Olin Posts 7 Percent Revenue Rise in Q2

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]