second quarter 2026
Filed Jul 30, 2026Olin Announces Second Quarter 2026 Results
Second quarter sales were lower than the second quarter 2025 comparison and Olin reported a larger net loss, while adjusted EBITDA increased and Epoxy and Winchester segment earnings improved. The company forecast third quarter adjusted EBITDA of $160 million to $200 million, with Chemical results expected to be comparable to the second quarter and Winchester expected to deliver sequential earnings growth.
Key metrics
as reported| Metric | Value | q/q | y/y |
|---|---|---|---|
| SalesGAAP | $1,741.9 million | – | – |
| Net lossGAAP | ($13.3) million | – | – |
| Net loss per diluted shareGAAP | ($0.12) per diluted share | – | – |
| Adjusted EBITDAnon-GAAP | $191.3 million | – | – |
| Depreciation and amortization expenseother | $122.1 million | – | – |
| Acquisition-related costsother | $10.6 million | – | – |
| Restructuring chargesother | $10.5 million | – | – |
| Chlor Alkali Products and Vinyls segment earningsother | $53.4 million | – | – |
| Chlor Alkali Products and Vinyls depreciation and amortization expenseother | $98.1 million | – | – |
| Chlor Alkali Products and Vinyls operating-issue impactother | $40.1 million | – | – |
| Epoxy segment earningsother | $16.0 million | – | – |
| Epoxy depreciation and amortization expenseother | $11.7 million | – | – |
| Winchester segment earningsother | $28.1 million | – | – |
| Winchester depreciation and amortization expenseother | $8.8 million | – | – |
| Other corporate and unallocated costs increaseother | $5.4 million | – | – |
Segments
| Segment | Revenue | q/q | y/y |
|---|---|---|---|
| Chlor Alkali Products and VinylsSales decreased due to lower volumes, primarily from lower trading volumes associated with Blue Water Alliance and lower vinyl chloride monomer volumes. The Blue Water Alliance joint venture concluded operations at the end of 2025. Segment results were negatively impacted by operating issues at the Freeport, Texas vinyl chloride monomer plant, while the remaining increase in segment earnings was primarily due to higher caustic soda and ethylene dichloride pricing, partially offset by higher natural gas and electrical power costs. | $819.5 million | – | – |
| EpoxySales increased due to higher volumes and improved pricing. Segment earnings increased primarily because of higher volumes, improved product margins, and lower operating costs; higher pricing was partially offset by higher benzene and propylene costs. | $422.1 million | – | – |
| WinchesterSales increased primarily due to higher commercial ammunition sales and higher military project revenue. Segment earnings increased primarily due to higher commercial ammunition pricing and volume and higher military project revenue, partially offset by higher commodity metal costs and higher operating costs. | $500.3 million | – | – |
third quarter 2026 outlook
- NoteAdjusted EBITDA is forecast to be in the range of $160 million to $200 million.
- NoteChemical businesses' third quarter 2026 results are expected to be comparable to the second quarter.
- NoteReduced operating rates at the vinyl chloride monomer facility and weaker ethylene dichloride pricing are expected to offset stronger caustic soda volumes.
- NoteSeasonally improving commercial demand is expected to support sequential earnings growth in Winchester.
- NoteThe vinyl chloride monomer disruption is estimated to have a $20 million impact expected in the third quarter as full rates are planned to resume late in the quarter.
What drove it
- Chlor Alkali Products and Vinyls benefited from improved caustic soda and ethylene dichloride pricing and favorable operating performance driven by Beyond250 structural cost actions.
- Epoxy margins expanded despite persistent weak demand conditions in Europe.
- Winchester's sequential improvement was driven by stronger commercial demand and pricing actions implemented to offset commodity metals and raw materials cost inflation.
- Epoxy sales benefited from higher volumes and improved pricing.
- Winchester sales benefited from higher commercial ammunition sales and higher military project revenue.
Concerns
- The unplanned shutdown of the Freeport, Texas vinyl chloride monomer plant reduced second quarter adjusted EBITDA by $40 million; operations resumed at reduced rates.
- Sales in Chlor Alkali Products and Vinyls declined due to lower volumes, including lower trading volumes associated with Blue Water Alliance and lower vinyl chloride monomer volumes.
- The company cited persistent weak demand conditions in Europe for Epoxy.
- Higher raw material costs, including natural gas, electrical power, benzene, propylene, and commodity metals, partially offset segment benefits.
- Other corporate and unallocated costs increased $5.4 million primarily due to an unfavorable impact from foreign currency.
- Net debt was approximately $2.85 billion and the net debt to adjusted EBITDA ratio was 5.0 times.
What to watch
- The timing of full-rate resumption at the Freeport vinyl chloride monomer facility, planned for late in the third quarter.
- The estimated $20 million third-quarter impact from the vinyl chloride monomer disruption.
- Whether stronger caustic soda volumes offset weaker ethylene dichloride pricing and reduced vinyl chloride monomer operating rates.
- Seasonally improving commercial demand and sequential earnings growth at Winchester.
- The expected liquidation of normal seasonal first-half working capital during the second half.
- The remaining approximately $100 million legacy Shintech litigation payment expected in the second half of 2026.
- Progress toward the expected first-half 2027 completion of the all-stock merger of equals with Huntsman Corporation, subject to closing conditions and approvals.
Balance sheet and cash flow
- Cash balance on June 30, 2026: $177.4 million.
- Net debt at the end of the second quarter 2026: approximately $2.85 billion.
- Net debt to adjusted EBITDA ratio: 5.0 times.
- Available liquidity on June 30, 2026: approximately $1.2 billion, including unrestricted access to the undrawn portion of its revolving credit facility.
- Working capital increased $183.0 million in the first half 2026.
- Olin paid approximately $93 million, including previously accrued reserves, to resolve legacy Shintech litigation matters and expects to pay the remaining approximately $100 million in the second half of 2026.
Analysis
Olin reported second quarter sales of $1,741.9 million, compared with $1,758.3 million in the second quarter 2025. The company posted a reported net loss of ($13.3) million, or ($0.12) per diluted share, compared with a reported net loss of ($1.3) million, or ($0.01) per diluted share. Adjusted EBITDA was $191.3 million, compared with $176.1 million in the second quarter 2025; the reported adjusted figure excluded $122.1 million of depreciation and amortization expense, $10.6 million of acquisition-related costs, and $10.5 million of restructuring charges.
Chlor Alkali Products and Vinyls was the principal sales headwind. Segment sales were $819.5 million compared with $979.5 million, with lower trading volumes associated with Blue Water Alliance and lower vinyl chloride monomer volumes cited as causes. Segment earnings were $53.4 million compared with $64.9 million. Operating issues at the Freeport vinyl chloride monomer plant had a $40.1 million negative impact on segment results through higher costs and lost-sales profit, while higher caustic soda and ethylene dichloride pricing supported the remaining segment earnings improvement described by the company.
Epoxy and Winchester supplied the positive segment developments. Epoxy sales were $422.1 million compared with $331.2 million, and segment earnings were $16.0 million compared with a segment loss of ($23.7) million. Higher volumes, improved product margins, and lower operating costs drove the Epoxy result, although the release identified persistent weak demand conditions in Europe and higher benzene and propylene costs. Winchester sales were $500.3 million compared with $447.6 million, while segment earnings were $28.1 million compared with $25.0 million, supported by commercial ammunition pricing and volume as well as military project revenue.
Liquidity metrics show $177.4 million of cash, approximately $2.85 billion of net debt, and a 5.0 times net debt to adjusted EBITDA ratio at June 30, 2026. Available liquidity was approximately $1.2 billion. Working capital increased $183.0 million in the first half 2026. Olin also paid approximately $93 million to resolve legacy Shintech litigation matters and expects the remaining approximately $100 million payment in the second half of 2026.
For the third quarter, Olin forecast adjusted EBITDA of $160 million to $200 million. Management expects Chemical business results to be comparable to the second quarter because reduced vinyl chloride monomer operating rates and weaker ethylene dichloride pricing offset stronger caustic soda volumes. The plant disruption is expected to have a $20 million third-quarter impact, with full rates planned to resume late in the quarter. The pending all-stock merger of equals with Huntsman generated $10.6 million of second-quarter acquisition-related costs and is expected to occur in the first half of 2027, subject to customary conditions and required approvals.
Management, verbatim
The Olin team delivered sequential improvement in adjusted EBITDA in a highly volatile environment. Our Chlor Alkali Products and Vinyls business benefited from improved caustic soda and ethylene dichloride pricing and from favorable operating performance driven by our Beyond250 structural cost actions. However, partially offsetting this performance was an unplanned shutdown of the vinyl chloride monomer plant in Freeport, Texas. Operations have resumed at reduced rates. The disruption reduced second quarter adjusted EBITDA by $40 million, with an estimated $20 million impact expected in the third quarter as full rates are planned to resume late in the quarter. Epoxy continued to improve as margins expanded despite persistent weak demand conditions in Europe. Winchester’s sequential improvement was driven by stronger commercial demand and pricing actions implemented to offset commodity metals and raw materials cost inflation.
Ken Lane, President and Chief Executive Officer
Looking ahead, we expect our Chemical businesses’ third quarter 2026 results to be comparable to the second quarter, as reduced operating rates at the vinyl chloride monomer facility and weaker ethylene dichloride pricing offset expected stronger caustic soda volumes. In our Winchester business, seasonally improving commercial demand is expected to support sequential earnings growth. With continued significant global volatility, third quarter 2026 adjusted EBITDA is forecast to be in the range of $160 million to $200 million.
Ken Lane, President and Chief Executive Officer
Not in the filing
stated, not guessed- Prior-quarter sales, net income or loss, EPS, adjusted EBITDA, segment sales, and segment earnings were not reported.
- Gross profit, gross margin, operating income, operating margin, interest expense, income-tax expense, tax rate, and non-GAAP EPS were not provided in the filing text.
- Operating cash flow, capital expenditures, free cash flow, total debt, and debt maturities were not provided in the filing text.
- Share repurchases, dividends declared or paid, and other capital-return amounts were not reported.
- No previous outlook section was provided, so no comparison of reported results with prior guidance is available.
- Numerical third-quarter guidance for revenue, gross margin, operating expenses, and tax rate was not provided.
AlphaAI analysis generated from the company’s SEC earnings filing (Form 8-K Item 2.02, or Form 6-K for a foreign private issuer). Every figure was cross-checked against the filing text; consensus estimates, price targets and share-price reactions are not shown because they are not in the filing. AI-generated research, not investment advice.