Olin (OLN) Q2 2025 earnings summary

Executive summary

• Q2 2025 marked the seventh consecutive quarter of trough demand, with stable chlorine and ECU values, strong military demand, but ongoing margin pressure from weak commercial ammunition and epoxy markets.

• Net loss of $1.3M for Q2 2025, or $(0.01) per diluted share, compared to net income of $74.2M in Q2 2024, as all segments faced higher costs and weaker pricing.

• Adjusted EBITDA was $176.1M, down from $278.1M year-over-year, with sales up 7% to $1.76B.

• Operating cash flow exceeded $212M, funding acquisitions, debt reduction, and share repurchases.

• Acquisition of ammunition assets and continued share repurchases were completed during the quarter.

Financial highlights

• Q2 2025 adjusted EBITDA declined 5% sequentially to $176.1M, mainly due to $32M in planned maintenance turnaround costs.

• Operating cash flow was $212M; $56M was used for the Manitowoc ammunition facility acquisition.

• Debt was reduced by $39M and $10M in shares were repurchased during the quarter.

• Cash on hand at 6/30/25 was $223.8M, with $1.4B available liquidity.

• Net loss attributable to the company was $1.3M for Q2 2025; diluted EPS was $(0.01).

Outlook and guidance

• Q3 2025 adjusted EBITDA is expected between $170M and $210M, with seasonally stronger demand in chemicals and Winchester, but continued cost and margin pressures.

• Full-year 2025 capital spending forecasted at $200M–$220M; D&A ~$525M; interest expense $180M–$185M.

• Net debt targeted to be comparable to year-end 2024; >$100M working capital source expected in 2025.

• Q4 is expected to be seasonally weaker, with higher turnaround costs, especially in epoxy.

• 2025 effective tax rate projected at 25–35%; cash taxes paid expected to be ~$175M.