NYSE$OLN

Olin Corp · Q4 2021 earnings

Q4 2021 earnings · · Investor relations

Briefing

Olin's Q4 2021 financial performance demonstrated strong growth, driven by increased sales and improved profitability across all segments.

Olin Corporation announced strong financial results for Q4 2021, with net income of $306.6 million and adjusted EBITDA of $686.7 million. The company's performance was driven by its unique winning model, which prioritizes value and highlights the potential across its Chemicals and Winchester businesses. Olin expects 2022 adjusted EBITDA to improve to $2.5 billion to $2.8 billion.

  • Net income for Q4 2021 was $306.6 million, compared to a net loss of $33.0 million in Q4 2020.
  • Adjusted EBITDA for Q4 2021 reached $686.7 million, significantly higher than the $246.2 million in Q4 2020.
  • Sales increased to $2,430.4 million in Q4 2021 from $1,654.1 million in Q4 2020.
  • The company reduced net debt to adjusted EBITDA ratio down to 1.0 times.

Headline financials

Total Revenue

$2.43B

Previous: $1.65B+46.9%
EPS (adj)

$2.41

Previous: -$0.09+2777.8%
Adjusted EBITDA

$687M

No prior period
Capital Expenditures

$64.8M

Previous: $75.6M-14.3%
Free Cash Flow

$425M

Previous: $37.5M+1032.0%
Net Income

$307M

Previous: -$33M+1029.1%
Operating Income

$526M

Previous: $80.4M+553.7%
Gross Profit

$630M

Previous: $197M+220.0%
Cash & Equivalents

$181M

Previous: $190M-4.8%
Total Assets

$8.52B

Previous: $8.27B+3.0%
Stock-Based Comp

$3.3M

Previous: $6.5M-49.2%

Revenue & EPS history

Olin · Revenue · Quarterly

$2.43B

Q4 2021+46.9%vs Q4 2020
Beat estimate in 8 of 16 quarters(50%)
ActualEstimate

Revenue by segment

Olin · $2.43B total across 3 segments · Q4 2021

  • Chlor Alkali Products and Vinyls
    $1.24B+56.7%
  • Epoxy
    $796M+53.1%
  • Winchester
    $391M+14.7%

Forward guidance

Olin expects the first quarter 2022 results from its Chemical businesses to be similar to fourth quarter 2021 levels. Olin expects its Winchester business first quarter 2022 results to increase sequentially from fourth quarter 2021.

Tailwinds

  • Winchester business is expected to increase sequentially from fourth quarter 2021.
  • Olin's model of focusing on system value is fully effective and ready to incorporate organic and inorganic growth initiatives.
  • Electrochemical Unit Profit Contribution Index (ECU PCI) continued to move higher, as Olin drove sequential pricing improvement in the fourth quarter 2021 for chlorine, chlorine derivatives, including epoxy resins, and caustic soda.
  • Winchester continued to deliver on both commercial and military fronts, as Olin launched its Shoot United™ initiative during the quarter to promote recreational sport shooting.
  • Olin expects 2022 adjusted EBITDA to improve to $2.5 billion to $2.8 billion

Headwinds

  • In early 2022, Olin expects sequentially higher raw material and operating costs, mainly increased natural gas and electrical power costs.
  • Olin expects the first quarter 2022 results from its Chemical businesses to be similar to fourth quarter 2021 levels.
  • Sensitivity to economic, business and market conditions in the United States and overseas, including economic instability or a downturn in the sectors served by us.
  • Declines in average selling prices for our products and the supply/demand balance for our products, including the impact of excess industry capacity or an imbalance in demand for our chlor alkali products.
  • Our reliance on a limited number of suppliers for specified feedstock and services and our reliance on third-party transportation

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 Q4 2021

Historical avgQ4 2021

-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%

Discussion

Share your read of this quarter. Sign-in carries your eToro identity.

Join the conversation

Sign in with eToro to post your read of this quarter and vote on others'.

Sign in with eToro