Research Reports

Key takeaways

Revenue was $1.6B (-3.7% YoY), reflecting lower pricing and volumes across core businesses, partially offset by lower operating costs.

Gross profit was $75.8M (-49.0% YoY), with gross margin at 4.8%, as higher raw material costs — primarily natural gas and electrical power — pressured profitability despite some operational offsets.

Operating income was -$78.3M (-279.2% YoY), including a charge associated with legacy litigation matters, alongside elevated legal and legal-related settlement expenses.

Net cash used in operating activities improved to -$48.6M (vs. -$86.0M in Q1 FY2025), indicating slower working capital growth despite negative operating results.

Full analysis

Item 2 — Management’s Discussion and Analysis of Financial Condition and Results of Operations

Q1 FY2026 results reflect a pronounced deterioration in profitability compared to the prior year, with operating income reversing to a $78.3M loss and net income declining to an $83.0M loss. This outcome stems not from revenue collapse — which declined modestly by 3.7% to $1.6B — but from severe margin compression and discrete charges. Gross margin fell to 4.8%, down sharply from prior-year levels, as higher raw material costs — particularly natural gas and electrical power — weighed on all segments. The decrease in segment results from the comparable prior year period was primarily due to lower pricing and volumes, higher raw material costs, and partially offset by lower operating costs.

OLN · Olin Corporation

Summary

Key takeaways

Full analysis

Item 2 — Management’s Discussion and Analysis of Financial Condition and Results of Operations