Olin Guides Fourth-Quarter Adjusted EBITDA To $80 Million-$100 Million As Huntsman Close Slips To 2027
Third-quarter net income fell to $14.4 million from $42.8 million as a Freeport vinyl plant outage hit chlor alkali earnings.
Olin, which makes chemicals and ammunition, said in an 8-K filed Thursday that third-quarter net income fell to $14.4 million, or $0.13 per diluted share, from $42.8 million, or $0.37, a year earlier. It guided fourth-quarter adjusted EBITDA to $80 million to $100 million and now expects its all-stock merger with Huntsman to close in the first quarter of 2027.
Chlor alkali drags, Winchester and epoxy lift
Sales rose to $1,747.7 million from $1,713.2 million. Adjusted EBITDA (earnings before interest, taxes, depreciation, amortization and certain items) fell to $191.4 million from $222.4 million. For the first nine months, adjusted EBITDA was $468.9 million, down from $584.1 million a year earlier.
Chlor Alkali Products and Vinyls earned $71.3 million, down from $127.6 million. A hydrogen production tax-credit benefit shrank to $5.0 million from $32.0 million. Of the remaining $29.3 million drop, the company attributed most to previously announced operating problems at the Freeport, Texas vinyl chloride monomer plant, which meant higher costs and lost-sales profit of $32.1 million, partly offset by higher pricing, mainly for caustic soda and ethylene dichloride.
Winchester, the ammunition unit, earned $33.8 million versus $19.3 million on higher commercial pricing and volume. Epoxy earned $0.6 million against a $32.2 million segment loss a year earlier, helped by higher volumes and lower operating costs.
A softer fourth quarter
CEO Ken Lane said the outlook reflects normal seasonality plus elevated year-end customer destocking in chemicals, higher feedstock costs, pressure from subsidized Asian exports and significant planned maintenance turnarounds. He said Olin had restored normal operations at its VCM assets.
Olin makes chlorine, caustic soda, vinyls and epoxies, plus sporting and military ammunition through Winchester. Chlor alkali and vinyls made up 54% of 2025 sales, Winchester 26% and epoxy 20%, according to its annual report.
Debt load and the Huntsman deal
Net debt was about $2.8 billion, or 5.2 times trailing adjusted EBITDA, up from 4.1 times at the end of 2025. Cash stood at $214.8 million and available liquidity at about $1.3 billion.
Shareholders of both companies approved the merger, and the Hart-Scott-Rodino antitrust waiting period has expired. Lane said progress continues on the remaining regulatory approvals. Third-quarter results carried $13.7 million of merger-related costs.
Management hosts its earnings call at 10:00 a.m. ET on Friday.
Olin hosts its earnings call at 10:00 a.m. ET Friday, with the remaining Huntsman regulatory approvals standing between it and a first-quarter 2027 close.
Sources
- 8-K Filing — OLIN Corp (OLN) — SEC EDGAR
- Exhibit exhibit991q32026earningspr.htm — OLIN Corp 8-K exhibit — SEC EDGAR
- Olin Announces Third Quarter 2026 Results — prnewswire.com
