Olin Announces Fourth Quarter 2025 Results

Core Insights - Olin Corporation reported a net loss of $85.7 million for Q4 2025, a significant decline from a net income of $10.7 million in Q4 2024, reflecting ongoing market challenges and operational disruptions [1][2] - The company's adjusted EBITDA for Q4 2025 was $67.7 million, down from $193.4 million in Q4 2024, indicating a substantial decrease in operational profitability [1][27] - Total sales for Q4 2025 were $1,665.1 million, slightly lower than $1,671.3 million in Q4 2024, showing a stable revenue stream despite adverse conditions [1][21] Financial Performance - The full year 2025 reported a net loss of $42.8 million, compared to a net income of $108.6 million in 2024, highlighting a year-over-year decline in profitability [1][21] - Operating cash flow for Q4 2025 was $321.2 million, demonstrating effective cash generation despite the net loss [2] - The company ended 2025 with net debt of approximately $2.7 billion, maintaining a net debt to adjusted EBITDA ratio of 4.1 times, indicating a stable leverage position [12][32] Segment Performance - Chlor Alkali Products and Vinyls segment reported sales of $856.4 million in Q4 2025, down from $953.7 million in Q4 2024, primarily due to lower pricing [6][7] - The Epoxy segment saw sales increase to $359.3 million in Q4 2025 from $282.2 million in Q4 2024, driven by higher volumes, although it still reported a segment loss of $19.2 million [8] - Winchester segment sales were $449.4 million in Q4 2025, up from $435.4 million in Q4 2024, with military sales offsetting declines in commercial ammunition [9] Strategic Initiatives - The company is focused on its "Optimize the Core" strategic priorities, which include enhancing operational reliability and achieving structural cost reductions through the Beyond250 initiative, which has already realized $44 million in cost savings in 2025 [2][3] - Olin plans to close its epoxy resin manufacturing facility in Guarujá, Brazil, in Q1 2026, expecting to achieve annual structural cost savings of approximately $10 million [11] - The company anticipates that its Epoxy business will return to profitability in 2026, supported by new supply agreements and ongoing cost reduction efforts [3]