[Management View]
Olin's management highlighted key metrics such as a 5% decline in adjusted EBITDA due to planned maintenance turnaround costs and unplanned operating events. Strategic priorities include the Beyond 250 cost reduction initiative targeting $70 million to $90 million in year-end run rate savings for 2025, and further savings from a new Stade, Germany agreement starting January 2026.

[Outlook]
Management provided performance guidance for Q3 2025, expecting adjusted EBITDA between $170 million and $210 million, reflecting continued macroeconomic and tariff uncertainties as well as higher metals costs. Future plans include a commercial price increase for Winchester in Q3 2025 to offset commodity inflation and expanding the PVC tolling initiative.

[Financial Performance]
Adjusted EBITDA declined by 5% compared to 2025, primarily due to a $32 million headwind from planned maintenance turnaround costs in the chemicals businesses. Operating cash flow was $212 million, covering the $56 million Winchester Manitowoc facility acquisition, $39 million in debt reduction, and $10 million of share repurchases.

[Q&A Highlights]
Question 1: Did Apple Intelligence drive sales of the iPhone 16 series? Which features are most popular with users?
Answer: In markets where Apple Intelligence was introduced, the iPhone 16 series outperformed markets where the feature was not introduced. Users used features such as ‘Writing Tools,’ ‘Image Playground,’ and ‘Genmoji’ extensively, especially the ‘Clean Up’ feature. The ‘Clean Up’ feature received a lot of attention in Apple Store demos. Apple Intelligence is also continuing to expand language support, which is expected to further enhance user experience and demand.

Question 2: How is the caustic soda price increase progressing?
Answer: We continue to see strength in our system around caustic in terms of supply and demand. The tightness in the market is driven more by supply and stable demand. There is some noise in the system around the tariff situation, causing a backup in the caustic market in the short term. We expect this to get worked through and see continued strong demand and stability.

Question 3: Have you seen any signs of potential support for EDC pricing?
Answer: Prices dipped lower than expected during the second quarter due to softness in the oil price, giving a lifeline to higher-cost Asian producers. We are seeing some curtailments in Asia, which is encouraging. However, recovery in the EDC market will depend on a recovery in demand, particularly in housing and real estate investments.

Question 4: What is the impact of higher costs and lower pricing on Winchester's commercial business?
Answer: About half of the decline is driven by volume, with the rest split between higher costs and lower pricing. Propellants and metals continue to be headwinds versus prior year, driving higher costs and lower margins. We need to start pushing price to recover margins.

Question 5: Can you elaborate on the cost savings program and its impact on Freeport and other sites?
Answer: The majority of cost reductions are at Freeport, but we are also right-sizing infrastructure at other sites like Macintosh. We are reducing reliance on outside contractors to eliminate inefficiencies. We expect to realize $50 to $70 million in cost savings for 2025, with further tailwinds from structural cost reductions in epoxy starting in 2026.

Question 6: Is there a risk that things could get worse for Winchester in the second half or next twelve months?
Answer: It is hard to see things getting worse. We are seeing unprecedented margin levels due to a perfect storm of destocking, higher costs, and lower consumer spending. These challenges are not structural and will eventually work through the system. We need to push pricing to offset cost pressures.

Question 7: Can you bridge the Q3 guidance range with the Q2 results?
Answer: The broader range of $170 to $210 million reflects the amount of uncertainty we see. Sequentially, we expect lower turnaround costs and more reliable operations, but higher raw material costs and stable EDC pricing at lower levels will continue to be headwinds.

Question 8: How do you see competitive dynamics in epoxy in Europe impacting Olin?
Answer: The European Commission's decision on antidumping duties was disappointing. As the last integrated supplier of epoxy resin in Europe, we will focus on getting the highest value and generating more value as we go into the new year.

Question 9: What is the plan for testing the U.S. PVC market with VCM tolled to PVC through ChemOne?
Answer: We are actively marketing to a handful of customers and qualifying with others. Our goal is to find the most capital-efficient way to participate in the vinyls market, considering commercial agreements, joint ventures, and partnerships.

[Sentiment Analysis]
The tone of analysts was cautious but inquisitive, focusing on the impact of commodity pressures and strategic cost initiatives. Management's tone was confident in their ability to navigate challenges and emphasized their commitment to generating cash and maintaining a strong financial foundation.

[Quarterly Comparison]
| Metric | Q2 2025 | Q2 2024 | YoY Change |
|--------|---------|---------|------------|
| Adjusted EBITDA | $176 million | $185 million | -5% |
| Operating Cash Flow | $212 million | $200 million | +6% |
| Debt Reduction | $39 million | $35 million | +11% |
| Share Repurchases | $10 million | $8 million | +25% |

[Risks and Concerns]
Management cited unprecedented margin levels in Winchester's commercial ammunition business due to elevated costs, high inventories, and weak consumer demand. Higher commodity costs, particularly copper, are expected to impact Winchester throughout the second half of 2025 and into 2026. Tariff uncertainties and retaliatory actions could further impact caustic soda and EDC markets.

[Final Takeaway]
Olin's Q2 2025 performance was impacted by planned maintenance turnaround costs and unplanned operating events, resulting in a 5% decline in adjusted EBITDA. Management remains focused on strategic cost initiatives and generating cash to navigate ongoing commodity pressures and market uncertainties. The outlook for Q3 2025 includes expected seasonal demand strength and a commercial price increase for Winchester to offset higher costs. Despite challenges, Olin's strong financial foundation and disciplined capital allocation approach position the company for future growth and stability.