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Investing.com -- Olin Corporation (NYSE:OLN) reported third quarter 2025 earnings that exceeded analyst expectations, but shares tumbled 5.8% in after-hours trading Monday as revenue fell short of estimates and the company issued cautious guidance for the fourth quarter.
The chemical manufacturer posted adjusted earnings of $0.37 per diluted share for the quarter ended September 30, significantly beating the analyst consensus of $0.07. However, revenue of $1.71 billion missed the analyst estimate of $1.74 billion, despite representing a 7.8% increase from $1.59 billion in the same quarter last year.
Olin’s third quarter performance was primarily driven by its Chlor Alkali Products and Vinyls segment, which benefited from a $32 million pretax benefit related to clean hydrogen production tax credits. The company also recovered from the previous year’s Hurricane Beryl impacts, which had caused $109.4 million in additional costs and reduced profits in Q3 2024.
"In the third quarter, Olin delivered on our sequentially higher earnings expectations, primarily driven by our Chlor Alkali Products and Vinyls segment," said Ken Lane, President and Chief Executive Officer. "Although seasonal demand growth was limited within a persistently challenging market, Olin maintained its disciplined focus on preserving our Electrochemical Unit values."
The company’s outlook for the remainder of 2025 appears to have concerned investors. Olin expects fourth quarter 2025 adjusted EBITDA to be in the range of $110 million to $130 million, which includes a $40 million penalty from planned inventory reductions.
Lane noted ongoing challenges, stating, "In addition to ongoing, subdued global epoxy demand, headwinds persist from subsidized Asian material flowing into the United States and European epoxy markets." He also mentioned that Winchester’s commercial ammunition sales showed only slight seasonal improvement as "commercial retailers continue to have elevated inventories amid continued lower consumer sales."
During the third quarter, Olin repurchased approximately 0.5 million shares of common stock at a cost of $10.1 million and ended the period with a cash balance of $140.3 million and net debt of approximately $2.85 billion.
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