Olin Corporation Reports $1.3 Million Net Loss in Q2 2025 Amid Declining Profitability

Olin Corporation reported a net loss of $1.3 million for the second quarter of 2025, a significant decline from the net income of $74.2 million recorded in the same period last year. For the first half of 2025, the company posted a slight profit of $0.1 million, down from $122.8 million in the prior year. The decrease in profitability was attributed to lower operating results across all business segments, with diluted net loss per share at $(0.01) compared to $0.62 in the previous year. Total sales for the quarter increased to $1.758 billion, up 7% from $1.644 billion, driven by higher volumes in the Chlor Alkali Products and Vinyls segment and increased military sales in the Winchester segment.

In terms of operational performance, the Chlor Alkali Products and Vinyls segment reported income of $64.9 million for the quarter, down from $99.3 million a year earlier, primarily due to higher raw material costs and lower pricing for ethylene dichloride (EDC). The Epoxy segment experienced a loss of $23.7 million, compared to a loss of $3.0 million in the prior year, as it faced increased operating costs and weak global demand. The Winchester segment's income also fell to $25.0 million from $70.3 million, impacted by decreased commercial ammunition sales and higher raw material costs.

Olin's balance sheet as of June 30, 2025, showed total assets of $7.668 billion, a slight increase from $7.661 billion a year prior. The company’s cash and cash equivalents rose to $223.8 million from $182.1 million, while total liabilities increased to $5.680 billion from $5.491 billion. The company repurchased 1.2 million shares for $30.3 million during the first half of 2025, with a remaining authorization of $1.969 billion under its share repurchase programs.

Strategically, Olin completed the acquisition of AMMO, Inc.'s small caliber ammunition manufacturing assets for $55.8 million in April 2025, enhancing its Winchester segment capabilities. The company also entered into a new $1.850 billion senior credit facility, which increased its borrowing capacity and extended the maturity date. Looking ahead, Olin anticipates continued challenges in the market, but expects seasonal demand improvements in its Chemicals business and increased military demand for its Winchester segment in the third quarter of 2025. The company projects capital expenditures in the range of $200 million to $220 million for the year and expects its effective tax rate to be between 25% and 35%.