Olin Corporation's Q1 Earnings Beat Estimates, Revenues Up Y/Y

Olin Corporation OLN reported first-quarter 2025 net income of $1.4 million or a penny per share, a decline from the prior-year quarter’s profits of $48.6 million or 40 cents.

Barring one-time items, adjusted earnings of 4 cents per share beat the Zacks Consensus Estimate of a loss of 10 cents.

Adjusted EBITDA was $185.6 million, down from the year-ago quarter’s $242.1 million. 

Revenues of $1,644.2 million missed the Zacks Consensus Estimate of $1,661.2 million. However, the metric increased roughly 0.54% on a year-over-year basis. The first quarter saw continued ECU (electrochemical unit) value stability and favorable pricing trends.

(Find the latest EPS estimates and surprises on Zacks Earnings Calendar.)

Olin Corporation Price, Consensus and EPS Surprise

Olin Corporation price-consensus-eps-surprise-chart | Olin Corporation Quote

OLN’s Segment Review

Chlor Alkali Products and Vinyls: In the first quarter, revenues amounted to $924.5 million, increasing around 4.5% year over year. The figure beat the Zacks Consensus Estimate of $923 million. This upside was driven by higher volumes.

Epoxy: Revenues in the division went down around 2.8% year over year to $331.7 million. However, the figure surpassed the consensus estimate of $329 million. The segment posted a wider loss due to higher operating costs.

Winchester: Revenues declined around 5.2% year over year to $388 million. The figure also missed the consensus estimate of $410 million. The metric slumped due to lower commercial ammunition sales, partially offset by higher military sales and military project revenues.

OLN’s Financials

In the reported quarter, OLN repurchased 0.7 million shares for $20.2 million. The company ended the quarter with approximately $174 million of cash. The quarter saw a dip in cash flow from operating activities, decreasing from the prior-year inflow of $81 million to an outflow of $86 million.

OLN’s Outlook

For the second quarter, OLN expects results from its Chemicals businesses to be similar to the first quarter, notwithstanding higher second-quarter costs from the delayed first-quarter planned maintenance turnaround. Results in the Winchester unit are forecasted to improve sequentially on a pick-up in seasonal demand and an improvement in military sales and military project revenues. The company expects second-quarter 2025 adjusted EBITDA to be between $170 million and $210 million.

OLN anticipates capital expenditure to be between $200 million and $220 million in 2025.

OLN Stock’s Price Performance

OLN stock has lost 63.1% in the past year compared with the 28.3% decline of the industry.

Image Source: Zacks Investment Research

OLN's Zacks Rank & Key Picks

OLN currently carries a Zacks Rank #5 (Strong Sell).  

Some better-ranked stocks in the Basic Materials space are Brenntag SE BNTGY, Contango Ore, Inc. CTGO and Avino Silver & Gold Mines Ltd. ASM. While BNTGY and CTGO sport a Zacks Rank #1 (Strong Buy) each, ASM carries a Zacks Rank #2 (Buy) at present. You can see the complete list of today’s Zacks #1 Rank stocks here.

BNTGY is slated to report first-quarter results on May 14. The Zacks Consensus Estimate for Brenntag’sfirst-quarter earnings is pegged at 24 cents per share.

Contango is scheduled to report first-quarter results on May 14. The Zacks Consensus Estimate for CTGO’s first-quarter earnings is pegged at a loss of 32 cents per share. CTGO’s earnings beat the Zacks Consensus Estimate in three of the trailing four quarters while missing in one, with the average surprise being 213.7%.

Avino Silver & Gold Mines is slated to release first-quarter results on May 13. The consensus estimate for ASM’s first-quarter earnings is pegged at 3 cents. ASM delivered a trailing four-quarter earnings surprise of 94.4%, on average.

5 Stocks Set to Double

Each was handpicked by a Zacks expert as the #1 favorite stock to gain +100% or more in 2024. While not all picks can be winners, previous recommendations have soared +143.0%, +175.9%, +498.3% and +673.0%.

Most of the stocks in this report are flying under Wall Street radar, which provides a great opportunity to get in on the ground floor.

Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report

This article originally published on Zacks Investment Research (zacks.com).

Zacks Investment Research