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
Metric | Beat/Miss | Actual | Consensus Estimate |
Q3 Revenue | Miss | $1.75 bln | $1.83 bln (14 Analysts) |
Q3 Net Income | $14.40 mln | ||
Q3 Adjusted EBITDA | Beat | $191.40 mln | $179.86 mln (15 Analysts) |
Q3 Operating Income | $59.20 mln | ||
Q3 Pretax Profit | $17.10 mln |
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
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Oct 28 - France's Constellium Q3 revenue rises 22% on higher metal prices
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(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.)