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Olin
🇺🇸 NYSE:OLN
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Sep 30, 2023

Olin Q3 2023 Earnings Report

Announced third quarter 2023 results, reflecting net income and adjusted EBITDA.

Key Takeaways

Olin Corporation reported a net income of $104.1 million, or $0.82 per diluted share, for the third quarter of 2023. Sales were $1,671.4 million, and adjusted EBITDA was $314.8 million. The company also repurchased $202.1 million in shares during the quarter and is focusing on actions to improve 2024 performance.

Net income for the third quarter 2023 was $104.1 million, or $0.82 per diluted share.

Adjusted EBITDA for the third quarter 2023 was $314.8 million.

Share repurchases amounted to $202.1 million in the third quarter 2023.

The company is focusing on actions to improve 2024 performance.

Total Revenue
$1.67B
Previous year: $2.32B
-28.0%
EPS
$0.82
Previous year: $2.18
-62.4%
Adjusted EBITDA
$315M
Previous year: $548M
-42.5%
Gross Profit
$269M
Previous year: $481M
-44.0%
Cash and Equivalents
$158M
Previous year: $164M
-3.2%
Free Cash Flow
$171M
Previous year: $486M
-64.9%
Total Assets
$7.82B
Previous year: $8.22B
-4.9%

Olin

Olin

Olin Revenue by Segment

Forward Guidance

Olin expects fourth quarter 2023 adjusted EBITDA to be in the $200 million range, with Winchester segment results similar to third quarter 2023 levels. The 'value accelerator initiative' is expected to reduce fourth quarter 2023 adjusted EBITDA outlook by approximately $100 million compared to previous expectations but should deliver an improved 2024 adjusted EBITDA compared to 2023.

Positive Outlook

  • Global conditions for Chlor Alkali Products and Vinyls business are approaching a favorable inflection point.
  • Winchester segment fourth quarter results expected to be similar to third quarter 2023 levels.
  • Value accelerator initiative' should deliver an improved 2024 adjusted EBITDA compared to 2023.
  • Prioritizing share repurchases from excess cash flow
  • Disciplined approach to ECU values.

Challenges Ahead

  • Electrochemical unit (“ECU”) values have been declining in 2023.
  • The ‘value accelerator initiative’ is expected to reduce fourth quarter 2023 adjusted EBITDA outlook by approximately $100 million compared to previous expectation.
  • Contracting demand environment over the last six quarters
  • Idled St. Gabriel, Louisiana, facility and largest chlor alkali plant at Freeport, Texas facility
  • Chlor Alkali Products and Vinyls third quarter 2023 segment results were also negatively impacted by higher costs and reduced profit from lost sales associated with operating issues, related to the previous quarter’s maintenance turnaround at our vinyl chloride monomer plant at the Freeport, Texas facility.

Revenue & Expenses

Visualization of income flow from segment revenue to net income

Company Overview

Full financial data and analysis

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