Olin Corp. stock surges as Q1 results top estimates

Published 01/05/2025, 22:56
Olin Corp. stock surges as Q1 results top estimates

Investing.com -- Olin Corporation (NYSE:OLN) saw its stock jump 6.2% after reporting first quarter 2025 financial results that exceeded analyst expectations, despite challenging market conditions in some segments.

The chemical manufacturer posted adjusted earnings per share of $0.01, beating the consensus estimate of -$0.08. Revenue came in at $1.64 billion, surpassing analyst projections of $1.58 billion and rising 0.5% YoY.

Olin’s Chlor Alkali Products and Vinyls segment benefited from higher-than-expected chlorine demand due to industry outages, offsetting weakness in other areas. The company delayed planned maintenance to support customers during tight supply conditions.

"We remain committed to our value-first commercial approach and view this as an encouraging proof point of our operating leverage, as demand recovers," said Ken Lane, President and CEO.

However, challenges persisted in the Epoxy and Winchester segments. Epoxy faced weak global demand and Asian competition, while Winchester saw pressure on commercial sales from strained consumer spending.

Olin now expects to deliver $50 to $70 million in YoY cost savings for 2025, up from its previous outlook. The company also lowered its annual capital spending estimate by approximately $25 million.

For the second quarter of 2025, Olin projects adjusted EBITDA between $170 million and $210 million. Management noted increasing economic uncertainty but remains focused on its disciplined strategy.

"Olin remains committed to our value-first commercial approach and our disciplined capital allocation strategy as the pathway to long-term shareholder value creation," Lane concluded.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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