Olin Q3 revenue misses estimates; sees lower Q4 adjusted EBITDA

Overview

• US chemicals and ammunition maker's Q3 revenue rose slightly but missed analyst expectations

• Adjusted EBITDA for Q3 beat analyst expectations

• Q3 net income fell 66% yr/yr as Chlor Alkali earnings declined

Outlook

• Olin expects Q4 2026 adjusted EBITDA between $80 mln and $100 mln

• Company sees Q4 results pressured by Chemicals destocking, higher feedstock costs, Asian exports and planned maintenance

• Olin expects Olin and Huntsman merger to close in Q1 2027, pending regulatory approvals

Result Drivers

• CHLOR ALKALI AND VINYLS - Segment earnings fell as Freeport VCM plant issues caused $32.1 mln in higher costs and lost-sales profit, while a smaller tax-credit benefit also weighed

• EPOXY - Segment earnings improved on higher volumes and lower operating costs, with higher pricing offsetting increased raw material costs

• WINCHESTER - Segment earnings rose on higher commercial ammunition pricing and volume, partly offset by higher commodity metal costs

Company press release:

Key Details

Analyst Coverage

• The current average analyst rating on the shares is "hold" and the breakdown of recommendations is 3 "strong buy" or "buy", 14 "hold" and 1 "sell" or "strong sell"

• The average consensus recommendation for the commodity chemicals peer group is "buy."

• Wall Street's median 12-month price target for Olin Corp is $18.00, about 9.3% above its October 28 closing price of $16.47

• The stock recently traded at 53 times the next 12-month earnings vs. a P/E of 49 three months ago

Reuters Recommended Reads

• Oct 29 - Germany's Wacker Chemie Q3 EBITDA nearly doubles on cost savings

• Oct 28 - LSB Industries Q3 net sales rise on industrial demand

• Oct 28 - France's Constellium Q3 revenue rises 22% on higher metal prices

For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.

(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)