Overview
Chemical and ammunition maker's Q4 revenue beat analyst expectations
Adjusted EBITDA for Q4 missed analyst expectations
Company reported Q4 net loss of $85.7 mln due to market headwinds and disruptions
Outlook
Olin expects Q1 2026 adjusted EBITDA to be lower than Q4 2025
Winchester segment Q1 2026 results expected to modestly increase from Q4 2025
Epoxy business anticipated to return to profitability in 2026
Result Drivers
MARKET HEADWINDS - Olin faced continued market headwinds, including customer destocking and operational challenges, impacting its Chlor Alkali Products and Vinyls segment
EPOXY SALES INCREASE - Higher volumes and a favorable product mix led to increased sales in the Epoxy segment
RAW MATERIAL COSTS - Rising raw material costs impacted Winchester's earnings
Key Details
Metric | Beat/Miss | Actual | Consensus Estimate |
Q4 Revenue | Beat | $1.67 bln | $1.55 bln (14 Analysts) |
Q4 Net Income | -$85.50 mln | ||
Q4 Adjusted EBITDA | Miss | $67.70 mln | $74.28 mln (15 Analysts) |
Q4 EBIT | -$81.50 mln | ||
Q4 Pretax Profit | -$122.90 mln |
Analyst Coverage
The current average analyst rating on the shares is "hold" and the breakdown of recommendations is 3 "strong buy" or "buy", 13 "hold" and 1 "sell" or "strong sell"
The average consensus recommendation for the commodity chemicals peer group is "buy."
Wall Street's median 12-month price target for Olin Corp is $23.00, about 1.1% above its January 28 closing price of $22.74
The stock recently traded at 55 times the next 12-month earnings vs. a P/E of 26 three months ago
Press Release: ID:nPn2Zprqwa
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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)