Olin Announces First Quarter 2026 Results
Highlights
- First quarter 2026 net loss of
($83.0) million , or ($0.73 ) per diluted share - Quarterly adjusted EBITDA of
$86.2 million
"Late in the first quarter, the
"Looking ahead, our Chemicals businesses are expected to deliver sequential earnings improvement driven by seasonally stronger demand and improved pricing, particularly for ethylene dichloride, caustic soda, and epoxy resins. In our Winchester business, improving commercial and military demand are expected to support sequential earnings growth. Overall, second quarter 2026 adjusted EBITDA is forecast to be in the range of
SEGMENT REPORTING
Olin defines segment earnings as income (loss) before interest expense, interest income, other operating income (expense), non-operating pension income, other income, and income taxes.
CHLOR ALKALI PRODUCTS AND VINYLS
Chlor Alkali Products and Vinyls sales for the first quarter 2026 were
EPOXY
Epoxy sales for the first quarter 2026 were
WINCHESTER
Winchester sales for the first quarter 2026 were
CORPORATE AND OTHER COSTS
Other corporate and unallocated costs in the first quarter of 2026 increased
LIQUIDITY AND DIVIDENDS
The cash balance on
On
CONFERENCE CALL INFORMATION
Olin senior management will host a conference call to discuss first quarter 2026 financial results at
COMPANY DESCRIPTION
Olin Corporation is a leading vertically integrated global manufacturer and distributor of chemical products and a leading
Visit www.olin.com for more information on Olin Corporation.
FORWARD-LOOKING STATEMENTS
This communication includes forward-looking statements. These statements relate to analyses and other information that are based on management's beliefs, certain assumptions made by management, forecasts of future results, and current expectations, estimates and projections about the markets and economy in which we and our various segments operate. The statements contained in this communication that are not statements of historical fact may include forward-looking statements that involve a number of risks and uncertainties.
We have used the words "anticipate," "intend," "may," "expect," "believe," "should," "plan," "outlook," "project," "estimate," "forecast," "optimistic," "target," and variations of such words and similar expressions in this communication to identify such forward-looking statements. These statements are not guarantees of future performance and involve certain risks, uncertainties, and assumptions, which are difficult to predict and many of which are beyond our control. Therefore, actual outcomes and results may differ materially from those matters expressed or implied in such forward-looking statements. We undertake no obligation to update publicly any forward-looking statements, whether as a result of future events, new information or otherwise. The payment of cash dividends is subject to the discretion of our Board of Directors and will be determined in light of then-current conditions, including our earnings, our operations, our financial conditions, our capital requirements and other factors deemed relevant by our Board of Directors. In the future, our Board of Directors may change our dividend policy, including the frequency or amount of any dividend, in light of then-existing conditions.
The risks, uncertainties and assumptions involved in our forward-looking statements, many of which are discussed in more detail in our filings with the SEC, including without limitation the "Risk Factors" section of our Annual Report on Form 10-K for the year ended
Business, Industry and Operational Risks
- sensitivity to economic, business and market conditions in
the United States and overseas, including economic instability or a downturn in the sectors served by us; - declines in average selling prices for our products and the supply/demand balance for our products, including the impact of excess industry capacity or an imbalance in demand for our chlor alkali products;
- unsuccessful execution of our operating model, which prioritizes Electrochemical Unit (ECU) margins over sales volumes;
- failure to control costs and inflation impacts or failure to achieve targeted cost reductions;
- availability of and/or higher-than-expected costs of raw material, energy, transportation, and/or logistics;
- our reliance on a limited number of suppliers for specified feedstock and services and our reliance on third-party transportation;
- the occurrence of unexpected manufacturing interruptions and outages, including those occurring as a result of labor disruptions and production hazards;
- exposure to physical risks associated with climate-related events or increased severity and frequency of severe weather events;
- the failure or an interruption, including cyber-attacks, of our information technology systems;
- risks associated with our international sales and operations, including economic, political or regulatory changes;
- weak industry conditions affecting our ability to comply with the financial maintenance covenants in our debt agreements;
- our indebtedness and debt service obligations;
- failure to identify, attract, develop, retain and motivate qualified employees throughout the organization and ability to manage executive officer and other key senior management transitions;
- adverse conditions in the credit and capital markets, limiting or preventing our ability to borrow or raise capital;
- our inability to complete future acquisitions or joint venture transactions or successfully integrate them into our business;
- the effects of any declines in global equity markets on asset values and any declines in interest rates or other significant assumptions used to value the liabilities in, and funding of, our pension plans;
- our long-range plan assumptions not being realized, causing a non-cash impairment charge of long-lived assets;
Legal, Environmental and Regulatory Risks
- changes in, or failure to comply with, legislation or government regulations or policies, including changes regarding our ability to manufacture or use certain products and changes within the international markets in which we operate;
- new regulations or public policy changes regarding the transportation of hazardous chemicals and the security of chemical manufacturing facilities;
- unexpected outcomes from legal or regulatory claims and proceedings;
- costs and other expenditures in excess of those projected for environmental investigation and remediation or other legal proceedings; and
- various risks associated with our Lake City U.S. Army Ammunition Plant contract and performance under other governmental contracts.
All of our forward-looking statements should be considered in light of these factors. In addition, other risks and uncertainties not presently known to us or that we consider immaterial could affect the accuracy of our forward-looking statements.
2026-06
Olin Corporation | ||
Consolidated Statements of Operations (a) | ||
Three Months Ended | ||
($ in millions, except per share amounts) | 2026 | 2025 |
Sales | $ 1,583.0 | $ 1,644.2 |
Operating Expenses: | ||
Cost of Goods Sold | 1,507.2 | 1,495.5 |
Selling and Administrative | 145.0 | 101.0 |
Restructuring Charges | 9.1 | 4.0 |
Operating (Loss) Income | (78.3) | 43.7 |
Losses of Non-consolidated Affiliates | (1.4) | — |
Interest Expense | (43.2) | (48.5) |
Interest Income | 1.1 | 1.2 |
Non-operating Pension Income | 3.5 | 5.7 |
Income (Loss) before Taxes | (118.3) | 2.1 |
Income Tax (Benefit) Provision | (35.3) | 0.9 |
Net (Loss) Income | (83.0) | 1.2 |
Net Loss Attributable to Noncontrolling Interests | — | (0.2) |
Net (Loss) Income Attributable to Olin Corporation | $ (83.0) | $ 1.4 |
Net (Loss) Income Attributable to Olin Corporation per Common Share: | ||
Basic | $ (0.73) | $ 0.01 |
Diluted | $ (0.73) | $ 0.01 |
Dividends per Common Share | $ 0.20 | $ 0.20 |
Average Common Shares Outstanding - Basic | 113.8 | 115.3 |
Average Common Shares Outstanding - Diluted | 113.8 | 116.6 |
(a) Unaudited. | ||
Olin Corporation | ||
Segment Information (a) | ||
Three Months Ended | ||
($ in millions) | 2026 | 2025 |
Sales: | ||
Chlor Alkali Products and Vinyls | $ 756.9 | $ 924.5 |
Epoxy | 355.6 | 331.7 |
Winchester | 470.5 | 388.0 |
Total Sales | $ 1,583.0 | $ 1,644.2 |
Income (Loss) before Taxes: | ||
Chlor Alkali Products and Vinyls | $ (44.5) | $ 78.3 |
Epoxy | (2.9) | (28.4) |
Winchester | 15.2 | 22.8 |
Corporate/Other: | ||
Environmental Expense | (5.2) | (5.0) |
Other Corporate and Unallocated Costs | (33.2) | (20.0) |
Restructuring Charges | (9.1) | (4.0) |
Interest Expense | (43.2) | (48.5) |
Interest Income | 1.1 | 1.2 |
Non-operating Pension Income | 3.5 | 5.7 |
Income (Loss) before Taxes | $ (118.3) | $ 2.1 |
(a) Unaudited. | ||
Olin Corporation | |||||
Consolidated Balance Sheets (a) | |||||
($ in millions, except per share data) | 2026 | 2025 | 2025 | ||
Assets: | |||||
Cash and Cash Equivalents | $ 192.2 | $ 167.6 | $ 174.0 | ||
Accounts Receivable, Net | 915.4 | 844.5 | 1,107.3 | ||
Income Taxes Receivable | 58.7 | 66.6 | 15.8 | ||
Inventories, Net | 827.2 | 784.5 | 875.2 | ||
Other Current Assets | 103.2 | 107.9 | 79.0 | ||
Total Current Assets | 2,096.7 | 1,971.1 | 2,251.3 | ||
Property, Plant and Equipment (Less Accumulated Depreciation of | 2,129.3 | 2,196.9 | 2,266.5 | ||
Operating Lease Assets, Net | 301.7 | 298.6 | 289.0 | ||
Deferred Income Taxes | 45.4 | 47.2 | 54.5 | ||
Other Assets | 1,188.2 | 1,210.0 | 1,171.6 | ||
Intangibles, Net | 164.8 | 174.4 | 198.6 | ||
Goodwill | 1,427.7 | 1,427.6 | 1,423.5 | ||
Total Assets | $ 7,353.8 | $ 7,325.8 | $ 7,655.0 | ||
Liabilities and Shareholders' Equity: | |||||
Current Installments of Long-term Debt | $ — | $ 109.7 | $ 19.2 | ||
Accounts Payable | 911.4 | 806.1 | 812.0 | ||
Income Taxes Payable | 13.1 | 23.9 | 116.9 | ||
Current Operating Lease Liabilities | 60.5 | 59.7 | 62.5 | ||
Accrued Liabilities | 558.7 | 630.1 | 428.4 | ||
Total Current Liabilities | 1,543.7 | 1,629.5 | 1,439.0 | ||
Long-term Debt | 2,996.1 | 2,717.6 | 3,016.6 | ||
Operating Lease Liabilities | 254.3 | 252.5 | 231.9 | ||
Accrued Pension Liability | 198.3 | 200.9 | 207.6 | ||
Deferred Income Taxes | 280.7 | 317.6 | 417.9 | ||
Other Liabilities | 346.0 | 337.1 | 303.9 | ||
Total Liabilities | 5,619.1 | 5,455.2 | 5,616.9 | ||
Commitments and Contingencies | |||||
Shareholders' Equity: | |||||
Common Stock, | 113.9 | 113.6 | 115.1 | ||
Additional Paid-in Capital | 4.8 | — | — | ||
Accumulated Other Comprehensive Loss | (418.4) | (414.5) | (430.6) | ||
Retained Earnings | 2,034.0 | 2,139.8 | 2,321.5 | ||
Olin Corporation's Shareholders' Equity | 1,734.3 | 1,838.9 | 2,006.0 | ||
Noncontrolling Interests | 0.4 | 31.7 | 32.1 | ||
Total Equity | 1,734.7 | 1,870.6 | 2,038.1 | ||
Total Liabilities and Equity | $ 7,353.8 | $ 7,325.8 | $ 7,655.0 | ||
(a) Unaudited. |
Olin Corporation | ||||
Consolidated Statements of Cash Flows (a) | ||||
Three Months Ended | ||||
($ in millions) | 2026 | 2025 | ||
Operating Activities: | ||||
Net (Loss) Income | $ (83.0) | $ 1.2 | ||
Depreciation and Amortization | 117.2 | 132.2 | ||
Losses of Non-consolidated Affiliates | 1.4 | — | ||
Stock-based Compensation | 4.7 | 4.0 | ||
Deferred Income Taxes | (34.3) | (18.2) | ||
Qualified Pension Plan Contributions | (0.3) | (0.1) | ||
Qualified Pension Plan Income | (3.0) | (5.0) | ||
Changes in Assets and Liabilities: | ||||
Receivables | (73.9) | (98.2) | ||
Income Taxes Receivable/Payable | (2.8) | (34.0) | ||
Inventories | (44.3) | (43.9) | ||
Other Current Assets | 1.5 | 4.2 | ||
Accounts Payable and Accrued Liabilities | 62.7 | (32.5) | ||
Other Assets | 1.5 | 4.6 | ||
Other Noncurrent Liabilities | 6.6 | 1.1 | ||
Other Operating Activities | (2.6) | (1.4) | ||
Net Operating Activities | (48.6) | (86.0) | ||
Investing Activities: | ||||
Capital Expenditures | (43.7) | (61.4) | ||
Investments in Non-consolidated Affiliates | (0.3) | — | ||
Other Investing Activities | 1.0 | (1.0) | ||
Net Investing Activities | (43.0) | (62.4) | ||
Financing Activities: | ||||
Long-term Debt Borrowings, Net | 170.3 | 199.9 | ||
Common Stock Repurchased and Retired | — | (20.2) | ||
Stock Options Exercised | 2.1 | 1.9 | ||
Dividends Paid | (22.8) | (23.0) | ||
Distributions to Noncontrolling Interests | (31.3) | — | ||
Debt Issuance Costs | (2.1) | (12.0) | ||
Net Financing Activities | 116.2 | 146.6 | ||
Effect of Exchange Rate Changes on Cash and Cash Equivalents | — | 0.2 | ||
Net Increase (Decrease) in Cash and Cash Equivalents | 24.6 | (1.6) | ||
Cash and Cash Equivalents, Beginning of Year | 167.6 | 175.6 | ||
Cash and Cash Equivalents, End of Period | $ 192.2 | $ 174.0 | ||
(a) | Unaudited. | |||
Olin Corporation | |||
Non-GAAP Financial Measures - Adjusted EBITDA (a) | |||
Olin's definition of Adjusted EBITDA (earnings before interest, taxes, depreciation, and amortization) is net income (loss) plus | |||
Three Months Ended | |||
($ in millions) | 2026 | 2025 | |
Reconciliation of Net (Loss) Income to Adjusted EBITDA: | |||
Net (Loss) Income | $ (83.0) | $ 1.2 | |
Add Back: | |||
Interest Expense | 43.2 | 48.5 | |
Interest Income | (1.1) | (1.2) | |
Income Tax (Benefit) Provision | (35.3) | 0.9 | |
Depreciation and Amortization | 117.2 | 132.2 | |
EBITDA | 41.0 | 181.6 | |
Add Back: | |||
Restructuring Charges | 9.1 | 4.0 | |
Legacy Litigation Matters | 36.1 | — | |
Adjusted EBITDA | $ 86.2 | $ 185.6 | |
(a) Unaudited. | |||
Olin Corporation | ||||||
Non-GAAP Financial Measures - Net Debt to Adjusted EBITDA (a) | ||||||
Olin's definition of Net Debt to Adjusted EBITDA is Net Debt divided by Adjusted EBITDA. Net Debt at the end of any | ||||||
($ in millions) | 2026 | 2025 | 2025 | |||
Current Installments of Long-term Debt | $ — | $ 109.7 | $ 19.2 | |||
Long-term Debt | 2,996.1 | 2,717.6 | 3,016.6 | |||
Total Debt | 2,996.1 | 2,827.3 | 3,035.8 | |||
Less: Cash and Cash Equivalents | (192.2) | (167.6) | (174.0) | |||
Net Debt | $ 2,803.9 | $ 2,659.7 | $ 2,861.8 | |||
Trailing Twelve Months Adjusted EBITDA (b) | $ 552.4 | $ 651.8 | $ 817.4 | |||
Net Debt to Adjusted EBITDA | 5.1 | 4.1 | 3.5 | |||
(a) | Unaudited. | |||||
(b) | Trailing Twelve Months Adjusted EBITDA as of | |||||
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SOURCE Olin Corporation