Olin Corporation — Third Quarter 2026 Earnings Summary

Financial Performance:

• Reported net income of $14.4 million ($0.13 per diluted share) for the third quarter of 2026, down from $42.8 million ($0.37 per diluted share) in the same period in 2025.
• Sales for the third quarter 2026 were $1,747.7 million, an increase from $1,713.2 million in the third quarter 2025.
• Adjusted EBITDA for the third quarter 2026 was $191.4 million, compared to $222.4 million in the third quarter 2025.
• Adjusted EBITDA excludes depreciation and amortization of $114.4 million, acquisition-related costs of $13.7 million, and restructuring charges of $1.7 million.
• For the nine months ended September 30, 2026, net loss was $81.9 million, compared to net income of $42.9 million in the same period in 2025.
• Nine-month sales totaled $5,072.6 million in 2026, down from $5,115.7 million in 2025.
• Nine-month adjusted EBITDA was $468.9 million in 2026, down from $584.1 million in 2025.
• Cash balance on September 30, 2026, was $214.8 million.
• Net debt was approximately $2.8 billion, resulting in a net debt to adjusted EBITDA ratio of 5.2 times.
• Available liquidity was approximately $1.3 billion, including unrestricted access to the undrawn portion of the revolving credit facility.
• Dividends per common share were $0.20 for the quarter, consistent with the prior year quarter.

Guidance and Future Outlook:

• The merger with Huntsman is expected to close in the first quarter of 2027, subject to customary closing conditions.
• Fourth quarter 2026 adjusted EBITDA is expected to be in the range of $80 million to $100 million.
• Q4 outlook factors include normal seasonality, elevated year-end customer destocking in Chemicals, higher feedstock costs, continued pressure from subsidized Asian exports, and significant planned maintenance turnarounds.
• Management remains focused on delivering "Beyond250" structural cost savings and generating cash.

Business Segments and Product Lines:

• Chlor Alkali Products and Vinyls: Sales were $850.8 million in Q3 2026, down from $924.0 million in Q3 2025, driven by lower trading volumes associated with the Blue Water Alliance joint venture (which concluded operations at the end of 2025) and lower VCM volumes, partially offset by higher pricing. Segment earnings were $71.3 million, down from $127.6 million, including a $5.0 million pretax benefit from the clean hydrogen production tax credit (Section 45V) compared to $32.0 million in the prior year; the remaining decrease was due to operating issues at the Freeport, Texas VCM plant.
• Epoxy: Sales were $412.2 million in Q3 2026, up from $349.6 million in Q3 2025, driven by higher volumes and improved pricing. Segment earnings improved to $0.6 million from a loss of $32.2 million in the prior year, primarily due to higher volumes and lower operating costs.
• Winchester: Sales were $484.7 million in Q3 2026, up from $439.6 million in Q3 2025, primarily due to higher commercial ammunition sales. Segment earnings were $33.8 million, up from $19.3 million, driven by higher commercial ammunition pricing and volume, partially offset by higher commodity metal costs.

Market and Competitive Landscape:

• The company faces continued challenging global demand and persistent demand weakness in Europe.
• Competitive pressures include subsidized Asian exports impacting the market.
• The Chlor Alkali Products and Vinyls segment maintained disciplined market participation and stable domestic Electrochemical Unit values.
• Winchester implemented pricing actions to offset higher metals and raw material costs.

Risks and Challenges:

• Risks include sensitivity to economic and market conditions, declines in average selling prices, and supply/demand imbalances.
• Operational risks include manufacturing interruptions, labor disruptions, and production hazards.
• The proposed merger with Huntsman carries risks regarding the satisfaction of closing conditions, regulatory approvals, and the potential failure to realize expected synergies.
• Risks also include the inability to complete future acquisitions or successfully integrate them, and adverse conditions in credit and capital markets.
• Legal and environmental risks include changes in legislation, regulatory claims, and costs associated with environmental remediation.

Management Commentary and Tone:

• Ken Lane, President and CEO, stated that Olin delivered adjusted EBITDA consistent with expectations and restored normal operations at VCM assets.
• Management highlighted substantial progress in integration planning for the Huntsman merger, noting that shareholders of both companies overwhelmingly approved the transaction and the U.S. Hart-Scott-Rodino Act waiting period expired.
• The tone reflects a focus on operating safely and reliably while navigating volatile export markets and elevated costs.

Other Key Points:

• Olin and Huntsman Corporation entered into a definitive agreement for an all-stock merger of equals to form OlinHuntsman Corporation.
• Third quarter 2026 results included $13.7 million in acquisition-related costs associated with the pending merger.
• Nine-month results included $24.3 million in acquisition-related costs.
• The Blue Water Alliance joint venture concluded operations at the end of 2025.
• Segment earnings for Chlor Alkali Products and Vinyls included a $5.0 million pretax benefit related to the Inflation Reduction Act's Section 45V clean hydrogen production tax credit.
• Corporate and other costs increased $0.8 million year-over-year, primarily due to an unfavorable impact from foreign currency, partially offset by lower stock-based compensation.