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DATE

Friday, May 8, 2026 at 9:00 a.m. ET

CALL PARTICIPANTS

  • President and Chief Executive Officer — Ken Lane
  • Senior Vice President and Chief Financial Officer — Todd Slater

TAKEAWAYS

  • Adjusted EBITDA Guidance -- Management guided to adjusted EBITDA of $160 million to $200 million for the second quarter, reflecting a significant sequential improvement from $86 million in the first quarter.
  • Liquidity -- Total available liquidity was reported at $1.3 billion, bolstered by amendments to bank credit facilities that provide “greater covenant flexibility through late 2027.”
  • Net Debt -- Net debt increased in the first quarter, with further increases projected for 2026 “as we make payments to resolve legacy litigation matters.”
  • Epoxy Segment Profitability -- The epoxy business returned to profitability in the first quarter, driven by European cost structure improvements projected to deliver $40 million to $50 million of annual cost savings.
  • Epoxy Price Increases -- Management announced epoxy resin price increases of over $1,200 per ton in North America and €1,300 per metric ton in Europe during March and April, aiming to offset higher feedstock and transport costs.
  • CAPV Pricing Actions -- A total of $185 per ton in domestic caustic soda price increases was announced for implementation in 2026, with a commitment to “aggressively implement the balance of our price announcement.”
  • Beyond two fifty Program -- Structural cost reduction initiatives are expected to generate cumulative savings exceeding $250 million by 2028, including an additional $100 million-$120 million targeted for 2026.
  • CAPV Volume Recovery -- Merchant chlorine demand in the CAPV segment improved from the fourth quarter as customer destocking ended and seasonal factors supported a rebound in water treatment and crop protection demand.
  • Vinyls Capacity Impact -- Trade publications estimate that 6%–9% of global annual vinyls capacity is impacted by force majeure declarations and feedstock constraints, with management citing direct benefits to U.S. Gulf Coast producers.
  • Winchester Segment -- Commercial ammunition volume is expected to grow by “mid- to high-single digits year over year” as retail shipments realign with consumer sales; cost pressures from copper, brass, and propellants are expected to be mostly offset by new pricing actions.
  • Maintenance and Outages -- The unplanned vinyls outage at Freeport is incorporated in second quarter guidance, with a restart of assets expected “late next week.”
  • Tax Refunds -- Management anticipates 2026 will be “essentially a cash-free tax year, plus or minus $20 million,” factoring in refunds related to clean hydrogen production tax credits under Section 45V of the Inflation Reduction Act.
  • Dividend Policy -- Management reasserted an “uninterrupted quarterly dividend payments” record spanning nearly a century.
  • Leverage Outlook -- Olin Corporation expects to end 2026 with a debt leverage ratio “just above four times,” with an ongoing goal to average “below two times leverage across the cycle.”
  • Strategic Partnerships -- The company entered a long-term supply agreement with Chemours commencing in 2028, with management stating such deals are “accretive for Olin Corporation.”

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RISKS

  • Winchester segment faces headwinds from elevated raw material costs, with management stating, “Raw material costs remain a headwind, particularly copper, as well as brass and propellants,” and only “the majority of 2026 cost inflation” is expected to be offset by pricing actions.
  • Net debt and overall leverage are expected to rise in 2026 due to payments to resolve “legacy litigation matters,” as explicitly noted by management.
  • Second quarter maintenance forecast does not include incremental costs from the unplanned Freeport outage, so additional near-term expenses are anticipated.
  • Management acknowledges supply chain disruptions from Middle East conflict, stating, “the duration of Middle East disruptions remains uncertain, we believe the full impact is still unfolding as global supply chains continue to tighten.”

SUMMARY

Olin Corporation (OLN +2.50%) guided to a substantial sequential earnings improvement in the second quarter, driven primarily by higher pricing and volumes in Chlor Alkali Products and Vinyls, European cost reductions and price increases in the epoxy segment, and commercial ammunition recovery in Winchester. The company reported $1.3 billion in available liquidity and clarified that amended credit facilities extend covenant flexibility through late 2027. Management highlighted significant cost savings underway, including $100 million–$120 million targeted in 2026 via the Beyond two fifty program, and announced notable strategic supply agreements, such as the long-term Chemours deal starting in 2028.

  • Operationally, management cited successful execution of a major planned turnaround and rapid response to the unplanned Freeport outage, both affecting near-term guidance and expenses.
  • Todd Slater expects 2026 to be “essentially be a cash-free tax year,” due to anticipated refunds under Section 45V, improving cash availability for other priorities.
  • Vinyls supply disruptions have removed 6%–9% of global capacity, resulting in a sharp spike in global pricing and reinforcing a structural cost advantage for U.S. producers.
  • Executing on its disciplined capital allocation, management reiterated the ongoing dividend policy and indicated excess free cash flow will be used for debt reduction as conditions permit.
  • Management projects leverage will remain above four times for 2026, with a longer-term target of reducing average leverage below two times through the cycle.

INDUSTRY GLOSSARY

  • CAPV (Chlor Alkali Products and Vinyls): Segment encompassing the company’s chlorine and caustic soda, vinyl derivatives, and related products.
  • ECU (Electrochemical Unit): A standard measurement representing a combined output of one unit of chlorine and one unit of caustic soda, reflecting integrated production economics.
  • EDC (Ethylene Dichloride): A key intermediate chemical used in the manufacture of vinyl chloride monomer and subsequently polyvinyl chloride (PVC).
  • Section 45V: A provision in the Inflation Reduction Act granting tax credits for clean hydrogen production.
  • Beyond two fifty Program: Olin Corporation’s cost-reduction initiative targeting permanent removal of over $250 million of structural costs by 2028.
  • Force majeure: A contractual clause invoked during extraordinary circumstances (e.g., supply disruptions), leading producers to suspend deliveries or production obligations.

Full Conference Call Transcript

Ken Lane: Thanks, Steve, and thank you to everyone for joining us today. We appreciate your time and your continued interest in Olin Corporation. Let's start on Slide 3 for a review of our first quarter highlights. Amid a very dynamic operating environment in the first quarter, the Olin Corporation team executed with discipline, maintaining focus on running our assets safely and reliably, removing structural costs through our Beyond two fifty 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 sets 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 Corporation'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 are seeing significant inventory drawdowns and deferred maintenance temporarily helping bridge supply gaps. This creates a more constructive environment as the year progresses. Olin Corporation 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 4 for a deeper review of Chlor Alkali Products and Vinyls (CAPV).

First quarter results reflected lower operating costs driven by Beyond two fifty 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 constrained chlor-alkali production, reducing the availability of co-produced caustic soda. While China has been less affected given 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 have 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 Corporation has announced a total of $185 per ton in domestic caustic soda price increases for implementation in 2026. We continue to aggressively implement the balance of our price announcement. Slide 5 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 million 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 Guarulhos, Brazil will further improve our cost structure and strengthen supply integration. In addition to these actions, we are focused on raising prices, which have been significantly depressed due to subsidized Asian supply. Olin Corporation 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 6 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 have 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 2026 cost inflation; however, we expect to continue to see cost pressure as we go through the year.

We are continuing to operate a disciplined make-to-demand model that aligns to our value-first commercial approach. As a result, we are building a strong commercial backlog while tightly managing our working capital. Winchester is a core part of Olin Corporation'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 will now turn the call over to Todd for a look at our financial highlights.

Todd Slater: Thanks, Ken. Let's review our cash flow, liquidity, and financial foundation. Our top priority continues to be generating strong cash flow to preserve and further enhance liquidity. In February, we took proactive steps to amend our bank credit facilities, providing greater covenant flexibility through late 2027. As a result, we maintain full access to our revolving credit facility and 1.3 billion of available liquidity. Our debt structure is well organized, with manageable tranches and staggered bond maturities over the coming years, and no maturities before 2029. As is typical with seasonal working capital needs, net debt and leverage increased in the first quarter. We expect net debt to rise during 2026 as we make payments to resolve legacy litigation matters.

Now let me take a moment to discuss our outlook for expected uses of cash in 2026. First, regarding cash taxes, we anticipate receiving refunds from prior years related to clean hydrogen production tax credits under Section 45V as part of the Inflation Reduction Act of 2022. Factoring in these refunds, we expect 2026 to essentially be a cash-free tax year, plus or minus $20 million. We are proactively managing our capital spending, targeting approximately $200 million, with a focus on funding sustaining capital expenditures to ensure safe and reliable operations of our assets. We expect to continue our nearly century-long history of uninterrupted quarterly dividend payments.

As we further strengthen our financial resilience, any remaining excess cash flow after the preceding capital allocation priorities will be used to reduce our outstanding debt. We remain firmly committed to managing our balance sheet in a way that maximizes our financial flexibility for the future. We anticipate ending the year with a debt leverage ratio of just above four times. Looking forward, our goal remains to average below two times leverage across the cycle. Our team's focus is on generating cash, strict cost control, and advancing our Beyond two fifty structural cost reduction program and a value-first commercial approach. Before I turn the call back to Ken, I want to comment on Beyond two fifty.

The program is designed to permanently remove structural costs, not simply trim around the edges. We have a clear line of sight to more than 250 million of cumulative savings by 2028. We delivered $44 million of structural savings last year and expect to deliver an incremental $100 million to $120 million in 2026. Every day, we continue to expand our Beyond two fifty scope with a focus on people and processes. We are making great progress on safety, with record performance in the first quarter. Our efficiency gains are well socialized and measurable. For example, we have nearly doubled our Freeport, Texas time on tools.

We have transformed our maintenance planning by leveraging historical data and AI tools to evolve from a reactive, time-based scheduling to a proactive, risk-based approach. We streamlined the organization, reducing site headcount by 15% while reducing our reliance on contractors and improving reliability. To sum up, we are preserving a durable balance sheet, generating healthy cash flows, and maintaining a prudent capital structure to drive long-term shareholder value. Ken, let me hand the call back to you.

Ken Lane: Thanks, Todd. Let's finish up with Slide 8 and our outlook for the second quarter. With improved pricing and seasonally higher demand, we expect to realize significantly improved earnings in our CAPV business. Our second quarter outlook includes an estimated impact from an unplanned vinyls outage at our Freeport, Texas plant. We are expecting to restart these assets late next week. Olin Corporation's value-first commercial approach has preserved our ECU values through an extended trough and provides an attractive starting point as we begin the next cycle. Looking out a little further, the chlor-alkali supply-demand dynamics are favorable, with limited additional capacity, a likelihood of further asset rationalization, and a still-to-come housing and construction demand recovery.

Chlor-alkali is well positioned to rebound from this historic trough. In our epoxy business, we expect to see earnings improvement with higher seasonal demand, improved pricing, and continued cost improvements. We are realizing the benefits of being a strong, integrated, local producer as customers seek reliable supply in the face of tremendous uncertainty. Winchester's second quarter results are also expected to improve sequentially with higher commercial ammunition volume and pricing, and higher military sales. With that, we expect to deliver second quarter adjusted EBITDA in the range of $160 million to $200 million, a significant sequential improvement. Operator, we are now ready to begin Q&A.

Operator: Thank you. We will now open the call for questions. To ask a question, please press star, then 1 on your touch-tone phone. If you are using a speaker phone, please pick up your handset before pressing the keys. In the interest of time, please limit yourself to one question. The first question will come from Hassan Ahmed with Olympic Global. Please go ahead.

Hassan Ahmed: Morning, Ken and Todd. Just a question on the guidance. Obviously, you did about $86 million in EBITDA in Q1 and are guiding to, if I were to take the midpoint, call it $180 million in Q2. So I am just trying to get a better sense of bridging that $100 million or so in incremental EBITDA. How much are you getting from Beyond two fifty? How much of that is some of these opportunities you see via the conflict in the Middle East? How much from incremental caustic and EDC export opportunities?

Ken Lane: Good morning, Hassan. Thank you for the question. The bridge between Q1 and Q2 has a lot of variables contributing to it. The largest one is going to be improvement in CAPV from the first quarter, driven by improved pricing and higher volumes as assets are running again. We will continue to have some headwinds related to turnaround costs, but both higher pricing and higher volume in the second quarter for CAPV will drive a big part of the uplift. We will also continue to see benefits from improved costs in the second quarter, again netting out the impact from the turnaround.

We have also built into that outlook the impact we currently estimate related to the unplanned outage in the vinyls assets at Freeport. We are expecting to have those assets restarted late next week, and that is reflected. Unfortunately, that takes a little bit out, and we want to make sure we get that done timely and safely because it is important to get those assets back up when we are seeing the pricing environment that we are for those products. If you look at epoxy and Winchester, we will continue to see improvements in the epoxy business, including the normal seasonal uplift, so improving demand.

As I said in the prepared remarks, the team did an outstanding job positioning Olin Corporation as the last integrated epoxy producer in Europe and leveraging that into a stronger market position with respect to volume growth in 2026 versus 2025, and that will continue into the second quarter. The momentum we saw building from Winchester, and the actions Winchester took late last year to rebalance things—last year was sort of the perfect storm with higher costs, lower demand, and high inventories—have largely corrected with the exception of the cost side.

Inventories are back to a much more comfortable level, and demand has started to come back, so we are seeing year-over-year growth for the first time in over a year. All of those things combined create the uplift, but again, the biggest uplift is coming out of CAPV.

Operator: The next question will come from Frank Mitsch with Fermium Research. Please go ahead.

Frank Mitsch: I wanted to get your thoughts on pricing as we exit Q2. I think you have a fairly good line of sight on where you stand today and your plans in terms of getting price increases in June. As you think about the average Q2 price across your company versus where you are going to exit the quarter, I would imagine that sets you at a higher level for Q3. Any way you can give us some orders of magnitude around expectations on the momentum on the pricing side?

Ken Lane: Good morning, Frank, and thanks for joining. Starting with CAPV, in the first quarter we were already seeing momentum with caustic pricing coming out of the fourth quarter into the first quarter before everything started happening around the world late in the first quarter. We are going to see that improvement really start to hit in Q2. Even with the lag that we see in some product lines and businesses, there will be good momentum continuing into the third quarter, and I expect that to carry through the year.

For CAPV, caustic and EDC are the two big needle movers; those price levels are going to continue to be elevated versus where we thought they would be at the beginning of the first quarter, and we see that continuing into the third quarter. We had a very fast run-up in prices and then saw them moderate a little bit. People who had inventory, as you would expect, pushed a lot of that volume into the market when prices were spiking.

We see that coming down, and once that plays through—remember even today, with talk about a ceasefire in the Middle East, Brent crude is still over $100 a barrel, and U.S. natural gas is around $2.70 to $2.80—that is still a sizable advantage for U.S. producers. In addition, you have effectively taken out of the market sanctioned oil that was going into assets in Asia at a significant discount and creating a distortion. That is now gone, which is constructive for pricing as we go into the third quarter. Generally speaking, you will start to see it in Q2 but really see it even more later in the year.

Operator: The next question will come from Mike Sison with Wells Fargo. Please go ahead.

Mike Sison: When you think about Q2, the $160 million to $200 million, how would you describe the earnings levels? Are we approaching a mid-cycle number? It does not feel like peak, particularly on volume. As you think about where pricing is going to set up longer term, do you think some of this is sustainable where maybe 2027 will have structurally higher pricing and margins for the industry?

Ken Lane: Good morning, Mike, and thanks for joining. Thinking back to what we said at Investor Day, we are not anywhere near what we would consider our normalized level of earnings. We have seen an improvement from where we were at the beginning of the first quarter, no doubt. But even with the step-up in earnings we will see in Q2 and later in the year, it reflects what we emphasized at the 2024 Investor Day: there is a lot of leverage in Olin Corporation's portfolio. When you start to see demand come back and the supply-demand balance get more normalized, there is a lot of leverage to the upside.

We are not close to a normalized or mid-cycle level of earnings; that is still out in the future. Once we start to see things like housing recovery and infrastructure and general construction coming back in both Europe and the U.S.—which is going to happen—the outlook is constructive. The setup for chlor-alkali supply and demand, the limited additional capacity being added, and the rationalization that has happened and will likely continue is really constructive for us. There is still much more leverage in Olin Corporation to come; you are just seeing the beginning of it now. On long-term sustainability, yes, we are in the trough, and we are going to come out of it.

The markets we are in and serve are set up well to see that sooner than maybe others.

Operator: The next question will come from Patrick Cunningham with Citi. Please go ahead.

Patrick Cunningham: You alluded to some price normalization, obviously EDC being top of mind. First, what sort of sensitivity should we expect on EDC prices, or perhaps you could help with the price levels embedded within the outlook? And in terms of volume uplift or value, how much is embedded within the Braskem arrangement versus how much opportunistic volume do you have to sell here?

Ken Lane: Good morning, Patrick, and thank you for the question. We manage the portfolio to have optionality, especially around our chlorine outlets, and we want a diverse set of options because these markets recover at different rates. EDC is clearly important for us. The strategic relationship with Braskem is accretive through the cycle, but that represents only part of our EDC volume. We continue to have part of the EDC portfolio with spot exposure, but we are balancing it. We do not want everything spot or everything in long-term contracts. We are doing that to optimize and create the highest value we can for Olin Corporation through the cycle. That is our strategy.

Operator: The next question will come from Kevin McCarthy with Vertical Research Partners. Please go ahead.

Kevin McCarthy: Thank you, and good morning. Ken, can you provide an update on your EDC and VCM operations at Freeport? Last quarter, I think you flagged the major triennial planned turnaround. In your prepared remarks this morning, I heard reference to an unplanned outage. Are those related or unrelated? Can you talk through the operational outlook there in the quarter?

Ken Lane: Sure, thanks for the question, Kevin. In the second quarter, we completed the turnaround we discussed on the last earnings call, which bridged across the end of the first quarter and the beginning of the second quarter. We successfully completed that and restarted the VCM assets in Freeport. The team did an outstanding job executing that turnaround safely, a little ahead of schedule, and on budget. Unfortunately, we recently had an unplanned event that brought down the vinyls assets at Freeport. We are in the middle of our root cause analysis, making sure we have everything established to restart those assets safely. The current plan is to restart late next week.

I am confident the team will do that as well as they did with the turnaround. All of that looks to be coming back into good condition and shape in the next week or so.

Operator: The next question will come from Josh Spector with UBS. Please go ahead.

Josh Spector: Good morning. On caustic dynamics, you are going for additional pricing and have alluded to that. Looking at Asia pricing relative to U.S. pricing, the U.S. seems to have moved to a bit of a premium. Typically, caustic production increases as PVC production increases over the next few months. How do you expect North America prices to move higher if North America is going to have more caustic to deal with in a few months, and the manufacturing backdrop is not that strong? What am I missing on the pricing dynamic that pushes it higher from here?

Ken Lane: Good morning, Josh, and thank you for joining us. There are a lot of dynamics in the caustic market that I think people underestimate. Thinking linearly—what happened in the past will happen now—does not capture today’s environment. Freight rates are higher, and there are supply chain disruptions. For example, there used to be caustic coming into the East Coast from Europe and into the West Coast from Asia; that is pretty much gone now. Pricing is driven as much by availability as by arbitrage. You have a big step-up in freight costs as well. Those dynamics will drive the market for the foreseeable future.

Backing up to the first quarter, even between Q4 and Q1, with stable demand, we were already seeing price momentum with caustic. There was an overcorrection last year; the market was tighter than people believed, and you saw recovery even before the current Middle East situation. All of that is constructive for caustic pricing. Capacity has come off, demand is relatively stable, costs are higher—prices should go up in that environment.

Operator: The next question will come from Matthew Blair with TPH. Please go ahead.

Matthew Blair: Thanks, and good morning, Ken and Todd. Ken, you mentioned that 6% to 9% of global vinyl capacity is currently offline due to the Iran war. Is that also a good estimate for global ECU capacity that is offline? And in terms of duration, how quickly could these assets return and supply chains normalize if there were a true ceasefire announced tomorrow?

Ken Lane: Good morning, Matthew. Starting with duration, a ceasefire has already been announced and it is still disruptive. This will linger for quite a while. Supply chain disruptions are not a light switch; ships are out of position, and feedstocks are not available for a period of time. That lingers for weeks and months, typically. That is why I am optimistic about structural support for higher prices and benefits for companies like Olin Corporation with assets in regions with good access to low-cost energy and raw materials. I do not see that reversing in the short term.

On your first question, the 6% to 9% reported for vinyls capacity offline is a good proxy for ECU production constraints—if you do not have a place to put the chlorine, ECUs are not going to be produced.

Operator: The next question will come from David Begleiter with Deutsche Bank. Please go ahead.

David Begleiter: Thank you, and good morning. Ken, on your vinyl strategy, has the conflict in the last two months influenced your thinking on how you pursue a vinyl strategy down the road? And as a housekeeping item, on Slide 15, the turnaround expenses—does the Q2 forecast of $42 million include the unplanned outage? If not, how much is that unplanned outage in vinyls?

Ken Lane: Good morning, David, appreciate you joining us. The vinyl strategy is not impacted by what is going on in the world today. It is still an important market for us and one on which we remain focused longer term to ensure we have access. When we think about all of the options we have discussed, extending the current agreement we have with our fence-line customer at Freeport is still a priority for us, but there are other good options we are evaluating. This environment makes some partnership options more attractive, especially to potential partners we are working with, which is a positive. But it does not change our focus on wanting to grow in vinyls longer term.

On the turnaround expenses, the Q2 forecast does not include the unplanned event at Freeport. That would be an incremental impact in the second quarter, and we have reflected that in the outlook we gave.

Operator: The next question will come from Arun Viswanathan with RBC Capital Markets. Please go ahead.

Arun Viswanathan: Good morning. Thanks for taking my question. My main question is on the duration of the earnings power here. You are guiding to about $180 million for Q2. Various peers have given different timelines for normalization between three to six months. Is that how you are looking at things? You also have some capacity entering the industry in the next six to twelve months from debottlenecking, as well as a new plant coming on maybe in a few years. Are you still feeling that caustic is going to be tight through that period, or will we settle into a bit of an oversupplied situation?

Putting that together, are we looking at a year that is roughly twice your first half, or do you see upside to that?

Ken Lane: Good morning, Arun. I am not going to speculate on exactly how long this goes. I did say earlier I believe the impacts will carry through this year. Costs are going to be higher, and I think people will expect a higher security-of-supply premium, particularly where product from other regions had been dumped into Europe and the U.S. We are seeing a premium for local supply, and I think that will continue. Even if energy prices settle down, there will be longer-term hangover effects that are beneficial to Olin Corporation. Stepping back to the broader trough recovery and supply-demand outlook for chlor-alkali, it is more positive than you may be thinking.

You have to factor in the pluses and minuses over the last year or two: assets have closed in Europe, the U.S., Latin America, and even Asia. There is very little new capacity coming online between now and the end of the decade. I feel very bullish about the outlook for the markets we are in and see no reason to change that view.

Operator: The next question will come from John Roberts with Mizuho. Please go ahead.

John Roberts: Thank you. For your export EDC business, how are you thinking about the competition from China? Most of their coal-based capacity is inland, and their coastal capacity is probably ethylene-constrained. How do you think the dynamics there will play out in the next few months?

Ken Lane: Good morning, John, very good question and important for us. We are going to see a step-up in EDC volume in the second quarter, and prices have moved up significantly from last year’s levels. Prices had dropped far more quickly than warranted by fundamentals; things have since improved to a healthier level. Because much of China's coal-based capacity is inland, the cost to get that EDC to market is higher. Our costs have gone down, not up, so we are able to serve the market more competitively at a better price, which is constructive for us into the second and third quarters. I think that continues through the end of the year.

Pricing is getting back to what I would consider a more normal level for where we are in the supply-demand environment because things were overdone. As I mentioned earlier, sanctioned oil that had been sloshing around the market and distorting costs has been curtailed; while the volume is still there, it will be priced much higher than previously. That is beneficial to us.

Operator: The next question will come from Vincent Andrews with Morgan Stanley. Please go ahead.

Vincent Andrews: Thank you. Chemours indicated they signed an agreement with you for the 2028-plus period instead of building the plant they announced back in December 2024. Could you help us understand the impact to you? Are those tons going to be more profitable, less profitable, or about the same as how you are monetizing them today?

Ken Lane: Good morning, Vincent, and thank you for joining us. Anytime we can do a strategic partnership like we have done with Chemours—similar to Braskem, where we are working with an industry leader—it is accretive for Olin Corporation. This is a long-term supply deal that will start in 2028. These are the sorts of optionality we want in our portfolio to give us the ability to generate stronger earnings through the cycle. We are very happy with the relationship with Chemours and look forward to expanding that in 2028. As you can imagine, we will not disclose further details around the agreement, but it is a win-win for both Olin Corporation and Chemours.

Operator: As there are no further questions, this concludes our question-and-answer session. I would like to turn the conference back over to Ken Lane for closing comments.

Ken Lane: Thank you very much. We appreciate everybody's time this morning and your interest in Olin Corporation, and we look forward to giving you an update at our second quarter earnings call later this year. Thank you very much, and have a safe weekend.

Operator: Thank you for attending today's presentation. You may now disconnect.