NYSE$OLN

Olin Corp · Q2 2022 earnings

Q2 2022 earnings · · Investor relations

Briefing

Announced second quarter 2022 results, featuring record adjusted EBITDA and a new share repurchase program.

Olin Corporation reported a net income of $422.1 million, or $2.76 per diluted share, for the second quarter of 2022. The company's adjusted EBITDA reached a record $727.3 million. Olin also announced a new $2.0 billion share repurchase program.

  • Second quarter 2022 net income was $422.1 million, or $2.76 per diluted share.
  • Record quarterly adjusted EBITDA reached $727.3 million.
  • Share repurchases totaled $426.5 million in the second quarter of 2022.
  • The company expects 2022 adjusted EBITDA to be between $2.5 billion and $2.7 billion.

Headline financials

Total Revenue

$2.62B

Previous: $2.22B+17.8%
EPS (adj)

$2.76

Previous: $2.26+22.1%
Adjusted EBITDA

$727M

Previous: $559M+30.1%
Net Debt to Adjusted EBITDA

0.9

No prior period
Capital Expenditures

-$104M

Previous: -$86.4M-20.3%
Free Cash Flow

$318M

Previous: $269M+18.1%
Net Income

$422M

Previous: $356M+18.6%
Operating Income

$565M

Previous: $395M+43.1%
Gross Profit

$665M

Previous: $509M+30.6%
Cash & Equivalents

$305M

Previous: $273M+11.7%
Total Assets

$8.68B

Previous: $8.66B+0.2%
Stock-Based Comp

$3.2M

Previous: -$700K+557.1%

Revenue & EPS history

Olin · Revenue · Quarterly

$2.62B

Q2 2022+17.8%vs Q2 2021
Beat estimate in 7 of 15 quarters(47%)
ActualEstimate

Revenue by segment

Olin · $2.18B total across 2 segments · Q2 2022

  • Chlor Alkali Products and Vinyls
    $1.4B+45.1%
  • Epoxy
    $773M-9.1%

Forward guidance

Olin expects its third quarter 2022 adjusted EBITDA to decline approximately 15% from second quarter 2022 levels.

Headwinds

  • Chemicals businesses results are expected to be lower than the second quarter due to lower participation in chlorine derivative markets and operating at lower rates.
  • Sequentially higher raw material and operating costs, mainly increased natural gas and electrical power costs, are anticipated.
  • Winchester third quarter results are expected to be lower than second quarter levels because of higher commodity and other materials costs.
  • A recessionary economic environment is expected to continue unfolding in the third quarter of 2022.
  • The impact of deeply cyclical behaviors that have historically undermined Olin’s earnings.

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 Q2 2022

Historical avgQ2 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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