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 across the United States, 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, management said first-quarter 2026 net loss attributable to Olin was $83.0 million, compared with net income of $1.4 million a year earlier, as diluted loss per share widened to $0.73 from $0.01. Sales fell to $1.583 billion from $1.644 billion, while gross margin dropped to $75.8 million from $148.7 million and gross margin as a percentage of sales declined to 5% from 9%. Selling and administrative expense rose to $145.0 million from $101.0 million, including $37.2 million of higher legal and legal-related settlement expense and $10.0 million of higher stock-based compensation costs; restructuring charges increased to $9.1 million from $4.0 million.
Chlor Alkali Products and Vinyls posted a segment loss of $44.5 million, versus segment income of $78.3 million a year earlier. Sales in the segment fell 18% to $756.9 million from $924.5 million, driven by lower volumes, mainly from reduced trading volumes tied to Blue Water Alliance, and lower pricing. Management said the segment’s result decline reflected $63.5 million of lower pricing, $44.0 million of lower volumes, $29.6 million of higher raw material costs, and a $36.1 million charge tied to legacy litigation matters, partly offset by $43.5 million of lower operating costs.
Epoxy reported a segment loss of $2.9 million, compared with a loss of $28.4 million in the prior-year quarter. Sales increased 7% to $355.6 million from $331.7 million, helped by higher volumes of $32.9 million and a $15.5 million foreign currency translation benefit, partly offset by $24.5 million of lower pricing. Segment results improved by $25.5 million, with $24.7 million of lower operating costs and $19.7 million of lower raw material costs, mainly benzene and propylene, offsetting the pricing pressure.
Winchester generated segment income of $15.2 million, down from $22.8 million. Sales rose to $470.5 million from $388.0 million, led by higher military project revenue and stronger ammunition sales to military and commercial customers. Management said the segment’s profit declined because of higher raw material and operating costs, including commodity metal and propellant costs, despite higher commercial ammunition pricing and volumes.
On liquidity, Olin amended its $1.85 billion senior credit facility on February 19, 2026, loosening financial covenants and adding guarantees and collateral from certain domestic subsidiaries. During the quarter, the company recorded net borrowings of $170.3 million, including $160.0 million under its revolving credit facility, which helped cover $109.7 million of remaining principal amortization on the term loan. Olin also paid Mitsui $31.3 million in the first quarter tied to the liquidation of Blue Water Alliance working capital. The market has reacted to these announcements by moving the company's shares 3.14% to a price of $27.60. If you want to know more, read the company's complete 10-Q report here.
