Olin Corporation has reported a sharp swing in its financials for the fourth quarter ended December 31, 2025, posting a net loss of $85.7 million, or $0.75 per share, compared with net income of $10.7 million, or $0.09 per share, in the same period a year earlier.
Adjusted EBITDA fell to $67.7 million from $193.4 million in Q4 2024. Total sales were largely flat at $1.665 billion, down slightly from $1.671 billion.
For the full year, Olin reported a net loss of $42.8 million, or $0.37 per share, reversing a $108.6 million net income in 2024.
Ken Lane, President and CEO, attributed the weak results to ongoing market challenges. "During the fourth quarter, we experienced continued headwinds related to the trough market environment exacerbated by customer destocking as well as planned maintenance turnarounds and unplanned operating events," Lane said.
"Despite that, we remain committed to executing our value-first commercial approach and are focused on our Optimize the Core strategic priorities: operating safely and reliably, delivering our Beyond250 structural cost reductions and maximizing cash generation. We have begun to see benefits from our Beyond250 initiative, realizing a $44 million reduction in structural costs in 2025. As a result of proactive actions taken, we generated $321.2 million of operating cash flow in fourth quarter 2025 and ended the year with net debt comparable to year-end 2024."
Lane highlighted segment-specific struggles and opportunities. "Operational challenges and weaker than expected chlorine demand impacted our Chlor Alkali Products and Vinyls segment fourth quarter 2025 performance. Our Chlor Alkali Products and Vinyls business remains committed to maintaining our operating discipline and preserving our Electrochemical Unit (ECU) values in the current trough environment."
On the Epoxy front, Lane was cautiously optimistic. "Although global epoxy demand remains challenged, as one of the last integrated and lowest cost epoxy producers, we have grown our participation in the United States and European epoxy markets, despite continued market saturation from subsidized Asian competitors.
"We also continue to grow sales of our formulated solutions products. Given these results, in combination with the benefits from our new Stade, Germany supply agreement and our on-going Beyond250 initiative to reduce structural costs, including the recent decision to close our Guarujá, Brazil Epoxy production site, we anticipate our Epoxy business will return to profitability in 2026."
Winchester, Olin’s ammunition segment, also faced cost pressures. "Winchester's fourth quarter 2025 efforts to right-size inventories in the value chain have accelerated channel destocking. Winchester continues to experience rising raw material costs, including copper, brass, and propellant. To help mitigate these significant cost pressures, Winchester is implementing increased commercial ammunition pricing for the first quarter 2026. Our military business continues to deliver strong growth."
Looking ahead, Lane warned of lower results in Q1 2026. "As a result of upcoming sequentially higher planned maintenance turnaround costs and higher raw material costs, including increased electrical power costs, we expect first quarter 2026 results from our Chemicals businesses to be lower than fourth quarter 2025. In our Winchester business, as commercial customer inventories become more normalized, we expect our first quarter 2026 results to modestly increase from fourth quarter 2025. Overall, we expect Olin's first quarter 2026 adjusted EBITDA to be lower than fourth quarter 2025 levels."
Chlor Alkali Products and Vinyls
The segment posted $856.4 million in Q4 2025 sales, down from $953.7 million a year earlier. The decrease reflected lower pricing, partially offset by higher volumes.
Segment loss reached $14.7 million, a steep drop from $75.2 million in Q4 2024. Lane noted the decline was "primarily due to lower pricing and higher operating costs, primarily from unabsorbed fixed costs incurred from production disruptions and planned maintenance turnarounds, partially offset by higher volumes and decreased costs associated with products purchased from other parties." Depreciation and amortization totaled $101.1 million versus $105.5 million in Q4 2024.
