Olin Corporation OLN reported fourth-quarter 2024 net income of $10.7 million or 9 cents per share, a decline from the prior-year quarter’s profits of $52.9 million or 43 cents. Earnings beat the Zacks Consensus Estimate of a loss of a penny per share.

Adjusted EBITDA was $193.4 million, down from the year-ago quarter’s $210.1 million. 

Revenues of $1,671.3 million surpassed the Zacks Consensus Estimate of $1,608.8 million. The metric increased roughly 3.5% on a year-over-year basis. This was driven by higher volumes and selling prices in Chlor Alkali Products and Vinyls, and strong performance of the Winchester unit.

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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 fourth quarter, revenues amounted to $953.7 million, increasing around 5.3% year over year. The figure beat the Zacks Consensus Estimate of $877 million. The performance was due to higher volumes and pricing and lower raw materials and operating costs. Improved chlorine and caustic soda pricing proved instrumental in boosting sales.

Epoxy: Revenues in the division went down around 9.8% year over year to $282.2 million. The figure missed the consensus estimate of $295 million. The top line decreased due to lower volumes and pricing.

Winchester: Revenues rose around 10.1% year over year to $435.4 million. The figure beat the consensus estimate of $404 million. Sales rose due to higher military sales and military project revenues, partially offset by lower commercial ammunition sales.

OLN’s FY24 Results

Net sales for 2024 were $6,540.1 million, down from $6,833 million in 2023. Earnings for the full year were 91 cents per share, down from $3.57 in 2023.

OLN’s Financials

In 2024, OLN repurchased 5.9 million shares for $300.3 million. The company ended the year with approximately $1.2 billion of liquidity. 2024 saw a dip in cash flow from operating activities, decreasing from the prior-year’s $974.3 million to $503.2 million.

OLN’s Outlook

OLN has begun allocating funds to optimized core asset strategy, which aims to reduce structural costs by more than $250 million by 2028, anticipating a capital expenditure between $225 million and $250 million in 2025. The company expects first-quarter 2025 adjusted EBITDA to be between $150 million and $170 million. OLN anticipates using operational cash flows to finance its acquisition of AMMO Inc.'s ammunition assets in 2025. Due to the seasonality of working capital, net debt is expected to increase in the first half of 2025.

OLN Stock’s Price Performance

OLN stock has slumped 41.2% in the past year against the 5.1% growth of the industry.

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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 Ingevity Corporation NGVT, ICL Group Ltd. ICL and Fortuna Mining Corp. FSM. While NGVT and ICL each sports a Zacks Rank #1 (Strong Buy), FSM carries a Zacks Rank #2 (Buy) at present. You can see the complete list of today’s Zacks #1 Rank stocks here.

NGVT is slated to report fourth-quarter results on Feb. 18. The Zacks Consensus Estimate for Ingevity’s fourth-quarter earnings is pegged at 12 cents per share. NGVT beat the Zacks Consensus Estimate in three of the trailing four quarters and missed once, with the average surprise being 95.4%. Its shares have gained 6.2% in the past year.

ICL is scheduled to report fourth-quarter results on Feb. 26. The Zacks Consensus Estimate for ICL Group’s fourth-quarter earnings is pegged at 6 cents per share. ICL beat the Zacks Consensus Estimate in each of the trailing four quarters, with the average surprise being 18.1%. Its shares have soared 30.9% in the past year.

FSM is expected to report fourth-quarter results on March 5. The Zacks Consensus Estimate for Fortuna’s fourth-quarter earnings is pegged at 16 cents per share. FSM surpassed the Zacks Consensus Estimate in two of the trailing four quarters while missing it in the rest, with an average surprise of 53.6%. The stock has gained 65.1% in the past year.

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