Olin to Take a Fourth Quarter 2025 Charge Following Verdict in Shintech v. Olin Litigation
Rhea-AI Summary
Olin (NYSE: OLN) reported a jury verdict in favor of Shintech on Feb 10, 2026, related to a VCM supply dispute, and recorded a one-time, pre-tax charge of $75 million in Q4 2025. The company expects to pay approximately $185 million in the first half of 2026 and will exclude the non-recurring charge from adjusted EBITDA.
Olin says it is assessing legal options and maintains its actions prioritized employee and community safety.
Positive
- One-time charge of $75 million recorded to resolve contingency
- Adjusted EBITDA will exclude the non-recurring $75 million charge
Negative
- Jury verdict against Olin in Shintech litigation (Feb 10, 2026)
- Expected cash outflow of approximately $185 million in H1 2026
- Legal uncertainty as company is assessing rights and potential appeals
Key Figures
Market Reality Check
Peers on Argus
OLN was up 1.31% pre-news while peers were mixed: MEOH down 0.69%, but CE, HUN, BAK and TROX up between 3.12% and 6.59%, suggesting stock-specific factors rather than a uniform sector move.
Historical Context
| Date | Event | Sentiment | Move | Catalyst |
|---|---|---|---|---|
| Jan 29 | Q4 2025 earnings | Negative | -1.8% | Reported Q4 2025 net loss and modest adjusted EBITDA, highlighting weak results. |
| Jan 08 | Outlook cut | Negative | +5.3% | Reduced Q4 2025 adjusted EBITDA outlook to about $67M from prior higher range. |
| Jan 06 | Earnings call notice | Neutral | -4.0% | Announced timing and access details for upcoming Q4 2025 earnings call. |
| Nov 11 | Strategic partnership | Positive | +1.3% | Entered long-term EDC supply agreement with Braskem to support vinyls strategy. |
| Oct 27 | Q3 2025 earnings | Positive | -0.2% | Returned to profitability in Q3 2025 with higher sales and adjusted EBITDA. |
Recent news shows mixed market reactions: negative items sometimes sold off, but guidance cuts and positive strategic moves have not produced consistent price direction.
Over the past few months, Olin has reported volatile fundamentals and several key updates. Q3 2025 marked a return to profitability with $42.8M net income and stronger Chlor Alkali performance, but Q4 2025 results showed a $85.7M net loss and lower adjusted EBITDA of $67.7M. Management cut its Q4 adjusted EBITDA outlook to about $67M in early January. Strategically, Olin entered a long-term EDC supply agreement with Braskem to support vinyls growth. Today’s verdict-driven charge adds a sizable, non-recurring legal cost on top of this already choppy earnings backdrop.
Market Pulse Summary
This announcement highlights a jury verdict in the Shintech litigation that led Olin to record a one-time pre-tax charge of $75 million in Q4 2025 and anticipate about $185 million of related payments in the first half of 2026. These amounts come on top of a recent period marked by a Q4 net loss and reduced EBITDA guidance. Investors may watch upcoming filings and earnings updates for clarity on how this legal outcome affects cash flow, leverage metrics, and management’s broader cost-reduction and vinyls strategy.
Key Terms
vinyl chloride monomer (VCM) medical
force majeure regulatory
litigation loss contingency regulatory
adjusted EBITDA financial
AI-generated analysis. Not financial advice.
In April 2023, Shintech filed a lawsuit seeking damages against Olin. The litigation involved a pricing dispute between Shintech and Olin, a 2023 maintenance turnaround of a vinyl chloride monomer (VCM) plant and a disputed force majeure event. Olin supplies VCM to Shintech under a long-term supply contract. Following three years of active litigation, the jury returned a verdict in favor of Shintech on February 10, 2026.
Olin was disappointed by the verdict and is currently assessing its legal rights and options. The Company firmly believes that its actions at the time were appropriate and aligned with best industry practices to prioritize the safety of its employees and the community.
As a result of this verdict, the Company obtained new information related to this litigation loss contingency and recorded a one-time, pre-tax charge of
COMPANY DESCRIPTION
Olin Corporation is a leading vertically integrated global manufacturer and distributor of chemical products and a leading
Visit www.olin.com for more information on Olin Corporation.
FORWARD-LOOKING STATEMENTS
This communication includes forward-looking statements. These statements relate to analyses and other information that are based on management's beliefs, certain assumptions made by management, forecasts of future results, and current expectations, estimates and projections about the markets and economy in which we and our various segments operate. The statements contained in this communication that are not statements of historical fact may include forward-looking statements that involve a number of risks and uncertainties.
We have used the words "anticipate," "intend," "may," "expect," "believe," "should," "plan," "outlook," "project," "estimate," "forecast," "optimistic," "target," and variations of such words and similar expressions in this communication to identify such forward-looking statements. These statements are not guarantees of future performance and involve certain risks, uncertainties, and assumptions, which are difficult to predict and many of which are beyond our control. Therefore, actual outcomes and results may differ materially from those matters expressed or implied in such forward-looking statements. We undertake no obligation to update publicly any forward-looking statements, whether as a result of future events, new information or otherwise. The payment of cash dividends is subject to the discretion of our Board of Directors and will be determined in light of then-current conditions, including our earnings, our operations, our financial conditions, our capital requirements and other factors deemed relevant by our Board of Directors. In the future, our Board of Directors may change our dividend policy, including the frequency or amount of any dividend, in light of then-existing conditions.
The risks, uncertainties and assumptions involved in our forward-looking statements, many of which are discussed in more detail in our filings with the SEC, including without limitation the "Risk Factors" section of our Annual Report on Form 10-K for the year ended December 31, 2024, and our Quarterly Reports on Form 10-Q and other reports furnished or filed with the SEC, include, but are not limited to, the following:
Business, Industry and Operational Risks
- sensitivity to economic, business and market conditions in
the United States and overseas, including economic instability or a downturn in the sectors served by us; - declines in average selling prices for our products and the supply/demand balance for our products, including the impact of excess industry capacity or an imbalance in demand for our chlor alkali products;
- unsuccessful execution of our operating model, which prioritizes Electrochemical Unit (ECU) margins over sales volumes;
- failure to control costs and inflation impacts or failure to achieve targeted cost reductions;
- our reliance on a limited number of suppliers for specified feedstock and services and our reliance on third-party transportation;
- availability of and/or higher-than-expected costs of raw material, energy, transportation, and/or logistics;
- the occurrence of unexpected manufacturing interruptions and outages, including those occurring as a result of labor disruptions and production hazards;
- exposure to physical risks associated with climate-related events or increased severity and frequency of severe weather events;
- the failure or an interruption, including cyber-attacks, of our information technology systems;
- risks associated with our international sales and operations, including economic, political or regulatory changes;
- failure to identify, attract, develop, retain and motivate qualified employees throughout the organization and ability to manage executive officer and other key senior management transitions;
- our inability to complete future acquisitions or joint venture transactions or successfully integrate them into our business;
- adverse conditions in the credit and capital markets, limiting or preventing our ability to borrow or raise capital;
- weak industry conditions affecting our ability to comply with the financial maintenance covenants in our senior credit facility;
- our indebtedness and debt service obligations;
- the effects of any declines in global equity markets on asset values and any declines in interest rates or other significant assumptions used to value the liabilities in, and funding of, our pension plans;
- our long-range plan assumptions not being realized, causing a non-cash impairment charge of long-lived assets;
Legal, Environmental and Regulatory Risks
- changes in, or failure to comply with, legislation or government regulations or policies, including changes regarding our ability to manufacture or use certain products and changes within the international markets in which we operate;
- new regulations or public policy changes regarding the transportation of hazardous chemicals and the security of chemical manufacturing facilities;
- unexpected outcomes from legal or regulatory claims and proceedings;
- costs and other expenditures in excess of those projected for environmental investigation and remediation or other legal proceedings;
- various risks associated with our Lake City U.S. Army Ammunition Plant contract and performance under other governmental contracts; and
- failure to effectively manage environmental, social and governance issues and related regulations, including climate change and sustainability.
All of our forward-looking statements should be considered in light of these factors. In addition, other risks and uncertainties not presently known to us or that we consider immaterial could affect the accuracy of our forward-looking statements.
2026-04
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SOURCE Olin Corporation
FAQ
What litigation verdict did Olin (OLN) report on February 10, 2026?
How much is Olin (OLN) charging in Q4 2025 after the Shintech verdict?
When does Olin (OLN) expect to pay amounts related to the Shintech verdict?
Will the $75 million charge affect Olin's adjusted EBITDA for 2025?
What was the underlying dispute between Olin (OLN) and Shintech?
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