December 31, 2025 contained in this Quarterly Report as compared to our audited Consolidated Financial Statements at that date, and we have omitted certain information and footnote disclosures (including those related to the Consolidated Balance Sheet at December 31, 2025) normally included in financial statements prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”). Our results of operations for the interim period ended March 31, 2026 may not be indicative of our operating results for the full year. The Condensed Consolidated Financial Statements contained in this Quarterly Report should be read in conjunction with our 2025 Consolidated Financial Statements contained in our 2025 Annual Report.

Our operations are reported on a 52 or 53-week year. For presentation purposes, annual and quarterly information in the Condensed Consolidated Financial Statements and accompanying notes are presented as ended March 31, 2025, December 31, 2025 and March 31, 2026. The actual dates of our annual and quarterly periods are March 30, 2025, December 28, 2025 and March 29, 2026, respectively. Unless otherwise indicated, references in this report to “we”, “us” or “our” refer to CompX International Inc. and its subsidiaries, taken as a whole.

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Note 2 – Business segment information:

Our chief operating decision maker (“CODM”) evaluates segment performance based on segment operating income, which is defined as income before income taxes, exclusive of certain general corporate income and expense items (primarily interest income) and certain non-recurring items (such as gains or losses on the disposition of long-lived assets outside the ordinary course of business).


		Three months ended
		March 31,
		2025			2026

		(In thousands)
Net sales:
Security Products		$	30,230		$	29,896
Marine Components			10,042			10,673
Total		$	40,272		$	40,569

Cost of sales:
Security Products		$	21,232		$	19,872
Marine Components			6,877			7,445
Total		$	28,109		$	27,317

Gross margin:
Security Products		$	8,998		$	10,024
Marine Components			3,165			3,228
Total		$	12,163		$	13,252

Segment selling, general and administrative expense:
Security Products		$	3,477		$	3,449
Marine Components			924			917
Total		$	4,401		$	4,366

Operating income:
Security Products		$	5,521		$	6,575
Marine Components			2,241			2,311
Segment operating income			7,762			8,886
Corporate operating expenses			(1,893)			(1,836)
Total operating income			5,869			7,050
Interest income			873			677
Income before income taxes		$	6,742		$	7,727

Depreciation and amortization:
Security Products		$	644		$	576
Marine Components			301			292
Total		$	945		$	868

Intersegment sales are not material.

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Note 3 – Accounts receivable, net:


		December 31,			March 31,
		2025			2026

		(In thousands)
Accounts receivable, net:
Security Products		$	11,474		$	13,990
Marine Components			2,362			5,039
Allowance for doubtful accounts			(70)			(70)
Total accounts receivable, net		$	13,766		$	18,959

Note 4 – Inventories, net:


		December 31,			March 31,
		2025			2026

		(In thousands)
Raw materials:
Security Products		$	3,979		$	3,751
Marine Components			1,641			1,592
Total raw materials			5,620			5,343
Work-in-process:
Security Products			14,313			14,706
Marine Components			5,594			5,618
Total work-in-process			19,907			20,324
Finished goods:
Security Products			3,002			2,967
Marine Components			1,881			1,436
Total finished goods			4,883			4,403
Total inventories, net		$	30,410		$	30,070

Note 5 – Accounts payable and accrued liabilities:


		December 31,			March 31,
		2025			2026

		(In thousands)
Accounts payable:
Security Products		$	2,153		$	2,414
Marine Components			538			739
Corporate			6			38
Employee benefits			11,186			5,562
Taxes other than on income			371			441
Professional services			263			409
Insurance			224			173
Advances from customers			61			169
Utilities			120			77
Customer tooling			90			53
Deferred revenue			50			41
Other			258			308
Total accounts payable and accrued liabilities		$	15,320		$	10,424

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Note 6 – Income taxes:

The provision for income taxes and the difference between such provision for income taxes and the amount that would be expected using the U.S. federal statutory income tax rate of 21% are presented below.


		Three months ended
		March 31,
		2025			2026

		(In thousands)
U.S. federal statutory tax rate		$	1,416		$	1,623
State income taxes, net of federal income tax rate			190			238
Other, net			5			14
Income tax expense		$	1,611		$	1,875

On July 4, 2025, the One Big Beautiful Bill Act was signed into law. It did not have a material impact on our consolidated financial statements.

Note 7 – Leases:

In March 2026, we entered into an operating lease for our distribution center located in Southern California. Upon commencement, we recognized an operating lease right-of-use asset and a corresponding operating lease liability, which are included in our Condensed Consolidated Balance Sheet. As of March 31, 2026, the remaining lease term of our operating lease was approximately 7 years and the discount rate associated with such lease was 6.75%.

Note 8 – Commitments and contingencies:

From time to time, we may be involved in various environmental, contractual, product liability, patent (or intellectual property), employment and other claims and disputes incidental to our business. At least quarterly our management discusses and evaluates the status of any pending litigation to which we are a party. The factors considered in such evaluation include, among other things, the nature of such pending cases, the status of such pending cases, the advice of legal counsel and our experience in similar cases (if any). Based on such evaluation, we make a determination as to whether we believe (i) it is probable a loss has been incurred, and if so if the amount of such loss (or a range of loss) is reasonably estimable, or (ii) it is reasonably possible but not probable a loss has been incurred, and if so if the amount of such loss (or a range of loss) is reasonably estimable, or (iii) the probability a loss has been incurred is remote. We have not accrued any amounts for litigation matters because of the uncertainty of the liability and inability to reasonably estimate the liability, if any. We currently believe the disposition of all claims and disputes, individually or in the aggregate, should not have a material adverse effect on our Consolidated Financial Statements, results of operations or liquidity.

Note 9 – Financial instruments:

The following table presents the financial instruments that are not carried at fair value but which require fair value disclosure:

December 31, 2025

March 31, 2026

Carrying

Fair

Carrying

Fair

 

amount

 

value

 

amount

 

value

(In thousands)

Cash and cash equivalents

54,096

49,438

Due to their near-term maturities, the carrying amounts of accounts receivable and accounts payable are considered equivalent to fair value. See Notes 3 and 5.

Note 10 – Related party transactions:

From time to time, we may have loans and advances outstanding between us and various related parties pursuant to term and demand notes. We generally enter into these loans and advances for cash management purposes. When we loan funds to related parties, we are generally able to earn a higher rate of return on the loan than we would earn if we invested the funds in other instruments, and when we borrow from related parties, we are generally able to pay a lower rate of interest than we would pay if we had incurred third-party indebtedness. While certain of these loans to affiliates

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may be of a lesser credit quality than cash equivalent instruments otherwise available to us, we believe we have considered the credit risks in the terms of the applicable loans. In this regard, we have an unsecured revolving demand promissory note with Valhi under which, as amended, we agreed to loan Valhi up to $25 million. Our loan to Valhi, as amended, bears interest at prime plus 1.00%, payable quarterly, with all principal due on demand, but in any event no earlier than December 31, 2027. Loans made to Valhi at any time under the agreement are at our discretion. At March 31, 2026, the outstanding principal balance receivable from Valhi under the promissory note was $7.4 million. Interest income (including unused commitment fees) on our loan to Valhi was $.2 million for each of the three months ended March 31, 2025 and 2026.

Note 11 – Recent accounting pronouncements:

In November 2024, the FASB issued ASU No. 2024-03, Reporting Comprehensive Income - Expense Disaggregation Disclosures. The ASU requires additional information about specific expense categories in the notes to financial statements for both interim and annual reporting periods. The ASU is effective for us beginning with our 2027 Annual Report, and for interim reporting in the first quarter of 2028, with early adoption permitted. We are in the process of evaluating the additional disclosure requirements.

ITEM 2.

MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS

Business Overview

We are a leading manufacturer of engineered components utilized in a variety of applications and industries. Through our Security Products segment we manufacture mechanical and electrical cabinet locks and other locking mechanisms used in postal, recreational transportation, office and institutional furniture, cabinetry, tool storage and healthcare applications. We also manufacture wake enhancement systems, stainless steel exhaust systems, custom metal fabricated parts, gauges, throttle controls, trim tabs and related hardware and accessories for the recreational marine and other industries through our Marine Components segment.

General

This Quarterly Report on Form 10-Q contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, as amended. Statements in this Quarterly Report that are not historical facts are forward-looking in nature and represent management’s beliefs and assumptions based on currently available information. In some cases, you can identify forward-looking statements by the use of words such as “believes,” “intends,” “may,” “should,” “could,” “anticipates,” “expects” or comparable terminology, or by discussions of strategies or trends. Although we believe that the expectations reflected in such forward-looking statements are reasonable, we do not know if these expectations will be correct. Such statements by their nature involve substantial risks and uncertainties that could significantly impact expected results. Actual future results could differ materially from those predicted. The factors that could cause actual future results to differ materially from those described herein are the risks and uncertainties discussed in this Quarterly Report and those described from time to time in our other filings with the SEC and include, but are not limited to, the following:

●

Future supply and demand for our products;

●

Changes in our raw material and other operating costs (such as zinc, brass, aluminum, steel and energy costs), including as a result of additional or changed 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;

●

Price and product competition from low-cost manufacturing sources (such as China);

●

The impact of pricing and production decisions;

●

Customer and competitor strategies including substitute products;

●

Our ability to retain key customers;

●

Uncertainties associated with new product development and the development of new product features;

●

Pending or possible future litigation (such as litigation related to our use of certain permitted chemicals in our production process) or other actions;

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●

Our ability to protect or defend our intellectual property rights;

●

Decisions to sell operating assets other than in the ordinary course of business;

●

Environmental matters (such as those requiring emission and discharge standards for existing and new facilities);

●

The ultimate outcome of income tax audits, tax settlement initiatives or other tax matters, including future tax reform;

●

Government laws and regulations and possible changes therein including new environmental, health and safety, sustainability or other regulations;

●

General global economic and political conditions that disrupt our supply chain, reduce demand or perceived demand for component products or impair our ability to operate our facilities (including changes in the level of gross domestic product in various regions of the world, 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);

●

The introduction of new, or changes in existing, tariffs, trade barriers or trade disputes (including tariffs imposed by the U.S. government on imports from China and Mexico);

●

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 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; and

●

Possible disruption of our business or increases in the cost of doing business resulting from terrorist activities or global conflicts.

Should one or more of these risks materialize (or the consequences of such development worsen), or should the underlying assumptions prove incorrect, actual results could differ materially from those currently forecasted or expected. We disclaim any intention or obligation to update or revise any forward-looking statement whether as a result of changes in information, future events or otherwise.

Operating Income Overview

Operating income in the first quarter of 2026 was $7.1 million compared to $5.9 million in the same period of 2025. The increase in operating income in the first quarter of 2026 compared to 2025 is primarily due to higher gross margin at Security Products and, to a lesser extent, the impact of higher sales at Marine Components.

We sell a large number of products that have a wide variation in selling price and manufacturing cost, which results in certain practical limitations on our ability to quantify the impact of changes in individual product sales quantities and selling prices on our net sales, cost of sales and gross margin. In addition, small variations in period-to-period net sales, cost of sales and gross margin can result from changes in the relative mix of our products sold.

Results of Operations


		Three months ended
		March 31,
		2025		%		2026		%

		(Dollars in thousands)
Net sales		$	40,272	100.0	%	$	40,569	100.0	%
Cost of sales			28,109	69.8			27,317	67.3
Gross margin			12,163	30.2			13,252	32.7
Operating costs and expenses			6,294	15.6			6,202	15.3
Operating income		$	5,869	14.6	%	$	7,050	17.4	%

Net sales. Net sales increased $.3 million in the first quarter of 2026 compared to the same period in 2025 primarily due to higher Marine Components sales to the industrial market partially offset by lower Security Products sales.

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Interest income. Interest income decreased $.2 million in the first quarter of 2026 compared to the same period in 2025 primarily due to lower average interest rates and decreased average investment balances.

Provision for income taxes. A tabular reconciliation of our actual tax provision to the U.S. federal statutory income tax rate is included in Note 6 to the Condensed Consolidated Financial Statements. Our operations are wholly within the U.S. and therefore our effective income tax rate is primarily reflective of the U.S. federal statutory rate and applicable state taxes.

Segment Results

Key performance indicators for our segments are gross margin and operating income.


		Three months ended
		March 31,						%
		2025			2026			Change

		(Dollars in thousands)
Security Products:
Net sales		$	30,230		$	29,896		(1)	%
Cost of sales			21,232			19,872		(6)
Gross margin			8,998			10,024		11
Operating costs and expenses			3,477			3,449		(1)
Operating income		$	5,521		$	6,575		19

Gross margin			29.8	%		33.5	%
Operating income margin			18.3			22.0

Security Products. Security Products net sales decreased 1% in the first quarter of 2026 compared to the same period last year primarily due to lower sales across a variety of markets. The decrease was driven by $.3 million lower sales to the healthcare market and $.2 million lower sales to each of the general cabinetry, electric control panel, and gas station security markets. These decreases were partially offset by $.3 million higher sales to the tool storage market and $.2 million higher sales to the institutional furniture market. Gross margin as a percentage of net sales increased in the first quarter primarily due to a more favorable customer and product mix. Operating income margin also increased, primarily due to the improvement in gross margin discussed above.


		Three months ended
		March 31,						%
		2025			2026			Change

		(Dollars in thousands)
Marine Components:
Net sales		$	10,042		$	10,673		6	%
Cost of sales			6,877			7,445		8
Gross margin			3,165			3,228		2
Operating costs and expenses			924			917		(1)
Operating income		$	2,241		$	2,311		3

Gross margin			31.5	%		30.2	%
Operating income margin			22.3			21.7

Marine Components. Marine Components net sales increased 6% in the first quarter of 2026 compared to the same period last year primarily due to $1.9 million higher sales to the industrial market partially offset by $1.4 million lower sales to the towboat market. Towboat market sales in the first quarter of 2025 benefitted from a one-time customer stocking event that did not repeat in 2026. Gross margin as a percentage of net sales decreased in the first quarter of 2026 compared to the same period last year primarily due to higher cost inventory produced during the fourth quarter of 2025 and sold in the first quarter of 2026, partially offset by increased coverage of fixed costs on higher sales. Operating income margin decreased primarily due to the factors impacting gross margin discussed above, partially offset by increased coverage of operating costs and expenses on higher sales.

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Outlook. Net sales for the first quarter of 2026 exceeded the prior year period, primarily driven by improved demand in the industrial market at Marine Components. Security Products sales reflected mixed performance across the original equipment manufacturer (“OEM”) markets, driven by differences in customer demand cycles and project timing, resulting in slightly lower net sales compared to the prior year period. Operating income increased compared to the prior year primarily due to a more favorable customer and product mix at Security Products and, to a lesser extent, the impact of higher sales at Marine Components.

For the full year 2026, we expect modest net sales growth as we continue to align pricing, product features, and service levels with market conditions and customer requirements. Net sales growth at Marine Components is expected to be driven primarily by the industrial market. Recreational marine sales have largely stabilized and sales to the towboat market in 2026 are expected to be generally comparable to 2025 (excluding the impact of the one-time stocking event noted above). At Security Products, we expect net sales to be consistent with the prior year, reflecting anticipated continued variability across multiple OEM markets.

We expect gross margin and operating income margins across both segments in 2026 to remain generally comparable to 2025. Operating income margin at Security Products benefited from favorable mix in the first quarter of 2026; however, margins are expected to moderate over the remainder of the year. We increased inventory levels across both segments during 2025 to support customer demand. These actions included an insourcing initiative at Security Products and a shift in customer mix at Marine Components. Inventory levels at the end of the first quarter of 2026 were comparable to those at December 31, 2025 and are expected to remain at these levels, consistent with near-term operating requirements.

We manufacture substantially all our products in the U.S. and source a substantial majority of our raw materials from U.S. suppliers. We also source certain components, primarily electronic components, from suppliers in Asia, including China. Beginning in the second quarter of 2025 and continuing through the first quarter of 2026, we incurred tariff-related surcharges to certain raw materials, primarily electronic components. In addition, some of our U.S.-based suppliers are applying tariff-related surcharges on certain domestically sourced materials. Where possible, we increase selling prices to recover these higher raw material costs, although the extent to which we can fully recover such costs will depend on a variety of factors including the ultimate tariff rate, duration of tariffs, and our customers’ ability to substitute alternative products. We will continue to monitor current and anticipated near-term customer demand levels to ensure our production capabilities and inventories are aligned accordingly.

Our expectations for our operations and the markets we serve are based on a number of factors outside our control. Currently, our supply chains are stable and transportation and logistical delays are minimal. We have experienced global and domestic supply chain challenges in the past. Any future impacts on our operations will depend on, among other things, disruption to our operations or our suppliers’ operations, the effect of tariffs, and the impact of broader economic conditions, consumer confidence, and geopolitical events affecting demand for our products or our customers’ and suppliers’ operations, all of which remain uncertain and cannot be predicted.

Liquidity and Capital Resources

Consolidated cash flows –

Operating activities. Trends in cash flows from operating activities, excluding changes in assets and liabilities, have generally been similar to the trends in operating earnings. Changes in assets and liabilities result primarily from the timing of production, sales and purchases. Changes in assets and liabilities generally tend to even out over time. However, period-to-period relative changes in assets and liabilities can significantly affect the comparability of cash flows from operating activities.

We generally report a net use of cash from operating activities in the first three months of each year due to seasonal changes in the level of our working capital. Our net cash used by operating activities for the first three months of 2026 increased by $1.0 million as compared to the first three months of 2025. The increase in net cash used is primarily due to the net effects of a $1.9 million increase in the amount of net cash used by relative changes in our inventories, receivables, prepaids, payables and non-tax related accruals in 2026 and a $1.2 million increase in operating income in 2026.

Changes in working capital can have a significant effect on cash flows from operating activities. As shown below, the change in our average days sales outstanding increased from December 31, 2025 to March 31, 2026, with changes

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varying by segment primarily as a result of relative changes in the timing of sales and collections relative to the end of the quarter. For comparative purposes, we have provided December 31, 2024 and March 31, 2025 numbers below.


		December 31,		March 31,		December 31,		March 31,
Days Sales Outstanding:		2024		2025		2025		2026
Security Products		36 Days		43 Days		35 Days		42 Days
Marine Components		23 Days		34 Days		26 Days		43 Days
Consolidated CompX		33 Days		41 Days		33 Days		43 Days

As shown below, our average number of days in inventory decreased from December 31, 2025 to March 31, 2026 primarily due to lower days in inventory at Marine Components driven by higher sales volumes in the first quarter of 2026 as compared to the fourth quarter of 2025. For comparative purposes, we have provided December 31, 2024 and March 31, 2025 numbers below.


		December 31,		March 31,		December 31,		March 31,
Days in Inventory:		2024		2025		2025		2026
Security Products		85 Days		88 Days		98 Days		98 Days
Marine Components		130 Days		114 Days		141 Days		106 Days
Consolidated CompX		94 Days		94 Days		108 Days		100 Days

Investing activities. Our capital expenditures were $.4 million and $.8 million in the first three months of 2026 and 2025, respectively. During the first three months of 2026, Valhi repaid a net $.6 million under the promissory note ($3.1 million of gross borrowings and $3.7 million of gross repayments). During the first three months of 2025, the promissory note balance with Valhi had net activity of nil ($.5 million of gross borrowings and $.5 million of gross repayments). See Note 10 to our Condensed Consolidated Financial Statements.

Financing activities. Financing activities consisted only of cash dividends. Our board of directors declared a regular quarterly dividend of $.30 per share in each of the first quarters of 2025 and 2026. The declaration and payment of future dividends and the amount thereof, if any, is discretionary and is dependent upon our results of operations, financial condition, cash requirements for our businesses, contractual requirements and restrictions and other factors deemed relevant by our board of directors. The amount and timing of past dividends is not necessarily indicative of the amount or timing of any future dividends which we might pay.

Future cash requirements –

Liquidity. Our primary source of liquidity on an ongoing basis is our cash flow from operating activities, which is generally used to (i) fund capital expenditures, (ii) repay short-term or long-term indebtedness incurred primarily for capital expenditures, investment activities or reducing our outstanding stock, (iii) provide for the payment of dividends (if declared), and (iv) lend to affiliates. From time-to-time, we will incur indebtedness, primarily to fund capital expenditures or business combinations.

Periodically, we evaluate liquidity requirements, alternative uses of capital, capital needs and available resources in view of, among other things, our capital expenditure requirements, dividend policy and estimated future operating cash flows. As a result of this process, we have in the past and may in the future seek to raise additional capital, refinance or restructure indebtedness, issue additional securities, modify our dividend policy or take a combination of such steps to manage our liquidity and capital resources. In the normal course of business, we may review opportunities for acquisitions, joint ventures or other business combinations in the component products industry. In the event of any such transaction, we may consider using available cash, issuing additional equity securities or increasing our indebtedness or that of our subsidiaries.

We believe that cash generated from operations together with cash on hand, as well as our ability to obtain external financing, will be sufficient to meet our liquidity needs for working capital, capital expenditures, debt service, dividends (if declared) and any amounts we might loan from time to time under the terms of our revolving loan to Valhi discussed in Note 10 to our Condensed Consolidated Financial Statements (which loans would be solely at our discretion) for both the next 12 months and five years. To the extent that our actual operating results or other developments differ from our expectations, our liquidity could be adversely affected.

All of our $49.4 million aggregate cash and cash equivalents at March 31, 2026 were held in the U.S.

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Capital expenditures. Firm purchase commitments for capital projects in process at March 31, 2026 totaled $.4 million. We expect our capital expenditures for 2026 will be approximately $4.3 million primarily to improve our manufacturing facilities and invest in manufacturing equipment, including new technologies and increased automation.

Stock repurchase program. At March 31, 2026, we have 523,647 shares available for repurchase under a stock repurchase program authorized by our board of directors.

Commitments and contingencies –

We are subject to certain commitments and contingencies, as more fully described in our 2025 Annual Report or in Note 8 to our Condensed Consolidated Financial Statements.

Recent accounting pronouncements –

See Note 11 to our Condensed Consolidated Financial Statements.

Critical accounting policies –

There have been no changes in the first three months of 2026 with respect to our critical accounting policies presented in Management’s Discussion and Analysis of Financial Condition and Results of Operations in our 2025 Annual Report.

ITEM 3.QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK.

We are exposed to market risk from changes in interest rates and raw material prices. There have been no material changes in these market risks since we filed our 2025 Annual Report, and we refer you to Part I, Item 7A – “Quantitative and Qualitative Disclosure About Market Risk” in our 2025 Annual Report. See also Note 9 to our Condensed Consolidated Financial Statements.

ITEM 4.CONTROLS AND PROCEDURES.

Evaluation of Disclosure Controls and Procedures. We maintain disclosure controls and procedures which, as defined in Exchange Act Rule 13a-15(e), means controls and other procedures that are designed to ensure that information required to be disclosed in the reports that we file or submit to the SEC under the Securities Exchange Act of 1934, as amended (the “Act”), is recorded, processed, summarized and reported within the time periods specified in the SEC’s rules and forms. Disclosure controls and procedures include, without limitation, controls and procedures designed to ensure that information we are required to disclose in the reports that we file or submit to the SEC under the Act is accumulated and communicated to our management, including our principal executive officer and our principal financial officer, or persons performing similar functions, as appropriate to allow timely decisions to be made regarding required disclosure. Our management with the participation of Scott C. James, our President and Chief Executive Officer, and Amy A. Samford, our Executive Vice President and Chief Financial Officer, has evaluated the design and operating effectiveness of our disclosure controls and procedures as of March 31, 2026. Based upon their evaluation, these executive officers have concluded that our disclosure controls and procedures are effective as of the date of such evaluation.

Internal Control Over Financial Reporting. Our management is responsible for establishing and maintaining adequate internal control over financial reporting which, as defined in Exchange Act Rule 13a-15(f), means a process designed by, or under the supervision of, our principal executive and principal financial officers, or persons performing similar functions, and effected by our board of directors, management and other personnel, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles, and includes those policies and procedures that:

●

Pertain to the maintenance of records that in reasonable detail accurately and fairly reflect the transactions and dispositions of our assets,

●

Provide reasonable assurance that transactions are recorded as necessary to permit preparation of financial statements in accordance with GAAP, and that receipts and expenditures are being made only in accordance with authorizations of our management and directors, and

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●

Provide reasonable assurance regarding prevention or timely detection of an unauthorized acquisition, use or disposition of our assets that could have a material effect on our Condensed Consolidated Financial Statements.

Changes in Internal Control Over Financial Reporting. There have been no changes in our internal control over financial reporting during the quarter ended March 31, 2026 that have materially affected, or are reasonably likely to materially affect, our internal control over financial reporting.

Part II. OTHER INFORMATION

ITEM 1.Legal Proceedings.

In addition to the matter discussed below, refer to Note 8 to our Condensed Consolidated Financial Statements and our 2025 Annual Report for descriptions of certain legal proceedings.

South Carolina Public Water Company PFAS Litigation. In April 2026, CompX filed answers denying liability in all four pending PFAS cases. We intend to defend vigorously against all claims.

ITEM 1A.Risk Factors.

Reference is made to the 2025 Annual Report for a discussion of risk factors related to our businesses.

ITEM 6.Exhibits.


Item No.		Exhibit Index

31.1		Certification
31.2		Certification
32.1		Certification
101.INS		Inline XBRL Instance Document – the instance document does not appear in the Interactive Data File because its XBRL tags are embedded within the Inline XBRL document.
101.SCH		Inline XBRL Taxonomy Extension Schema
101.CAL		Inline XBRL Taxonomy Extension Calculation Linkbase
101.DEF		Inline XBRL Taxonomy Extension Definition Linkbase
101.LAB		Inline XBRL Taxonomy Extension Label Linkbase
101.PRE		Inline XBRL Taxonomy Extension Presentation Linkbase
104		Cover Page Interactive Data File (formatted as inline XBRL and contained in Exhibit 101)

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		Page
Part I.	FINANCIAL INFORMATION

Item 1.	Financial Statements

	Condensed Consolidated Balance Sheets – December 31, 2025 and March 31, 2026 (unaudited)	- 3 -

	Condensed Consolidated Statements of Income (unaudited) – Three months ended March 31, 2025 and 2026	- 4 -

	Condensed Consolidated Statements of Stockholders’ Equity (unaudited) – Three months ended March 31, 2025 and 2026	- 5 -

	Condensed Consolidated Statements of Cash Flows (unaudited) –Three months ended March 31, 2025 and 2026	- 6 -

	Notes to Condensed Consolidated Financial Statements (unaudited)	- 7 -

Item 2.	Management’s Discussion and Analysis of Financial Condition and Results of Operations	- 11 -

Item 3.	Quantitative and Qualitative Disclosures About Market Risk	- 17 -

Item 4.	Controls and Procedures	- 17 -

Part II.	OTHER INFORMATION

Item 1.	Legal Proceedings	- 18 -

Item 1A.	Risk Factors	- 18 -

Item 6.	Exhibits	- 18 -


	COMPX INTERNATIONAL INC.
	(Registrant)

Date: May 5, 2026	By:	/s/ Amy A. Samford
		Amy A. Samford
		(Executive Vice President and Chief Financial Officer)


	By:	/s/ Amy E. Ruf
		Amy E. Ruf
		(Senior Vice President and Controller)