Olin's Q3 Net Income Soars Despite Market Challenges
Olin Corporation (NYSE: OLN) has reported its third-quarter financial results, with a notable increase in net income and adjusted EBITDA, despite challenging market conditions. The company also announced a significant share repurchase and maintained a strong liquidity position.
Olin's largest division, Chlor Alkali Products and Vinyls, led the performance with $924 million in sales and $127.6 million in segment earnings. The company's adjusted earnings before interest, taxes, depreciation, and amortization totaled $222.4 million, boosted by a $32 million pretax benefit related to clean-hydrogen production tax credits under the Inflation Reduction Act.
However, the Epoxy business remained in the red, and Winchester ammunition profits declined sharply. Chief Executive Ken Lane attributed the earnings to a persistently challenging market and ongoing weakness in global epoxy demand, but noted improved defense orders in the Winchester segment. Revenue rose to $1.71 billion, up from $1.59 billion a year earlier, but missed consensus estimates of $1.73 billion.
During the quarter, Olin repurchased about 500,000 shares for $10.1 million and has roughly $2 billion remaining under current buyback authorizations. The company ended the quarter with $140 million in cash and $2.85 billion in net debt, maintaining about $1.3 billion in available liquidity.
Olin projected fourth-quarter adjusted EBITDA of $110 million to $130 million, reflecting seasonal weakness and a $40 million hit from planned inventory reductions. Despite the challenges, Olin reported net income of $42.8 million, reversing a loss of $24.9 million in the same quarter a year earlier, and topping Wall Street forecasts. However, Olin shares fell 5.7% in extended trading after the results.
