Overview of Olin Corporation’s Financial Performance

Olin Corporation, a leading manufacturer of chemicals and ammunition, has reported its financial results for the three and nine months ended September 30, 2025. The company’s net income for the third quarter was $42.8 million, compared to a loss of $24.9 million in the same period last year. For the first nine months of 2025, net income was $42.9 million, down from $97.9 million in the prior year.

The decrease in net income for the three and nine-month periods was primarily due to lower operating results across all of Olin’s business segments. However, the company’s third quarter results included a $32 million benefit related to the clean hydrogen production tax credit under the Inflation Reduction Act of 2022.

Segment Performance

Olin operates in three main business segments: Chlor Alkali Products and Vinyls, Epoxy, and Winchester.

Chlor Alkali Products and Vinyls This segment, which manufactures and sells chlorine, caustic soda, and other chemicals, reported segment income of $127.6 million in the third quarter and $270.8 million for the first nine months of 2025. The segment’s results included the $32 million tax credit benefit and were also impacted by lower pricing for ethylene dichloride (EDC), partially offset by higher caustic soda pricing and higher sales volumes.

Epoxy The Epoxy segment, which produces a range of epoxy materials and precursors, reported a segment loss of $32.2 million in the third quarter and $84.3 million for the first nine months of 2025. The segment’s results were negatively impacted by higher operating costs, including unabsorbed fixed manufacturing costs from planned inventory reductions, as well as weak global epoxy demand and subsidized Asian competition.

Winchester The Winchester segment, which produces and sells sporting ammunition, military ammunition, and other related products, reported segment income of $19.3 million in the third quarter and $67.1 million for the first nine months of 2025. The segment’s results were lower than the prior year periods due to decreased commercial ammunition sales volumes and pricing, as well as higher raw material and operating costs.

Liquidity and Share Repurchases

During the first nine months of 2025, Olin repurchased and retired 1.7 million shares of common stock at a total value of $40.4 million. As of September 30, 2025, the company had $1,958.9 million of remaining authorization to repurchase shares under its share repurchase programs.

Olin also took several actions to strengthen its liquidity and financial position during the first quarter of 2025, including:

• Issuing $600 million of 6.625% senior notes due 2033
• Entering into a new $1.85 billion senior credit facility, which increased the borrowing limit and extended the maturity date
• Redeeming $108.6 million of 9.50% senior notes due 2025 and $500 million of 5.125% senior notes due 2027

As of September 30, 2025, Olin had $1,169.6 million available under its $1.2 billion revolving credit facility.

Outlook and Other Considerations

Olin expects its fourth quarter 2025 operating results to be lower than the third quarter, due to continued global uncertainty and weaker seasonal demand. The company anticipates its Chemicals businesses and Winchester segment will both see declines in the fourth quarter compared to the third quarter.

For the full year 2025, Olin expects:

• Other corporate and unallocated costs to be comparable to the $90.1 million in 2024
• Environmental expenses in the $25 million to $30 million range, down from $30.2 million in 2024
• Non-operating pension income to be lower than the $26.0 million in 2024
• Capital spending of $200 million to $220 million
• A tax benefit of $25 million to $35 million, with cash taxes paid of approximately $175 million

The company also noted that the ultimate impact of tariffs and trade flows remains highly uncertain, but the direct impact from current tariffs has not been significant to its Chemicals businesses so far.

Analysis and Outlook

Olin’s financial performance in the first nine months of 2025 was mixed, with the Chlor Alkali Products and Vinyls segment providing a bright spot, but the Epoxy and Winchester segments struggling.

The Chlor Alkali Products and Vinyls segment benefited from the $32 million tax credit and was able to offset lower EDC pricing with higher caustic soda pricing and increased sales volumes. This segment remains Olin’s largest and most profitable, accounting for over 55% of the company’s total sales and more than 75% of its segment income in the first nine months of 2025.

In contrast, the Epoxy segment continued to face significant challenges, reporting a sizable loss for both the third quarter and first nine months of the year. Weak global demand, subsidized Asian competition, and higher operating costs have weighed heavily on this business. Olin’s anti-dumping initiatives have provided limited benefits to date, and the company’s outlook for the Epoxy segment remains cautious.

The Winchester segment also struggled, with lower commercial ammunition sales volumes and pricing, as well as higher raw material and operating costs, offsetting gains in military and international sales. This segment’s performance is likely to remain volatile, as it is subject to fluctuations in both commercial and military demand.

Looking ahead, Olin’s fourth quarter outlook is somewhat concerning, with the company expecting declines in both its Chemicals and Winchester businesses compared to the third quarter. The continued global uncertainty and weaker seasonal demand are likely to put pressure on the company’s results.

However, Olin appears to be taking steps to strengthen its financial position, including the recent debt refinancing and share repurchase activity. The company’s liquidity position also remains relatively strong, with significant available capacity under its revolving credit facility.

Overall, Olin’s financial performance in 2025 has been mixed, with its core Chlor Alkali Products and Vinyls segment providing stability, but the Epoxy and Winchester segments facing significant headwinds. The company’s outlook for the fourth quarter is cautious, but its actions to improve its financial flexibility and return capital to shareholders are positive signs. Investors will be closely watching Olin’s ability to navigate the current challenges and position itself for long-term success.