Olin Corporation

What they do

Olin produces chlorine, caustic soda, EDC, VCM, chlorinated organics and other chlor alkali derivatives, and also makes epoxy materials and precursors such as aromatics, allyl chloride, epichlorohydrin and epoxy resins. Its Winchester segment produces sporting ammunition, reloading components, small caliber military ammunition, industrial cartridges and clay targets, along with contracted U.S. military project revenue. Operations are capital-intensive and concentrated in North America, with global marketing of caustic soda and EDC.

Revenue drivers

• Chlor Alkali Products and Vinyls — Manufactures and sells chlorine, caustic soda, EDC, VCM, chloromethanes, chloroethanes and related products; represented 54% of 2025 sales.
• Epoxy — Produces and sells epoxy materials and precursors including acetone, phenol, allyl chloride, epichlorohydrin, liquid and solid epoxy resins and formulated solutions; represented 20% of 2025 sales.
• Winchester — Produces and sells sporting ammunition, reloading components, small caliber military ammunition and components, industrial cartridges and clay targets, plus contracted U.S. military project revenue; represented 26% of 2025 sales.

Recent performance

Second quarter 2026 net loss was $(13.3) million, or $(0.12) per diluted share, compared to a net loss of $(1.3) million in the prior-year quarter. Sales were $1,741.9 million versus $1,758.3 million in the second quarter of 2025. Adjusted EBITDA was $191.3 million, up from $176.1 million a year earlier, excluding depreciation and amortization of $122.1 million, acquisition-related costs of $10.6 million and restructuring charges of $10.5 million. Chlor Alkali Products and Vinyls segment income was $53.4 million and Epoxy segment income was $16.0 million, while Winchester segment income was $28.1 million. Full-year 2025 net loss was $(100.5) million compared to net income of $108.6 million in 2024.

Strategy

Olin is pursuing a proposed all-stock merger of equals with Huntsman Corporation, announced June 15, 2026, to form OlinHuntsman Corporation; Olin shareholders are expected to own approximately 54.5% and Huntsman stockholders 45.5% of the combined company. The transaction is subject to regulatory approvals and approval by both shareholder bases, and is expected to close in the first half of 2027. In 2025 Olin issued $600.0 million of 6.625% senior notes due 2033 and entered a new $1,850.0 million senior credit facility maturing in 2030, using proceeds to redeem older notes and refinance prior borrowings. The company repurchased 2.2 million shares for $50.5 million in 2025, leaving $1.9 billion of remaining repurchase authorization. Olin also cites Beyond250 structural cost actions as supporting operating performance.

Risks

• Global economic and industry downturns — Olin's businesses have historically experienced periodic downturns marked by diminished demand, excess capacity and lower selling prices, and a significant global downturn could reduce demand for its products.
• Subsidized Asian epoxy competition — The company states that global epoxy demand remains weak and its U.S. and European Epoxy businesses remain significantly challenged by subsidized Asian competition.
• Operational disruptions at key facilities — Operating issues with the VCM plant at the Freeport, Texas facility reduced second quarter 2026 adjusted EBITDA by $40 million, with an estimated $20 million impact expected in the third quarter.
• Commodity, energy and litigation costs — Results are exposed to higher raw material and operating costs including natural gas, electrical power, commodity metals and propellant costs, as well as litigation charges such as a $75.0 million VCM customer dispute contingency in 2025 and a $36.1 million legacy litigation charge in the first half of 2026.

Outlook

Management expects third quarter 2026 Chemical businesses results to be comparable to the second quarter, as reduced operating rates at the VCM facility and weaker EDC pricing offset expected stronger caustic soda volumes. Winchester is expected to see seasonally improving commercial demand supporting sequential earnings growth. Third quarter 2026 adjusted EBITDA is forecast in the range of $160 million to $200 million. Full rates at the VCM plant are planned to resume late in the third quarter.