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)

Financial Data and Key Metrics Changes - The company is increasing its cost reduction target to $50 million to $70 million for full year 2025 related to productivity and structural cost improvements [8] - First quarter operating cash flow was negatively impacted by normal seasonal working capital growth, but by year-end, working capital is expected to be a source of cash flow for 2025 [29] - The company expects second quarter adjusted EBITDA to be in the range of $170 million to $210 million, including a $40 million sequential chemicals turnaround expense headwind [34] Business Line Data and Key Metrics Changes - Chlor Alkali Products and Vinyls business exceeded expectations due to planned and unplanned industry outages, leading to higher sales and lower turnaround costs [9][26] - The Winchester division saw growth in domestic and international military ammunition volume, while commercial sales remained weak due to destocking by retailers [10][20] - The Epoxy business experienced improved sales sequentially, but margin benefits were offset by higher costs [16][17] Market Data and Key Metrics Changes - Stable ECU values continued with positive pricing trends into the second quarter, particularly for caustic soda [10][32] - The commercial ammunition market is currently challenged, with mid-single-digit pullbacks in sporting goods and hunting sales [21] - The company does not expect significant direct impact from current tariffs on CAPB, as export sales are generally sold to low-tariff countries [15] Company Strategy and Development Direction - The company is focused on a value-first commercial approach and has made solid progress in implementing its Winchester growth strategy [11][24] - The acquisition of Ammo Inc. manufacturing assets is expected to be immediately accretive and supports growth for Winchester [24] - The company is exploring long-term strategic opportunities in the PVC market, including potential joint ventures [15][83] Management's Comments on Operating Environment and Future Outlook - Management noted that economic uncertainty continues to dominate the global macro environment, but the company is focused on managing controllable factors [7] - The outlook for the second quarter indicates cautious optimism, with expectations of stable demand and pricing for caustic soda [32][66] - The company remains committed to maintaining its investment-grade balance sheet and disciplined capital allocation approach [30] Other Important Information - The company successfully refinanced its nearest debt tranche, extending maturities to 2029, which positions it well to weather economic uncertainty [10] - A new board member, retired U.S. Army General Edward M. Daley, was elected to provide strategic guidance [35] Q&A Session Summary Question: Update on volume and price outlook for chlorovinyl - Management noted continued weakness in EDC pricing but expects positive pricing trends for caustic soda in Q2 [38][39] Question: Cash positive status of PVC arrangement - Management confirmed that the current PVC arrangement is cash positive and plans to ramp up tolling volumes [41][42] Question: Operating rates in Q1 - Management indicated that operating rates were elevated in Q1 due to increased spot demand, but rates are expected to return to normal in Q2 [45][46] Question: Retaining spot business going forward - Management stated that spot volumes are opportunistic and not expected to be consistent [49] Question: Year-over-year EBITDA decline for Winchester - Management indicated that the decline is primarily due to lower commercial demand and higher costs, with a rough split of two-thirds volume and price, one-third cost [52][54] Question: Capacity overhang in epoxy - Management acknowledged significant capacity overhang in epoxy, particularly in Asia, and noted that the business will continue to struggle in 2025 [56][75] Question: Structural profitability of Winchester - Management expressed optimism about Winchester's future earnings, citing recent acquisitions and military project spending [70][72] Question: Increased cost-cutting target - Management clarified that the increased target includes both accelerated structural cost savings and productivity opportunities [79] Question: Capital spending reduction - Management confirmed that the reduction in capital spending for 2025 does not change the long-term average spending target [83] Question: Purchase price for Ammo Inc. - Management explained that the lower purchase price was due to effective negotiations and lower working capital at closing [88][89]

Financial Data and Key Metrics Changes - The company is increasing its cost reduction target to $50 million to $70 million for the full year 2025 related to productivity and structural cost improvements [8] - First quarter adjusted EBITDA comparison from Q4 2024 to Q1 2025 shows that Chlor Alkali Products and Vinyls business benefited from delaying maintenance, resulting in higher sales than expected [26] - Operating cash flow for Q1 2025 was negatively impacted by normal seasonal working capital growth, but the company expects working capital to be a source of cash flow for 2025 [29] Business Line Data and Key Metrics Changes - Chlor Alkali Products and Vinyls business saw increased chlorine and caustic volumes, with expectations for caustic to remain the stronger side of the ECU [13][14] - The Winchester division experienced growth in domestic and international military ammunition volume, while commercial sales were weak due to destocking by retailers [20][21] - Epoxy sales improved sequentially, but margin benefits were offset by higher costs, with expectations for continued challenges in 2025 [16][18] Market Data and Key Metrics Changes - The company noted stable ECU values with positive pricing trends into the second quarter, particularly for caustic soda [10][32] - The commercial ammunition market is currently challenged, with mid-single-digit pullbacks in sporting goods and hunting sales [21] - The company expects caustic prices to rise and sees seasonal recovery in demand for bleach and caustic soda [32] Company Strategy and Development Direction - The company is focused on a value-first commercial approach and has made progress in implementing its Winchester growth strategy [11][12] - The acquisition of Ammo Inc. is expected to enhance growth potential for Winchester, with synergies anticipated [24][72] - The company is exploring long-term strategic opportunities in PVC and is committed to maintaining a disciplined capital allocation framework [15][84] Management's Comments on Operating Environment and Future Outlook - Management expressed cautious optimism regarding the economic environment, noting that while uncertainty exists, customers are not expressing significant negativity [68] - The company expects adjusted EBITDA for Q2 2025 to be in the range of $170 million to $210 million, including a $40 million sequential chemicals turnaround expense headwind [34] - Management remains bullish on the future of Winchester's earnings, anticipating a strengthening in the business over the next 12 to 18 months [72] Other Important Information - The company successfully refinanced its nearest debt tranche, extending maturities to 2029, which positions it well to weather economic uncertainty [10] - A new board member, retired U.S. Army General Edward M. Daley, was elected to provide strategic guidance [36] Q&A Session Summary Question: Update on volume and price outlook for chlorovinyl - Management noted continued weakness in EDC pricing but expects positive pricing trends for caustic and seasonal improvements in Q2 [38] Question: Cash positive status of current PVC arrangement - Management confirmed that the current PVC arrangement is cash positive and plans to ramp up tolling volumes [41] Question: Operating rates in Q1 - Management indicated that operating rates were elevated in Q1 due to increased spot demand, but rates are expected to return to normal in Q2 [46] Question: Year-over-year EBITDA decline for Winchester - Management expects a modest improvement in Winchester for Q2, with the decline primarily driven by lower commercial demand and higher costs [53][55] Question: Capacity overhang in epoxy - Management acknowledged significant capacity overhang in epoxy, particularly in Asia, and expects continued struggles in 2025 [57] Question: Structural profitability of Winchester - Management indicated that Winchester is currently in a trough but remains optimistic about future growth due to recent acquisitions and contracts [70][72] Question: Increased cost-cutting target - Management clarified that the increased cost-cutting target for 2025 includes both accelerated structural savings and productivity improvements [80] Question: Capital spending reduction - Management confirmed that the reduction in capital spending for 2025 does not change the long-term average spending target [84] Question: Purchase price for Ammo Inc. - Management explained that the lower purchase price was due to effective negotiations and lower working capital at closing [89]

Financial Data and Key Metrics Changes - The company increased its cost reduction target for 2025 to $50 million to $70 million, up from previous estimates [6][28] - First quarter operating cash flow was negatively impacted by normal seasonal working capital growth, but the company expects working capital to be a source of cash flow for 2025 [27][28] - The adjusted EBITDA for the first quarter of 2025 is expected to be in the range of $170 million to $210 million, including a $40 million sequential chemicals turnaround expense headwind [34] Business Line Data and Key Metrics Changes - The Chlor Alkali Products and Vinyls business exceeded expectations due to planned and unplanned industry outages, leading to higher sales and lower turnaround costs [7][25] - The Winchester division saw growth in domestic and international military ammunition volume, while commercial sales remained weak due to destocking by retailers [8][19] - The Epoxy business experienced improved sales sequentially, but margin benefits from pricing were offset by higher costs [15][25] Market Data and Key Metrics Changes - Stable ECU values continued with positive pricing trends expected into the second quarter, particularly for caustic soda [8][12] - The commercial ammunition market is currently challenged, with mid-single-digit pullbacks in sporting goods and hunting sales [20][21] - The company anticipates that tariffs will have a net neutral impact on earnings, as they generally source and sell where they produce [34] Company Strategy and Development Direction - The company is focused on its "Optimize and Grow the Core" strategy, emphasizing cost reductions and disciplined capital allocation while pursuing high-value growth opportunities [9][10] - The acquisition of Ammo Inc. is expected to enhance Winchester's growth potential and is seen as immediately accretive [23][24] - The company is exploring long-term strategic opportunities in the PVC market, including potential joint ventures [14][88] Management's Comments on Operating Environment and Future Outlook - Management expressed cautious optimism regarding the economic environment, noting that while uncertainty exists, customers are not expressing significant negativity about their outlook [71] - The company expects to navigate the challenging environment by managing controllable factors and executing its long-term strategy [35] - The outlook for the second quarter indicates continued strength in the Chlor Alkali Products and Vinyls business, while the Epoxy business faces ongoing challenges [32][34] Other Important Information - The company successfully refinanced its nearest debt tranche, extending maturities to 2029, which positions it well to weather economic uncertainty [8][27] - A new board member, retired U.S. Army General Edward M. Daley, was elected to provide strategic guidance [35] Q&A Session Summary Question: Update on volume and price outlook for chlorovinyl - Management noted continued weakness in EDC pricing but expects positive pricing trends for caustic and seasonal improvements in demand [38][39] Question: Cash positive status of current PVC arrangements - Management confirmed that current PVC arrangements are cash positive and plans to ramp up tolling volumes [41][42] Question: Operating rates in Q1 - Management indicated that operating rates were elevated in Q1 due to increased spot demand, but rates are expected to return to normal in Q2 [45][46] Question: Year-over-year EBITDA decline for Winchester - The decline is attributed to lower commercial demand and higher costs, with approximately two-thirds of the decline due to volume and price [52][54] Question: Epoxy business outlook - Management expects continued struggles in the epoxy business in 2025 but anticipates improvements by the end of the year [78][82] Question: Increased cost-cutting target - The increase in the cost-cutting target for 2025 is seen as a combination of accelerating structural cost savings and productivity improvements [84][85] Question: Capital spending reduction - The reduction in capital spending for 2025 does not change the long-term average spending target, which remains around $250 million [87][88] Question: Interest in Dow's assets - Management refrained from commenting on specific M&A opportunities but emphasized a focus on growth in water treatment and PVC [103][104]

1Q25 Quarterly Earnings Call M a y 2 , 2 0 2 5 Forward-looking Statements This presentation includes forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These statements relate to analyses and other information that are based on management's beliefs, certain assumptions made by management, forecasts of future results, and current expectations, estimates and projections about the markets and economy in which we and our various segments operate. The statement ...