Olin(OLN) - 2025 Q3 - Quarterly Results

Financial Performance - Olin Corporation reported a net income of $42.8 million, or $0.37 per diluted share, for Q3 2025, compared to a net loss of ($24.9) million, or ($0.21) per diluted share, in Q3 2024[4]. - Adjusted EBITDA for Q3 2025 was $222.4 million, up from $160.3 million in Q3 2024, benefiting from a $32.0 million pretax benefit related to the clean hydrogen production tax credit[4][6]. - Sales in Q3 2025 reached $1,713.2 million, an increase from $1,589.5 million in Q3 2024, driven by higher volumes in the Chlor Alkali Products and Vinyls segment[4]. - Operating income for Q3 2025 was $82.8 million, significantly higher than $15.5 million in Q3 2024, representing a 433.5% increase[33]. - Net income attributable to Olin Corporation for Q3 2025 was $42.8 million, compared to a loss of $24.9 million in Q3 2024[33]. - Adjusted EBITDA for the three months ended September 30, 2025, was $222.4 million, an increase from $160.3 million in the same period of 2024, representing a growth of 38.8%[38]. Segment Performance - Chlor Alkali Products and Vinyls segment sales were $924.0 million in Q3 2025, up from $871.6 million in Q3 2024, with segment earnings increasing to $127.6 million from $45.3 million[11]. - Epoxy segment sales increased to $349.6 million in Q3 2025 from $285.1 million in Q3 2024, with a reduced segment loss of ($32.2) million compared to ($42.8) million in the prior year[13][14]. - Winchester segment sales were $439.6 million in Q3 2025, slightly up from $432.8 million in Q3 2024, but segment earnings decreased to $19.3 million from $53.4 million due to lower commercial ammunition pricing[16]. - Chlor Alkali Products and Vinyls segment sales rose to $924.0 million in Q3 2025, a 6.0% increase from $871.6 million in Q3 2024[34]. Cash Flow and Debt - The company reported a net operating activities cash flow of $153.0 million for the nine months ended September 30, 2025, down from $361.5 million in the same period of 2024[36]. - The company ended Q3 2025 with net debt of approximately $2.85 billion and a net debt to adjusted EBITDA ratio of 3.7 times[20]. - Long-term debt increased to $2,974.2 million as of September 30, 2025, compared to $2,713.2 million at the end of 2024[35]. - The company's total debt as of September 30, 2025, was $2,993.4 million, up from $2,842.2 million at the end of 2024[40]. - Net Debt at the end of September 30, 2025, was $2,853.1 million, compared to $2,666.6 million at the end of 2024, indicating an increase of 7%[40]. - The Net Debt to Adjusted EBITDA ratio as of September 30, 2025, was 3.7, up from 3.1 at the end of 2024, reflecting a deterioration in leverage[40]. Shareholder Returns - Approximately 0.5 million shares of common stock were repurchased at a cost of $10.1 million during Q3 2025, with $2.0 billion available under share repurchase authorizations[20]. - Dividends per common share remained stable at $0.20 for both Q3 2025 and Q3 2024[33]. Other Financial Metrics - Total assets as of September 30, 2025, were $7,600.9 million, slightly up from $7,579.1 million at the end of 2024[35]. - Cash and cash equivalents decreased to $140.3 million from $175.6 million at the end of 2024[36]. - Depreciation and amortization expenses for the three months ended September 30, 2025, were $133.8 million, slightly higher than $130.2 million in the same period of 2024[38]. - Interest expense for the three months ended September 30, 2025, was $46.8 million, down from $48.4 million in the same period of 2024[38]. - The company incurred restructuring charges of $2.9 million for the three months ended September 30, 2025, compared to $7.9 million in the same period of 2024[38]. - Trailing twelve months Adjusted EBITDA as of September 30, 2025, was $777.5 million, down from $873.9 million as of December 31, 2024[40]. - The company reported a decrease in income tax provision from $36.8 million in the nine months ended September 30, 2024, to a benefit of $5.3 million in the same period of 2025[38]. Future Outlook - Olin expects Q4 2025 adjusted EBITDA to be in the range of $110 million to $130 million, including a $40 million penalty from planned inventory reductions[7].