Olin (OLN) Q2 2024 earnings summary

Executive summary

• Q2 2024 net income was $74.2M ($0.62/diluted share), down from $146.9M ($1.13/diluted share) in Q2 2023, mainly due to weaker chemical segment results, partially offset by Winchester growth and White Flyer acquisition.

• Adjusted EBITDA for Q2 2024 was $278.1M, up 15% sequentially but down from $351.1M in Q2 2023.

• Q2 unfolded as expected, with modest improvement in chemical businesses due to seasonal demand and better pricing, while Winchester met objectives with strong military and White Flyer performance.

• Hurricane Beryl caused significant disruption at the Freeport, Texas facility, but safety protocols limited impact and most plants have resumed operation.

• Repurchased 3.9M shares (~3% of outstanding) year-to-date, including $106M in Q2 2024.

Financial highlights

• Q2 2024 sales were $1.64B, down 3% year-over-year; gross margin was $237.8M (14% of sales), down from $310.1M (18%) in Q2 2023.

• Q2 2024 operating income was $136.4M, down from $216.7M in Q2 2023.

• Ended Q2 with $182.1M in cash and about $1B in available liquidity.

• Net debt increased by $229M from year-end, mainly due to seasonal working capital build; net debt to Adjusted EBITDA ratio at 2.6x.

• Deferred $80M in international tax payments to 2025.

Outlook and guidance

• Hurricane Beryl expected to impact chemicals businesses by ~$100M in Q3 2024, with no insurance recovery anticipated.

• Full-year 2024 Adjusted EBITDA outlook lowered to ~$940M, including hurricane impact; excluding hurricane, guidance is ~$1.04B.

• Working capital and net debt at year-end 2024 expected to be similar to 2023.

• 2024 capital spending forecasted at ~$225M, including $10M for hurricane recovery.

• Winchester Q3 2024 results expected to improve on stronger commercial and military demand.