Olin (OLN) Q4 2025 Earnings Call Transcript

Motley Fool Transcribing, The Motley Fool

Fri, January 30, 2026 astatine 9:30 AM CST 41 min read

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Friday, January 30, 2026 astatine 9 a.m. ET

• President and Chief Executive Officer — Ken Lane

• Senior Vice President and Chief Financial Officer — Todd Slater

Ken Lane: Thanks, Steve, and convey you to everyone for joining america today. Let's commencement with Slide 3 and reappraisal our 4th fourth highlights. As we antecedently announced, our 4th fourth came successful importantly beneath our expectations. In December, we experienced operational issues related to an extended turnaround of our Freeport, Texas chlorinated organics assets and third-party earthy worldly proviso constraints, some of which impacted our halfway alkali assets. At the aforesaid time, we besides experienced a crisp diminution successful chlorine pipeline request successful an already seasonally weaker quarter.

During the quarter, we were capable to sphere our ECU values by staying disciplined with our value-first commercialized approach, and we besides announced the semipermanent EDC proviso statement with Braskem, which provides a higher worth to some parties by integrating the low-cost shaper of EDC with the person successful PVC successful Brazil. In addition, we've expanded our infrastructure footprint successful Brazil, which enables america to turn our caustic income determination successful 2026. In our epoxy business, we were capable to declaration for important maturation successful our European business, which we'll statesman to payment from successful 2026.

This is simply a effect of our commercialized team's palmy strategy to presumption Olin arsenic the past integrated supplier of epoxy successful Europe, providing reliable, unafraid proviso to section customers successful the look of continued headwinds from subsidized Asian producers. In our Winchester business, we took assertive enactment to accelerate inventory reductions crossed our strategy and began efforts to rightsize our outgo operation successful effect to little commercialized ammunition demand. Cash procreation is simply a precocious precedence for Olin, particularly successful the trough situation that we're in. I'm precise arrogant of however our squad has responded, and done actions that we took, we were capable to make $321 cardinal of operating currency travel and clasp nett indebtedness level versus year-end 2024.

Let's crook to Slide 4 for a person look astatine our chlor alkali merchandise and vinyls results. Macro conditions stay challenging. Merchant chlorine request remains nether unit done this extended trough arsenic subsidized Asian chlorine derivatives flood export markets. Since 2019, China exports of titanium dioxide, urethanes, epoxies, harvest extortion chemicals, and PVC person grown 300 to 600%, placing important unit connected US chlorine derivative customers. As you would expect successful a trough environment, we are already seeing chlor alkali capableness rationalization successful Europe, Latin America, and the US, which should accelerate operating rates arsenic request recovers. Olin has done a large occupation of preserving our ECU values and remains committed to our value-first approach.