Olin (OLN) Q2 2024 earnings summary

Executive summary

• Q2 2024 net income was $74.2M ($0.62/diluted share), down from $146.9M ($1.13/diluted share) in Q2 2023, mainly due to weaker chemical segment results, partially offset by Winchester growth and White Flyer acquisition.

• Adjusted EBITDA for Q2 2024 was $278.1M, up 15% sequentially but down from $351.1M in Q2 2023.

• Sales for Q2 2024 were $1.64B, down 3% year-over-year.

• Repurchased 3.9M shares (~3% of outstanding) for $211.4M in H1 2024.

• Hurricane Beryl caused significant disruption at Freeport, TX, but safety protocols limited impact and most plants resumed operation within three weeks.

Financial highlights

• Q2 2024 operating income was $136.4M, down from $216.7M in Q2 2023.

• Net income for Q2 2024 was $74.2M, down from $146.9M in Q2 2023.

• Ended Q2 with $182.1M in cash and ~$1B in available liquidity.

• Net debt increased by $229M from year-end, typical for seasonal working capital build; net debt to Adjusted EBITDA ratio at 2.6x.

• Q2 2024 sales declined 3% year-over-year to $1.64B.

Outlook and guidance

• Hurricane Beryl expected to impact Q3 2024 EBITDA by ~$100M, with no insurance recovery anticipated.

• Full-year 2024 Adjusted EBITDA outlook lowered to ~$940M, including hurricane impact; excluding hurricane, guidance is ~$1.04B.

• 2024 capital spending forecasted at ~$225M, including $10M for hurricane recovery.

• International tax payments of ~$80M deferred to 2025, improving near-term cash flow.

• Winchester Q3 2024 results expected to improve on stronger commercial and military demand.