Core Insights - Olin reported Q2 2025 revenue of $1,758.3 million, exceeding analyst expectations by 6.0% but posted a GAAP loss per share of ($0.01), missing the consensus forecast of a $0.01 profit [1][2] - Adjusted EBITDA fell 36.6% to $176.1 million compared to the same period last year, indicating profitability pressures from rising input costs and maintenance expenses [1][2] Financial Performance - Revenue increased by 7.0% year-over-year from $1,644.0 million in Q2 2024 to $1,758.3 million in Q2 2025 [2] - Chlor Alkali Products and Vinyls revenue rose 6.4% to $979.5 million, while Epoxy revenue grew 4.2% to $331.2 million, and Winchester revenue increased 10.2% to $447.6 million [2][5][6][7] - GAAP EPS decreased by 101.6% from $0.62 in Q2 2024 to ($0.01) in Q2 2025, while adjusted EBITDA dropped from $278.1 million to $176.1 million [2][5] Business Segments Overview - The Chlor Alkali segment faced a 34.6% decline in earnings due to lower prices and higher maintenance costs, despite increased volumes [5] - The Epoxy segment experienced a deeper operating loss driven by rising costs and global oversupply, with flat profit margins year-over-year [6] - Winchester's sales rose due to military shipments, but earnings declined approximately 64% due to weak commercial sales and rising raw material costs [7] Strategic Focus - Olin is concentrating on maximizing value in its Chlor Alkali business, enhancing integration in Epoxy, and expanding the Winchester military channel [4] - Key success factors include maintaining low production costs, securing long-term military contracts, and effective capital allocation [4] Outlook - Management expects Q3 2025 adjusted EBITDA to range from $170 million to $210 million, indicating continued challenges [12] - Capital expenditures for 2025 have been trimmed by $25 million as part of cost control measures, with no upward revision to full-year earnings expectations [12]

[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]

Core Insights - Olin Corporation and K2 Pure Solutions are expanding their strategic partnership to enhance bleach distribution in California and the Western United States, focusing on supply reliability and service responsiveness [1][2][3] Company Overview - Olin Corporation is a major global manufacturer and distributor of chemical products, including chlorine, caustic soda, and bleach, as well as a leading U.S. manufacturer of ammunition [4] - K2 Pure Solutions specializes in producing exceptionally pure bleach and other chlor-alkali products in an environmentally friendly manner [5] Partnership Details - The expanded partnership aims to improve regional bleach availability and reduce railcar chlorine transportation by enabling localized production and distribution [2] - Olin's CEO emphasized that this partnership is part of a long-term strategy to ensure a safe and reliable supply of bleach, which is critical for public health [3] - K2's Chairman highlighted the alignment of the partnership with their vision to enhance product delivery and leverage Olin's market expertise and customer relationships [3] Strategic Goals - The collaboration is designed to drive innovation and set new industry standards for bleach production and distribution, ensuring high-quality products for customers [3] - The partnership supports broader goals of safety, environmental responsibility, and supply chain resilience [2]

Company Overview - Olin Corporation is a leading vertically integrated global manufacturer and distributor of chemical products and a prominent U.S. manufacturer of ammunition [4] - The chemical products produced by the company include chlorine, caustic soda, vinyls, epoxies, chlorinated organics, bleach, hydrogen, and hydrochloric acid [4] - Winchester, a division of Olin, manufactures and distributes sporting ammunition, law enforcement ammunition, reloading components, small caliber military ammunition, industrial cartridges, and clay targets [4] Upcoming Financial Results - Olin Corporation will review its second quarter 2025 financial results on July 29, 2025, at 9:00 a.m. Eastern time [1] - A press release with financial statements and segment information will be distributed after the market closes on July 28, 2025 [1] Conference Call Details - U.S. callers can access the conference call toll-free at (877) 883-0383, while Canadian callers can dial (877) 885-0477, and international callers can reach (412) 902-6506 [2] - The call will also be available via a live webcast, with participants encouraged to pre-register [2] - A replay of the conference call will be available for one year on the company's website, with a telephonic replay accessible for 7 days starting at 12:00 p.m. Eastern time [3]

Group 1 - Olin Corporation (OLN) announced cost savings of $50 million to $70 million expected in 2025, driven by improvements in military sales [1] - The company has improved its outlook due to the positive impact of military sales on its financial performance [1] - Olin Corporation is actively repurchasing shares at a price of $28, which may indicate confidence in its future performance [1] Group 2 - The analysis focuses on cash flow statements and unlevered free cash flow figures to assess the company's financial health [1] - The financial models may include various metrics such as cost of capital, cost of debt, WACC, share count, and net debt [1] - The analysis typically does not cover growth stocks, emphasizing a preference for companies with a long history of reported financial figures [1]

Core Viewpoint - Olin Corporation reported a significant decline in net income for the first quarter of 2025, with adjusted earnings surpassing expectations despite lower overall revenues and EBITDA [1][2]. Financial Performance - Net income for Q1 2025 was $1.4 million, down from $48.6 million in the prior-year quarter [1]. - Adjusted earnings were 4 cents per share, beating the Zacks Consensus Estimate of a loss of 10 cents [1]. - Adjusted EBITDA decreased to $185.6 million from $242.1 million year-over-year [1]. Revenue Analysis - Total revenues for Q1 2025 were $1,644.2 million, slightly missing the Zacks Consensus Estimate of $1,661.2 million but showing a year-over-year increase of approximately 0.54% [2]. - Chlor Alkali Products and Vinyls segment revenues rose to $924.5 million, a 4.5% increase year-over-year, exceeding the consensus estimate of $923 million [2]. - Epoxy segment revenues fell by about 2.8% to $331.7 million, surpassing the consensus estimate of $329 million [3]. - Winchester segment revenues declined by approximately 5.2% to $388 million, missing the consensus estimate of $410 million [3]. Cash Flow and Share Repurchase - The company repurchased 0.7 million shares for $20.2 million during the quarter [4]. - Cash flow from operating activities turned negative, with an outflow of $86 million compared to an inflow of $81 million in the prior year [4]. Future Outlook - For Q2 2025, Olin expects results from its Chemicals businesses to remain similar to Q1, with anticipated adjusted EBITDA between $170 million and $210 million [5][6]. - The company forecasts improved performance in the Winchester unit due to seasonal demand and military sales [5]. Stock Performance - Olin's stock has experienced a 63.1% decline over the past year, compared to a 28.3% decline in the industry [7].

Shares of Olin Corp. (NYSE: OLN ) have been a terrible performer over the past year, losing more than half of their value. The PVC chemicals maker has struggled mightily with an oversupplied market and weak Chinese demand, as evidenced by ongoingOver fifteen years of experience making contrarian bets based on my macro view and stock-specific turnaround stories to garner outsized returns with a favorable risk/reward profile. If you want me to cover a specific stock or have a question for an article, just let ...

[PART I — FINANCIAL INFORMATION](index=3&type=section&id=Part%20I%20%E2%80%94%20Financial%20Information) Olin's unaudited Q1 2025 financial statements, management's discussion, and market risk disclosures [ITEM 1. FINANCIAL STATEMENTS](index=3&type=section&id=Item%201.%20Financial%20Statements) Unaudited condensed financial statements, including balance sheets, operations, cash flows, and detailed notes [Condensed Balance Sheets](index=3&type=section&id=Condensed%20Balance%20Sheets) Balance Sheet Overview | Metric | March 31, 2025 ($ in millions) | December 31, 2024 ($ in millions) | March 31, 2024 ($ in millions) | | :-------------------------------- | :------------------------------ | :------------------------------ | :------------------------------ | | Total Assets | 7,655.0 | 7,579.1 | 7,611.3 | | Total Liabilities | 5,616.9 | 5,523.7 | 5,404.2 | | Total Equity | 2,038.1 | 2,055.4 | 2,207.1 | | Current Assets | 2,251.3 | 2,079.8 | 1,951.8 | | Current Liabilities | 1,439.0 | 1,632.2 | 1,416.1 | | Cash and cash equivalents | 174.0 | 175.6 | 150.9 | | Receivables, net | 1,107.3 | 1,007.8 | 907.4 | | Inventories, net | 875.2 | 823.5 | 823.9 | | Current installments of long-term debt | 19.2 | 129.0 | 80.9 | | Long-term debt | 3,016.6 | 2,713.2 | 2,684.8 | [Condensed Statements of Operations](index=4&type=section&id=Condensed%20Statements%20of%20Operations) Statements of Operations Summary | Metric | Three Months Ended March 31, 2025 ($ in millions) | Three Months Ended March 31, 2024 ($ in millions) | Change (YoY) | | :------------------------------------ | :---------------------------------------------- | :---------------------------------------------- | :---------------------------------------------- | | Sales | 1,644.2 | 1,635.3 | +0.5% | | Cost of goods sold | 1,495.5 | 1,428.0 | +4.7% | | Operating income | 43.7 | 97.3 | -55.1% | | Interest expense | 48.5 | 44.6 | +8.7% | | Income before taxes | 2.1 | 60.3 | -96.5% | | Income tax provision | 0.9 | 12.5 | -92.8% | | Net income | 1.2 | 47.8 | -97.5% | | Net income attributable to Olin Corporation | 1.4 | 48.6 | -97.1% | | Basic EPS | 0.01 | 0.41 | -97.6% | | Diluted EPS | 0.01 | 0.40 | -97.5% | [Condensed Statements of Comprehensive Income](index=5&type=section&id=Condensed%20Statements%20of%20Comprehensive%20Income) Comprehensive Income Summary | Metric | Three Months Ended March 31, 2025 ($ in millions) | Three Months Ended March 31, 2024 ($ in millions) | Change (YoY) | | :------------------------------------ | :---------------------------------------------- | :---------------------------------------------- | :---------------------------------------------- | | Net income | 1.2 | 47.8 | -97.5% | | Total other comprehensive income, net of tax | 19.5 | 6.6 | +195.5% | | Comprehensive income | 20.7 | 54.4 | -61.9% | | Comprehensive income attributable to Olin Corporation | 20.9 | 55.2 | -62.2% | [Condensed Statements of Shareholders' Equity](index=6&type=section&id=Condensed%20Statements%20of%20Shareholders%27%20Equity) Shareholders' Equity Summary | Metric | March 31, 2025 ($ in millions) | March 31, 2024 ($ in millions) | Change (YoY) | | :------------------------------------ | :---------------------------------------------- | :---------------------------------------------- | :---------------------------------------------- | | Common Stock | 115.1 | 119.4 | -3.6% | | Accumulated Other Comprehensive Loss | (430.6) | (489.7) | +12.0% | | Retained Earnings | 2,321.5 | 2,542.3 | -8.6% | | Olin Corporation's Shareholders' Equity | 2,006.0 | 2,172.0 | -7.7% | | Total Equity | 2,038.1 | 2,207.1 | -7.6% | | Common stock repurchased and retired | (0.7) shares / (20.2) $ | (2.0) shares / (105.4) $ | -65.0% shares / -80.8% $ | | Dividends declared per share | 0.20 | 0.20 | 0.0% | [Condensed Statements of Cash Flows](index=7&type=section&id=Condensed%20Statements%20of%20Cash%20Flows) Cash Flow Summary | Metric | Three Months Ended March 31, 2025 ($ in millions) | Three Months Ended March 31, 2024 ($ in millions) | Change (YoY) | | :------------------------------------ | :---------------------------------------------- | :---------------------------------------------- | :---------------------------------------------- | | Net operating activities | (86.0) | 81.0 | -206.2% | | Net investing activities | (62.4) | (74.7) | +16.5% | | Net financing activities | 146.6 | (25.3) | +679.8% | | Net decrease in cash and cash equivalents | (1.6) | (19.4) | +91.8% | | Cash and cash equivalents, end of period | 174.0 | 150.9 | +15.3% | | Capital expenditures | (61.4) | (44.3) | -38.6% | | Long-term debt borrowings, net | 199.9 | 94.7 | +111.1% | | Common stock repurchased and retired | (20.2) | (105.4) | +80.8% | [Notes to Condensed Financial Statements](index=8&type=section&id=Notes%20to%20Condensed%20Financial%20Statements) Detailed disclosures supporting financial statements, covering business, accounting, and financial instruments [NOTE 1. DESCRIPTION OF BUSINESS](index=8&type=section&id=NOTE%201.%20DESCRIPTION%20OF%20BUSINESS) - Olin operates in three capital-intensive business segments: **Chlor Alkali Products and Vinyls** (chlorine, caustic soda, etc.), **Epoxy** (epoxy materials and precursors), and **Winchester** (sporting and military ammunition)[17](index=17&type=chunk) [NOTE 2. RECENT ACCOUNTING PRONOUNCEMENTS](index=8&type=section&id=NOTE%202.%20RECENT%20ACCOUNTING%20PRONOUNCEMENTS) - FASB issued **ASU 2024-03** (Expense Disaggregation Disclosures) effective for annual periods after December 15, 2026, and **ASU 2023-09** (Income Tax Disclosures) effective for annual periods after December 15, 2024[19](index=19&type=chunk)[20](index=20&type=chunk) - Neither ASU is expected to impact the Company's consolidated financial statements, but will expand disclosure requirements[19](index=19&type=chunk)[20](index=20&type=chunk) [NOTE 3. ACQUISITIONS](index=8&type=section&id=NOTE%203.%20ACQUISITIONS) - Olin acquired AMMO, Inc.'s small caliber ammunition manufacturing assets for **$55.8 million** on April 18, 2025[21](index=21&type=chunk) - The acquisition, including brass shellcase capabilities and a 185,000 sq ft production facility in Manitowoc, WI, will be included in the Winchester segment[21](index=21&type=chunk) [NOTE 4. RESTRUCTURING CHARGES](index=9&type=section&id=NOTE%204.%20RESTRUCTURING%20CHARGES) Restructuring Charges by Plan | Restructuring Plan | Q1 2025 Pretax Charges ($ in millions) | Q1 2024 Pretax Charges ($ in millions) | | :----------------------- | :------------------------------------- | :------------------------------------- | | Epoxy Optimization Plan | 1.1 | 3.5 | | McIntosh Plan | 0.2 | 1.9 | | Freeport 2021 Plan | 1.8 | 0.4 | | Freeport 2019 Plan | 0.9 | 2.5 | | Total | 4.0 | 8.3 | - Olin expects additional restructuring charges of approximately **$35 million** through 2030 related to the Freeport 2024 Plan (Chlorine 3 facility closure) and **$10 million** through year-end for the Epoxy Optimization Plan[22](index=22&type=chunk)[24](index=24&type=chunk) Cumulative Restructuring Charges | Component | Cumulative Charges through March 31, 2025 ($ in millions) | | :-------------------------------- | :------------------------------------------ | | Write-off of equipment and facility | 79.9 | | Employee severance and related benefit costs | 20.6 | | Facility exit costs | 89.5 | | Lease and other contract termination costs | 40.4 | | Total cumulative restructuring charges | 230.4 | [NOTE 5. EARNINGS PER SHARE](index=10&type=section&id=NOTE%205.%20EARNINGS%20PER%20SHARE) Earnings Per Share Summary | Metric | Three Months Ended March 31, 2025 | Three Months Ended March 31, 2024 | Change (YoY) | | :------------------------------------ | :-------------------------------- | :-------------------------------- | :-------------------------------- | | Net income attributable to Olin Corporation | $1.4 million | $48.6 million | -97.1% | | Basic EPS | $0.01 | $0.41 | -97.6% | | Diluted EPS | $0.01 | $0.40 | -97.5% | | Weighted-average common shares - basic | 115.3 million | 119.9 million | -3.8% | | Weighted-average common shares - diluted | 116.6 million | 121.9 million | -4.3% | [NOTE 6. ACCOUNTS RECEIVABLE](index=11&type=section&id=NOTE%206.%20ACCOUNTS%20RECEIVABLE) Accounts Receivable Details | Metric | March 31, 2025 ($ in millions) | December 31, 2024 ($ in millions) | March 31, 2024 ($ in millions) | | :------------------------------------ | :---------------------------------------------- | :---------------------------------------------- | :---------------------------------------------- | | Receivables, net | 1,107.3 | 1,007.8 | 907.4 | | Allowance for doubtful accounts receivable | 12.0 | 11.8 | 12.6 | | Other receivables | 101.7 | 94.6 | 89.4 | [NOTE 7. INVENTORIES](index=11&type=section&id=NOTE%207.%20INVENTORIES) Inventories Breakdown | Metric | March 31, 2025 ($ in millions) | December 31, 2024 ($ in millions) | March 31, 2024 ($ in millions) | | :------------------------------------ | :---------------------------------------------- | :---------------------------------------------- | :---------------------------------------------- | | Inventories, net | 875.2 | 823.5 | 823.9 | | Supplies | 157.7 | 149.3 | 146.7 | | Raw materials | 183.0 | 185.2 | 188.2 | | Work in process | 188.9 | 173.1 | 160.8 | | Finished goods | 503.4 | 467.3 | 473.9 | | LIFO reserve | (157.8) | (151.4) | (145.7) | [NOTE 8. OTHER ASSETS](index=12&type=section&id=NOTE%208.%20OTHER%20ASSETS) Other Assets Details | Metric | March 31, 2025 ($ in millions) | December 31, 2024 ($ in millions) | March 31, 2024 ($ in millions) | | :------------------------------------ | :---------------------------------------------- | :---------------------------------------------- | :---------------------------------------------- | | Other assets | 1,171.6 | 1,185.1 | 1,123.5 | | Supply contracts | 1,027.1 | 1,047.3 | 1,065.1 | | Pension assets | 52.0 | 43.3 | 1.7 | | Investment in unconsolidated affiliates | 23.0 | 23.0 | — | - Amortization expense related to long-term supply contracts was **$20.9 million** in Q1 2025, up from **$18.3 million** in Q1 2024[36](index=36&type=chunk) [NOTE 9. GOODWILL AND INTANGIBLE ASSETS](index=12&type=section&id=NOTE%209.%20GOODWILL%20AND%20INTANGIBLE%20ASSETS) Goodwill and Intangible Assets Summary | Metric | March 31, 2025 ($ in millions) | December 31, 2024 ($ in millions) | March 31, 2024 ($ in millions) | | :------------------------------------ | :---------------------------------------------- | :---------------------------------------------- | :---------------------------------------------- | | Goodwill | 1,423.5 | 1,423.6 | 1,423.3 | | Total intangible assets, net | 198.6 | 206.6 | 235.6 | | Customers, customer contracts and relationships, net | 190.3 | 197.5 | 224.7 | [NOTE 10. DEBT](index=13&type=section&id=NOTE%2010.%20DEBT) Debt Structure Overview | Debt Type | March 31, 2025 ($ in millions) | December 31, 2024 ($ in millions) | March 31, 2024 ($ in millions) | | :------------------------------------ | :---------------------------------------------- | :---------------------------------------------- | :---------------------------------------------- | | Total debt | 3,035.8 | 2,842.2 | 2,765.7 | | Long-term debt | 3,016.6 | 2,713.2 | 2,684.8 | | 9.50% senior notes, due 2025 | — | 108.6 | 108.6 | | 5.125% senior notes, due 2027 | — | 500.0 | 500.0 | | 6.625% senior notes, due 2033 | 600.0 | — | — | | Term Loan Facilities | 650.0 | 332.5 | 339.0 | | Revolving Credit Facilities | 75.0 | 170.0 | 161.0 | | Receivables Financing Agreements | 461.0 | 475.0 | 332.4 | - On March 14, 2025, Olin issued **$600.0 million** of 6.625% senior notes due 2033 and entered into a new **$1,850.0 million** senior credit facility, increasing borrowing limits and extending maturity to March 14, 2030[40](index=40&type=chunk)[41](index=41&type=chunk) - Proceeds from new debt were used to redeem **$108.6 million** of 2025 Notes and **$500.0 million** of 2027 Notes, and refinance the existing 2022 Senior Credit Facility[44](index=44&type=chunk) - Olin was in compliance with all debt covenants as of March 31, 2025[45](index=45&type=chunk) [NOTE 11. PENSION PLANS AND RETIREMENT BENEFITS](index=15&type=section&id=NOTE%2011.%20PENSION%20PLANS%20AND%20RETIREMENT%20BENEFITS) Net Periodic Pension Benefit Costs | Metric | Three Months Ended March 31, 2025 ($ in millions) | Three Months Ended March 31, 2024 ($ in millions) | | :------------------------------------ | :---------------------------------------------- | :---------------------------------------------- | | Net periodic pension benefit (income) cost | (5.0) | (6.1) | | Service cost (pension) | 1.0 | 1.3 | | Interest cost (pension) | 24.5 | 25.1 | | Expected return on plans' assets (pension) | (31.7) | (33.9) | | Net periodic postretirement benefit (income) cost | 0.4 | 0.8 | - Olin made **$0.1 million** in cash contributions to international qualified defined benefit pension plans in Q1 2025[55](index=55&type=chunk) [NOTE 12. INCOME TAXES](index=15&type=section&id=NOTE%2012.%20INCOME%20TAXES) Income Tax Provision and Rate | Metric | Three Months Ended March 31, 2025 ($ in millions) | Three Months Ended March 31, 2024 ($ in millions) | | :------------------------------------ | :---------------------------------------------- | :---------------------------------------------- | | Income tax provision | 0.9 | 12.5 | | Effective tax rate (excluding specific items) | 23.8% | 25.0% | Unrecognized Tax Benefits | Unrecognized Tax Benefits | March 31, 2025 ($ in millions) | March 31, 2024 ($ in millions) | | :------------------------------------ | :---------------------------------------------- | :---------------------------------------------- | | Balance at end of period | 21.3 | 49.9 | - Olin expects a decrease of approximately **$10.3 million** in unrecognized tax benefits over the next twelve months due to expected settlements and expiration of statutes of limitation[58](index=58&type=chunk) [NOTE 13. DEFINED CONTRIBUTION PLAN](index=16&type=section&id=NOTE%2013.%20DEFINED%20CONTRIBUTION%20PLAN) Defined Contribution Plan Expense | Metric | Three Months Ended March 31, 2025 ($ in millions) | Three Months Ended March 31, 2024 ($ in millions) | | :------------------------------------ | :---------------------------------------------- | :---------------------------------------------- | | Company Contribution | 10.3 | 10.6 | | Company Match | 4.2 | 3.6 | | Total expense | 14.5 | 14.2 | [NOTE 14. STOCK-BASED COMPENSATION](index=17&type=section&id=NOTE%2014.%20STOCK-BASED%20COMPENSATION) Stock-Based Compensation Expense | Metric | Three Months Ended March 31, 2025 ($ in millions) | Three Months Ended March 31, 2024 ($ in millions) | | :------------------------------------ | :---------------------------------------------- | :---------------------------------------------- | | Stock-based compensation expense | 5.3 | 5.6 | | Mark-to-market adjustments | (3.8) | 2.2 | | Total expense | 1.5 | 7.8 | Stock-Based Awards Granted | Award Type | Q1 2025 Grants | Q1 2024 Grants | | :------------------------------------ | :---------------------------------------------- | :---------------------------------------------- | | Performance share awards granted | 545,572 | 180,714 | | Restricted stock units granted | 398,303 | 202,500 | | Stock options granted | 0 | 601,157 | [NOTE 15. SHAREHOLDERS' EQUITY](index=18&type=section&id=NOTE%2015.%20SHAREHOLDERS%27%20EQUITY) Common Stock Repurchase Summary | Metric | Three Months Ended March 31, 2025 | Three Months Ended March 31, 2024 | | :------------------------------------ | :---------------------------------------------- | :---------------------------------------------- | | Common stock repurchased and retired (shares) | 0.7 million | 2.0 million | | Common stock repurchased and retired (value) | $20.2 million | $105.4 million | | Remaining repurchase authorization | $1,978.9 million | N/A | Accumulated Other Comprehensive Loss | Accumulated Other Comprehensive Loss | January 1, 2025 ($ in millions) | March 31, 2025 ($ in millions) | Net Change ($ in millions) | | :------------------------------------ | :---------------------------------------------- | :---------------------------------------------- | :---------------------------------------------- | | Balance | (450.1) | (430.6) | 19.5 | | Unrealized (losses) gains (cash flow hedges) | N/A | 34.4 | N/A | [NOTE 16. SEGMENT INFORMATION](index=19&type=section&id=NOTE%2016.%20SEGMENT%20INFORMATION) Segment Sales and Income Before Taxes | Segment | Q1 2025 Sales ($ in millions) | Q1 2024 Sales ($ in millions) | Q1 2025 Income (Loss) Before Taxes ($ in millions) | Q1 2024 Income (Loss) Before Taxes ($ in millions) | | :------------------------------------ | :---------------------------------------------- | :---------------------------------------------- | :------------------------------------------------- | :------------------------------------------------- | | Chlor Alkali Products and Vinyls | 924.5 | 884.6 | 78.3 | 76.6 | | Epoxy | 331.7 | 341.3 | (28.4) | (11.8) | | Winchester | 388.0 | 409.4 | 22.8 | 72.2 | | Total Sales | 1,644.2 | 1,635.3 | N/A | N/A | | Total Income Before Taxes | N/A | N/A | 2.1 | 60.3 | Segment Sales by Geography (Q1 2025) | Segment Sales by Geography (Q1 2025) | United States ($ in millions) | Europe ($ in millions) | Other Foreign ($ in millions) | Total ($ in millions) | | :------------------------------------ | :---------------------------------------------- | :---------------------------------------------- | :---------------------------------------------- | :---------------------------------------------- | | Chlor Alkali Products and Vinyls | 646.9 | 33.2 | 244.4 | 924.5 | | Epoxy | 144.1 | 101.8 | 85.8 | 331.7 | | Winchester | 346.2 | 12.6 | 29.2 | 388.0 | | Total Sales | 1,137.2 | 147.6 | 359.4 | 1,644.2 | [NOTE 17. ENVIRONMENTAL](index=20&type=section&id=NOTE%2017.%20ENVIRONMENTAL) Environmental Liabilities | Metric | March 31, 2025 ($ in millions) | December 31, 2024 ($ in millions) | March 31, 2024 ($ in millions) | | :------------------------------------ | :---------------------------------------------- | :---------------------------------------------- | :---------------------------------------------- | | Reserves for future environmental expenditures | 157.0 | 156.5 | 154.8 | | Classified as other noncurrent liabilities | 127.0 | 126.5 | 122.8 | - Environmental provisions charged to income were **$5.0 million** in Q1 2025, compared to **$5.8 million** in Q1 2024[78](index=78&type=chunk)[146](index=146&type=chunk) [NOTE 18. COMMITMENTS AND CONTINGENCIES](index=21&type=section&id=NOTE%2018.%20COMMITMENTS%20AND%20CONTINGENCIES) Accrued Liabilities for Legal Actions | Metric | March 31, 2025 ($ in millions) | December 31, 2024 ($ in millions) | March 31, 2024 ($ in millions) | | :------------------------------------ | :---------------------------------------------- | :---------------------------------------------- | :---------------------------------------------- | | Accrued liabilities for other legal actions | 17.1 | 19.7 | 17.7 | - Olin does not believe that current legal actions will materially adversely affect its financial position, cash flows, or results of operations[80](index=80&type=chunk) [NOTE 19. DERIVATIVE FINANCIAL INSTRUMENTS](index=21&type=section&id=NOTE%2019.%20DERIVATIVE%20FINANCIAL%20INSTRUMENTS) - Olin uses futures, forward, commodity swaps, and put/call option contracts to reduce commodity price fluctuations and forward sales/purchase contracts to manage currency risk[83](index=83&type=chunk)[84](index=84&type=chunk) Derivative Financial Instruments Summary | Metric | March 31, 2025 ($ in millions) | December 31, 2024 ($ in millions) | March 31, 2024 ($ in millions) | | :------------------------------------ | :---------------------------------------------- | :---------------------------------------------- | :---------------------------------------------- | | Total derivative assets | 36.5 | 16.5 | 10.9 | | Total derivative liabilities | 1.2 | 3.7 | 25.7 | | Notional Value - Commodity | 153.4 | 204.5 | 239.9 | Effect of Cash Flow Hedges on Operations | Effect on Statements of Operations (Cash Flow Hedges) | Q1 2025 Gain (Loss) ($ in millions) | Q1 2024 Gain (Loss) ($ in millions) | | :------------------------------------ | :---------------------------------------------- | :---------------------------------------------- | | Commodity contracts (Other comprehensive income) | 34.4 | (3.0) | | Commodity contracts (Cost of goods sold) | 8.1 | (13.3) | | Foreign exchange contracts (Selling and administrative) | (7.0) | 0.8 | [NOTE 20. FAIR VALUE MEASUREMENTS](index=23&type=section&id=NOTE%2020.%20FAIR%20VALUE%20MEASUREMENTS) - Commodity and foreign currency contract financial instruments are valued as **Level 2** under the fair value measurements hierarchy, based on observable market prices[101](index=101&type=chunk)[102](index=102&type=chunk) Fair Value Measurements of Debt | Metric | March 31, 2025 ($ in millions) | December 31, 2024 ($ in millions) | March 31, 2024 ($ in millions) | | :------------------------------------ | :---------------------------------------------- | :---------------------------------------------- | :---------------------------------------------- | | Fair value measurements of debt | 2,982.4 | 2,779.0 | 2,725.7 | | Carrying value of total debt | 3,035.8 | 2,842.2 | 2,765.7 | [ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS](index=24&type=section&id=Item%202.%20Management%27s%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Analysis of Olin's Q1 2025 financial performance, condition, segment results, outlook, and liquidity [Business Background](index=24&type=section&id=Business%20Background) - Olin is a vertically integrated global manufacturer of chemical products and a leading U.S. manufacturer of ammunition[105](index=105&type=chunk) - The company operates in three capital-intensive business segments: **Chlor Alkali Products and Vinyls**, **Epoxy**, and **Winchester**[105](index=105&type=chunk) [Executive Summary](index=25&type=section&id=Executive%20Summary) Olin's Q1 2025 net income significantly decreased, with varied segment performance and strategic debt refinancing Key Financial Highlights | Metric | Q1 2025 ($ in millions) | Q1 2024 ($ in millions) | Change (YoY) | | :------------------------------------ | :---------------------------------------------- | :---------------------------------------------- | :---------------------------------------------- | | Net income | 1.4 | 48.6 | -97.1% | | Diluted net income per share | 0.01 | 0.40 | -97.5% | - Chlor Alkali Products and Vinyls segment income slightly increased due to higher volumes, partially offset by lower pricing and higher costs[108](index=108&type=chunk) - Epoxy segment reported a larger loss due to higher operating costs and weak global demand, exacerbated by subsidized Asian competition[109](index=109&type=chunk) - Winchester segment income decreased significantly due to lower commercial sales, higher commodity/operating costs, and lower pricing, partially offset by higher military sales[110](index=110&type=chunk) - Olin repurchased **$20.2 million** of common stock in Q1 2025 and completed a major debt refinancing, issuing **$600.0 million** in new notes and expanding its senior credit facility[111](index=111&type=chunk)[112](index=112&type=chunk)[113](index=113&type=chunk)[114](index=114&type=chunk) - On April 18, 2025, Olin acquired AMMO, Inc.'s small caliber ammunition manufacturing assets for **$55.8 million**, integrating them into the Winchester segment[116](index=116&type=chunk) [Consolidated Results of Operations](index=26&type=section&id=Consolidated%20Results%20of%20Operations) Olin's Q1 2025 sales slightly increased, but gross margin and net income significantly declined year-over-year Consolidated Financial Performance | Metric | Q1 2025 ($ in millions) | Q1 2024 ($ in millions) | Change (YoY) | | :------------------------------------ | :---------------------------------------------- | :---------------------------------------------- | :---------------------------------------------- | | Sales | 1,644.2 | 1,635.3 | +1% | | Gross margin | 148.7 | 207.3 | -28.3% | | Gross margin as % of sales | 9% | 13% | -4 ppts | | Operating income | 43.7 | 97.3 | -55.1% | | Net income attributable to Olin Corporation | 1.4 | 48.6 | -97.1% | - Selling and administrative expenses decreased slightly by **$0.9 million**, primarily due to lower stock-based compensation, including mark-to-market adjustments[120](index=120&type=chunk) - Restructuring charges decreased to **$4.0 million** from **$8.3 million**, mainly due to lower facility exit cost activities[121](index=121&type=chunk) - Interest expense increased by **$3.9 million**, including a **$3.3 million** write-off of deferred debt issuance costs related to Q1 financing transactions[122](index=122&type=chunk) - Non-operating pension income decreased due to a lower assumption for the long-term rate of return on plan assets[123](index=123&type=chunk) [Segment Results](index=27&type=section&id=Segment%20Results) Chlor Alkali Products and Vinyls income slightly rose, Epoxy loss widened, and Winchester income significantly decreased Segment Performance Overview | Segment | Q1 2025 Sales ($ in millions) | Q1 2024 Sales ($ in millions) | YoY Change (%) | Q1 2025 Segment Income (Loss) ($ in millions) | Q1 2024 Segment Income (Loss) ($ in millions) | YoY Change ($ in millions) | | :------------------------------------ | :---------------------------------------------- | :---------------------------------------------- | :---------------------------------------------- | :------------------------------------------------- | :------------------------------------------------- | :------------------------------------------------- | | Chlor Alkali Products and Vinyls | 924.5 | 884.6 | +5% | 78.3 | 76.6 | +1.7 | | Epoxy | 331.7 | 341.3 | -3% | (28.4) | (11.8) | -16.6 | | Winchester | 388.0 | 409.4 | -5% | 22.8 | 72.2 | -49.4 | - Chlor Alkali Products and Vinyls sales increase was primarily due to higher volumes, partially offset by lower EDC pricing[128](index=128&type=chunk) - Epoxy segment loss was exacerbated by higher operating costs, lower product pricing, and weak global demand, particularly from subsidized Asian competition[132](index=132&type=chunk) - Winchester's decline was due to lower commercial ammunition sales and pricing, and higher commodity/operating costs, partially offset by increased military sales[134](index=134&type=chunk)[135](index=135&type=chunk) - Corporate/Other costs decreased by **$5.8 million**, mainly due to lower variable incentive compensation and favorable foreign currency impact[138](index=138&type=chunk) [Outlook](index=29&type=section&id=Outlook) Q2 2025 chemical business results are expected to be comparable to Q1, with Winchester improving due to seasonal demand - Q2 2025 operating results for Chemical businesses are expected to be comparable to Q1 2025, with Chlor Alkali Products and Vinyls anticipating seasonal volume improvements and strengthened caustic soda values[142](index=142&type=chunk) - Winchester business Q2 2025 results are expected to improve from Q1 2025 due to seasonally stronger commercial demand and higher military sales[142](index=142&type=chunk) Full Year 2025 Estimates | Metric (Full Year 2025 Estimates) | Range ($ in millions) | | :------------------------------------ | :---------------------------------------------- | | Capital spending | 200 - 220 | | Depreciation and amortization expense | ~525 | | Environmental expenses | 25 - 35 | | Non-operating pension income | Lower than $26.0 (2024) | | Effective tax rate | 25% - 30% | | Cash taxes paid | 175 - 200 | [Environmental Matters](index=29&type=section&id=Environmental%20Matters) Olin's environmental provisions and liabilities are detailed, with estimated spending for investigatory and remedial efforts Environmental Spending and Liabilities | Metric | Q1 2025 ($ in millions) | Q1 2024 ($ in millions) | | :------------------------------------ | :---------------------------------------------- | :---------------------------------------------- | | Environmental provisions charged to income | 5.0 | 5.8 | | Remedial and investigatory spending | (4.5) | (4.6) | | Environmental Liabilities (end of period) | 157.0 | 154.8 | - Olin estimates approximately **$30 million** in spending for investigatory and remedial efforts in 2025[146](index=146&type=chunk) - Accrued liabilities for unasserted claims amounted to **$11.6 million** at March 31, 2025[147](index=147&type=chunk) [Legal Matters and Contingencies](index=30&type=section&id=Legal%20Matters%20and%20Contingencies) Accrued liabilities for legal actions are reported, with no material adverse impact expected on financial position Accrued Liabilities for Legal Actions | Metric | March 31, 2025 ($ in millions) | December 31, 2024 ($ in millions) | March 31, 2024 ($ in millions) | | :------------------------------------ | :---------------------------------------------- | :---------------------------------------------- | :---------------------------------------------- | | Accrued liabilities for other legal actions | 17.1 | 19.7 | 17.7 | - Olin does not believe that current legal actions will materially adversely affect its financial position, cash flows, or results of operations[80](index=80&type=chunk) [Liquidity and Capital Resources](index=30&type=section&id=Liquidity%20and%20Capital%20Resources) Olin's Q1 2025 saw negative operating cash flow, significant debt refinancing, and substantial stock repurchase authorization Cash Flow Activities | Metric | Q1 2025 ($ in millions) | Q1 2024 ($ in millions) | Change (YoY) | | :------------------------------------ | :---------------------------------------------- | :---------------------------------------------- | :---------------------------------------------- | | Net operating activities | (86.0) | 81.0 | -206.2% | | Capital expenditures | (61.4) | (44.3) | -38.6% | | Net financing activities | 146.6 | (25.3) | +679.8% | | Long-term debt borrowings, net | 199.9 | 94.7 | +111.1% | | Common stock repurchased and retired | (20.2) | (105.4) | +80.8% | - Working capital increased by **$204.4 million** in Q1 2025, compared to an **$89.0 million** increase in Q1 2024, contributing to negative operating cash flow[151](index=151&type=chunk) - Olin completed significant debt refinancing in Q1 2025, including issuing **$600.0 million** in 2033 Notes and entering a new **$1,850.0 million** senior credit facility, to redeem existing notes and refinance facilities[161](index=161&type=chunk)[162](index=162&type=chunk)[165](index=165&type=chunk) - The company had **$1,124.6 million** available under its 2025 Revolving Credit Facility and **$39.0 million** additional borrowing capacity under the 2024 Receivables Financing Agreement as of March 31, 2025[164](index=164&type=chunk)[168](index=168&type=chunk) - Total debt to total capitalization increased to **59.8%** as of March 31, 2025, from **58.0%** as of December 31, 2024[157](index=157&type=chunk) - Olin has **$1,978.9 million** remaining authorized for common stock repurchases under its 2022 and 2024 programs[173](index=173&type=chunk) [ITEM 3. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK](index=33&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20about%20Market%20Risk) Olin's exposure to market risks from commodity prices, foreign currency, and interest rates, and hedging strategies - Olin is exposed to market risks from commodity price volatility (electricity, natural gas, raw materials), foreign currency exchange rates (primarily Euro), and interest rate changes[177](index=177&type=chunk)[178](index=178&type=chunk)[179](index=179&type=chunk)[180](index=180&type=chunk) Market Risk Exposure Summary | Metric | March 31, 2025 ($ in millions) | December 31, 2024 ($ in millions) | March 31, 2024 ($ in millions) | | :------------------------------------ | :---------------------------------------------- | :---------------------------------------------- | :---------------------------------------------- | | Notional value of open commodity contracts | 153.4 | 204.5 | 239.9 | | Variable-rate long-term debt | 1,271.9 | 1,063.4 | 988.4 | - A hypothetical 10% increase in hedged commodity prices would result in a **$15.3 million** increase in cost of inventory purchased, substantially offset by hedging instruments[178](index=178&type=chunk) - A hypothetical 100-basis point change in SOFR would impact annual interest expense by **$12.7 million**, based on variable-rate debt levels at March 31, 2025[181](index=181&type=chunk) [ITEM 4. CONTROLS AND PROCEDURES](index=34&type=section&id=Item%204.%20Controls%20and%20Procedures) CEO and CFO concluded disclosure controls were effective, with no material changes in internal control - Olin's CEO and CFO evaluated and concluded that disclosure controls and procedures were effective as of **March 31, 2025**[183](index=183&type=chunk) - No material changes in internal control over financial reporting occurred during **Q1 2025**[184](index=184&type=chunk) [Cautionary Statement Regarding Forward-Looking Statements](index=34&type=section&id=Cautionary%20Statement%20Regarding%20Forward-Looking%20Statements) The report contains forward-looking statements subject to risks, uncertainties, and potential material differences in actual outcomes - The report contains forward-looking statements identified by words like "anticipate," "expect," "believe," and "outlook," which are not guarantees of future performance[185](index=185&type=chunk)[186](index=186&type=chunk) - Actual outcomes and results may differ materially due to various risks and uncertainties, including economic conditions, pricing, cost control, supply chain, operational interruptions, and regulatory changes[186](index=186&type=chunk)[190](index=190&type=chunk) - The payment of cash dividends is at the discretion of the Board of Directors and may change based on current conditions[186](index=186&type=chunk) [PART II — OTHER INFORMATION](index=36&type=section&id=Part%20II%20%E2%80%94%20Other%20Information) Disclosures on legal proceedings, risk factors, equity sales, defaults, mine safety, and filed exhibits [ITEM 1. LEGAL PROCEEDINGS](index=36&type=section&id=Item%201.%20Legal%20Proceedings) Legal proceedings and contingencies are discussed in Note 18, 'Commitments and Contingencies' - Legal proceedings and contingencies are discussed in **Note 18, 'Commitments and Contingencies'**[191](index=191&type=chunk) [ITEM 1A. RISK FACTORS](index=36&type=section&id=Item%201A.%20Risk%20Factors) No new material risk factors reported for the quarter, referring to the Annual Report on Form 10-K - No new material risk factors are reported for the quarter, referring to the **Annual Report on Form 10-K** for existing risk factors[191](index=191&type=chunk) [ITEM 2. UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF PROCEEDS](index=36&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) Olin repurchased common stock in Q1 2025, with significant authorization remaining for future repurchases Common Stock Repurchase Activity | Period | Total Number of Shares Purchased | Average Price Paid per Share | | :-------------------- | :------------------------------- | :--------------------------- | | January 1-31, 2025 | 294,406 | $33.99 | | February 1-28, 2025 | 355,465 | $28.15 | | March 1-31, 2025 | — | — | | Total (Q1 2025) | 649,871 | N/A | - As of March 31, 2025, **$1,978.9 million** of common stock remained authorized for repurchase under the 2022 and 2024 Repurchase Authorization programs[192](index=192&type=chunk) [ITEM 3. DEFAULTS UPON SENIOR SECURITIES](index=36&type=section&id=Item%203.%20Defaults%20Upon%20Senior%20Securities) No defaults upon senior securities were reported for the period - No defaults upon senior securities were reported for the period[193](index=193&type=chunk) [ITEM 4. MINE SAFETY DISCLOSURES](index=36&type=section&id=Item%204.%20Mine%20Safety%20Disclosures) No mine safety disclosures were reported for the period - No mine safety disclosures were reported for the period[194](index=194&type=chunk) [ITEM 5. OTHER INFORMATION](index=36&type=section&id=Item%205.%20Other%20Information) No director or officer adopted, terminated, or modified Rule 10b5-1 or non-Rule 10b5-1 trading arrangements - No director or officer adopted, terminated, or modified a Rule 10b5-1 or non-Rule 10b5-1 trading arrangement during the three months ended March 31, 2025[197](index=197&type=chunk) [ITEM 6. EXHIBITS](index=37&type=section&id=Item%206.%20Exhibits) Exhibits include a Third Amendment to Forward Purchase Agreement and Section 302 and 906 Certification Statements - Exhibits include a **Third Amendment to Forward Purchase Agreement**, **Section 302 and 906 Certification Statements**, and **XBRL Interactive Data Files**[198](index=198&type=chunk) [SIGNATURES](index=38&type=section&id=SIGNATURES) The report was signed by Todd A. Slater, Senior Vice President and Chief Financial Officer, on May 2, 2025 - The report was signed by **Todd A. Slater**, Senior Vice President and Chief Financial Officer, on **May 2, 2025**[203](index=203&type=chunk)