Olin Restores VCM Output, Sets Fourth-Quarter EBITDA Range

The Tip Desk · October 31, 2026 · 3 min read

Third-quarter adjusted EBITDA held at $191.4 million as net income reached $14.4 million, or $0.13 a share, after a $13.3 million second-quarter loss.

Olin Corporation (OLN), a vertically integrated chemical maker and U.S. ammunition producer, reported third-quarter adjusted EBITDA of $191.4 million, matching the $191.3 million recorded in the second quarter, as the company swung to net income of $14.4 million, or $0.13 a share, from a $13.3 million net loss, or $0.12 a share, three months earlier.

Sales were $1,747.7 million, up from $1,741.9 million in the second quarter after a $1,583.0 million first-quarter print. President and Chief Executive Officer Ken Lane said adjusted EBITDA was consistent with expectations and that the company restored normal operations at vinyl chloride monomer assets. The second-quarter release had said an unplanned Freeport, Texas, VCM shutdown reduced that quarter’s adjusted EBITDA by $40 million, with an estimated $20 million impact expected in the third quarter as full rates were planned to resume late in the period.

Chlor Alkali Products and Vinyls sales rose to $850.8 million from $819.5 million in the second quarter after $756.9 million in the first quarter. Segment earnings were $71.3 million, compared with $53.4 million in the second quarter and a $44.5 million first-quarter loss. Against the year-earlier $127.6 million, the remaining $29.3 million decline was attributed to a $5.0 million pretax hydrogen tax-credit benefit versus $32.0 million last year and a $32.1 million hit from Freeport VCM operating issues, partly offset by higher caustic soda and ethylene dichloride pricing. Depreciation and amortization in the segment was $91.1 million.

Epoxy sales were $412.2 million, down from $422.1 million in the second quarter after $355.6 million in the first quarter. Segment earnings swung to a $0.6 million profit from a $32.2 million loss a year earlier. The company cited higher volumes and lower operating costs, with product margins comparable as pricing offset higher benzene and propylene costs. Epoxy depreciation and amortization was $11.1 million.

Winchester sales were $484.7 million, compared with $439.6 million a year earlier on higher commercial ammunition sales. Segment earnings were $33.8 million, versus $19.3 million, which the company said reflected higher commercial ammunition pricing and volume, partly offset by commodity metal costs. Winchester depreciation and amortization was $9.0 million.

Third-quarter results included $13.7 million of acquisition-related costs tied to the proposed all-stock merger of equals with Huntsman Corporation, announced June 16, 2026. Shareholders of both companies approved the transaction and the Hart-Scott-Rodino waiting period expired. Lane said the company now expects the deal to close in the first quarter of 2027, subject to customary closing conditions, and that permitted pre-close integration planning is advancing. Cash was $214.8 million at September 30, 2026. Net debt was approximately $2.8 billion, and the net debt to adjusted EBITDA ratio was 5.2 times. Available liquidity was approximately $1.3 billion.

Fourth-quarter 2026 adjusted EBITDA is expected to be $80 million to $100 million. Lane said the outlook reflects normal seasonality, elevated year-end customer destocking in Chemicals, higher feedstock costs, continued pressure from subsidized Asian exports, and significant planned maintenance turnarounds.