Olin Corp. reported that earnings its Winchester segment in its first quarter fell 33.3 percent due to higher raw material costs, primarily commodity metal costs, and and higher operating costs.
Earnings reached $15.2 million, compared to $22.8 million in the first quarter of 2025. The pricing and cost pressures were partly offset by higher commercial ammunition pricing and higher military project revenue.
Sales at the Winchester segment rose 21.3 percent to $470.5 million, compared to $388.0 million the prior year.
Companywide, Olin reported a net loss was $83.0 million, or 73 cents per share, which compares to first quarter 2025 reported net income of $1.4 million, or 1 cent, a year ago. First quarter 2026 adjusted EBITDA of $86.2 million excludes depreciation and amortization expense of $117.2 million, restructuring charges of $9.1 million and legacy litigation charges of $36.1 million. First quarter 2025 adjusted EBITDA was $185.6 million.
Sales in the first quarter 2026 were $1.58 billion, compared to $1.64 billion in the first quarter 2025
In its other segments, Chlor Alkali Products and Vinyls’ sales for the first quarter were $756.9 million, compared to $924.5 million in the first quarter 2025. The segment loss was $44.5 million, compared to segment earnings of $78.3 million in the first quarter 2025.
Epoxy sales for the quarter were $355.6 million, compared to $331.7 million in the first quarter 2025. First quarter 2026 segment loss was $2.9 million, compared to segment loss of $28.4 million in the first quarter 2025.
Management Commentary
Ken Lane, president and CEO, said, “During the first quarter, the Olin team delivered sequential improvement in adjusted EBITDA. Our Chlor Alkali Products and Vinyls business benefited from favorable operating cost performance driven by our Beyond250 structural cost actions and lower than expected planned maintenance turnaround expenses. Our Epoxy business returned to positive adjusted EBITDA underpinned by growth in its European business, supported by structurally improved costs at our Stade, Germany facility. Winchester’s sequential improvement was driven by actions taken late last year to accelerate channel inventory destocking, as well as improving demand and pricing measures implemented to offset commodity metals and raw materials cost inflation.
“Late in the first quarter, the Iran conflict began to impact trade flows and to increase raw material and feedstock costs. As global supply shortages persist into the second quarter and potentially beyond, our advantaged North American asset base positions us to reliably serve our customers.
“Looking ahead, our Chemicals businesses are expected to deliver sequential earnings improvement driven by seasonally stronger demand and improved pricing, particularly for ethylene dichloride, caustic soda, and epoxy resins. In our Winchester business, improving commercial and military demand are expected to support sequential earnings growth. Overall, second quarter 2026 adjusted EBITDA is forecast to be in the range of $160 million to $200 million,” Lane concluded.
Corporate And Other Costs
Other corporate and unallocated costs in the first quarter of 2026 increased $13.2 million compared to the first quarter 2025 primarily due to higher incentive costs, primarily mark-to-market on stock-based compensation, and an unfavorable impact from foreign currency.
Liquidity and Dividends
The cash balance on March 31, 2026, was $192.2 million. Olin ended the first quarter 2026 with net debt of approximately $2.8 billion and a net debt to adjusted EBITDA ratio of 5.1 times. On March 31, 2026, Olin had available liquidity of approximately $1.3 billion, including unrestricted access to the undrawn portion of its revolving credit facility. Working capital increased $56.8 million in the first quarter 2026 due to normal seasonality tempered by a disciplined cash management approach.
On April 29, 2026, Olin’s Board of Directors declared a dividend of 20 cents on each share of Olin common stock. The dividend is payable on June 12, 2026, to shareholders of record at the close of business on May 14, 2026. This will be the 398th consecutive quarterly dividend to be paid by the company.
Image courtesy Winchester
