OLIN Corp recently released its 10-Q report. Olin Corporation, incorporated in 1892 and based in Clayton, Missouri, manufactures and distributes chemical products and ammunition in the United States and abroad, including Europe, Asia Pacific, the Middle East, Africa, India, Latin America and Canada. Its operations are organized into three segments: Chlor Alkali Products and Vinyls, Epoxy and Winchester.
In Item 2, Olin said it is a Virginia corporation with principal executive offices in Clayton, MO, and described itself as a vertically integrated global manufacturer of chemicals and a U.S. ammunition producer. The company said all three segments are capital-intensive manufacturing businesses. Chlor Alkali Products and Vinyls makes chlorine, caustic soda, EDC, VCM, methyl chloride, methylene chloride, chloroform, carbon tetrachloride, perchloroethylene, hydrochloric acid, hydrogen, bleach products and potassium hydroxide. Epoxy produces aromatics, allyl chloride, epichlorohydrin, liquid and solid epoxy resins, and converted epoxy resins and additives. Winchester sells sporting ammunition, reloading components, small caliber military ammunition, industrial cartridges and clay targets, along with contracted U.S. military project revenue.
For the three months ended June 30, 2026, Olin posted a net loss attributable to the company of $13.3 million, compared with a loss of $1.3 million a year earlier. For the six months ended June 30, 2026, the net loss attributable to Olin was $96.3 million, versus income of $0.1 million in the prior-year period. Diluted loss per share was $0.12 for the quarter and $0.85 for the first half, compared with $0.01 and breakeven a year earlier.
Second-quarter sales were $1.7419 billion, down 1% from $1.7583 billion. First-half sales were $3.3249 billion, down 2% from $3.4025 billion. Gross margin rose to $170.2 million in the quarter from $138.1 million, but fell to $246.0 million for the first half from $286.8 million.
Chlor Alkali Products and Vinyls reported segment income of $53.4 million in the quarter and $8.9 million in the first half. Olin said the quarter was hit by $40.1 million from operating issues at the VCM plant in Freeport, Texas, which raised costs and reduced profit from lost sales. For the first half, the segment was also hurt by lower product pricing and volumes, a $36.1 million legacy litigation charge, and higher natural gas and electricity costs.
Epoxy posted segment income of $16.0 million in the quarter and $13.1 million in the first half. Olin said the quarterly improvement came from higher pricing and lower operating costs, while the six-month gain was driven by lower operating costs and higher volumes. The company said global epoxy demand remains weak and that its U.S. and European epoxy businesses remain challenged by subsidized Asian competition.
Winchester reported segment income of $28.1 million in the quarter and $43.3 million in the first half. Quarterly results improved on higher commercial ammunition pricing, higher volumes and better military project revenue. For the six months, higher raw material and operating costs offset part of the benefit from stronger pricing, higher volumes and improved military project revenue.
Selling and administrative expense was $102.7 million in the quarter, up from $95.2 million, and $247.7 million in the first half, up from $196.2 million. Olin recorded $10.5 million of restructuring charges in the quarter and $19.6 million in the first half. Acquisition-related costs tied to the Huntsman merger totaled $10.6 million in both the quarter and the first half.
On June 15, 2026, Olin entered into an all-stock merger agreement with Huntsman Corporation to form OlinHuntsman Corporation. Under the deal, each Huntsman share would convert into 0.5476 shares of Olin common stock. Olin shareholders are expected to own about 54.5% of the combined company and Huntsman stockholders about 45.5%. The company said it expects closing in the first half of 2027.
Olin said it amended its $1.85 billion senior credit facility on February 19, 2026, loosening financial covenants while keeping the maturity at March 14, 2030. During the first half, it recorded net borrowings of $202.3 million, including $210.0 million drawn under its revolving credit facility, partly used to cover $109.7 million of remaining principal amortization on the secured term loan.
Olin also said it paid $31.3 million to Mitsui in the first quarter to liquidate working capital tied to the Blue Water Alliance joint venture, which it and Mitsui agreed to end by the end of 2025. Today the company's shares have moved -19.33% to a price of $17.885. For the full picture, make sure to review OLIN Corp's 10-Q report.
