Download PDF

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.

Show Full description

1.b. Last Insights on OLN

Olin Corporation's recent performance was positively driven by its Q3 results, which confirmed the turnaround is progressing as expected. The company's cost-cutting and supply rationalization efforts improved margins and cash flow, despite weak demand in key segments. Olin's adjusted EBITDA was $222.4 million, with a net income of $42.8 million, or $0.37 per diluted share. The company maintains strong liquidity and a secure 3.3% dividend, with no major debt maturities until 2029. According to a report, Olin remains a buy with a $30 price target.

1.c. Company Highlights

2. Olin Corporation's Q3 2025 Earnings: A Mixed Bag

Olin Corporation reported a strong financial performance in Q3 2025, with adjusted EBITDA of $190 million, an 8% sequential improvement. The company's EPS came in at $0.4, beating analyst estimates of $0.09. Revenue growth was not explicitly stated, but the company's Chlor Alkali products and Vinyls segments showed improvement due to lower operating costs and higher ethylene dichloride volumes. The company's reported $32 million pretax benefit related to the clean hydrogen production tax credit under Section 45V also contributed to the positive results.

Publication Date: Nov -03

📋 Highlights
  • Tax Credit Boost: $32M pretax benefit from clean hydrogen credit under Section 45V in Q3 2025, contributing to $190M adjusted EBITDA (8% sequential rise).
  • Chlor Alkali & Vinyls Growth: Lower operating costs and higher ethylene dichloride volumes drove improved results in these segments, offsetting weaknesses elsewhere.
  • Beyond250 Cost Cuts: $70M–90M run-rate cost reductions targeted by 2025, part of structural efficiency initiatives including production asset rationalization.
  • Winchester Challenges: $40M EBITDA penalty expected in Q4 2025 due to working capital buildup, driven by high retail inventory and import-related issues.
  • Future Earnings Upside: $15M–20M annual EBITDA benefit from Section 45V tax credit anticipated for 2026–2028, reducing cost of goods sold quarterly.

Segment Performance

The Chlor Alkali Products and Vinyls segments were the bright spots in the company's Q3 2025 results, with improved performance due to lower operating costs and higher ethylene dichloride volumes. In contrast, the Epoxy business continued to face headwinds from subsidized Asian imports, while Winchester's commercial ammunition volumes and margins were weak. The company's military business, however, remained resilient.

Outlook and Guidance

Olin expects stable ECU values in Chlor Alkali Products and Vinyls in Q4, improved Epoxy results, and resilience in Winchester's military business. The company guided to Q4 2025 adjusted EBITDA in the range of $110 million to $130 million, including a $40 million EBITDA penalty to reduce inventories. For 2026, Olin sees upside to its target of $70 million to $90 million in cost reductions through its Beyond250 initiative.

Valuation and Metrics

With a P/E Ratio of 44.37 and an EV/EBITDA of 28.24, Olin's valuation appears to be on the higher side. However, the company's Dividend Yield of 3.86% provides some support. The company's Net Debt / EBITDA ratio of 16.03 is a concern, but Olin is prioritizing debt reduction using its significant cash flow. The current annualized EBITDA run rate is around $700 million, and the company needs to improve its segments to reach $1 billion.

Future Prospects

Olin is working on structural term agreements for EDC, and expects to have more contracted positions, reducing its exposure to the spot market. The company's Epoxy business is expected to show significant improvement next year, driven by capacity rationalization and self-help measures. Winchester is expected to benefit from growth opportunities in international defense markets, with attractive margins.

3. NewsRoom

Card image cap

Olin Corp. VP and Treasurer Sells 4,500 Shares for $93,850

Dec -04

Source: fool.com

Card image cap

Olin Corporation (NYSE:OLN) Given Average Recommendation of “Hold” by Analysts

Nov -19

Source: defenseworld.net

Card image cap

Olin Expands Integrated Network With Strategic Braskem Deal

Nov -17

Source: zacks.com

Card image cap

Olin Enters Strategic Partnership with Braskem to Drive Vinyls Value Growth

Nov -11

Source: prnewswire.com

Card image cap

Pollen Street Group (LON:POLN) Board of Directors Declares Stock Repurchase Plan

Nov -06

Source: defenseworld.net

Card image cap

Olin Analysts Slash Their Forecasts After Q3 Results

Oct -29

Source: benzinga.com

Card image cap

Olin Corporation (OLN) Q3 2025 Earnings Call Transcript

Oct -28

Source: seekingalpha.com

Card image cap

Why Olin Stock Crashed Today

Oct -28

Source: fool.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

Stock-Card
RPM International

A-Score: 5.2/10

Value: 3.6

Growth: 6.6

Quality: 5.7

Yield: 4.0

Momentum: 3.0

Volatility: 8.7

1-Year Total Return ->

View Full Report
Stock-Card
Balchem

A-Score: 4.7/10

Value: 1.9

Growth: 5.6

Quality: 7.5

Yield: 1.0

Momentum: 2.5

Volatility: 9.7

1-Year Total Return ->

View Full Report
Stock-Card
H.B. Fuller

A-Score: 4.3/10

Value: 5.0

Growth: 4.8

Quality: 4.1

Yield: 3.0

Momentum: 2.0

Volatility: 7.0

1-Year Total Return ->

View Full Report
Stock-Card
Westlake

A-Score: 4.0/10

Value: 7.8

Growth: 4.0

Quality: 3.5

Yield: 4.0

Momentum: 0.0

Volatility: 5.0

1-Year Total Return ->

View Full Report
Stock-Card
Minerals Technologies

A-Score: 4.0/10

Value: 6.6

Growth: 4.3

Quality: 3.2

Yield: 1.0

Momentum: 2.0

Volatility: 7.0

1-Year Total Return ->

View Full Report
Stock-Card
Olin

A-Score: 3.7/10

Value: 5.5

Growth: 4.4

Quality: 2.0

Yield: 6.0

Momentum: 0.5

Volatility: 3.7

1-Year Total Return ->

View Full Report

Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

20.46$

Current Price

20.46$

Potential

-0.00%

Expected Cash-Flows