OLIN Corp

We define segment results as income (loss) before interest expense, net, other operating income (expense), non-operating pension income, other income and income taxes, and includes the results of non-consolidated affiliates in segment results consistent with management’s monitoring of the operating segments. We have three operating segments: Chlor Alkali Products and Vinyls, Epoxy and Winchester. The three operating segments reflect the organization used by our management for purposes of allocating resources and assessing performance and represents our reportable segments. Chlorine and caustic soda used in our Epoxy segment is transferred at cost from the Chlor Alkali Products and Vinyls segment.

Chlor Alkali Products and Vinyls

Chlor Alkali Products and Vinyls sales for the three months ended September 30, 2026 were $850.8 million compared to $924.0 million for the same period in 2025, a decrease of $73.2 million, or 8%. The sales decrease was due to lower sales volumes, primarily as a result of lower trading volumes associated with Blue Water Alliance, partially offset by higher pricing.

Chlor Alkali Products and Vinyls segment income was $71.3 million for the three months ended September 30, 2026 compared to $127.6 million for the same period in 2025, a decrease of $56.3 million. The decrease in segment income was primarily due to operating issues with the VCM plant at the Freeport, TX facility resulting in higher costs and reduced profit from lost sales ($32.1 million), a lower benefit primarily related to the 45V tax credit ($27.0 million), lower volumes ($7.5 million) and higher raw material costs ($4.8 million). These increases were partially offset by higher pricing ($8.0 million), primarily caustic soda and EDC, and lower operating costs ($7.1 million). Chlor Alkali Products and Vinyls segment results included depreciation and amortization expense of $91.1 million and $109.0 million for the three months ended September 30, 2026 and 2025, respectively.

Chlor Alkali Products and Vinyls sales for the nine months ended September 30, 2026 were $2,427.2 million compared to $2,828.0 million for the same period in 2025, a decrease of $400.8 million, or 14%. The sales decrease was due to lower sales volumes, primarily as a result of lower trading volumes associated with Blue Water Alliance, and lower pricing.

Chlor Alkali Products and Vinyls segment income was $80.2 million for the nine months ended September 30, 2026 compared to $270.8 million for the same period in 2025, a decrease of $190.6 million. The decrease in segment income was primarily due to operating issues with the VCM plant at the Freeport, TX facility resulting in higher costs and reduced profit from lost sales ($72.2 million), lower volumes ($55.3 million), lower pricing ($42.0 million), a charge associated with legacy litigation matters ($36.1 million), higher raw material costs ($32.1 million), primarily natural gas and electrical power costs, and a lower benefit primarily related to the 45V tax credit ($12.1 million). These decreases were partially offset by lower operating costs ($59.2 million). Chlor Alkali Products and Vinyls segment results included depreciation and amortization expense of $282.4 million and $322.5 million for the nine months ended September 30, 2026 and 2025, respectively.

Epoxy

Epoxy sales for the three months ended September 30, 2026 were $412.2 million compared to $349.6 million for the same period in 2025, an increase of $62.6 million, or 18%. The sales increase was due to higher product pricing ($35.3 million), higher volumes ($26.5 million) and a favorable effect of foreign currency translation ($0.8 million).

Epoxy segment income was $0.6 million for the three months ended September 30, 2026 compared to segment loss of $(32.2) million for the same period in 2025. The increase in segment results of $32.8 million was due to higher product pricing ($35.3 million), lower operating costs ($20.0 million) and higher volumes ($15.8 million), partially offset by higher raw material costs ($38.3 million), primarily benzene and propylene. A significant percentage of our Euro denominated sales are from products manufactured within Europe. As a result, the impact of foreign currency translation on revenue is primarily offset by the impact of foreign currency translation on raw materials and manufacturing costs also denominated in Euros. Epoxy segment results included depreciation and amortization expense of $11.1 million and $13.2 million for the three months ended September 30, 2026 and 2025, respectively.

Epoxy sales for the nine months ended September 30, 2026 were $1,189.9 million compared to $1,012.5 million for the same period in 2025, an increase of $177.4 million, or 18%. The sales increase was due to higher volumes ($109.7 million), higher product pricing ($44.1 million) and a favorable effect of foreign currency translation ($23.6 million).

Epoxy segment income was $13.7 million for the nine months ended September 30, 2026 compared to segment loss of $(84.3) million for the same period in 2025. The increase in segment results of $98.0 million was due to lower operating costs ($59.5 million), higher product pricing ($44.1 million) and higher volumes ($27.5 million), partially offset by higher raw material costs ($33.1 million), primarily benzene and propylene. A significant percentage of our Euro denominated sales are from products manufactured within Europe. As a result, the impact of foreign currency translation on revenue is primarily offset by the impact of foreign currency translation on raw materials and manufacturing costs also denominated in Euros. Epoxy segment results included depreciation and amortization expense of $34.7 million and $39.1 million for the nine months ended September 30, 2026 and 2025, respectively.

Winchester

Winchester sales were $484.7 million for the three months ended September 30, 2026 compared to $439.6 million for the same period in 2025, an increase of $45.1 million, or 10%. The sales increase was due to higher sales to commercial customers ($37.7 million), higher sales to military customers and military project revenue ($7.3 million) and higher sales to law enforcement agencies ($0.1 million).

Winchester segment income was $33.8 million for the three months ended September 30, 2026 compared to $19.3 million for the same period in 2025, an increase of $14.5 million. The increase in segment results was primarily due to higher product pricing ($20.4 million) and higher sales volumes and military project revenue ($12.5 million), partially offset by higher raw material and operating costs ($18.4 million), including commodity metal and propellant costs. Winchester segment income included depreciation and amortization expense of $9.0 million and $7.8 million for the three months ended September 30, 2026 and 2025, respectively.

Winchester sales were $1,455.5 million for the nine months ended September 30, 2026 compared to $1,275.2 million for the same period in 2025, an increase of $180.3 million, or 14%. The sales increase was due to higher sales to military customers and military project revenue ($108.7 million) and higher sales to commercial customers ($73.3 million), partially offset by lower sales to law enforcement agencies ($1.7 million).

Winchester segment income was $77.1 million for the nine months ended September 30, 2026 compared to $67.1 million for the same period in 2025, an increase of $10.0 million. The increase in segment results was primarily due to higher product pricing ($44.1 million) and higher sales volumes and military project revenue ($23.2 million), partially offset by higher raw material and operating costs ($57.3 million), including commodity metal and propellant costs. Winchester segment income included depreciation and amortization expense of $26.7 million and $25.2 million for the nine months ended September 30, 2026 and 2025, respectively.

Corporate/Other

For the three months ended September 30, 2026, charges to income for environmental investigatory and remedial activities were $5.6 million compared to $4.5 million for the three months ended September 30, 2025. These charges related primarily to expected future investigatory and remedial activities associated with past manufacturing operations and former waste disposal sites. For the three months ended September 30, 2025, environmental expense included $1.0 million of insurance recoveries for environmental costs incurred and expensed in prior periods.

For the three months ended September 30, 2026, other corporate and unallocated costs were $26.7 million compared to $25.9 million for the three months ended September 30, 2025, an increase of $0.8 million. The increase was primarily due to an unfavorable foreign currency impact ($5.6 million), partially offset by lower stock-based compensation costs ($4.5 million), which includes mark-to-market adjustments.

For the nine months ended September 30, 2026, charges to income for environmental investigatory and remedial activities were $16.5 million compared to $14.3 million for the nine months ended September 30, 2025. These charges related primarily to expected future investigatory and remedial activities associated with past manufacturing operations and former waste disposal sites. For the nine months ended September 30, 2025, environmental expense included $1.0 million of insurance recoveries for environmental costs incurred and expensed in prior periods.

For the nine months ended September 30, 2026, other corporate and unallocated costs were $85.2 million compared to $65.8 million for the nine months ended September 30, 2025, an increase of $19.4 million. The increase was primarily due to an unfavorable foreign currency impact ($15.0 million) and higher stock-based compensation costs ($2.5 million), which includes mark-to-market adjustments.

Restructurings

Pretax restructuring charges related to our restructuring and optimization efforts include facility exit costs, lease and other contract termination costs, employee severance and related benefits costs and the write-off of equipment and facilities.

Pretax restructuring charges for the three and nine months ended September 30, 2026 and 2025, were as follows:

We have included additional information with respect to our restructuring charges within Item 1, within Note 4, “Restructuring Charges” of our notes to condensed financial statements.

As of September 30, 2026, the remaining accrued restructuring liability of $14.0 million is expected to be paid out through 2030 and we expect to incur additional restructuring charges through 2030 of approximately $70 million related to these actions.