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Olin (OLN) investor relations material

Olin Q3 2025 earnings summary

Complete event summary combining all related documents: earnings call transcript, report, and slide presentation.
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Q3 2025 earnings summary28 Oct, 2025

Executive summary

  • Q3 2025 delivered robust results with net income of $42.8 million and adjusted EBITDA of $222.4 million, aided by a $32 million Section 45V clean hydrogen tax credit and strong core alkaline and vinyls performance, despite ongoing weakness in epoxy and Winchester commercial ammunition.

  • Maintained a disciplined value-first commercial strategy, focusing on cash generation, capital allocation, and cost reduction initiatives.

  • Sales increased to $1.71 billion, up 8% year-over-year, with segment results mixed: chlor alkali benefited from tax credits, epoxy faced weak demand, and Winchester was impacted by lower commercial sales and higher costs.

  • Share repurchases totaled 1.7 million shares ($40.4 million) year-to-date, with $1.96 billion remaining authorized for repurchase.

  • Confirmed eligibility for Section 45V clean hydrogen production tax credits, providing a significant one-time benefit and expected $15–$20 million annual pretax benefit through 2028.

Financial highlights

  • Q3 2025 adjusted EBITDA was $222.4 million, including a $32 million pre-tax benefit from the Section 45V tax credit; excluding this, adjusted EBITDA was $190 million, up 8% sequentially.

  • Net income for Q3 2025 was $42.8 million, reversing a loss of $24.9 million in Q3 2024; diluted EPS was $0.37.

  • Q3 2025 sales were $1.71 billion, up 8% year-over-year; gross margin improved to $183.4 million (11% of sales).

  • Cash on hand at quarter-end was $140.3 million, with available liquidity of $1.3 billion.

  • Net debt at quarter-end was $2.85 billion, with a net debt to adjusted EBITDA ratio of 3.7x.

Outlook and guidance

  • Q4 2025 adjusted EBITDA expected in the range of $110 million–$130 million, including a $40 million EBITDA penalty for inventory reduction.

  • Full-year 2025 capital spending forecasted at $200 million–$220 million; interest expense expected at $180 million–$185 million.

  • Working capital, excluding tax payment timing, expected to be a $100 million source of cash in 2025.

  • Annual Section 45V tax credit benefit of $15–$20 million expected for 2026–2028.

  • Management remains focused on cost reduction, cash generation, and core business optimization.

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Frequently asked questions

Olin Corporation manufactures and distributes chemical products in Japan, North America, and Europe. The company offers engineered products and performance chemicals, such as explosives, pyrotechnics, and flares; solid propellants; flammable gases; oilfield chemicals; pigments, coatings, adhesives, inks, and other specialty chemicals; solvents; surfactants; and water treatment chemicals. It also provides performance-chemical products for military applications under the Triton brand name. The company sells its products to manufacturers of explosives for use in aircraft de-icing fluids and propellant charges for missiles, rockets, and projectiles; oilfield service companies for drilling fluids, proppants for creating fractures in hydrocarbon bearing formation during the production process in oil fields. Olin Corporation is headquartered in Clayton, Missouri.

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