NYSE$OLN

Olin Corp · Q1 2022 earnings

Q1 2022 earnings · · Investor relations

Briefing

Olin's Q1 2022 performance reflected record quarterly adjusted EBITDA and strategic prioritization of system value.

Olin Corporation reported a strong first quarter in 2022, with net income reaching $393.0 million, or $2.48 per diluted share. The company achieved a record quarterly adjusted EBITDA of $710.9 million and repurchased $263.2 million in shares. Sales increased to $2,461.4 million compared to $1,918.8 million in the first quarter 2021.

  • Net income for Q1 2022 was $393.0 million, or $2.48 per diluted share.
  • Adjusted EBITDA reached a record $710.9 million for the quarter.
  • The company executed share repurchases totaling $263.2 million during Q1 2022.
  • Olin expects its 2022 adjusted EBITDA to improve to $2.6 billion to $2.9 billion.

Headline financials

Total Revenue

$2.46B

Previous: $1.92B+28.3%
EPS (adj)

$2.48

Previous: $1.54+61.0%
Adjusted EBITDA

$711M

No prior period
Capital Expenditures

-$47.3M

Previous: -$51.2M+7.6%
Free Cash Flow

$346M

Previous: $192M+79.7%
Net Income

$393M

Previous: $244M+61.3%
Operating Income

$547M

Previous: $381M+43.4%
Gross Profit

$654M

Previous: $495M+32.1%
Cash & Equivalents

$198M

Previous: $260M-23.9%
Total Assets

$8.57B

Previous: $8.45B+1.4%
Stock-Based Comp

$3.1M

Previous: $2M+55.0%

Revenue & EPS history

Olin · Revenue · Quarterly

$2.46B

Q1 2022+28.3%vs Q1 2021
Beat estimate in 7 of 15 quarters(47%)
ActualEstimate

Revenue by segment

Olin · $2.03B total across 2 segments · Q1 2022

  • Chlor Alkali Products and Vinyls
    $1.25B+43.6%
  • Epoxy
    $790M+19.2%

Forward guidance

Olin expects second quarter 2022 adjusted EBITDA to improve sequentially from first quarter 2022.

Tailwinds

  • Chlor Alkali Products and Vinyls second quarter 2022 results is expected to improve sequentially.
  • Recently announced price increases for ammunition and primers expected to offset higher commodity and other materials costs.
  • Winning model to push second quarter 2022 results higher than first quarter 2022.
  • Our Chemicals teams overcame reduced electrical power generation at our Freeport, Texas facility.
  • Our Winchester business delivered record quarterly segment results as our Shoot United™ campaign ramped up.

Headwinds

  • Reduced electrical power generation at our Freeport, Texas facility, which is expected to continue at least into fourth quarter 2022.
  • Weaker European epoxy resin demand in our system.
  • Epoxy business expects to continue to absorb weaker epoxy resin demand and operate at low rates.
  • Approximately $75 million of reduced margin from lost sales and production volumes, increased maintenance expense and other costs, as a result of the unplanned production outage at our Plaquemine, Louisiana facility.
  • Sequentially higher raw material and operating costs, mainly increased natural gas and electrical power costs.

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 20 quarterly earnings reports · overlaid with Q1 2022

Historical avgQ1 2022

-0.8%

Avg return

Earnings day

+1.6%

Avg return

5 days after

+3.7%

Avg return

30 days after

43%

29 / 67 earnings

Positive

+12.1%

Q4 2016

Best reaction

-15.7%

Q4 2015

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q1 2026+0.4%+6.2%-8.2%
Q4 2025-6.8%+13.9%+13.6%
Q3 2025-12.5%-13.8%-13.5%
Q1 2025+2.4%-5.8%-10.3%
Q3 2024-8.1%-9.3%-4.9%
Q2 2024-5.6%-4.0%-5.9%
Q1 2024+0.8%-1.5%+2.5%
Q4 2023+8.6%+5.3%+3.5%
Q3 2023-6.3%-4.9%+5.6%
Q2 2023+4.4%+4.2%+4.5%
Q1 2023+4.3%+2.3%-4.8%
Q4 2022+9.1%+12.5%+4.0%
Q3 2022+5.8%+7.0%+17.0%
Q2 2022+5.7%+4.2%+14.2%
Q1 2022+9.9%+18.7%+28.0%
Q4 2021-3.6%+3.3%+2.8%
Q3 2021+8.3%+11.5%+15.7%
Q2 2021+4.6%+6.4%+8.3%
Q1 2021+1.3%+3.5%+18.4%
Q4 2020+0.3%+11.7%+29.7%
Q3 2020+10.4%+11.3%+24.3%
Q2 2020-1.0%-1.4%+5.6%
Q1 2020-12.3%-21.3%-21.0%
Q4 2019+9.2%+6.6%-7.0%
Q3 2019-5.1%+0.0%-9.1%
Q2 2019-7.5%-12.0%-17.7%
Q1 2019-6.0%-5.0%-9.7%
Q4 2018+8.1%+1.5%+0.5%
Q3 2018-2.3%+6.2%+6.2%
Q2 2018+2.4%+4.3%+7.1%
Q1 2018+2.0%+4.8%+7.1%
Q4 2017-6.1%-13.7%-8.4%
Q3 2017+3.2%+0.2%-0.2%
Q2 2017-0.2%+3.4%+6.0%
Q1 2017-5.0%-8.1%-7.9%
Q4 2016+12.1%+17.9%+21.1%
Q3 2016-0.1%-3.0%+18.4%
Q2 2016-1.0%-0.3%+3.5%
Q1 2016+1.7%
Q4 2015-15.7%
Q3 2015+3.9%
Q2 2015-0.9%
Q1 2015-0.3%
Q4 2014+5.1%
Q3 2014-7.2%
Q2 2014-1.5%
Q1 2014-3.2%
Q4 2013-4.0%
Q3 2013+2.0%
Q2 2013-1.8%
Q1 2013-4.9%
Q4 2012-3.0%
Q3 2012-2.8%
Q2 2012-9.6%
Q1 2012-1.0%
Q4 2011-0.2%
Q4 2008-0.2%
Q3 2011-11.8%
Q2 2011-1.7%
Q1 2011-5.4%
Q1 2010-5.4%
Q4 2010+0.2%
Q3 2010-5.6%
Q3 2009-5.6%
Q4 2009+1.5%
Q2 2010+1.5%
Q2 2009+1.5%

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