Olin Corporation has reported a second-quarter 2026 net loss of $13.3 million, or $0.12 per diluted share, as operational disruptions and market volatility weighed on results. The company’s loss widened from a $1.3 million net loss, or $0.01 per diluted share, reported in the same period a year earlier.
Despite the bottom-line pressure, Olin delivered higher adjusted EBITDA, reporting $191.3 million in the second quarter of 2026, up from $176.1 million in the prior-year period. The company said the improvement reflected stronger pricing, operational gains and ongoing cost-cutting initiatives, including its Beyond250 structural cost actions.
Second-quarter sales totaled $1.74 billion, compared with $1.76 billion in the second quarter of 2025.
"The Olin team delivered sequential improvement in adjusted EBITDA in a highly volatile environment," said Ken Lane, President and Chief Executive Officer.
"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."
Lane said Epoxy continued to recover, with margins expanding despite weak European demand, while Winchester benefited from stronger commercial demand and pricing actions aimed at offsetting higher raw material costs.
"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," Lane concluded.
Olin’s Chlor Alkali Products and Vinyls segment recorded second-quarter sales of $819.5 million, down from $979.5 million a year earlier, mainly due to lower volumes linked to reduced Blue Water Alliance trading activity and lower vinyl chloride monomer output.
Segment earnings fell to $53.4 million from $64.9 million. The Freeport, Texas vinyl chloride monomer plant disruption reduced segment earnings by $40.1 million due to higher costs and lost sales opportunities. However, stronger pricing for caustic soda and ethylene dichloride helped offset the impact.
The company said higher raw material costs, including natural gas and electricity expenses, partially limited gains.
Olin’s Epoxy business posted a sharp turnaround, reporting segment earnings of $16 million compared with a $23.7 million loss in the second quarter of 2025.
Sales rose to $422.1 million from $331.2 million, driven by higher volumes and improved pricing. The company attributed the $39.7 million improvement in segment results to stronger volumes, wider product margins and lower operating costs.
Winchester delivered sales growth in the second quarter, with revenue increasing to $500.3 million from $447.6 million a year earlier.
Segment earnings climbed to $28.1 million from $25 million, supported by stronger commercial ammunition sales, military project revenue and pricing actions. Higher commodity metal costs and operating expenses partially offset the gains.
Olin’s second-quarter results included $10.6 million in acquisition-related costs tied to its planned merger with Huntsman Corporation.
On June 16, 2026, Olin and Huntsman announced a definitive agreement to combine in an all-stock merger of equals, creating a new company called OlinHuntsman Corporation.
The transaction is expected to close in the first half of 2027, subject to regulatory approvals and approval from shareholders of both companies.
Olin ended the second quarter with $177.4 million in cash and approximately $2.85 billion in net debt. The company reported a net debt-to-adjusted EBITDA ratio of 5.0 times.
Available liquidity stood at approximately $1.2 billion, including access to its undrawn revolving credit facility.
Working capital increased by $183 million during the first half of 2026. The company said it paid approximately $93 million, including previously accrued reserves, to resolve legacy Shintech litigation matters and expects to pay the remaining approximately $100 million during the second half of the year.
