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1. Company Snapshot

1.a. Company Description

Olin Corporation manufactures and distributes chemical products in the United States, Europe, and internationally.It operates through three segments: Chlor Alkali Products and Vinyls; Epoxy; and Winchester.The Chlor Alkali Products and Vinyls segment offers chlorine and caustic soda, ethylene dichloride and vinyl chloride monomers, methyl chloride, methylene chloride, chloroform, carbon tetrachloride, perchloroethylene, hydrochloric acid, hydrogen, bleach products, potassium hydroxide, chlorinated organics intermediates and solvents, and sodium hypochlorite.


The Epoxy segment provides epoxy materials and precursors, including aromatics, such as acetone, bisphenol, cumene, and phenol, as well as allyl chloride, epichlorohydrin, and glycerin used for the manufacturers of polymers, resins and other plastic materials, and water purification; liquid and solid epoxy resins that are used in adhesives, marines, protective coatings, composites, and flooring; and converted epoxy resins and additives for use in electrical laminates, paints and coatings, wind blades, electronics, and construction.The Winchester segment offers sporting ammunition products, including shotshells, small caliber centerfire, and rimfire ammunition products for hunters and recreational shooters, and law enforcement agencies; small caliber military ammunition products for use in infantry and mounted weapons; and industrial products comprising gauge loads and powder-actuated tool loads for maintenance applications in power and concrete industries, and powder-actuated tools in construction industry.The company markets its products through its sales force, as well as directly to various industrial customers, mass merchants, retailers, wholesalers, other distributors, and the U.S. Government and its prime contractors.


Olin Corporation was incorporated in 1892 and is based in Clayton, Missouri.

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1.b. Last Insights on OLN

Breaking News: Olin Corporation's CFO Todd Slater sold 92250 shares at $22.48 per share totaling $2073780 on February 3rd. After the sale Slater owns 44291 shares. Separately a comparison between Olin and Tantech highlights differences in their profitability and other key metrics. No recent earnings release data available. Analyst recommendations and institutional ownership have not been recently reported. Olin's current financial health and future prospects have not been evaluated by recent reports. A recent buy hold or sell recommendation has not been found.

1.c. Company Highlights

2. Olin Corporation's Challenging Q4 2025 Earnings: A Deeper Dive

Olin Corporation reported a disappointing fourth quarter 2025, with financial performance significantly below expectations due to operational issues and raw material supply constraints. The company's EPS came in at -$0.58, in line with analyst estimates. Revenue was likely impacted by the extended turnaround of chlorinated organics assets in Freeport, Texas, and a sharp decline in chlorine pipeline demand. The company's ECU values, however, were preserved due to a disciplined value-first commercial approach.

Publication Date: Feb -04

📋 Highlights
  • Q4 Operational Challenges: Fourth-quarter performance fell below expectations due to Freeport turnaround delays, third-party supply issues, and weak chlorine demand, impacting ECU values despite disciplined commercial strategies.
  • Cash Flow & Debt Management: Generated $321M in operating cash flow with net debt flat YoY, maintaining a strong cash position amid macroeconomic headwinds and no bonds maturing until 2029.
  • Cost Savings & Efficiency: Launched a $100–120M annual savings initiative under the Beyond $250 program in 2026, targeting all three businesses to offset $70M stranded costs from PO closures.
  • Chlor Alkali Outlook: Full-year 2026 chlor alkali remains challenging due to oversupply and rising US natural gas costs, but caustic pricing recovery is expected as Latin American demand grows.
  • Winchester Restructuring: Aggressively reduced commercial ammunition inventory and expects modest Q1 2026 improvement from higher military sales, though margin pressures persist from copper/brass costs.

Segment Performance

The epoxy business saw significant contracted growth in Europe, which will start to benefit in 2026. The Winchester business took aggressive action to accelerate inventory reductions and rightsize its cost structure in response to lower commercial ammunition demand. The chlor alkali segment faced headwinds, including rising US natural gas power and feedstock costs, which will continue to pressure global vinyls pricing.

Outlook and Guidance

Olin expects its epoxy business to return to profitability in the first quarter of 2026, driven by higher volumes and lower costs in Europe. The Winchester business is expected to modestly improve from the fourth quarter, with higher commercial ammunition volume and pricing. The company has a Beyond $250 structural cost savings program, aiming to add $100 to $120 million of annual savings in 2026. For 2026, analysts estimate revenue growth at 4.5%.

Valuation and Metrics

With a P/E Ratio of -61.31 and an EV/EBITDA of 8.66, Olin's valuation reflects the challenging environment. The company's ROE is -2.18%, and ROIC is 0.72%, indicating a difficult operating environment. The Net Debt / EBITDA ratio is 4.56, suggesting a manageable debt profile. As Ken Lane mentioned during the call, "We're focused on passing through cost increases and getting prices up to hold margins where they are." This focus on cost management and pricing power will be crucial in navigating the current market conditions.

3. NewsRoom

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Todd Slater Sells 92,250 Shares of Olin (NYSE:OLN) Stock

Feb -07

Source: defenseworld.net

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Reviewing Tantech (NASDAQ:TANH) & Olin (NYSE:OLN)

Feb -06

Source: defenseworld.net

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Thrivent Financial for Lutherans Increases Holdings in Olin Corporation $OLN

Feb -03

Source: defenseworld.net

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OLN's Q4 Earnings in Line, Revenues Beat Amid Market Constraints

Feb -02

Source: zacks.com

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Olin Corporation (NYSE:OLN) Receives Average Rating of “Hold” from Brokerages

Feb -02

Source: defenseworld.net

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Olin Q4 Earnings Call Highlights

Feb -01

Source: defenseworld.net

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Olin Corporation (OLN) Q4 2025 Earnings Call Transcript

Jan -30

Source: seekingalpha.com

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Olin (OLN) Reports Q4 Earnings: What Key Metrics Have to Say

Jan -30

Source: zacks.com

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (5.29%)

6. Segments

Chlor Alkali Products and Vinyls

Expected Growth: 5.5%

Olin Corporation's Chlor Alkali Products and Vinyls segment growth of 5.5% is driven by increasing demand for chlorine-based products, such as polyvinyl chloride (PVC) and caustic soda, from the construction, automotive, and water treatment industries. Additionally, capacity expansions, operational efficiencies, and strategic pricing initiatives contribute to the segment's growth.

Winchester

Expected Growth: 4.8%

Winchester's 4.8% growth is driven by increasing demand for ammunition and firearms, fueled by rising participation in outdoor activities and self-defense concerns. Additionally, Olin's strategic investments in product innovation, capacity expansion, and e-commerce platforms have enhanced Winchester's market reach and operational efficiency.

Epoxy

Expected Growth: 5.2%

Olin Corporation's Epoxy segment growth of 5.2% is driven by increasing demand from the automotive and aerospace industries, growth in wind turbine applications, and rising adoption in construction and infrastructure projects. Additionally, the company's strategic investments in capacity expansions and product innovations have contributed to the segment's growth.

7. Detailed Products

Chlorine

Olin Corporation is a leading producer of chlorine, a key ingredient in the manufacturing of paper, textiles, and other industrial products.

Caustic Soda

Caustic soda, also known as sodium hydroxide, is used in a variety of applications including pulp and paper production, soap and detergent manufacturing, and water treatment.

Epichlorohydrin

Epichlorohydrin is a key intermediate used in the production of epoxy resins, which are used in a wide range of applications including coatings, adhesives, and composites.

Vinyls

Olin Corporation produces a range of vinyls, including polyvinyl chloride (PVC) and vinyl chloride monomer (VCM), which are used in a variety of applications including pipes, vinyl siding, and medical devices.

Bleaching Chemicals

Olin Corporation produces a range of bleaching chemicals, including chlorine dioxide and sodium chlorate, which are used in the pulp and paper industry.

8. Olin Corporation's Porter Forces

Forces Ranking

Threat Of Substitutes

The threat of substitutes for Olin Corporation is medium due to the presence of alternative products and services in the market. However, the company's strong brand recognition and customer loyalty mitigate this threat to some extent.

Bargaining Power Of Customers

The bargaining power of customers is low for Olin Corporation due to the company's diversified product portfolio and strong distribution network, which reduces the dependence on individual customers.

Bargaining Power Of Suppliers

The bargaining power of suppliers is medium for Olin Corporation due to the presence of multiple suppliers in the market. However, the company's large scale of operations and long-term contracts with suppliers mitigate this threat to some extent.

Threat Of New Entrants

The threat of new entrants is low for Olin Corporation due to the high barriers to entry in the chemical industry, including significant capital requirements and regulatory hurdles.

Intensity Of Rivalry

The intensity of rivalry is high for Olin Corporation due to the presence of several established players in the market, leading to intense competition and pricing pressure.

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

Value
Debt Weight 55.10%
Debt Cost 7.41%
Equity Weight 44.90%
Equity Cost 11.29%
WACC 9.15%
Leverage 122.71%

11. Quality Control: Olin Corporation passed 6 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

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A-Score: 4.1/10

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Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

24.83$

Current Price

24.83$

Potential

-0.00%

Expected Cash-Flows