Olin's Q4 Earnings and Revenues Beat Estimates, Sales Up Y/Y

Core Viewpoint - Olin Corporation reported a decline in net income for Q4 2024, with earnings of $10.7 million or 9 cents per share, down from $52.9 million or 43 cents in the prior year, although it beat the Zacks Consensus Estimate of a loss of 1 cent per share [1][5] Financial Performance - Adjusted EBITDA for Q4 2024 was $193.4 million, a decrease from $210.1 million in the same quarter last year [1] - Revenues for Q4 2024 were $1,671.3 million, exceeding the Zacks Consensus Estimate of $1,608.8 million, and reflecting a year-over-year increase of approximately 3.5% [2] - For the full year 2024, net sales were $6,540.1 million, down from $6,833 million in 2023, with earnings per share dropping to 91 cents from $3.57 [5] Segment Performance - Chlor Alkali Products and Vinyls segment revenues increased by around 5.3% year-over-year to $953.7 million, surpassing the Zacks Consensus Estimate of $877 million, driven by higher volumes and pricing [3] - Epoxy segment revenues decreased by approximately 9.8% year-over-year to $282.2 million, missing the consensus estimate of $295 million due to lower volumes and pricing [4] - Winchester segment revenues rose by about 10.1% year-over-year to $435.4 million, exceeding the consensus estimate of $404 million, attributed to higher military sales [4] Cash Flow and Share Repurchase - In 2024, Olin repurchased 5.9 million shares for $300.3 million and ended the year with approximately $1.2 billion in liquidity [6] - Cash flow from operating activities decreased significantly from $974.3 million in the prior year to $503.2 million in 2024 [6] Future Outlook - Olin plans to allocate funds towards an optimized core asset strategy aimed at reducing structural costs by over $250 million by 2028, with anticipated capital expenditures between $225 million and $250 million in 2025 [7] - The company expects Q1 2025 adjusted EBITDA to range between $150 million and $170 million and plans to use operational cash flows to finance the acquisition of AMMO Inc.'s ammunition assets in 2025 [7] - Due to seasonal working capital fluctuations, net debt is projected to increase in the first half of 2025 [7] Stock Performance - Olin's stock has declined by 41.2% over the past year, contrasting with a 5.1% growth in the industry [8]