Olin(US:OLN)2025-10-28 16:48Financial Performance - Olin Corporation reported a net income of $42.8 million for the three months ended September 30, 2025, compared to a net loss of $24.9 million for the same period in 2024[25]. - Total sales for the three months ended September 30, 2025, reached $1,713.2 million, with segment sales from Chlor Alkali Products and Vinyls at $924.0 million, Epoxy at $349.6 million, and Winchester at $439.6 million[76]. - The company reported an income before taxes of $41.5 million for the three months ended September 30, 2025, with a significant loss of $32.2 million in the Epoxy segment[76]. - Total sales for the nine months ended September 30, 2025, reached $5,115.7 million, a 5.1% increase from $4,868.8 million in the same period of 2024[77]. - Income before taxes for the nine months ended September 30, 2025, was $36.8 million, a significant decline from $131.7 million in the same period of 2024[77]. Restructuring and Charges - The company incurred cumulative restructuring-related cash expenditures of $152.2 million and non-cash charges of $79.9 million as of September 30, 2025, with an expected additional $75.0 million in restructuring charges through 2030[23]. - Olin's total cumulative restructuring charges reached $240.7 million through September 30, 2025, with significant charges related to facility closures and employee severance[21]. - The company reported restructuring charges of $14.3 million for the nine months ended September 30, 2025[77]. Assets and Liabilities - The company’s inventories, net, increased to $966.9 million as of September 30, 2025, from $823.5 million as of December 31, 2024[27]. - Olin's other assets totaled $1,170.4 million as of September 30, 2025, with supply contracts accounting for $986.4 million[29]. - Goodwill balance as of September 30, 2025, is $1,425.9 million, with a cumulative impairment of $557.6 million in Chlor Alkali Products and $142.2 million in Vinyls and Epoxy[33]. - Total debt as of September 30, 2025, is $2,993.4 million, an increase from $2,842.2 million as of December 31, 2024[35]. - The company has accrued liabilities for legal actions amounting to $18.7 million as of September 30, 2025[82]. Cash Flow and Financing - The company issued $600.0 million of 6.625% senior notes due April 1, 2033, on March 14, 2025[36]. - The 2025 Senior Credit Facility was increased to $1,850.0 million, extending the maturity date to March 14, 2030[37]. - Total borrowings for the nine months ended September 30, 2025, were $2,485.0 million, compared to $587.4 million for the same period in 2024[45]. - The company had $470.0 million drawn under Receivables Financing Agreements as of September 30, 2025[43]. - The company remains in compliance with all covenants and restrictions under its outstanding debt agreements as of September 30, 2025[41]. Tax and Pension - The tax benefit for the three months ended September 30, 2025, was $2.2 million, resulting in a negative effective tax rate of 5.3%, significantly lower than the 21.0% U.S. federal statutory rate[52][53]. - For the nine months ended September 30, 2025, the company recorded a tax benefit of $5.3 million, leading to a negative effective tax rate of 14.4%, compared to a tax expense of $36.8 million and an effective tax rate of 27.9% for the same period in 2024[54]. - The company made cash contributions to its international qualified defined benefit pension plans of $0.6 million for the nine months ended September 30, 2025, down from $0.9 million in 2024[51]. Stock and Compensation - Stock-based compensation expense for the three months ended September 30, 2025, was $8.6 million, compared to $6.6 million in 2024[63]. - The company repurchased 1.7 million shares of common stock for a total value of $40.4 million during the nine months ended September 30, 2025, compared to 4.9 million shares for $256.8 million in 2024[69]. - The company has $1.3 billion remaining available under the 2024 Repurchase Authorization program, with no repurchases made under this program as of September 30, 2025[69]. Segment Performance - The gross margin for the total sales in the same period was $183.4 million, with a gross margin of $166.0 million from Chlor Alkali Products and Vinyls, and a loss of $17.8 million from the Epoxy segment[76]. - Non-operating pension income for the three months ended September 30, 2025, included $4.9 million, contributing to the overall financial performance[76]. - Environmental provisions charged to income for the nine months ended September 30, 2025, amounted to $15.3 million, down from $19.4 million in the same period of 2024[80]. Commodity and Currency Risk - The company had outstanding forward contracts to sell foreign currency with a notional value of $141.0 million as of September 30, 2025, compared to $133.7 million at December 31, 2024, and $148.8 million at September 30, 2024[87]. - A hypothetical 10% increase in commodity prices would lead to a $23.4 million increase in the cost of inventory purchased as of September 30, 2025[202]. - The company uses cash flow hedges for certain raw material and energy costs to provide stability against price fluctuations[89]. - The net impact of commodity risk, foreign currency risk, or interest rate risk on cash flow may differ materially from expectations if actual changes are substantially different[207].