Key Points Berkshire Hathaway has an extensive history with Occidental Petroleum. Buffett hasn’t been tempted to chase high-flying growth stocks and is perfectly fine investing in underappreciated businesses. OxyChem will fit well under Berkshire Hathaway’s umbrella. 10 stocks we like better than Berkshire Hathaway › On Jan. 1, 2026, Warren Buffett will step down as chief executive officer (but remain chairman) of Berkshire Hathaway (NYSE: BRK.A) (NYSE: BRK.B) -- handing the reins to his successo ...

Key Points Warren Buffett's Berkshire Hathaway owns a big stake in Occidental Petroleum. Berkshire is set to buy Occidental's chemical business, OxyChem, for $9.7 billion. While Occidental will use the proceeds to repay debt, Berkshire is expanding its noninsurance portfolio. 10 stocks we like better than Berkshire Hathaway › Just before Warren Buffett retires as the CEO of Berkshire Hathaway (NYSE: BRK.A)(NYSE: BRK.B) later this year, the company has struck its biggest deal in three years. On Oc ...

OMAHA, Neb. (AP) — Berkshire Hathaway is buying Occidental Petroleum's chemical division for $9.7 billion in what may be the last big acquisition involving the consummate dealmaker, Warren Buffett. Warren Buffett wasn’t mentioned anywhere in materials released by Berkshire Hathaway discussing the deal Thursday, potentially signaling a passing of the torch to Vice Chair Greg Abel, to whom Buffett will hand the CEO title in January. But given the relationship that Buffett has with Occidental CEO Vicki Hollub ...

This story was originally published on Manufacturing Dive. To receive daily news and insights, subscribe to our free daily Manufacturing Dive newsletter. Berkshire Hathaway entered an agreement to acquire Occidental Petroleum’s OxyChem segment for $9.7 billion, the companies announced Thursday. The transaction is expected to close in the fourth quarter of 2025. OxyChem manufactures standardized chemicals on a large scale that are applied in water treatment, pharmaceuticals, healthcare and commercial and re ...

Financial Data and Key Metrics Changes - For Q2 2025, the company reported EBITDA of $350 million on net sales of $3 billion, with a net loss of $12 million or $0.09 per share [8][14] - Compared to Q2 2024, net income decreased by $325 million due to higher North American feedstock and energy costs, and lower average sales prices across segments [14][19] - The company achieved over $75 million in cost reductions towards a full-year target of $150 million to $175 million [13][21] Business Line Data and Key Metrics Changes - The Housing and Infrastructure Products (HIP) segment delivered EBITDA of $275 million on sales of $1.2 billion, with a 24% EBITDA margin, driven by a 14% increase in sales volumes [8][17] - The Performance and Essential Materials (PEM) segment saw sales of $1.8 billion, down $57 million from Q1 2025, with EBITDA of $52 million, significantly impacted by planned turnarounds and unplanned outages [19][18] - The HIP segment's sales volume growth was supported by increasing demand for municipal water applications, while the Building Products business faced a slowdown due to reduced residential construction activity [10][17] Market Data and Key Metrics Changes - The company noted a significant underspending on water infrastructure in the U.S., which is expected to support pipe and fitting sales for years to come [10] - The global manufacturing activity has been soft, leading to a cumulative impact on PEM sales volumes and pricing [11][25] - The company anticipates stable demand for PEM materials, with improved production rates expected to lead to increased sales volumes compared to Q2 2025 [25] Company Strategy and Development Direction - The company is implementing a three-pronged profitability improvement strategy for PEM, focusing on improving plant reliability, reducing costs, and optimizing the manufacturing footprint [12][25] - The HIP segment strategy emphasizes providing products that address affordability and adapting offerings as market conditions evolve [17][22] - The company remains positive about the long-term growth outlook for HIP, expecting a 5% to 7% compound annual growth rate driven by market recovery and strategic acquisitions [24][22] Management Comments on Operating Environment and Future Outlook - Management acknowledged the challenging operating environment due to elevated interest rates and soft macroeconomic conditions but highlighted the resilience of the HIP segment [8][22] - The company expects the impact of production disruptions to lessen in Q3 2025, with improved sales volumes anticipated [21][25] - Management emphasized the foundational strengths of the company, including a diversified portfolio and a strong balance sheet, to create long-term value for shareholders [26] Other Important Information - The company announced the planned closure of its epoxy site in Pernice, The Netherlands, which is expected to lead to profitability in 2026 [19][20] - As of June 30, 2025, the company had cash and investments of $2.3 billion and total debt of $4.7 billion [20] Q&A Session Summary Question: Guidance on HIP margins and pricing pressures - Management indicated that margins are expected to remain in the 20% to 22% range despite lower sales guidance, reflecting the realities of the residential building market [30][32] Question: Impact of tariffs on exports - Management noted that current tariffs have not significantly impacted exports to Brazil, as customers can access duty drawbacks [34] Question: Performance in HIP and pricing pressures - Management highlighted the strength in the water business and the ability to adapt to market conditions, maintaining stable margins despite pricing pressures [38][39] Question: Planned turnarounds and cost savings - The majority of the $110 million impact from outages was due to planned turnarounds, with no major turnarounds expected in the second half of 2025 [44][45] Question: M&A opportunities in PEM - Management stated that they are open to M&A opportunities across both HIP and PEM segments, driven by valuation opportunities [50] Question: Plant reliability improvements - Management confirmed that improvements in plant reliability have been observed since late April, with expectations for continued progress in Q3 [66][67] Question: Chlor alkali supply outlook - Management expressed confidence in market stability and anticipated demand growth by the end of the decade [112]

Financial Performance - Hawkins' 2025 revenue reached $9744 million[10] - The company's 5-year EPS CAGR is 25%[10] - Net income in fiscal year 2025 was $843 million, with a 24% CAGR[67] - Adjusted EBITDA in fiscal year 2025 was $1675 million, with a 21% CAGR[69] - Diluted EPS in fiscal year 2025 was $403, with a 25% CAGR[74] - Q1 Fiscal Year 2026 revenue reached a record $2933 million, a 15% increase year-over-year[81] - Q1 Fiscal Year 2026 Adjusted EBITDA reached a record $574 million, a 13% increase year-over-year[81] Business Segments - Water Treatment accounted for 46% of revenue, totaling $4465 million[15] - Food & Health Sciences accounted for 33% of revenue, totaling $3225 million[15] - Industrial Solutions accounted for 21% of revenue, totaling $2054 million[15] Capital Allocation - The company has consistently returned capital to shareholders through dividends and share repurchases[32] - Hawkins has a track record of 40 consecutive years of cash dividends[33]

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]

Financial Data and Key Metrics Changes - The company is increasing its cost reduction target to $50 million to $70 million for full year 2025 related to productivity and structural cost improvements [8] - First quarter operating cash flow was negatively impacted by normal seasonal working capital growth, but by year-end, working capital is expected to be a source of cash flow for 2025 [29] - The company expects second quarter adjusted EBITDA to be in the range of $170 million to $210 million, including a $40 million sequential chemicals turnaround expense headwind [34] Business Line Data and Key Metrics Changes - Chlor Alkali Products and Vinyls business exceeded expectations due to planned and unplanned industry outages, leading to higher sales and lower turnaround costs [9][26] - The Winchester division saw growth in domestic and international military ammunition volume, while commercial sales remained weak due to destocking by retailers [10][20] - The Epoxy business experienced improved sales sequentially, but margin benefits were offset by higher costs [16][17] Market Data and Key Metrics Changes - Stable ECU values continued with positive pricing trends into the second quarter, particularly for caustic soda [10][32] - The commercial ammunition market is currently challenged, with mid-single-digit pullbacks in sporting goods and hunting sales [21] - The company does not expect significant direct impact from current tariffs on CAPB, as export sales are generally sold to low-tariff countries [15] Company Strategy and Development Direction - The company is focused on a value-first commercial approach and has made solid progress in implementing its Winchester growth strategy [11][24] - The acquisition of Ammo Inc. manufacturing assets is expected to be immediately accretive and supports growth for Winchester [24] - The company is exploring long-term strategic opportunities in the PVC market, including potential joint ventures [15][83] Management's Comments on Operating Environment and Future Outlook - Management noted that economic uncertainty continues to dominate the global macro environment, but the company is focused on managing controllable factors [7] - The outlook for the second quarter indicates cautious optimism, with expectations of stable demand and pricing for caustic soda [32][66] - The company remains committed to maintaining its investment-grade balance sheet and disciplined capital allocation approach [30] Other Important Information - The company successfully refinanced its nearest debt tranche, extending maturities to 2029, which positions it well to weather economic uncertainty [10] - A new board member, retired U.S. Army General Edward M. Daley, was elected to provide strategic guidance [35] Q&A Session Summary Question: Update on volume and price outlook for chlorovinyl - Management noted continued weakness in EDC pricing but expects positive pricing trends for caustic soda in Q2 [38][39] Question: Cash positive status of PVC arrangement - Management confirmed that the current PVC arrangement is cash positive and plans to ramp up tolling volumes [41][42] Question: Operating rates in Q1 - Management indicated that operating rates were elevated in Q1 due to increased spot demand, but rates are expected to return to normal in Q2 [45][46] Question: Retaining spot business going forward - Management stated that spot volumes are opportunistic and not expected to be consistent [49] Question: Year-over-year EBITDA decline for Winchester - Management indicated that the decline is primarily due to lower commercial demand and higher costs, with a rough split of two-thirds volume and price, one-third cost [52][54] Question: Capacity overhang in epoxy - Management acknowledged significant capacity overhang in epoxy, particularly in Asia, and noted that the business will continue to struggle in 2025 [56][75] Question: Structural profitability of Winchester - Management expressed optimism about Winchester's future earnings, citing recent acquisitions and military project spending [70][72] Question: Increased cost-cutting target - Management clarified that the increased target includes both accelerated structural cost savings and productivity opportunities [79] Question: Capital spending reduction - Management confirmed that the reduction in capital spending for 2025 does not change the long-term average spending target [83] Question: Purchase price for Ammo Inc. - Management explained that the lower purchase price was due to effective negotiations and lower working capital at closing [88][89]

Financial Data and Key Metrics Changes - The company is increasing its cost reduction target to $50 million to $70 million for the full year 2025 related to productivity and structural cost improvements [8] - First quarter adjusted EBITDA comparison from Q4 2024 to Q1 2025 shows that Chlor Alkali Products and Vinyls business benefited from delaying maintenance, resulting in higher sales than expected [26] - Operating cash flow for Q1 2025 was negatively impacted by normal seasonal working capital growth, but the company expects working capital to be a source of cash flow for 2025 [29] Business Line Data and Key Metrics Changes - Chlor Alkali Products and Vinyls business saw increased chlorine and caustic volumes, with expectations for caustic to remain the stronger side of the ECU [13][14] - The Winchester division experienced growth in domestic and international military ammunition volume, while commercial sales were weak due to destocking by retailers [20][21] - Epoxy sales improved sequentially, but margin benefits were offset by higher costs, with expectations for continued challenges in 2025 [16][18] Market Data and Key Metrics Changes - The company noted stable ECU values with positive pricing trends into the second quarter, particularly for caustic soda [10][32] - The commercial ammunition market is currently challenged, with mid-single-digit pullbacks in sporting goods and hunting sales [21] - The company expects caustic prices to rise and sees seasonal recovery in demand for bleach and caustic soda [32] Company Strategy and Development Direction - The company is focused on a value-first commercial approach and has made progress in implementing its Winchester growth strategy [11][12] - The acquisition of Ammo Inc. is expected to enhance growth potential for Winchester, with synergies anticipated [24][72] - The company is exploring long-term strategic opportunities in PVC and is committed to maintaining a disciplined capital allocation framework [15][84] Management's Comments on Operating Environment and Future Outlook - Management expressed cautious optimism regarding the economic environment, noting that while uncertainty exists, customers are not expressing significant negativity [68] - The company expects adjusted EBITDA for Q2 2025 to be in the range of $170 million to $210 million, including a $40 million sequential chemicals turnaround expense headwind [34] - Management remains bullish on the future of Winchester's earnings, anticipating a strengthening in the business over the next 12 to 18 months [72] Other Important Information - The company successfully refinanced its nearest debt tranche, extending maturities to 2029, which positions it well to weather economic uncertainty [10] - A new board member, retired U.S. Army General Edward M. Daley, was elected to provide strategic guidance [36] Q&A Session Summary Question: Update on volume and price outlook for chlorovinyl - Management noted continued weakness in EDC pricing but expects positive pricing trends for caustic and seasonal improvements in Q2 [38] Question: Cash positive status of current PVC arrangement - Management confirmed that the current PVC arrangement is cash positive and plans to ramp up tolling volumes [41] Question: Operating rates in Q1 - Management indicated that operating rates were elevated in Q1 due to increased spot demand, but rates are expected to return to normal in Q2 [46] Question: Year-over-year EBITDA decline for Winchester - Management expects a modest improvement in Winchester for Q2, with the decline primarily driven by lower commercial demand and higher costs [53][55] Question: Capacity overhang in epoxy - Management acknowledged significant capacity overhang in epoxy, particularly in Asia, and expects continued struggles in 2025 [57] Question: Structural profitability of Winchester - Management indicated that Winchester is currently in a trough but remains optimistic about future growth due to recent acquisitions and contracts [70][72] Question: Increased cost-cutting target - Management clarified that the increased cost-cutting target for 2025 includes both accelerated structural savings and productivity improvements [80] Question: Capital spending reduction - Management confirmed that the reduction in capital spending for 2025 does not change the long-term average spending target [84] Question: Purchase price for Ammo Inc. - Management explained that the lower purchase price was due to effective negotiations and lower working capital at closing [89]

Financial Data and Key Metrics Changes - The company increased its cost reduction target for 2025 to $50 million to $70 million, up from previous estimates [6][28] - First quarter operating cash flow was negatively impacted by normal seasonal working capital growth, but the company expects working capital to be a source of cash flow for 2025 [27][28] - The adjusted EBITDA for the first quarter of 2025 is expected to be in the range of $170 million to $210 million, including a $40 million sequential chemicals turnaround expense headwind [34] Business Line Data and Key Metrics Changes - The Chlor Alkali Products and Vinyls business exceeded expectations due to planned and unplanned industry outages, leading to higher sales and lower turnaround costs [7][25] - The Winchester division saw growth in domestic and international military ammunition volume, while commercial sales remained weak due to destocking by retailers [8][19] - The Epoxy business experienced improved sales sequentially, but margin benefits from pricing were offset by higher costs [15][25] Market Data and Key Metrics Changes - Stable ECU values continued with positive pricing trends expected into the second quarter, particularly for caustic soda [8][12] - The commercial ammunition market is currently challenged, with mid-single-digit pullbacks in sporting goods and hunting sales [20][21] - The company anticipates that tariffs will have a net neutral impact on earnings, as they generally source and sell where they produce [34] Company Strategy and Development Direction - The company is focused on its "Optimize and Grow the Core" strategy, emphasizing cost reductions and disciplined capital allocation while pursuing high-value growth opportunities [9][10] - The acquisition of Ammo Inc. is expected to enhance Winchester's growth potential and is seen as immediately accretive [23][24] - The company is exploring long-term strategic opportunities in the PVC market, including potential joint ventures [14][88] Management's Comments on Operating Environment and Future Outlook - Management expressed cautious optimism regarding the economic environment, noting that while uncertainty exists, customers are not expressing significant negativity about their outlook [71] - The company expects to navigate the challenging environment by managing controllable factors and executing its long-term strategy [35] - The outlook for the second quarter indicates continued strength in the Chlor Alkali Products and Vinyls business, while the Epoxy business faces ongoing challenges [32][34] Other Important Information - The company successfully refinanced its nearest debt tranche, extending maturities to 2029, which positions it well to weather economic uncertainty [8][27] - A new board member, retired U.S. Army General Edward M. Daley, was elected to provide strategic guidance [35] Q&A Session Summary Question: Update on volume and price outlook for chlorovinyl - Management noted continued weakness in EDC pricing but expects positive pricing trends for caustic and seasonal improvements in demand [38][39] Question: Cash positive status of current PVC arrangements - Management confirmed that current PVC arrangements are cash positive and plans to ramp up tolling volumes [41][42] Question: Operating rates in Q1 - Management indicated that operating rates were elevated in Q1 due to increased spot demand, but rates are expected to return to normal in Q2 [45][46] Question: Year-over-year EBITDA decline for Winchester - The decline is attributed to lower commercial demand and higher costs, with approximately two-thirds of the decline due to volume and price [52][54] Question: Epoxy business outlook - Management expects continued struggles in the epoxy business in 2025 but anticipates improvements by the end of the year [78][82] Question: Increased cost-cutting target - The increase in the cost-cutting target for 2025 is seen as a combination of accelerating structural cost savings and productivity improvements [84][85] Question: Capital spending reduction - The reduction in capital spending for 2025 does not change the long-term average spending target, which remains around $250 million [87][88] Question: Interest in Dow's assets - Management refrained from commenting on specific M&A opportunities but emphasized a focus on growth in water treatment and PVC [103][104]