Olin (OLN) investor relations material

Executive summary

• Reported a net loss of $83.0 million for Q1 2026, compared to net income of $1.4 million in Q1 2025, driven by lower results in Chlor Alkali Products and Vinyls and Winchester, partially offset by improved Epoxy performance.

• Adjusted EBITDA was $86.2 million, down from $185.6 million year-over-year, with sequential improvement from cost actions and lower maintenance expenses.

• Epoxy segment returned to profitability with higher European resin volumes and improved cost structure.

• Winchester segment saw improved commercial ammunition volume and pricing, but higher raw material costs pressured margins.

• Beyond 250 cost reduction program delivered meaningful savings and efficiency gains.

Financial highlights

• Q1 2026 adjusted EBITDA was $86.2 million; net loss was $83.0 million; sales declined to $1,583.0 million from $1,644.2 million in the prior year.

• Net debt stood at approximately $2.8 billion, with a net debt to adjusted EBITDA ratio of 5.1x.

• Cash balance at quarter-end was $192.2 million; available liquidity was approximately $1.3 billion.

• Working capital increased seasonally in Q1 2026; cash flows impacted by legacy litigation and higher legal expenses.

• Quarterly dividend of $0.20 per share paid, marking the 398th consecutive quarterly dividend.

Outlook and guidance

• Q2 2026 adjusted EBITDA forecasted between $160 million and $200 million, with sequential improvement expected for both Chemical and Winchester businesses.

• Chemicals businesses expected to benefit from stronger seasonal demand and improved pricing, especially for ethylene dichloride, caustic soda, and epoxy resins.

• Winchester anticipates higher commercial and military sales, but continued raw material cost pressure.

• 2026 capital spending forecasted at ~$200 million; depreciation and amortization expected at ~$475 million.

• Effective tax rate for 2026 projected at 20–30%; cash taxes expected to be a net refund or payment between $(20) million and $20 million.