Jun 30, 2022

Olin Q2 2022 Earnings Report

Announced second quarter 2022 results, featuring record adjusted EBITDA and a new share repurchase program.

Key Takeaways

Olin Corporation reported a net income of $422.1 million, or $2.76 per diluted share, for the second quarter of 2022. The company's adjusted EBITDA reached a record $727.3 million. Olin also announced a new $2.0 billion share repurchase program.

Second quarter 2022 net income was $422.1 million, or $2.76 per diluted share.

Record quarterly adjusted EBITDA reached $727.3 million.

Share repurchases totaled $426.5 million in the second quarter of 2022.

The company expects 2022 adjusted EBITDA to be between $2.5 billion and $2.7 billion.

Total Revenue
$2.62B
Previous year: $2.22B
+17.8%
EPS
$2.76
Previous year: $2.26
+22.1%
Adjusted EBITDA
$727M
Previous year: $559M
+30.1%
Gross Profit
$665M
Previous year: $509M
+30.6%
Cash and Equivalents
$305M
Previous year: $273M
+11.7%
Free Cash Flow
$549M
Previous year: $403M
+36.4%
Total Assets
$8.68B
Previous year: $8.66B
+0.2%

Olin

Olin

Olin Revenue by Segment

Forward Guidance

Olin expects its third quarter 2022 adjusted EBITDA to decline approximately 15% from second quarter 2022 levels.

Challenges Ahead

  • Chemicals businesses results are expected to be lower than the second quarter due to lower participation in chlorine derivative markets and operating at lower rates.
  • Sequentially higher raw material and operating costs, mainly increased natural gas and electrical power costs, are anticipated.
  • Winchester third quarter results are expected to be lower than second quarter levels because of higher commodity and other materials costs.
  • A recessionary economic environment is expected to continue unfolding in the third quarter of 2022.
  • The impact of deeply cyclical behaviors that have historically undermined Olin’s earnings.

Revenue & Expenses

Visualization of income flow from segment revenue to net income