OLNHIGH SIGNALFINANCIAL10-K

Olin experienced a dramatic collapse in operating profitability with operating income falling to near-zero levels while gross margins compressed significantly.

The company's operating income effectively disappeared, indicating severe operational distress or potentially one-time charges that decimated profitability. Combined with the substantial reduction in share buybacks, this suggests management is conserving cash amid challenging operating conditions and may signal fundamental deterioration in the business environment for chemical manufacturers.

Comparing 2026-02-20 vs 2025-02-20View on EDGAR →
FINANCIAL ANALYSIS

Olin's financial performance deteriorated sharply, with operating income collapsing from $296.5M to just $5.3M while gross profit declined meaningfully by 32% to $501.5M. SG&A expenses rose modestly to $463.3M, compounding the margin pressure. The company also dramatically reduced share buybacks from $300.3M to $50.5M, indicating a shift toward cash preservation amid the challenging operating environment.

FINANCIAL STATEMENT CHANGES
Operating Income
P&L
-98.2%
$296.5M$5.3M

Operating income deteriorated sharply — investigate whether driven by one-time charges or structural cost issues.

Share Buybacks
Cash Flow
-83.2%
$300.3M$50.5M

Buyback activity reduced 83.2% — capital being redeployed elsewhere or cash conservation underway.

Gross Profit
P&L
-32%
$737.5M$501.5M

Gross margin compression — rising input costs, pricing pressure, or unfavorable product mix shift.

SG&A Expense
P&L
+13.4%
$408.5M$463.3M

SG&A increased modestly — likely reflects growth-related hiring or sales expansion investment.

LANGUAGE CHANGES
NEW — 2026-02-20
PRIOR — 2025-02-20
ADDED
As of January 31, 2026, 113,636,799 shares of the registrant s common stock were outstanding.
BUSINESS GENERAL Olin Corporation (Olin, the Company, we or our) is a Virginia corporation, incorporated in 1892, having its principal executive offices in Clayton, MO.
The Chlor Alkali Products and Vinyls segment manufactures and sells chlorine and caustic soda, ethylene dichloride (EDC) and vinyl chloride monomer (VCM), methyl chloride, methylene chloride, chloroform, carbon tetrachloride, perchloroethylene, hydrochloric acid, hydrogen, bleach products and potassium hydroxide, which represented 54% of 2025 sales.
The Winchester segment produces and sells sporting ammunition, reloading components, small caliber military ammunition and components, industrial cartridges and clay targets, along with contracted U.S.
military project revenue, which represented 26% of 2025 sales.
A significant portion of chlorine production is consumed in the manufacturing of vinyls intermediates, EDC and VCM, both of which our Chlor Alkali Products and Vinyls segment produces.
Our industry leadership in the production of chlorinated organics and epoxy resins, as well as other products, offers us multiple outlets for our captive chlorine.
On September 18, 2025, we announced a mutual decision with Mitsui to end our joint venture, BWA, by the end of 2025.
This decision was made to evolve our EDC participation by emphasizing longer-term structural opportunities that enhance value and optionality.
On November 11, 2025, Olin announced a commercial arrangement with Braskem, one of the largest petrochemical companies in the Americas and the leading producer of PVC in South America, for Olin to supply EDC to Braskem, aligning with Braskem's transformation of its chlor alkali and vinyl assets in Brazil.
REMOVED
As of January 31, 2025, 115,423,860 shares of the registrant s common stock were outstanding.
BUSINESS GENERAL Olin Corporation (Olin) is a Virginia corporation, incorporated in 1892, having its principal executive offices in Clayton, MO.
The Chlor Alkali Products and Vinyls segment manufactures and sells chlorine and caustic soda, ethylene dichloride and vinyl chloride monomer, methyl chloride, methylene chloride, chloroform, carbon tetrachloride, perchloroethylene, hydrochloric acid, hydrogen, bleach products and potassium hydroxide, which represented 55% of 2024 sales.
The Winchester segment produces and sells sporting ammunition, reloading components, small caliber military ammunition and components, industrial cartridges and clay targets, which represented 25% of 2024 sales.
A significant portion of chlorine production is consumed in the manufacturing of vinyls intermediates, ethylene dichloride (EDC) and vinyl chloride monomer (VCM), both of which our Chlor Alkali Products and Vinyls segment produces.
We also manufacture and sell other chlor alkali-related products, including hydrochloric acid, sodium hypochlorite (bleach) and potassium hydroxide.
BWA brings together Mitsui's industry-leading global logistics, long-established supplier and customer relationships, and breadth of product portfolio with Olin's scale, North American export capability, extensive global terminal network, and production flexibility across the ECU portfolio.
The following table lists the principal products and services of our Chlor Alkali Products and Vinyls segment.
Products Services Major End Uses Plants Facilities Major Raw Materials Components for Products/Services Chlorine/caustic soda Pulp paper processing, chemical manufacturing, water purification, vinyl chloride manufacturing, bleach, swimming pool chemicals and urethane chemicals Becancour, Canada Charleston, TN Freeport, TX McIntosh, AL Niagara Falls, NY Plaquemine, LA St.
Allyl is used not only as a feedstock in the production of EPI, but also as a chemical intermediate in multiple industries and applications, including water purification chemicals.
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