Sep 30, 2021

Olin Q3 2021 Earnings Report

Announced third quarter 2021 results, achieving record adjusted EBITDA and EPS growth compared to the previous year.

Key Takeaways

Olin Corporation reported a net income of $390.7 million for Q3 2021, a significant increase compared to the net loss of $736.8 million in Q3 2020. The company's sales reached $2,340.1 million, up from $1,437.6 million in the same quarter last year. Adjusted EBITDA reached a record $707.0 million.

Net income reached $390.7 million with a record adjusted EBITDA of $707.0 million.

ECU Profit Contribution Index improved by 16% compared to the second quarter.

Epoxy and Winchester segments achieved record quarterly earnings.

Olin drove sequential pricing improvement in the third quarter 2021 for chlorine, chlorine derivatives, including epoxy resins, and caustic soda.

Total Revenue
$2.34B
Previous year: $1.44B
+62.7%
EPS
$2.38
Previous year: -$0.03
-8033.3%
Adjusted EBITDA
$707M
Previous year: $196M
+261.6%
Gross Profit
$660M
Previous year: $130M
+407.1%
Cash and Equivalents
$306M
Previous year: $283M
+8.3%
Free Cash Flow
$495M
Previous year: $193M
+156.2%
Total Assets
$8.65B
Previous year: $8.27B
+4.7%

Olin

Olin

Olin Revenue by Segment

Forward Guidance

Olin expects Chlor Alkali Products and Vinyls fourth quarter segment results to increase sequentially, while the Epoxy and Winchester segment fourth quarter results are expected to seasonally decline from third quarter 2021 levels. Overall, Olin also expects fourth quarter 2021 adjusted EBITDA to be comparable to or slightly lower than third quarter 2021 levels.

Positive Outlook

  • Chlor Alkali Products and Vinyls fourth quarter segment results are expected to increase sequentially.

Challenges Ahead

  • Epoxy and Winchester segment fourth quarter results are expected to seasonally decline from third quarter 2021 levels.
  • Overall, Olin also expects fourth quarter 2021 adjusted EBITDA to be comparable to or slightly lower than third quarter 2021 levels.

Revenue & Expenses

Visualization of income flow from segment revenue to net income