Olin Corporation

Good morning, and welcome to the Olin Corporation's first quarter 2026 earnings conference call. All participants will be in a listen-only mode. Should you need assistance, please signal a conference specialist by pressing the star key followed by zero. Following today's brief opening comments, there will be an opportunity to ask questions. To ask a question, you may press star, then one on your touchtone phone. To withdraw your question, please press star and then two. Please note this event is being recorded. I would now like to turn the conference over to Steve Keenan, Olin's Director of Investor Relations. Please go ahead, Steve.

Thank you, Nick. Good morning, everyone. We appreciate you joining us today to review Olin's first quarter 2026 results. Please keep in mind that today's discussion, together with the associated slides, as well as the question and answer session that follows, will include statements regarding estimates or expectations of future performance. Please note these are forward-looking statements and that Olin's actual results could differ materially from those projected. Some of the factors that could cause actual results to differ from our projections are described without limitations in the risk factors section of our most recent Form 10-K and in yesterday's first quarter earnings press release. A copy of today's transcript and slides will be available on our website in the Investors section under Past Events. Our earnings press release and related financial data and information are available under Press Releases. With me this morning are Ken Lane, Olin's President and CEO, and Todd Slater, Olin's CFO. We'll start with some prepared remarks, then we'll look forward to taking your questions. I'll now turn the call over to Olin's President and CEO, Ken Lane.

Thanks, Steve. And thank you to everyone for joining us today. We appreciate your time and your continued interest in Olin. Let's start on slide three for a review of our first quarter highlights. Amid a very dynamic operating environment in the first quarter, the Olin team executed with discipline, maintaining focus on running our assets safely and reliably, removing structural costs through our Beyond 250 program, and preserving liquidity, all while staying firmly committed to our value-first commercial approach. That discipline translated into positive results in the first quarter and set the stage for stronger earnings in the coming months. During the first quarter, our epoxy business returned to profitability, and we saw early signs of demand growth for Winchester Commercial Ammunition. The Iran conflict introduced significant disruption across global petrochemical supply chains. sharply higher crude oil prices and freight rates disproportionately impacted non-U.S. producers, further reinforcing the structural cost advantage of U.S. Gulf Coast assets such as Olin's. While these dynamics did not materially benefit our first quarter results due to normal pricing lags, they meaningfully improved the outlook for the second quarter. Looking ahead, the near-term backdrop has shifted more in favor of U.S. producers, than where we were at the beginning of the year. While the duration of Middle East disruptions remains uncertain, we believe the full impact is still unfolding as global supply chains continue to tighten. We're seeing significant inventory drawdowns and deferred maintenance temporarily helping bridge supply gaps. This creates a more constructive environment as the year progresses. Olin is well positioned to navigate this dynamic environment supported by our advantaged asset base, improving cost structure, and strong cash generation. As regional customers increasingly prioritize security of supply, we have the flexibility to increase operating rates and capture value while maintaining our value-first commercial approach. Now let's turn to slide four for a deeper review of Chloropoly products and vinyls. First quarter results reflected lower operating costs driven by beyond 250 and lower than expected maintenance turnaround costs. Merchant chlorine demand was seasonally soft but improved from the fourth quarter with year-end customer destocking behind us. We saw chlorine demand into water treatment and crop protection rebound nicely in mid-March as U.S. temperatures warmed. Caustic soda continues to be the stronger side of the ECU. Global demand is stable against the backdrop of tightening supply and a rising cost curve for non-U.S. producers, which sets up for improved earnings as we move through the year. Several Asian vinyls producers have declared force majeure due to limited access to feedstocks and rapidly increasing costs. This disruption constrains chlorophyllite production, reducing the availability of co-produced caustic soda. While China has been less affected given its significant coal-based vinyls production, the net impact has been a meaningful reduction in global supply. Trade publications estimate that 6% to 9% of annual vinyls capacity is impacted globally. All of this drove a sharp spike in global pricing in late March, with levels now moderating as inventories are depleted. U.S. export EDC prices significantly increased since January. We expect EDC and caustic soda pricing to stabilize at higher levels compared to earlier in the year as shortages persist and production costs remain high. Olin has announced a total of $185 per ton in domestic caustic soda price increases for implementation in the first half of 2026. We continue to aggressively implement the balance of our price announcements. Slide five provides a look at our epoxy results. First quarter 2026 marks an important milestone as our epoxy business returned to profitability. We expect full year epoxy performance to be meaningfully improved with our return to profitability driven by several well executed actions. Our epoxy team has grown our European business in the wake of regional rationalizations. Our new European cost structure is on course to deliver $40 to $50 million of annual cost improvement. Our formulated solutions portfolio continues to provide a high-margin platform for growth with a strategic focus on electronics, semiconductors, and power generation. And our recent plant closure in Guarujá, Brazil, will further improve our cost structure and strengthen supply integration. In addition to these actions, we're focused on raising prices, which have been significantly depressed due to subsidized Asian supply. Olin announced March and April epoxy resin price increases, totaling more than $1,200 per ton in North America and €1,300 per metric ton in Europe. We expect these increases to offset the higher feedstock and transportation costs. Let's now turn to slide six for an update on our Winchester business. Winchester's first quarter performance was a significant improvement. The team took decisive actions in the second half of last year to rebalance channel inventories and position the business for improved commercial volume and price. As a result, we've regained commercial pricing traction and retail shipments are moving back into alignment with out-the-door sales. As retailer purchases align, We would expect to realize a commercial volume uplift of mid to high single digits year over year. Raw material costs remain a headwind, particularly copper, as well as brass and propellants. We expect that our pricing actions, once implemented, will offset the majority of 2025 cost inflation. However, we expect to continue to see cost pressure as we go through the year. We're continuing to operate a disciplined, made-to-demand model that aligns to our value-first commercial approach. As a result, we're building a strong commercial backlog while tightly managing our working capital. Winchester is a core part of Olin's portfolio. With its iconic global brand, long-standing relationships with leading retailers, the U.S. military, and a broad base of international customers, the business is well-positioned to deliver durable, long-term growth and value creation. I'll now turn the call over to Todd for a look at our financial highlights.