Olin Sinks 8% After Hours as Q4 Profit Falls and Firm Expects Further Challenges in 2025

Olin Corporation (NYSE: OLN) shares plummeted by 8% in after-hours trading on Thursday, January 30, 2025, following the company's release of its fourth quarter 2024 earnings results. The earnings miss and guidance for further challenges in 2025 have raised concerns among investors about the company's financial outlook.

Olin reported fourth quarter 2024 net income of $10.7 million, or $0.09 per diluted share, compared to fourth quarter 2023 net income of $52.9 million, or $0.43 per diluted share. The company's adjusted EBITDA for the quarter was $193.4 million, compared to $210.1 million in the same period last year. Sales in the fourth quarter 2024 were $1,671.3 million, compared to $1,614.6 million in the fourth quarter 2023.

Ken Lane, President, and Chief Executive Officer of Olin, stated, "While we expect challenging industry conditions to continue into 2025, we will stay focused on optimizing our core businesses through our value-first commercial approach as well as controlling our costs as we described during our Investor Day in December 2024. We remain confident in our ability to generate higher trough-level earnings and cash flow despite the difficult environment."

Olin's guidance for the first quarter of 2025 indicates that the company expects adjusted EBITDA to be in the range of $150 million to $170 million. The company also plans to continue its disciplined capital allocation strategy, prioritizing share repurchases from available cash flow.



The company's Chlor Alkali Products and Vinyls segment sales for the fourth quarter 2024 were $953.7 million, compared to $906.1 million in the fourth quarter 2023. The segment's earnings for the quarter were $75.2 million, compared to $65.9 million in the same period last year. The Epoxy segment's sales for the fourth quarter 2024 were $282.2 million, compared to $313.1 million in the fourth quarter 2023. The segment's loss for the quarter was ($27.4) million, compared to a loss of ($23.1) million in the same period last year. The Winchester segment's sales for the fourth quarter 2024 were $435.4 million, compared to $493.0 million in the fourth quarter 2023. The segment's earnings for the quarter were $10.7 million, compared to $18.4 million in the same period last year.



Olin's recent earnings miss and guidance for further challenges in 2025 have raised concerns among investors about the company's financial outlook. However, the company remains confident in its ability to generate higher trough-level earnings and cash flow despite the difficult environment. Olin's strategic initiatives, including optimizing its core businesses, controlling costs, and expanding its chlorine optionality, are expected to help the company navigate the challenging market conditions and improve its financial outlook.

As an investor, it is essential to stay informed about the companies you invest in and monitor their financial performance closely. Olin's recent earnings results and guidance for 2025 highlight the importance of keeping a close eye on the company's progress and adjusting your investment strategy as needed. By doing so, you can make more informed decisions and potentially improve your overall investment portfolio performance.