Olin Corp. reported that its Winchester segment plunged in its fourth quarter due to promotional pricing in the ammunition category and rising raw material costs. Sales rose 3.2 percent, as higher military sales and military project revenue offset lower commercial ammunition sales.
Winchester’s sales reached $449.4 million compared to $435.4 million in the fourth quarter 2024.
Fourth quarter 2025 Winchester segment earnings collapsed to $0.6 million, compared to $42.0 million in the fourth quarter 2024. The $41.4 million decrease in segment earnings was primarily due to lower commercial ammunition pricing and shipments and higher operating and raw material costs, including propellant and commodity metal costs. Winchester’s fourth quarter 2025 results included depreciation and amortization expense of $9.0 million compared to $9.1 million in the fourth quarter 2024.
For the full year, Winchester’s sales increased 2.4 percent to $1.72 billion from $1.68 billion. Operating income fell 71.5 percent to $67.7 million from $237.9 million a year ago.
Ken Lane, Olin’s president and chief executive officer, said in a statement, “Winchester’s fourth quarter 2025 efforts to right-size inventories in the value chain have accelerated channel destocking. Winchester continues to experience rising raw material costs, including copper, brass, and propellant. To help mitigate these significant cost pressures, Winchester is implementing increased commercial ammunition pricing for the first quarter 2026. Our military business continues to deliver strong growth.”
Companywide, Olin posted a loss of $85.7 million, or 75 cents a share, in the quarter against net income of $10.7 million, or 9 cents, a year ago. Fourth quarter 2025 adjusted EBITDA of $67.7 million was down from $193.4 million a year ago.
On January 6, Olin lowered its fourth-quarter earnings guidance, with most of the shortfall occurring in the Chlor Alkali Products and Vinyls business.
Restructuring charges in the fourth quarter of 2025 included a $9.6 million charge, of which $4.1 million was a non-cash asset impairment charge, for the planned closure of its epoxy resin manufacturing facility in Guarujá, Brazil, in the first quarter 2026. Olin expects to realize approximately $10 million in structural cost savings annually while continuing to serve our Brazilian epoxy customers.
Sales in the fourth quarter were $1,665.1 million, compared to $1,671.3 million in the fourth quarter 2024.
In its other segments, Chlor Alkali Products and Vinyls sales for the fourth quarter were $856.4 million, compared to $953.7 million in the fourth quarter 2024. Fourth quarter 2025 segment loss was $14.7 million, compared to segment earnings of $75.2 million in the fourth quarter 2024, with the latest quarter impacted by lower pricing.
Epoxy sales for the quarter were $359.3 million, compared to $282.2 million in the fourth quarter 2024. Fourth quarter 2025 segment loss was $19.2 million, compared to segment loss of $27.4 million in the fourth quarter 2024.
Full year 2025 reported net loss was $42.8 million, or 37 cents per diluted share, which compares to full year 2024 reported net income of $108.6 million, or 91 cents per diluted share. Sales were $6.78 billion, up from $6.54 billion.
Commenting on Olin’s outlook for first quarter 2026, Lane said, “As a result of upcoming sequentially higher planned maintenance turnaround costs and higher raw material costs, including increased electrical power costs, we expect first quarter 2026 results from our Chemicals businesses to be lower than fourth quarter 2025. In our Winchester business, as commercial customer inventories become more normalized, we expect our first quarter 2026 results to modestly increase from fourth quarter 2025. Overall, we expect Olin’s first quarter 2026 adjusted EBITDA to be lower than fourth quarter 2025 levels.”
Image courtesy Winchester Ammo
