What is Olin's latest dividend and current dividend yield?

What does Olin do and what are its main business segments?

What guidance did Olin's management provide for the next earnings period?

What is Olin's gross profit margin?

Did Olin beat or miss consensus estimates last quarter?

What factors drove the changes in Olin's revenue and profit?

What were the key takeaways from Olin's earnings call?

What is the revenue and EPS growth rate for Olin year over year?

- **Q4 Challenges**: Revenue underperformed due to operational issues and China export pressures, but cash flow remained strong at $321M.
- **Strategic Initiatives**: Expanded Brazil infrastructure, secured European epoxy contracts, and reduced Epoxy costs by 19% over three years.
- **Cost Savings**: Delivered $44M in 2025 and targeting $100-120M in 2026 through Beyond250 program, including $70M stranded cost mitigation.
- **Winchester Recovery**: Pricing adjustments to offset rising metals costs, with military sales growth offsetting commercial volume decline.
- **2026 Outlook**: Caustic pricing momentum expected in Q2, Epoxy profitability improving sequentially, and $200M capital spending to maintain operational resilience.

**【CEO Summary Section】**
- **Q4 Challenges**: Revenue significantly below expectations due to operational issues at Freeport, Texas, and third-party raw material constraints. Chlorine pipeline demand declined sharply in December, and merchant chlorine derivative exports from China pressured margins.
- **Strategic Moves**: Announced a long-term EDC supply agreement with Braskem, expanding infrastructure in Brazil to grow caustic sales. Expanded European epoxy contracts, positioning as the last integrated epoxy supplier in Europe.
- **Cost Management**: Generated $321M operating cash flow, holding net debt flat year-over-year. Reduced Epoxy cash costs by 19% over three years, closing the Brazil epoxy plant to save $10M annually.
- **Beyond250 Program**: Delivered $44M in 2025, targeting $100-120M in 2026 savings. Streamlined operations at Freeport, reducing contractor reliance and improving efficiency.

**【CFO Financial Commentary】**
- **Cash Flow**: Generated $321M in Q4 operating cash flow, maintaining year-end net debt flat. 2025 working capital reductions contributed $248M in cash.
- **Liquidity**: Ended 2025 with $1B available liquidity. 2026 outlook includes $200M capital spending, focusing on sustaining operations. Anticipates a cash-free tax year in 2026 due to Section 45B refunds.
- **Debt Management**: Extended debt maturities to 2033, with no bonds maturing until mid-2029. Committed to maintaining financial flexibility and uninterrupted dividend payments.

**【Q&A Highlights】**
- **Chlorine Demand Recovery**: Seasonally low in Q1, expecting improvement in Q2 with caustic pricing momentum. Tight caustic market due to low inventories and planned industry turnarounds.
- **Dow Closure Impact**: $70M stranded cost headwind, partially offset by $20M savings from power optimization. Beyond250 program aims to fully offset this by 2028.
- **Winchester Outlook**: Commercial ammunition pricing to offset rising copper and brass costs. Military sales growth (domestic + international) expected to offset commercial volume decline.
- **Epoxy Recovery**: Sequential profitability in Q1 driven by lower European costs and contract volumes. Structural cost reductions targeting $80M by 2028.
- **Energy Costs**: Higher natural gas and power expenses in Q1 due to winter storm Fern. Hedging strategy maintains 4-quarter rolling coverage, but Q1 saw unhedged spikes.


Olin Corporation (OLN) Q4 2025 Earnings Call Transcript

- **Inventory management challenge**: $40M EBITDA penalty in Q4 to reduce working capital, with uncertain recovery in commercial ammunition demand. 
- **Epoxy headwinds persist**: Subsidized Asian imports and European capacity rationalization slow. 
- **Military business resilience**: Strong international demand offsets weak commercial sales. 
- **Tax credit benefit materializes**: Section 45V to provide $15-20M annual EBITDA from 2026, but delayed payments impact cash flow. 
- **Turnaround costs loom**: 2026 VCM unit turnaround to weigh on profitability. 


**【CEO Summary Section】**
- Q3 2025 revenue growth driven by stable Chlor Alkali Products and Vinyls (CAPV) despite headwinds in Epoxy and Winchester. 
- Epoxy faces subsidized Asian imports, but new Stade supply agreement to deliver $40M annual EBITDA benefit from 2026. 
- Winchester commercial sales down due to high retail inventories, but military demand remains strong. 
- $40M EBITDA penalty in Q4 to reduce inventories, with focus on just-in-time manufacturing. 
- Section 45V clean hydrogen tax credit to provide $15-20M annual EBITDA benefit from 2026. 

**【CFO Financial Commentary】**
- Q3 adjusted EBITDA of $190M (excluding $32M tax credit), with working capital challenges due to delayed U.S. government payments. 
- Net debt expected flat year-over-year, with share buybacks curtailed amid cautious capital allocation. 
- Epoxy operating costs rising due to planned inventory reductions and fixed manufacturing expenses. 
- 2026 turnaround costs for Vinyl Chloride Monomer (VCM) unit expected to be significant headwind. 

**【Q&A Highlights】**
- Inventory reduction actions to free up $150M cash, with focus on Winchester and chemicals. 
- EDC spot market exposure reduced via structural contracts, but joint venture dissolution with Mitsui. 
- Military ammunition project delays due to U.S. government shutdown. 
- Epoxy Europe recovery slow, but U.S. pricing improvements and capacity rationalization. 
- Chlor Alkali ECU values stable, but seasonal demand weakness in Q4. 
- Winchester commercial margins unlikely to recover until demand improves and inventory rightsized. 
- Beyond250 cost savings initiative to deliver $70-90M annual run rate by 2026. 


Olin Corporation (OLN) Q3 2025 Earnings Call Transcript

- **Stable Chlorine Index**: North American chlorine values outperformed prior troughs, underscoring Olin's value-first strategy.
- **$70M-$90M Cost Savings Target**: Beyond250 initiative to deliver annualized savings by year-end 2025, driven by operational efficiency and asset rationalization.
- **Winchester Challenges**: Commercial business margins pressured by 50% volume decline, higher costs (metals, propellants), and pricing erosion. Q3 price increase to offset tariffs.
- **Broad Q3 Guidance**: $170M-$210M EBITDA range reflects uncertainty around EDC pricing, cost pass-through, and operational execution.
- **Tariff Uncertainty**: Brazil retaliatory tariffs on U.S. caustic could disrupt trade flows, but Olin's ethylene advantage provides resilience.


**【CEO Opening Remarks】**
- Q2 2025 highlighted Olin's 'value-first' commercial approach, maintaining profitability despite seven consecutive quarters of trough demand.
- North American chlorine index values remained stable, outperforming prior troughs. Epoxy resins faced import competition but formulated solutions business grew in volume and margin.
- Unplanned operational events limited results to the lower end of Q2 guidance, but cash flow of $212M funded acquisitions, debt reduction, and share buybacks.
- Beyond250 cost savings initiative targets $70M-$90M annualized savings by year-end 2025, focusing on operational efficiency and asset rationalization.

**【CFO Financial Commentary】**
- Q2 adjusted EBITDA declined 5% vs. Q1 due to $32M planned turnaround costs, partially offset by seasonal demand recovery in Chlor Alkali and growth in epoxy formulated solutions.
- Operating cash flow of $212M funded $56M Winchester acquisition, $39M debt repayment, and $10M share buybacks.
- Working capital expected to generate $100M+ cash in 2025 (excluding tax timing effects). Net debt to remain flat vs. year-end 2024.
- Capital allocation priorities: balance sheet strength, maintenance capex, dividend, and accretive growth opportunities.

**【Q&A Highlights】**
- **Caustic Soda Pricing**: June $30/ton price increase progressing, but near-term headwinds from tariff uncertainty in Brazil.
- **EDC Pricing**: Year-to-date decline >50%, but Olin's shale ethane advantage maintains profitability. Curtailments in Asia signaling potential floor.
- **Winchester Commercial Challenges**: 50% of margin decline driven by volume, rest split between higher costs (metals, propellants) and lower pricing. Q3 price increase to offset $50+ copper tariffs.
- **Cost Savings Progress**: $50M-$70M 2025 savings from Beyond250, with $40M+ EBITDA impact from Stade Germany epoxy contract starting 2026.
- **Q3 Guidance**: $170M-$210M EBITDA range reflects uncertainty around EDC pricing stability, Winchester cost pass-through, and operational reliability.
- **Tariff Risks**: Brazil retaliatory tariffs on U.S. caustic could disrupt trade flows, but Olin's North American ethylene position provides insulation.


Olin Corporation (OLN) Q2 2025 Earnings Call Transcript

- **Cost Efficiency Boost**: 2025 savings target doubled to $50-70M, enhancing resilience in uncertain macro environment.
- **Chlor Alkali Outperformance**: Q1 EBITDA up 6% YoY; delayed Freeport turnaround supports Q2 flat EBITDA despite $33M cost headwind.
- **Winchester Expansion**: $56M AMMO acquisition to add $40M+ synergies, expanding production scale for military growth.
- **PVC Breakthrough**: First shipments mark entry into high-margin PVC market, with strategic tolling and JV exploration.
- **Cash Management Strength**: $1.2B debt refinancing extends maturity to 2029, maintaining investment-grade balance sheet flexibility.

**【CEO Key Highlights】**
- **Cost Reduction Acceleration**: Increased 2025 cost savings target to $50-70 million, driven by productivity and structural improvements.
- **Chlor Alkali Resilience**: Delayed Freeport turnaround to capitalize on industry outages, with Q2 EBITDA expected to match Q1 despite $33M sequential turnaround cost headwind.
- **Winchester Growth**: Military sales growth offset weak commercial demand; $56M AMMO acquisition to deliver $40M+ synergies and extend production scale.
- **PVC Expansion**: First shipments of Olin PVC in Q1, exploring long-term strategic opportunities in tolling and joint ventures.
- **Tariff Impact**: Neutral net impact on earnings, with potential U.S. caustic supply tightening from Asian/European import tariffs.

**【CFO Financial Summary】**
- **Q1 2025 EBITDA**: $190 million, up 6% YoY, driven by Chlor Alkali and Epoxy price improvements.
- **Cash Flow Management**: Refinanced $1.2 billion debt to 2029 maturity, reducing 2025 net debt by $80M for deferred taxes.
- **Capital Spending**: Reduced 2025 capex to $200-220 million, freeing cash for growth opportunities like AMMO acquisition.
- **Dividend Policy**: Maintained quarterly dividend commitment amid macro uncertainty.

**【Q&A Key Takeaways】**
- **Chlor Alkali Pricing**: Caustic Soda prices rising in Q2, offsetting EDC weakness; disciplined rate management to preserve margins.
- **PVC Profitability**: Tolling through Kem One is cash-positive; long-term strategic investments in PVC technology and partnerships.
- **Winchester EBITDA**: 2/3 of YoY decline due to volume loss, 1/3 from metal/tariff cost headwinds; Q2 EBITDA expected to improve modestly.
- **Epoxy Challenges**: Global overcapacity persists, but new European cost agreements will improve margins starting Q1 2026.
- **Tariff Strategy**: Tariffs creating tailwinds for U.S. exports (e.g., Winchester ammo) while raising input costs for chemicals.


Olin (OLN)-2 May 25-2025 Q1 Earnings call transcript

- **Cost Reduction Ambition**: Targeting $250M savings by 2028, with $20-30M realized in 2025.
- **Winchester Expansion**: AMMO, Inc. acquisition to deliver $40M synergies and high-margin caliber growth.
- **CAPV Resilience**: Q4 CAPV sales up 9% sequentially, with global caustic soda tightness supporting pricing.
- **Epoxy Recovery**: Q4 EBITDA up >50% sequentially, but long-term pricing headwinds from Asian producers.
- **Financial Strength**: 2024 cash return of 78% to shareholders, $1.2B liquidity, and disciplined capital allocation.

**【CEO Opening Remarks】**
- Announced a $250M cost reduction target by 2028, with $20-30M savings expected in 2025.
- Highlighted the AMMO, Inc. acquisition, which is expected to be accretive to EBITDA and close in Q2 2025.
- Winchester commercial demand remains weak due to retail destocking, but military demand is strong.

**【Chlor Alkali Products & Vinyls (CAPV) Update】**
- Q4 CAPV sales rose 9% sequentially due to higher volumes and pricing, with Hurricane Beryl costs $8M below expectations.
- Entered US PVC market via tolling partnership, aiming to unlock incremental caustic soda volume.
- Global caustic soda tightness expected to persist, driven by European variable costs and Asian demand recovery.

**【Epoxy Business Performance】**
- Q4 Epoxy adjusted EBITDA increased >50% sequentially, benefiting from lower Hurricane Beryl impacts.
- US hydrocarbon feedstock costs remain favorable, but anti-dumping duties in the US and EU are pending.
- Seasonal demand improvement expected in Q1, but long-term pricing headwinds from Asian producers.

**【Winchester Business Overview】**
- Q4 sales flat sequentially as military demand growth offset commercial ammunition decline.
- AMMO, Inc. acquisition to enable specialization in high-margin calibers, with $40M synergies expected within 3 years.
- Commercial destocking expected to continue in H1 2025, but military demand to provide stability.

**【CFO Financial Highlights】**
- Q4 adjusted EBITDA beat low end of guidance range due to lower share price impact and Hurricane Beryl costs.
- 2024 cash return of ~78% to shareholders via dividends and buybacks, reducing shares outstanding by 5%.
- 2025 capital spending forecasted at $225-250M, focusing on cost optimization and growth initiatives.
- Net debt to EBITDA ratio targeted at year-end 2024 levels, with $1.2B liquidity.

**【Q&A Key Takeaways】**
- CAPV volumes expected to remain disciplined in Q1, with caustic soda tightness supporting pricing.
- Epoxy anti-dumping duties could provide tailwinds, but construction demand recovery is uncertain.
- AMMO, Inc. acquisition to enhance procurement efficiency and niche caliber production.
- 2025 EBITDA outlook cautious due to macro demand challenges, but cost discipline to maintain margins.

OLN

OLN fundamentals

Earnings Call

You can ask Aime