Summary of Conference Call Notes on Chemicals Industry Industry Overview - The lithium supply chain is increasingly geographically diverse, but refining remains dominated by China, which holds 67% of the lithium refining market [1][1] - North America is expected to grow its mining and refining capacity, with estimates of 600kt and 700kt LCE respectively over the next 10 years [1][1] - Even with all announced projects, North America is projected to have only a modest surplus by 2035 due to high costs and competition from China [1][1] - Recent US government actions to secure lithium supply have been mixed, negatively impacting companies like Lithium Americas [1][1] - The US is unlikely to achieve supply-chain independence from China in the near term due to the lack of domestic precursor and cathode production [1][1] Key Market Trends - Global battery demand is accelerating, driven by electric vehicles (EVs) and energy storage systems (ESS), with cell prices reaching record lows at $57/kWh [2][2] - ESS deployments have increased sharply, with a 51% rise globally and 27% in the US, with China leading in grid-scale storage [2][2] - Recycling is becoming a critical solution for raw material deficits as technologies advance [2][2] Company Highlights Air Products - Air Products provides essential industrial gases for all stages of lithium-ion battery production, including mining, refining, and recycling [7][7] - The company is positioned as a key enabler of electrification trends, with a broad range of gas-handling technologies [8][8] - Current sales exposure to EV/battery applications is minimal but has potential for growth as new capacities come online [9][9] Axalta - Axalta focuses on safety and protection coatings for EV batteries, with products like Alesta e-PRO for electrical insulation and fire resistance [10][10] - The company is expanding its reach in the electrification market, particularly with its Voltatex Electrical Insulation Systems [11][11] - Axalta's current exposure to EV battery and motor electrification growth is estimated at 2% of total sales [13][13] DuPont - DuPont offers a wide range of materials for the EV ecosystem, including adhesives and coatings that enhance battery performance [15][15] - The company is undergoing a planned separation to focus on distinct channels of EV exposure, with IndustrialsCo retaining manufacturing-related products and Qnity focusing on electronics [18][18] Huntsman - Huntsman provides diverse material technologies for EV battery manufacturing and vehicle performance, with a current sales exposure to EVs/batteries estimated at 2% [24][24] - The company emphasizes its strong footprint in the foams space, particularly in Europe, with growth potential in North America [21][21] Linde - Linde supplies industrial gases and coatings for every stage of the lithium-ion battery value chain, with a focus on atmosphere control and cryogenic freezing [25][25] - The company has a significant customer base in cell manufacturing, particularly in Asia, and is expanding its presence in the EV market [29][29] PPG - PPG offers a comprehensive coatings portfolio for EV batteries, including thermal management and fire protection solutions [30][30] - The company is leveraging its existing automotive coatings technology to expand into battery-related applications, positioning itself for growth in line with the EV market [32][32] Investment Ratings - Albemarle is rated Neutral, with long-term drivers intact but near-term equity upside muddled by market conditions [1][1] - Air Products and Huntsman are rated Underperform, while Axalta, DuPont, Linde, and PPG are rated with varying degrees of potential based on their exposure to the EV market [52][52][53][53] Conclusion - The chemicals industry is experiencing significant changes driven by the electrification of transportation and energy storage solutions - Companies are adapting their product offerings to meet the growing demand for EVs and battery technologies, with varying levels of exposure and investment potential - The dominance of China in the lithium refining market poses challenges for North American companies seeking to establish a more independent supply chain

Core Viewpoint - Rosen Law Firm is reminding investors who purchased Dow Inc. securities between January 30, 2025, and July 23, 2025, of the upcoming lead plaintiff deadline on October 28, 2025, for a class action lawsuit [1]. Group 1: Class Action Details - Investors who bought Dow securities during the specified Class Period may be eligible for compensation without any out-of-pocket fees through a contingency fee arrangement [1]. - A class action lawsuit has already been filed, and those wishing to serve as lead plaintiff must act by October 28, 2025 [2]. - The lawsuit alleges that Dow made false and misleading statements regarding its financial flexibility and the impact of macroeconomic factors on its business [4]. Group 2: Law Firm Credentials - Rosen Law Firm emphasizes the importance of selecting qualified legal counsel with a proven track record in securities class actions, highlighting its own success in recovering hundreds of millions for investors [3]. - The firm achieved the largest securities class action settlement against a Chinese company at the time and has been consistently ranked among the top firms for securities class action settlements since 2013 [3]. - In 2019, Rosen Law Firm secured over $438 million for investors, showcasing its capability in handling significant cases [3].

Core Insights - LyondellBasell (LYB) is highlighted as a chemical giant with a notable dividend yield of 11%, suggesting potential investment opportunities but also caution regarding the sustainability of such high yields [1] Company Analysis - The analysis emphasizes the importance of being cautious when encountering high dividend levels, as they may indicate underlying risks or market conditions that warrant further investigation [1] Investment Perspective - The author has extensive experience in managing investments since 1999, providing a broad perspective across various market cycles, which enhances the credibility of the analysis [1] - The focus is on identifying mispriced assets that the market may have overlooked, indicating a strategic approach to investment analysis [1]

We recently published Why These 10 Stocks are Soaring by Double Digits. Dow Inc. (NYSE:DOW) is one of the best performers on Thursday. Shares of Dow Inc. (NYSE:DOW) climbed by 12.95 percent on Thursday to end at $24.51 apiece despite a dismal earnings performance in the third quarter of the year, as investors took heart from lower-than-expected losses. In an updated report, Dow Inc. (NYSE:DOW) clocked in a $0.19 loss per share, lower than the $0.30 as expected by analysts, on a net income of $124 million ...

Financial Data and Key Metrics Changes - In Q3, the company reported net sales of $10 billion, with EBITDA at $868 million, reflecting a sequential improvement despite being lower than the same period last year [5][6][7] - Cash provided by operating activities increased by $1.6 billion sequentially, driven by working capital improvements and advanced payments for low-carbon solutions [7][16] Business Line Data and Key Metrics Changes - The packaging and specialty plastics segment saw net sales decline year-over-year and sequentially, with operating EBIT at $199 million, primarily due to lower integrated margins [11][12] - The industrial intermediates and infrastructure segment experienced a 4% year-over-year decline in net sales but saw a sequential increase due to volume gains and lower planned maintenance activity [12][13] - Performance materials and coatings segment net sales were $2.1 billion, down 6% year-over-year and 2% sequentially, with operating EBIT decreasing due to upstream margin compression [14] Market Data and Key Metrics Changes - Global demand in the packaging market remains steady, with North America experiencing record domestic and export volumes, while Europe contracted [18][19] - The infrastructure sector faces soft market conditions across the U.S., Europe, and China, with mortgage rates in the U.S. remaining above 6% [18][19] Company Strategy and Development Direction - The company is focused on restoring core earnings and positioning for profitable growth, with over $6.5 billion in strategic actions and cash support planned [32][33] - The company is committed to being a low-cost producer, with over 75% of its global cracking capacity in a top-quartile cost position, expected to increase to approximately 80% [29][30] Management's Comments on Operating Environment and Future Outlook - Management noted a cautious operating environment with subdued business investment and consumer spending due to economic uncertainty, but anticipates potential positive influences from recent monetary policy shifts [18][21] - For Q4, the company expects EBITDA to be approximately $725 million, with anticipated headwinds from higher feedstock costs and normal seasonality impacting performance [21][22] Other Important Information - The company has completed significant strategic actions, including a $3 billion partnership for U.S. Gulf Coast infrastructure assets and a $1.4 billion bond issuance for financial flexibility [8][16] - The company is on track to deliver approximately $400 million in targeted cost savings this year, contributing to improved performance [9][10] Q&A Session Summary Question: Reconciliation of Q3 results - Management highlighted higher integrated margins and better-than-expected volume as key factors for exceeding expectations in Q3 [37][39] Question: Rationalization and project cancellations - Management provided insights on global capacity rationalization, particularly in ethylene supply, and noted potential delays in announced capacity in China due to market conditions [44][46] Question: Polyethylene demand - Polyethylene demand has remained stable, with strong performance in packaging and personal care segments, and expectations for continued stability [62][63] Question: Demand function and order books - October order books appear positive, with management maintaining a balanced outlook for Q4 sales and EBITDA guidance [73][75]

3Q 2025 Results October 23, 2025 Agenda ▪ 3Q25 Highlights ▪ Operating Segment Performance ▪ Actions to Provide Greater Financial Flexibility and Improved Profitability ▪ Outlook ▪ Industry Opportunities Non-GAAP measures are defined in the appendix 3Q 2025 Highlights Delivered Solid Results, Cost Savings Actions, and Near-Term Cash Support 3 $10.0B Net Sales $868MM Operating EBITDA $249MM Returned to Shareholders ▪ Operating EBITDA was $868MM, up $165MM QoQ ▪ Total CapEx for the quarter was $564MM ▪ Cash Fl ...

Earnings Report - Dow Inc. is set to release its third-quarter earnings results on October 23, with analysts predicting a loss of 30 cents per share compared to a profit of 47 cents per share from the previous year [1] - The consensus estimate for Dow's quarterly revenue is $10.23 billion, down from $10.88 billion a year earlier [1] Dividend Announcement - On October 9, Dow declared a quarterly dividend of 35 cents per share [1] Stock Performance - Shares of Dow fell by 0.2%, closing at $21.70 on Wednesday [1] Analyst Ratings - Mizuho analyst John Roberts maintained a Neutral rating and reduced the price target from $30 to $26 [4] - Jefferies analyst Laurence Alexander kept a Hold rating and cut the price target from $28 to $23 [4] - BMO Capital analyst John McNulty downgraded the stock from Market Perform to Underperform, lowering the price target from $29 to $22 [4] - JP Morgan analyst Jeffrey Zekauskas maintained an Overweight rating but reduced the price target from $47 to $40 [4] - Morgan Stanley analyst Vincent Andrews kept an Equal-Weight rating and cut the price target from $46 to $43 [4]

Company Overview - Olin Corporation (OLN) is currently trading at $24.85, with trailing and forward P/E ratios of 19.62 and 17.99 respectively [1] - The company is recognized for its significant position in the chlor-alkali market, owning the largest producer in the U.S., where the top three players control approximately 70% of the market [2] Financial Performance - Despite being in a cyclical trough, Olin Corporation remains profitable, generating around 9% free cash flow even at depressed earnings levels [2] - The company has a leverage ratio of roughly 3.5x net debt to trough EBITDA, with no significant debt maturities until 2029, and 2033 bonds trading at a premium yield of 6.2% [3] - Olin maintains a 3% dividend and sufficient cash flow to support share repurchases, even at trough earnings [3] Business Segments - Olin's chemical business is complemented by its ownership of Winchester, the second-largest ammunition maker in the U.S., which serves both civilian and government customers [3] - The ammunition segment is projected to decline to approximately $140 million EBITDA in 2025 from $435 million in 2021, but it offers strategic exposure to increased civil unrest and potential election-cycle demand [4] - Recent acquisitions imply a $2.5 billion valuation for the Winchester segment alone [4] Investment Thesis - Olin Corporation presents a compelling cyclical turnaround opportunity, reinforced by Berkshire Hathaway's investment framework [2][5] - The combination of a resilient, cash-generative chemical business and a strategically positioned ammunition segment provides a unique risk/reward profile for investors [5]

Core Points - Gulf Resources, Inc. will implement a 1-for-10 reverse stock split effective October 27, 2025, to increase the bid price of its common stock and regain compliance with Nasdaq listing requirements [1][2][3] - The reverse stock split will reduce the number of outstanding shares from approximately 13.63 million to about 1.36 million, while the number of authorized shares will remain unchanged [3][4] - Stockholders will not need to take any action as the adjustment will occur automatically, and fractional shares will be rounded up to the nearest whole number [4] Company Overview - Gulf Resources, Inc. operates through four wholly-owned subsidiaries and is one of the largest producers of bromine in China, with applications in various industries including agriculture and pharmaceuticals [6] - The company also manufactures chemical products for oil and gas exploration, papermaking, and crude salt through its subsidiaries [6]

Core Viewpoint - FutureFuel Corp. is set to release its third quarter 2025 financial results on November 10, 2025, after market close [1] Company Overview - FutureFuel is a leading manufacturer of diversified chemical products, specialty chemical products, and biofuel products [2] - The chemicals business includes custom chemicals for specific customers and performance chemicals for multiple customers [2] - Custom chemicals include proprietary intermediates for major chemical companies and chlorinated polyolefin adhesion promoters [2] - Performance chemicals consist of polymer (nylon) modifiers and various small-volume specialty chemicals for diverse applications [2] - The biofuels segment primarily focuses on the production and sale of biodiesel [2]