Olin Corporation announced a long‑term partnership with Braskem to supply ethylene dichloride (EDC) for Braskem’s Brazilian vinyls operations, following the dissolution of the Blue Water Alliance joint venture. The deal redirects EDC volumes from the former joint venture to a high‑value, structural relationship in Brazil, reinforcing Olin’s vinyls strategy and cost‑leadership advantage in chlor‑alkali products.
Olin’s lower EDC production costs give it a competitive edge that Braskem can leverage in Brazil’s expanding PVC market. By securing a steady EDC supply, Olin strengthens its position in the vinyls segment and supports its “Beyond250” cost‑reduction initiative, which targets $70‑$90 million in annualized run‑rate savings by 2028.
Olin’s Q3 2025 earnings provide context for the partnership’s significance. The company reported a net income of $42.8 million, up from a net loss of $24.9 million in Q3 2024, and adjusted EBITDA of $222.4 million versus $160.3 million the prior year. Sales rose to $1.713 billion from $1.590 billion. The earnings beat analyst expectations by $0.30 per share, driven largely by strong performance in the Chlor Alkali Products and Vinyls segment and a $32 million pretax credit from a clean hydrogen production tax credit.
Segment performance highlights the drivers behind the earnings. The Chlor Alkali Products and Vinyls segment earned $127.6 million in Q3 2025, up from $45.3 million in Q3 2024, reflecting higher EDC volumes and lower operating costs. The Winchester segment declined to $19.3 million from $53.4 million, impacted by lower commercial ammunition pricing and higher raw material costs. The Epoxy segment remained flat, indicating ongoing challenges in that business line.
CEO Ken Lane said the partnership “reinforces our strategic objective of leveraging our global leadership in EDC to drive value creation.” He also noted that the deal supports Olin’s “Beyond250” initiative, underscoring the company’s focus on long‑term cost discipline and operational efficiency.
Following the Q3 2025 earnings release, analysts noted a revenue miss of $1.71 billion versus an estimate of $1.74 billion and a cautious fourth‑quarter outlook that projected adjusted EBITDA of $110‑$130 million. The revenue shortfall was attributed to weaker demand in the Winchester segment and higher raw material costs, while the EPS beat was largely due to cost controls and the tax credit.
The Braskem partnership positions Olin to capture value in Brazil’s expanding PVC market while strengthening its supply chain and cost advantage. However, the company faces headwinds in the Winchester and Epoxy segments and a cautious outlook for the next quarter, suggesting that the partnership will be a key lever in a broader strategy to navigate cyclical demand and maintain profitability.
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