Olin Reports Stronger Third-Quarter 2025
Olin Corporation (NYSE: OLN), a leading global manufacturer and distributor of chemical products and a major U.S. ammunition producer, today announced its financial results for the third quarter ended September 30, 2025. The company delivered stronger sequential earnings, driven primarily by its Chlor Alkali Products and Vinyls segment, reflecting continued discipline in operational execution and value-based strategies.
Financial Overview
For the third quarter of 2025, Olin reported net income of $42.8 million, or $0.37 per diluted share, compared to a net loss of $24.9 million, or $0.21 per diluted share, for the same period in 2024.
Sales increased 8% year over year, reaching $1.71 billion, versus $1.59 billion in the third quarter of 2024.
Adjusted EBITDA for the quarter was $222.4 million, excluding depreciation and amortization expenses of $133.8 million, restructuring charges of $2.9 million, and environmental insurance recoveries of $1.0 million. Results included a $32 million pretax benefit from the clean hydrogen production tax credit under Section 45V of the Inflation Reduction Act of 2022, highlighting Olin’s progress toward integrating sustainability incentives into its operations.
By contrast, third-quarter 2024 adjusted EBITDA was $160.3 million, which had been negatively impacted by $109.4 million in costs and lost profits stemming from Hurricane Beryl.
CEO Commentary
Ken Lane, President and Chief Executive Officer of Olin Corporation, commented on the company’s performance:
In the third quarter, Olin delivered on our expectation for sequentially higher earnings, led by improved results in our Chlor Alkali Products and Vinyls segment. Although demand growth remained limited within a challenging macroeconomic environment, our team maintained disciplined execution, focusing on preserving Electrochemical Unit (ECU) values.
Lane added that while global epoxy demand remains muted, the company is navigating through significant headwinds from subsidized Asian imports affecting both U.S. and European markets.
We continue to execute our strategy by capitalizing on the strengths of our integrated chlor alkali platform and expanding sales of our formulated solutions,” he said. “These actions are helping Olin maintain competitiveness even amid prolonged market softness.
On the company’s Winchester segment, Lane noted that results came in below expectations due to continued weakness in commercial ammunition demand.
Although commercial ammunition sales only showed slight seasonal improvement, our defense business delivered sequentially stronger results,” Lane stated. “Retailers remain overstocked, but we expect inventory normalization over time.
Outlook for Fourth Quarter 2025
Looking ahead, Lane cautioned that the fourth quarter typically represents Olin’s weakest seasonal period across its businesses. The company anticipates adjusted EBITDA between $110 million and $130 million for Q4 2025, including an estimated $40 million penalty related to planned inventory reductions.
Despite these seasonal challenges, Lane reaffirmed Olin’s commitment to its “Optimize the Core” strategic priorities, which include:
- Operating safely and reliably
- Advancing the Beyond250 structural cost reduction program
- Maximizing cash generation
We remain disciplined in protecting ECU values and driving operational excellence,” Lane emphasized. “We expect to close 2025 with net debt levels comparable to year-end 2024. Olin continues to demonstrate resilience despite operating through one of the industry’s longest trough cycles.
Segment Performance
Chlor Alkali Products and Vinyls
Sales in the Chlor Alkali Products and Vinyls segment rose to $924.0 million, up from $871.6 million in the same quarter last year. The increase was mainly driven by higher volumes, partially offset by lower average pricing.
Segment earnings surged to $127.6 million, compared to $45.3 million a year earlier. Results included a $32 million pretax benefit from the Section 45V hydrogen tax credit, reflecting Olin’s commitment to cleaner production initiatives.
In contrast, the 2024 period was negatively affected by $76.7 million in additional costs and lost production related to Hurricane Beryl. Excluding that one-time impact, results were tempered by lower ethylene dichloride (EDC) prices but supported by stronger caustic soda pricing and improved volumes.
Depreciation and amortization for the segment totaled $109.0 million, versus $106.5 million in the prior year.
Epoxy
The Epoxy segment recorded sales of $349.6 million, an increase from $285.1 million in the third quarter of 2024, primarily due to higher volumes. Despite this improvement, the segment posted a loss of $32.2 million, compared to a loss of $42.8 million in the prior year.
The 2024 performance had been significantly impacted by Hurricane Beryl-related disruptions totaling $32.7 million. Excluding that, the latest quarter reflected ongoing cost pressures from unabsorbed fixed costs associated with planned inventory reductions, partially offset by higher sales volumes.
Depreciation and amortization expenses were $13.2 million, compared to $13.7 million last year.
Winchester
Olin’s Winchester ammunition business posted sales of $439.6 million, slightly up from $432.8 million in the prior-year period. However, segment earnings declined to $19.3 million, compared to $53.4 million a year earlier.
This decrease was mainly due to lower commercial ammunition pricing and shipments, coupled with rising raw material costs, including propellant and metals. The company noted that while retail demand remains subdued, defense-related sales improved sequentially.
Depreciation and amortization expenses for the segment were $7.8 million, compared to $8.5 million in the third quarter of 2024.
Corporate and Financial Highlights
Corporate Costs
Corporate and unallocated costs remained comparable year over year. Higher incentive compensation expenses were offset by favorable foreign currency impacts.
Liquidity Position
As of September 30, 2025, Olin held $140.3 million in cash and net debt of approximately $2.85 billion, translating to a net debt-to-adjusted EBITDA ratio of 3.7x. The company reported total available liquidity of about $1.3 billion.
During the third quarter, Olin repurchased 0.5 million shares of its common stock at a total cost of $10.1 million. The company had $2.0 billion remaining under its share repurchase authorization as of quarter-end.
