Group 1 - Olin Corporation (OLN) shares have underperformed over the past year due to a weak PVC market, primarily caused by low construction activity in China and globally [1] - The company's stock performance reflects broader industry challenges, particularly in the construction sector, which has seen reduced demand for PVC products [1]

Part I — Financial Information [Financial Statements](index=3&type=section&id=Item%201.%20Financial%20Statements) This section presents Olin Corporation's unaudited condensed consolidated financial statements for the period ended June 30, 2025, including balance sheets, statements of operations, comprehensive income, shareholders' equity, and cash flows, along with detailed notes on accounting policies and financial data Condensed Balance Sheet Highlights (as of June 30, 2025) | Metric | June 30, 2025 (Millions USD) | Dec 31, 2024 (Millions USD) | June 30, 2024 (Millions USD) | | :--- | :--- | :--- | :--- | | **Assets** | | | | | Cash and cash equivalents | 223.8 | 175.6 | 182.1 | | Total current assets | 2,286.7 | 2,079.8 | 2,058.3 | | Total assets | 7,667.9 | 7,579.1 | 7,660.6 | | **Liabilities & Equity** | | | | | Total current liabilities | 1,545.9 | 1,632.2 | 1,439.3 | | Long-term debt | 2,977.5 | 2,713.2 | 2,789.1 | | Total liabilities | 5,680.1 | 5,523.7 | 5,491.3 | | Total equity | 1,987.8 | 2,055.4 | 2,169.3 | Statement of Operations Summary | Metric | Q2 2025 (Millions USD) | Q2 2024 (Millions USD) | H1 2025 (Millions USD) | H1 2024 (Millions USD) | | :--- | :--- | :--- | :--- | :--- | | Sales | 1,758.3 | 1,644.0 | 3,402.5 | 3,279.3 | | Operating income | 35.3 | 136.4 | 79.0 | 233.7 | | Net (loss) income attributable to Olin | (1.3) | 74.2 | 0.1 | 122.8 | | Diluted EPS | (0.01) | 0.62 | 0.00 | 1.01 | Cash Flow Summary (Six Months Ended June 30) | Metric | 2025 (Millions USD) | 2024 (Millions USD) | | :--- | :--- | :--- | | Net cash from operating activities | 126.3 | 171.6 | | Net cash for investing activities | (152.3) | (150.4) | | Net cash from financing activities | 73.4 | (8.9) | | Net increase in cash | 48.2 | 11.8 | Notes to Condensed Financial Statements - Olin operates in three segments: Chlor Alkali Products and Vinyls, Epoxy, and Winchester[17](index=17&type=chunk) - On April 18, 2025, Olin acquired AMMO, Inc.'s small caliber ammunition manufacturing assets for **$55.8 million** in cash, which is now part of the Winchester segment[21](index=21&type=chunk) - In March 2025, the company issued **$600.0 million** of 6.625% senior notes due 2033 and entered into a new **$1.85 billion** senior credit facility, extending maturity to 2030 and increasing borrowing limits[36](index=36&type=chunk)[37](index=37&type=chunk) - For the six months ended June 30, 2025, the company repurchased and retired **1.2 million shares** of common stock for **$30.3 million**. As of June 30, 2025, **$1.97 billion** remained authorized for repurchase[67](index=67&type=chunk)[182](index=182&type=chunk) [Management's Discussion and Analysis of Financial Condition and Results of Operations](index=27&type=section&id=Item%202.%20Management's%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management discusses the company's financial performance, highlighting a significant decrease in net income for the second quarter and first half of 2025 compared to the prior year, attributed to lower operating results across all segments, higher costs, planned maintenance, and pricing pressures, detailing segment-specific performance, liquidity actions, and providing an outlook for the third quarter and full year 2025 Executive Summary Net Income and EPS Comparison | Period | Net Income (Loss) Attributable to Olin (Millions USD) | Diluted EPS (USD) | | :--- | :--- | :--- | | **Q2 2025** | (1.3) | (0.01) | | **Q2 2024** | 74.2 | 0.62 | | **H1 2025** | 0.1 | 0.00 | | **H1 2024** | 122.8 | 1.01 | - The decrease in net income was primarily due to **lower operating results** across all business segments[105](index=105&type=chunk) - Chlor Alkali Products and Vinyls **segment income was lower** due to higher costs and lower EDC pricing, despite higher volumes[106](index=106&type=chunk) - The Epoxy **segment reported a loss**, impacted by higher operating costs and weak global demand, with challenges from subsidized Asian competition[107](index=107&type=chunk) - Winchester **segment income declined** due to decreased commercial ammunition sales and higher costs, partially offset by increased military sales[108](index=108&type=chunk) Consolidated Results of Operations - Q2 2025 sales **increased 7% YoY to $1,758.3 million**, driven by higher volumes in Chlor Alkali and higher military sales in Winchester[116](index=116&type=chunk) - Q2 2025 gross margin **decreased by $99.7 million YoY**, with the margin percentage **falling to 8% from 14%**, primarily due to lower commercial sales and pricing in Winchester and higher operating costs across all segments[117](index=117&type=chunk) - H1 2025 sales **increased 4% YoY to $3,402.5 million**, driven by higher volumes in Chlor Alkali and increased military sales in Winchester[122](index=122&type=chunk) - H1 2025 gross margin **decreased by $158.3 million YoY**, with the margin percentage **falling to 8% from 14%**, due to lower commercial volumes and pricing in Winchester and higher operating costs across segments[123](index=123&type=chunk) Segment Results Segment Income (Loss) Before Taxes (Millions USD) | Segment | Q2 2025 | Q2 2024 | H1 2025 | H1 2024 | | :--- | :--- | :--- | :--- | :--- | | Chlor Alkali Products and Vinyls | 64.9 | 99.3 | 143.2 | 175.9 | | Epoxy | (23.7) | (3.0) | (52.1) | (14.8) | | Winchester | 25.0 | 70.3 | 47.8 | 142.5 | - **Chlor Alkali Products and Vinyls:** Q2 segment income **decreased by $34.4 million YoY** due to higher raw material/operating costs and lower EDC pricing, which offset higher volumes[133](index=133&type=chunk) - **Epoxy:** Q2 segment **loss widened by $20.7 million YoY**, driven by higher operating costs from planned maintenance and lower product pricing[138](index=138&type=chunk) - **Winchester:** Q2 segment **income fell by $45.3 million YoY**, attributed to lower commercial sales volumes, lower pricing, and higher raw material costs[143](index=143&type=chunk) Outlook - Expects Q3 2025 operating results to be comparable or slightly higher than Q2 2025 levels, with seasonally stronger demand in Chemicals and increased military demand in Winchester[153](index=153&type=chunk) Full Year 2025 Forecast | Metric | Forecast Range (Millions USD) | | :--- | :--- | | Capital Spending | 200 - 220 | | Depreciation & Amortization | ~525 | | Environmental Expenses | 25 - 35 | | Cash Taxes Paid | ~175 | - The 2025 effective tax rate is expected to be in the **25% to 35% range**[156](index=156&type=chunk) Liquidity and Capital Resources - Cash from operations **decreased by $45.3 million** in H1 2025 compared to H1 2024, primarily due to lower operating results[162](index=162&type=chunk) - Capital spending for H1 2025 was **$92.4 million**, down from **$100.8 million** in H1 2024[163](index=163&type=chunk) - In H1 2025, the company had net debt borrowings of **$159.8 million**, repurchased **$30.3 million** of common stock, and paid **$46.0 million** in dividends[161](index=161&type=chunk)[165](index=165&type=chunk)[166](index=166&type=chunk)[168](index=168&type=chunk) - As of June 30, 2025, the company had **$1,164.6 million** available under its 2025 Revolving Credit Facility[173](index=173&type=chunk) [Quantitative and Qualitative Disclosures about Market Risk](index=37&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20about%20Market%20Risk) Olin is exposed to market risks from commodity price volatility, foreign currency exchange rates, and interest rate changes, which the company manages using derivative instruments; as of June 30, 2025, a hypothetical **100-basis point change** in the SOFR would impact annual interest expense by **$12.3 million** on its **$1.23 billion** of variable-rate debt - The company is exposed to market risk from commodity prices (energy, raw materials), foreign currencies (primarily Euro), and interest rates[187](index=187&type=chunk)[188](index=188&type=chunk)[190](index=190&type=chunk)[191](index=191&type=chunk) - A hypothetical **100-basis point change** in the SOFR would impact annual interest expense by an estimated **$12.3 million**, based on variable-rate debt levels at June 30, 2025[192](index=192&type=chunk) [Controls and Procedures](index=38&type=section&id=Item%204.%20Controls%20and%20Procedures) The CEO and CFO concluded that as of June 30, 2025, the company's disclosure controls and procedures were effective, with no material changes in internal control over financial reporting during the quarter - Management, including the CEO and CFO, concluded that the company's disclosure controls and procedures were effective as of June 30, 2025[194](index=194&type=chunk) - No material changes to internal control over financial reporting occurred during the quarter ended June 30, 2025[195](index=195&type=chunk) Part II — Other Information [Legal Proceedings](index=40&type=section&id=Item%201.%20Legal%20Proceedings) This section notes a chlorine release incident at the company's Freeport, TX site on May 20, 2025, and while monetary fines or penalties are possible, the company cannot currently predict the outcome or estimate any potential loss - On May 20, 2025, a chlorine release occurred at the Freeport, TX site, which may result in monetary fines or penalties[201](index=201&type=chunk) [Risk Factors](index=40&type=section&id=Item%201A.%20Risk%20Factors) There have been no material changes to the risk factors previously disclosed in the company's Annual Report on Form 10-K for the year ended December 31, 2024 - No material changes have occurred to the risk factors disclosed in the 2024 Annual Report on Form 10-K[203](index=203&type=chunk) [Unregistered Sales of Equity Securities and Use of Proceeds](index=40&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) During the second quarter of 2025, Olin repurchased **510,088 shares** of its common stock, and as of June 30, 2025, approximately **$1.97 billion** remained available for purchase under its authorized share repurchase programs Issuer Purchases of Equity Securities (Q2 2025) | Period | Total Shares Purchased | Average Price Paid per Share (USD) | | :--- | :--- | :--- | | April 1-30, 2025 | — | — | | May 1-31, 2025 | 387,104 | 19.77 | | June 1-30, 2025 | 122,984 | 19.18 | | **Total** | **510,088** | **N/A** | - As of June 30, 2025, **$1,968.9 million** remained available for repurchase under the company's 2022 and 2024 share repurchase authorizations[204](index=204&type=chunk) [Exhibits](index=41&type=section&id=Item%206.%20Exhibits) This section lists the exhibits filed with the Form 10-Q, including bylaws, debt agreements, officer certifications, and XBRL data files - Exhibits filed include amended bylaws, debt indentures and credit agreements, CEO/CFO certifications, and interactive data files (XBRL)[211](index=211&type=chunk)

Core Insights - Olin Corporation (OLN) reported a second-quarter 2025 loss of $1.3 million, or a loss of $0.01 per share, compared to a profit of $74.2 million, or $0.62 per share, in the same quarter last year. Excluding one-time items, earnings were $0.05 per share [1][7] - Revenues increased by approximately 6.9% year over year to $1,758.3 million, surpassing the Zacks Consensus Estimate of $1,669.1 million [1][7] Segment Review - **Chlor Alkali Products and Vinyls**: Revenues reached $979.5 million, up around 6.4% year over year, exceeding the consensus estimate of $955.4 million. Segment earnings were $64.9 million, down from $99.3 million in Q2 2024 [2] - **Epoxy**: Revenues rose approximately 4.2% year over year to $331.2 million, beating the consensus estimate of $305.9 million [3] - **Winchester**: Revenues increased by about 10.2% year over year to $447.6 million, driven by higher military sales, surpassing the consensus estimate of $401.9 million [3] Financials - Olin's cash balance at the end of Q2 was $223.8 million, with a net debt of approximately $2.8 billion. The company repurchased around 0.5 million shares for $10.1 million during the quarter, with about $2 billion remaining in share repurchase authorizations [4] Outlook - Olin anticipates adjusted EBITDA for Q3 2025 to be between $170 million and $210 million, citing ongoing market challenges and potential rising costs. The company emphasizes a disciplined capital allocation strategy focused on maximizing cash generation [5] Price Performance - Olin's shares have declined by 54.1% over the past year, compared to a 19.4% decline in the industry [6]

Financial Data and Key Metrics Changes - In Q2 2025, adjusted EBITDA declined by 5% compared to Q2 2024, primarily due to a $32 million headwind from planned maintenance turnaround costs in the chemicals business [18] - Operating cash flow exceeded $212 million, funding the acquisition of a new ammunition facility, paying down $39 million of debt, and repurchasing $10 million of shares [7][20] - The company expects working capital to be a source of at least $100 million in cash for 2025, excluding tax payment timing [20] Business Line Data and Key Metrics Changes - The Chlor Alkali Products and Vinyls segment saw stable domestic caustic soda demand, with robust global demand for caustic soda into alumina [8] - The epoxy business experienced sequential growth in both volume and margin, despite ongoing challenges in the building and construction, automotive, and consumer electronics sectors [10][11] - Winchester's defense business continued to grow, driven by strong domestic military ammunition demand, while the commercial ammunition business faced challenges due to high retail inventories and weak consumer demand [12] Market Data and Key Metrics Changes - EDC pricing declined significantly, dropping more than 50% year-to-date, with expectations for stabilization in Q3 [31][34] - The company noted that tariff impacts on the chlor alkali business are generally neutral, but potential retaliatory tariffs could shift this balance [9][74] - The company highlighted that the market for caustic soda remains stable, with no deterioration in global demand [91] Company Strategy and Development Direction - The company is committed to a "value first" commercial approach, focusing on preserving value across integrated ECU products despite ongoing trough demand conditions [5] - The "Beyond 250" cost savings initiative aims to achieve annual cost savings of $70 million to $90 million by optimizing operations and reducing reliance on outside contractors [14][42] - The company is focused on maintaining a disciplined capital allocation approach, prioritizing investment-grade balance sheet maintenance, sustaining capital spending, and returning free cash flow to shareholders [21] Management's Comments on Operating Environment and Future Outlook - Management expressed cautious optimism for Q3, expecting seasonal demand strength across businesses, with adjusted EBITDA projected between $170 million and $210 million [25][23] - The management acknowledged the challenges posed by higher commodity costs and the need for price increases to recover margins in the Winchester segment [46][48] - Management indicated that the current challenges in the commercial ammunition business are not structural and are expected to improve over time [12][45] Other Important Information - The company experienced several unplanned operating events that limited results to the lower end of expectations [7] - The acquisition of the Manitowoc ammunition facility is expected to generate $5 million of incremental adjusted EBITDA in 2025 and $40 million by year three [12] Q&A Session Summary Question: Progress of caustic soda price increase - Management noted ongoing strength in caustic soda supply and demand, with some short-term headwinds due to tariff uncertainties [27] Question: EDC pricing and potential support - Management acknowledged lower-than-expected EDC prices but expressed confidence in a floor due to curtailments in Asia and stable oil prices [32] Question: Winchester commercial pricing and cost headwinds - Management indicated that the decline in Winchester's commercial business is driven by volume and pricing pressures, with propellant costs continuing to be a headwind [36] Question: Cost savings program details - Management expects to realize $50 million to $70 million in cost savings for 2025, with additional structural cost reductions anticipated in 2026 [42] Question: Outlook for Winchester and potential worsening conditions - Management does not foresee further deterioration in Winchester, emphasizing that current challenges are temporary and not structural [45] Question: Impact of tariffs on chlor alkali operating rates - Management indicated that tariffs are currently neutral for chlor alkali, but significant retaliatory tariffs could pose a risk [74] Question: Customer inventory levels and destocking - Management reported that customers have not begun restocking and are focused on cash generation, with no significant changes in inventory behavior [81]

Financial Data and Key Metrics Changes - In the second quarter of 2025, adjusted EBITDA declined by 5% compared to the previous year, primarily due to a $32 million headwind from planned maintenance turnaround costs in the chemicals business [16][19] - Operating cash flow exceeded $212 million, funding the acquisition of a new ammunition facility, paying down $39 million of debt, and repurchasing $10 million of shares [5][18] Business Line Data and Key Metrics Changes - The chemicals business faced operational headwinds but managed to generate stable cash flow, with caustic soda demand remaining robust [6][16] - The epoxy resins segment saw sequential growth in both volume and margin, despite ongoing challenges in the building and construction sectors [9][10] - Winchester's defense business continued to grow, driven by strong domestic military demand, while the commercial ammunition business faced challenges due to high costs and weak consumer demand [11][12] Market Data and Key Metrics Changes - North American chlorine index values remained stable and higher than previous troughs, despite ongoing demand challenges [4][6] - EDC pricing experienced a significant decline, dropping more than 50% year-to-date, with expectations for stabilization in the third quarter [28][30] Company Strategy and Development Direction - The company is committed to a "value first" commercial approach, focusing on maintaining profitability during trough demand conditions [4][5] - The "Beyond 250" cost savings initiative aims to achieve $70 million to $90 million in annual savings by optimizing operations and reducing costs [13][37] - The company is exploring strategic options for its PBC market participation, leveraging its integrated VCM assets [8][9] Management's Comments on Operating Environment and Future Outlook - Management expressed cautious optimism about the third quarter, expecting seasonal demand strength across businesses, although macroeconomic uncertainties remain [21][22] - The company anticipates that the challenges in the commercial ammunition market are not structural and expects improvements as destocking pressures ease [11][41] - Management highlighted the importance of addressing rising costs and the need for price increases to restore margins in the Winchester segment [32][42] Other Important Information - The company is focused on maintaining a disciplined capital allocation approach, prioritizing investment-grade balance sheets, sustaining capital spending, and returning free cash flow to shareholders [19][20] - The company is actively managing operational challenges, including a chlorine leak incident, and is committed to improving safety and reliability [7][73] Q&A Session Summary Question: Progress of caustic soda price increase - Management noted that the caustic soda market remains tight, driven by stable demand and supply issues related to tariffs, which may cause temporary headwinds [24][26] Question: EDC pricing decline and potential support - Management acknowledged the unexpected drop in EDC prices but expressed confidence in reaching a floor due to curtailments in Asia and stable oil prices [30] Question: Winchester commercial pricing and cost pressures - Management indicated that the decline in Winchester's commercial business is driven by volume and pricing pressures, with ongoing cost headwinds from metals and propellants [32][33] Question: Cost savings program details - Management expects to achieve $50 million to $70 million in cost savings for 2025, with additional structural reductions anticipated in 2026 [37] Question: Future outlook for Winchester and potential risks - Management does not foresee worsening conditions for Winchester but emphasized the need for price recovery to address margin pressures [41][42] Question: Impact of tariffs on caustic soda exports - Management discussed the potential impact of retaliatory tariffs from Brazil on caustic soda exports, noting that trade flows would need to be adjusted if such tariffs were implemented [66][72] Question: Clarification on working capital and tax payments - Management provided insights into expected cash taxes for 2025 and clarified the relationship between deferred tax burdens and working capital benefits [94]

Financial Performance - Olin's Q2 2025 sales were $980 million[10], compared to $920 million in Q2 2024[10] and $925 million in Q1 2025[10] - Adjusted EBITDA for Q2 2025 was $171 million[10], down from $205 million in Q2 2024[10] and $186 million in Q1 2025[10] - Olin generated $212 million in operating cash flow[9] Segment Performance - Chlor Alkali Products & Vinyls (CAPV) sales were $331 million in Q2 2025[17], slightly down from $332 million in Q1 2025[17], and up from $318 million in Q2 2024[17] Adjusted EBITDA was negative $11 million[17] - Epoxy sales were $448 million in Q2 2025[23], up from $388 million in Q1 2025[23] and $406 million in Q2 2024[23] Adjusted EBITDA was $33 million[23] - Winchester sales were $176 million in Q2 2025[36] Outlook and Initiatives - Olin expects Q3 2025 Adjusted EBITDA to be between $170 million and $210 million[45] - The company is targeting $70-$90 million in annualized run rate savings by year-end 2025 through the Beyond250 initiative[30] - Olin expects working capital, excluding tax payment timing, to be greater than $100 million source of cash in 2025[43]

Olin (OLN -2.02%), a diversified chemicals producer with operations spanning chlorine-based products, epoxy resins, and ammunition, reported its second-quarter 2025 results on July 28, 2025. The highlight of the release was revenue of $1,758.3 million, which exceeded analyst expectations of $1,658.8 million by 6.0% (GAAP). However, Olin posted a GAAP loss per share of ($0.01) for Q2 2025, missing the consensus forecast of a $0.01 profit (GAAP). This was a reversal from the prior year, when GAAP earnings per ...

[Executive Summary & Highlights](index=1&type=section&id=Executive%20Summary%20%26%20Highlights) [Second Quarter 2025 Financial Highlights](index=1&type=section&id=Second%20Quarter%202025%20Financial%20Highlights) Olin Corporation reported a **$1.3 million** net loss in Q2 2025, a sharp decline from **$74.2 million** net income in Q2 2024, with Adjusted EBITDA falling to **$176.1 million** despite sales growth, while completing acquisition financing, debt reduction, and share repurchases Q2 2025 Financial Performance | Metric | Q2 2025 (Millions) | Q2 2024 (Millions) | Change (YoY) | | :-------------------------------- | :----------------- | :----------------- | :----------- | | Net (Loss) Income Attributable to Olin Corporation | ($1.3) | $74.2 | ($75.5) | | Diluted EPS | ($0.01) | $0.62 | ($0.63) | | Adjusted EBITDA | $176.1 | $278.1 | ($102.0) | | Sales | $1,758.3 | $1,644.0 | $114.3 | | Operating Cash Flow | $212.3 | N/A | N/A | - The company completed **acquisition financing**, **reduced debt**, and **repurchased shares** during the quarter[7](index=7&type=chunk) [Business Segment Performance Overview](index=1&type=section&id=Business%20Segment%20Performance%20Overview) Chlor Alkali Products and Vinyls saw seasonal demand improvement amid challenging markets, Epoxy continued to suffer from weak global demand and Asian subsidized competition, while Winchester's defense business grew but commercial sales faced macroeconomic headwinds and destocking - **Chlor Alkali Products and Vinyls:** Experienced seasonal demand improvement in a challenging market, focused on maximizing value from its integrated position with stable electrochemical unit (ECU) values, but faced operational challenges leading to increased costs[5](index=5&type=chunk) - **Epoxy Business:** Global demand remained subdued, with US and European operations severely impacted by Asian subsidized competition, while the company leveraged chlor alkali integration, prioritized structural cost reduction, and developed its formulated solutions business[6](index=6&type=chunk) - **Winchester Business:** Defense sales grew with increased domestic and international military ammunition and project revenue, but commercial sales faced challenges from consumer discretionary spending, customer destocking, rising raw material costs, and a highly competitive environment leading to weaker pricing[7](index=7&type=chunk)[8](index=8&type=chunk) [Third Quarter 2025 Outlook](index=2&type=section&id=Third%20Quarter%202025%20Outlook) Olin projects Q3 2025 Adjusted EBITDA between **$170 million** and **$210 million**, citing ongoing market challenges, potential cost increases, and tariff uncertainties, while prioritizing prudent capital allocation for cash generation - Adjusted EBITDA for Q3 2025 is projected to be between **$170 million** and **$210 million**, driven by persistent market challenges, potential cost escalations, and tariff-related uncertainties[8](index=8&type=chunk) - The company remains committed to a prudent capital allocation approach, focusing on maximizing cash generation, supported by its strong financial foundation[8](index=8&type=chunk) [Segment Performance Details](index=2&type=section&id=Segment%20Performance%20Details) [Chlor Alkali Products and Vinyls](index=2&type=section&id=CHLOR%20ALKALI%20PRODUCTS%20AND%20VINYLS) Q2 2025 sales for Chlor Alkali Products and Vinyls increased due to higher volumes, but segment earnings significantly declined due to lower pricing, primarily for dichloroethane, and increased operating costs including planned maintenance Chlor Alkali Products and Vinyls Performance | Metric | Q2 2025 (Millions) | Q2 2024 (Millions) | Change (YoY) | | :----------------- | :----------------- | :----------------- | :----------- | | Sales | $979.5 | $920.3 | $59.2 | | Segment Earnings | $64.9 | $99.3 | ($34.4) | - Sales growth was primarily driven by increased volumes, while segment earnings decreased by **$34.4 million** due to lower pricing, mainly for dichloroethane, and higher operating costs, including planned maintenance expenses, partially offset by increased volumes[12](index=12&type=chunk) [Epoxy](index=2&type=section&id=EPOXY) The Epoxy segment saw a slight sales increase in Q2 2025, but its segment loss widened compared to Q2 2024, primarily due to higher operating costs, including planned maintenance, with product margins remaining flat year-over-year Epoxy Performance | Metric | Q2 2025 (Millions) | Q2 2024 (Millions) | Change (YoY) | | :----------------- | :----------------- | :----------------- | :----------- | | Sales | $331.2 | $317.7 | $13.5 | | Segment Loss | ($23.7) | ($3.0) | ($20.7) | - Segment performance declined by **$20.7 million**, primarily due to increased operating costs, including planned maintenance expenses, while product margins remained flat year-over-year[14](index=14&type=chunk) [Winchester](index=2&type=section&id=WINCHESTER) Winchester's Q2 2025 sales increased, driven by higher military sales and project revenue, but segment earnings significantly decreased due to lower commercial ammunition shipments and pricing, and rising raw material costs, partially offset by military segment growth Winchester Performance | Metric | Q2 2025 (Millions) | Q2 2024 (Millions) | Change (YoY) | | :----------------- | :----------------- | :----------------- | :----------- | | Sales | $447.6 | $406.0 | $41.6 | | Segment Earnings | $25.0 | $70.3 | ($45.3) | - Sales growth was primarily due to increased military sales and military project revenue, partially offset by lower commercial ammunition sales, while segment earnings decreased by **$45.3 million** due to lower commercial ammunition shipments and pricing, and higher raw material costs (including propellants and commodity metals), partially offset by increased military shipments and military project revenue[16](index=16&type=chunk)[17](index=17&type=chunk) [Corporate and Other Costs](index=3&type=section&id=CORPORATE%20AND%20OTHER%20COSTS) Corporate and other unallocated costs increased by **$2.9 million** in Q2 2025 compared to Q2 2024, primarily due to higher incentive costs, including mark-to-market adjustments for equity incentives, partially offset by favorable foreign currency impacts - Corporate and other unallocated costs increased by **$2.9 million** in Q2 2025 compared to Q2 2024[19](index=19&type=chunk) - This increase was primarily due to higher incentive costs, including mark-to-market adjustments for equity incentives, partially offset by favorable foreign currency impacts[19](index=19&type=chunk) [Financial Position & Liquidity](index=3&type=section&id=Financial%20Position%20%26%20Liquidity) [Liquidity and Share Repurchases](index=3&type=section&id=LIQUIDITY%20AND%20SHARE%20REPURCHASES) As of June 30, 2025, Olin held **$223.8 million** in cash with approximately **$1.4 billion** in available liquidity, net debt was about **$2.8 billion** with a 3.9x net debt to Adjusted EBITDA ratio, and the company repurchased **0.5 million** common shares for **$10.1 million** with **$2.0 billion** remaining authorization Liquidity and Share Repurchase Summary | Metric | June 30, 2025 (Millions) | | :-------------------------------- | :----------------------- | | Cash Balance | $223.8 | | Net Debt | ~$2,800.0 | | Net Debt to Adjusted EBITDA Ratio | 3.9x | | Available Liquidity | ~$1,400.0 | | Shares Repurchased (Q2 2025) | 0.5 million shares | | Cost of Share Repurchases (Q2 2025) | $10.1 million | | Remaining Share Repurchase Authorization | ~$2,000.0 million | [Company Information & Forward-Looking Statements](index=3&type=section&id=Company%20Information%20%26%20Forward-Looking%20Statements) [Company Description](index=3&type=section&id=COMPANY%20DESCRIPTION) Olin Corporation is a leading vertically integrated global chemical products manufacturer and distributor, including chlorine, caustic soda, vinyls, and epoxy resins, and a premier US ammunition manufacturer under the Winchester brand for sporting, law enforcement, and military applications - A leading vertically integrated global manufacturer and distributor of chemical products, including chlorine, caustic soda, vinyls, epoxy resins, chlorinated organics, bleach, hydrogen, and hydrochloric acid[25](index=25&type=chunk) - A premier US ammunition manufacturer, with Winchester's primary manufacturing facilities producing and distributing sporting ammunition, law enforcement ammunition, reloading components, small caliber military ammunition and components, industrial cartridges, and clay targets[25](index=25&type=chunk) [Conference Call Information](index=3&type=section&id=CONFERENCE%20CALL%20INFORMATION) Olin's senior management will host a conference call on Tuesday, July 29, 2025, at 9:00 AM ET to discuss Q2 2025 financial results, with related slides and webcast available on Olin's website - A conference call will be hosted by Olin's senior management on Tuesday, July 29, 2025, at 9:00 AM ET to discuss the Q2 2025 financial results[23](index=23&type=chunk) - Related slides and a webcast of the conference call are available via Olin's website (www.olin.com), with an archived replay of the webcast also provided[23](index=23&type=chunk) [Forward-Looking Statements and Risk Factors](index=4&type=section&id=FORWARD-LOOKING%20STATEMENTS) This communication contains forward-looking statements based on management's beliefs and forecasts, subject to various risks and uncertainties that could cause actual results to differ materially, including economic conditions, pricing, operational challenges, raw material costs, regulatory changes, and cyberattacks - This communication contains forward-looking statements based on management's beliefs, certain assumptions, projections of future results, and current expectations, estimates, and forecasts of market and economic conditions, involving numerous risks and uncertainties that could cause actual results to differ materially from those expressed or implied[28](index=28&type=chunk)[29](index=29&type=chunk) - Key risk factors include: * Sensitivity to economic, business, and market conditions in the US and abroad, including economic instability or downturns in industries served * Declines in average selling prices for products and the supply/demand balance for products, including the impact of industry overcapacity or an imbalanced demand for chlor alkali products * Failure to successfully execute an operating model prioritizing electrochemical unit (ECU) margin over sales volume * Failure to control costs and inflationary impacts or to achieve targeted cost reductions * Reliance on a limited number of suppliers for specific raw materials and services and on third-party transportation * Availability and/or higher-than-anticipated costs of raw materials, energy, transportation, and/or logistics * Unanticipated production disruptions and outages, including those due to labor disputes and production hazards * Exposure to physical risks associated with the increasing severity and frequency of climate-related events or adverse weather events * Failures or interruptions of information technology systems, including cyberattacks * Risks associated with international sales and operations, including economic, political, or regulatory changes * Failure to identify, attract, develop, retain, and motivate qualified employees throughout the organization, and the ability to manage executive and other key senior management transitions * Inability to complete future acquisition or joint venture transactions or to successfully integrate them into the business * Adverse conditions in credit and capital markets, limiting or preventing the company's ability to borrow or raise capital * Weak industry conditions affecting the company's ability to comply with financial maintenance covenants in its senior credit facilities * The company's indebtedness and debt service obligations * Impact of declines in global equity markets on asset values, and declines in interest rates or other significant assumptions used to value pension plan liabilities and funding * Failure of long-term plan assumptions to materialize, resulting in non-cash impairment charges to long-lived assets * Changes in or failure to comply with legislative or governmental regulations or policies, including those concerning the company's ability to manufacture or use certain products and changes within the international markets in which the company operates * New regulations or changes in public policy concerning the transportation of hazardous chemicals and the security of chemical production facilities * Unanticipated outcomes of legal or regulatory claims and proceedings * Costs and other expenditures for environmental investigations and remediation or other legal proceedings in excess of expectations * Various risks associated with performance under the Lake City Army Ammunition Plant contract and other government contracts * Failure to effectively manage environmental, social, and governance (ESG) issues and related regulations, including climate change and sustainability[30](index=30&type=chunk)[31](index=31&type=chunk)[33](index=33&type=chunk) [Financial Statements](index=5&type=section&id=Financial%20Statements) [Consolidated Statements of Operations](index=5&type=section&id=Consolidated%20Statements%20of%20Operations) Olin reported a **$1.3 million** net loss in Q2 2025, a sharp decline from **$74.2 million** net income in Q2 2024, with sales up to **$1.7583 billion** but operating income significantly reduced by higher costs and restructuring Consolidated Statements of Operations | Metric (Millions, except per share) | Q2 2025 | Q2 2024 | YTD 2025 | YTD 2024 | | :---------------------------------- | :------ | :------ | :------- | :------- | | Sales | $1,758.3 | $1,644.0 | $3,402.5 | $3,279.3 | | Cost of Goods Sold | $1,620.2 | $1,406.2 | $3,115.7 | $2,834.2 | | Operating Income | $35.3 | $136.4 | $79.0 | $233.7 | | Net (Loss) Income Attributable to Olin Corporation | ($1.3) | $74.2 | $0.1 | $122.8 | | Diluted EPS | ($0.01) | $0.62 | $0.00 | $1.01 | | Dividends per Common Share | $0.20 | $0.20 | $0.40 | $0.40 | [Segment Information](index=6&type=section&id=Segment%20Information) In Q2 2025, all three segments—Chlor Alkali, Epoxy, and Winchester—reported increased sales compared to Q2 2024; however, pre-tax income significantly decreased for Chlor Alkali and Winchester, and the loss widened for Epoxy Segment Performance (Income/Loss before Taxes) | Segment (Millions) | Q2 2025 Sales | Q2 2024 Sales | Q2 2025 Income (Loss) before Taxes | Q2 2024 Income (Loss) before Taxes | | :----------------- | :------------ | :------------ | :--------------------------------- | :--------------------------------- | | Chlor Alkali Products and Vinyls | $979.5 | $920.3 | $64.9 | $99.3 | | Epoxy | $331.2 | $317.7 | ($23.7) | ($3.0) | | Winchester | $447.6 | $406.0 | $25.0 | $70.3 | | Total Sales | $1,758.3 | $1,644.0 | N/A | N/A | [Consolidated Balance Sheets](index=7&type=section&id=Consolidated%20Balance%20Sheets) As of June 30, 2025, Olin's total assets slightly increased to **$7.6679 billion**, while total liabilities rose from increased long-term debt, total equity slightly decreased, and cash and cash equivalents reached **$223.8 million** Consolidated Balance Sheets | Metric (Millions) | June 30, 2025 | Dec 31, 2024 | June 30, 2024 | | :------------------------ | :------------ | :----------- | :------------ | | Cash and Cash Equivalents | $223.8 | $175.6 | $182.1 | | Total Current Assets | $2,286.7 | $2,079.8 | $2,058.3 | | Total Assets | $7,667.9 | $7,579.1 | $7,660.6 | | Total Current Liabilities | $1,545.9 | $1,632.2 | $1,439.3 | | Long-term Debt | $2,977.5 | $2,713.2 | $2,789.1 | | Total Liabilities | $5,680.1 | $5,523.7 | $5,491.3 | | Total Equity | $1,987.8 | $2,055.4 | $2,169.3 | [Consolidated Statements of Cash Flows](index=8&type=section&id=Consolidated%20Statements%20of%20Cash%20Flows) Net cash from operating activities for the six months ended June 30, 2025, decreased to **$126.3 million**, net investing activities resulted in a **$152.3 million** outflow including an acquisition, and net financing activities saw a **$73.4 million** inflow, a notable improvement from the prior year's outflow Consolidated Statements of Cash Flows | Activity (Millions) | YTD 2025 | YTD 2024 | | :-------------------------- | :------- | :------- | | Net Operating Activities | $126.3 | $171.6 | | Net Investing Activities | ($152.3) | ($150.4) | | Net Financing Activities | $73.4 | ($8.9) | | Net Increase in Cash and Cash Equivalents | $48.2 | $11.8 | | Cash and Cash Equivalents, End of Period | $223.8 | $182.1 | - Business acquisitions, net of cash acquired, amounted to **($55.8) million** for the first half of 2025[37](index=37&type=chunk) [Non-GAAP Financial Measures](index=9&type=section&id=Non-GAAP%20Financial%20Measures) [Non-GAAP Financial Measures - Adjusted EBITDA](index=9&type=section&id=Non-GAAP%20Financial%20Measures%20-%20Adjusted%20EBITDA) Adjusted EBITDA, a non-GAAP metric, is defined as net income (loss) plus depreciation, amortization, interest, taxes, other expenses, restructuring, and certain non-recurring items, totaling **$176.1 million** in Q2 2025, down from **$278.1 million** in Q2 2024 - Adjusted EBITDA is defined as net income (loss) plus depreciation and amortization, interest expense (income), income tax provision (benefit), other expense (income), restructuring charges (income), and certain other non-recurring items[38](index=38&type=chunk) Adjusted EBITDA Reconciliation | Metric (Millions) | Q2 2025 | Q2 2024 | YTD 2025 | YTD 2024 | | :------------------------ | :------ | :------ | :------- | :------- | | Net (Loss) Income | ($2.8) | $72.3 | ($1.6) | $120.1 | | Add Back: Interest Expense | $46.8 | $46.6 | $95.3 | $91.2 | | Add Back: Interest Income | ($1.2) | ($0.9) | ($2.4) | ($1.7) | | Add Back: Income Tax (Benefit) Provision | ($4.0) | $24.3 | ($3.1) | $36.8 | | Add Back: Depreciation and Amortization | $129.9 | $129.0 | $262.1 | $258.7 | | EBITDA | $168.7 | $271.3 | $350.3 | $505.1 | | Add Back: Restructuring Charges | $7.4 | $6.8 | $11.4 | $15.1 | | Adjusted EBITDA | $176.1 | $278.1 | $361.7 | $520.2 | [Non-GAAP Financial Measures - Net Debt to Adjusted EBITDA Ratio](index=10&type=section&id=Non-GAAP%20Financial%20Measures%20-%20Net%20Debt%20to%20Adjusted%20EBITDA) The Net Debt to Adjusted EBITDA ratio, a non-GAAP metric, measures debt management by dividing net debt by trailing twelve months Adjusted EBITDA, standing at **3.9x** as of June 30, 2025, up from **3.1x** and **2.6x** at December 31, 2024, and June 30, 2024, respectively, reflecting increased net debt and decreased trailing twelve months Adjusted EBITDA - The Net Debt to Adjusted EBITDA ratio is defined as net debt divided by Adjusted EBITDA, which management believes is significant for investors to assess the company's ability to manage its debt[40](index=40&type=chunk) Net Debt to Adjusted EBITDA Ratio | Metric (Millions) | June 30, 2025 | Dec 31, 2024 | June 30, 2024 | | :-------------------------------- | :------------ | :----------- | :------------ | | Total Debt | $2,996.7 | $2,842.2 | $2,910.9 | | Less: Cash and Cash Equivalents | ($223.8) | ($175.6) | ($182.1) | | Net Debt | $2,772.9 | $2,666.6 | $2,728.8 | | Trailing Twelve Months Adjusted EBITDA | $715.4 | $873.9 | $1,045.1 | | Net Debt to Adjusted EBITDA | 3.9 | 3.1 | 2.6 |

Core Insights - Olin Corporation reported a net loss of $1.3 million for Q2 2025, a significant decline from a net income of $74.2 million in Q2 2024, reflecting challenging market conditions [1][20][25] - Adjusted EBITDA for Q2 2025 was $176.1 million, down from $278.1 million in the same quarter last year, indicating operational difficulties despite a rise in sales [1][24] - Total sales increased to $1,758.3 million in Q2 2025 from $1,644.0 million in Q2 2024, driven by higher volumes across segments [1][20][22] Financial Performance - The Chlor Alkali Products and Vinyls segment reported sales of $979.5 million in Q2 2025, up from $920.3 million in Q2 2024, but segment earnings decreased to $64.9 million from $99.3 million due to lower pricing and higher operating costs [6][22] - The Epoxy segment experienced sales growth to $331.2 million from $317.7 million year-over-year, but the segment loss widened to $23.7 million from a loss of $3.0 million, primarily due to increased operating costs [7][22] - Winchester segment sales rose to $447.6 million from $406.0 million, with earnings dropping to $25.0 million from $70.3 million, attributed to lower commercial ammunition sales and rising raw material costs [8][22] Operational Challenges - The company faced operational challenges leading to higher costs, which offset solid commercial performance in the Chlor Alkali Products and Vinyls business [2][3] - The Epoxy business continues to struggle with subdued global demand and competition from subsidized Asian products, prompting a focus on cost reduction and growth in formulated solutions [3][4] - The defense business within Winchester is growing, but commercial sales are hindered by economic factors affecting consumer spending [4] Outlook and Guidance - For Q3 2025, Olin expects adjusted EBITDA to range between $170 million and $210 million, reflecting ongoing market challenges and potential cost increases [4] - The company remains committed to disciplined capital allocation and maximizing cash generation, supported by a strong financial foundation [4][10] Liquidity and Capital Management - As of June 30, 2025, Olin had a cash balance of $223.8 million and net debt of approximately $2.8 billion, with a net debt to adjusted EBITDA ratio of 3.9 times [10][26] - The company repurchased approximately 0.5 million shares at a cost of $10.1 million during Q2 2025, with $2.0 billion available under share repurchase authorizations [11][10]

Group 1 - Olin Corporation (OLN) is partnering with K2 to enhance its bleach distribution network in California and the Western United States, aiming to improve supply chain continuity and service responsiveness [1][8] - The collaboration is expected to reduce the transportation of railcar chlorine by increasing localized bleach production, thereby supporting safety and environmental goals [2][8] - Olin's market expertise combined with K2's regional production capabilities will ensure a reliable supply of bleach, setting higher standards in the industry [3] Group 2 - For Q2 2025, Olin expects steady performance in its Chemicals segment despite higher costs due to delayed maintenance, with adjusted EBITDA forecasted between $170 million and $210 million [4] - The company anticipates full-year 2025 capital expenditures to be in the range of $200 million to $220 million [4] - Olin's stock has decreased by 55.3% over the past year, compared to an 18.6% decline in the industry [4]