NYSE$OLN

Olin Corp · Q4 2023 earnings

Q4 2023 earnings · · Investor relations

Briefing

Olin's Q4 2023 financial performance declined compared to the previous year due to lower sales and pricing, but the company executed a 'value accelerator initiative' to halt the decline in electrochemical unit values.

Olin Corporation reported a net income of $52.9 million, or $0.43 per diluted share, for Q4 2023, a decrease compared to Q4 2022. Sales were $1,614.6 million, also lower than the previous year. The company's adjusted EBITDA was $210.1 million. Despite the challenging economic environment, Olin successfully repurchased shares and is confident in future earnings and cash flow.

  • Net income for Q4 2023 was $52.9 million, or $0.43 per diluted share.
  • Adjusted EBITDA for Q4 2023 was $210.1 million.
  • Sales for Q4 2023 reached $1,614.6 million.
  • The company repurchased approximately 10% of its outstanding shares in 2023.

Headline financials

Total Revenue

$1.61B

Previous: $1.98B-18.3%
EPS (adj)

$0.43

Previous: $1.43-69.9%
Adjusted EBITDA

$210M

Previous: $442M-52.4%
Net Debt to Adjusted EBITDA

1.9

Previous: 1+90.0%
Capital Expenditures

-$63M

Previous: $68.5M-192.0%
Net Income

$48.8M

Previous: $197M-75.2%
Operating Income

$99M

Previous: $274M-63.8%
Gross Profit

$184M

Previous: $383M-52.0%
Stock-Based Comp

$5.4M

Previous: $3.7M+45.9%

Revenue & EPS history

Olin · Revenue · Quarterly

$1.61B

Q4 2023-18.3%vs Q4 2022
Beat estimate in 7 of 15 quarters(47%)
ActualEstimate

Revenue by segment

Olin · $1.29B total across 2 segments · Q3 2023

  • Chlor Alkali Products and Vinyls
    $970M-23.3%
  • Epoxy
    $322M-50.1%

Forward guidance

Olin anticipates an improved 2024 adjusted EBITDA compared to 2023, expecting Q1 2024 results from the Chemical businesses to be slightly higher than Q4 2023 levels, and Winchester's Q1 2024 results to increase sequentially. Overall, Olin expects its Q1 2024 adjusted EBITDA to improve by approximately 10% from Q4 2023 levels.

Tailwinds

  • Expects first quarter 2024 results from our Chemical businesses to be slightly higher than fourth quarter 2023 levels.
  • Expects Winchester business first quarter 2024 results to increase sequentially from fourth quarter 2023.
  • Expects Olin’s first quarter 2024 adjusted EBITDA to improve by approximately 10% from fourth quarter 2023 levels.
  • Anticipates initiative supports an improved 2024 adjusted EBITDA as compared to 2023.
  • Seeing success with our ‘value accelerator initiative’

Headwinds

  • Considering the ongoing difficult global economic environment
  • Continue to limit our market participation through February 2024
  • Remain disciplined in our approach to ECU values.
  • The Chlor Alkali Products and Vinyls fourth quarter 2023 segment results were negatively impacted by approximately $100 million from the ‘value accelerator initiative.’
  • Lower volumes and lower pricing, primarily caustic soda, partially offset by lower raw material and operating 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 Q4 2023

Historical avgQ4 2023

-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