Olin Corp. (OLN) Falls 12.4% on Lower PT, Lower EBITDA Outlook

We recently published 10 Stocks Crashing Hard Despite Highly Optimistic Market. Olin Corporation (NYSE:OLN) is one of the worst-performing stocks on Tuesday.

Olin Corporation fell for a second day on Tuesday, shedding 12.45 percent to close at $21.03 apiece after earning a lower price target from an investment firm and a bleak EBITDA forecast for the fourth quarter of the year.

In a market note, Mizuho Securities downgraded its price target for Olin Corporation (NYSE:OLN) to $25 from $28 previously, but maintained a “neutral” stance for its stock.

The revision followed the company’s fourth-quarter guidance for adjusted EBITDA, which it targets to hit $110 million to $130 million, falling below the consensus estimate of $169 million.

Olin Corporation (NYSE:OLN) said that its guidance includes a $40 million penalty from planned inventory reductions on expected weaker demand.

In the third quarter of the year, Olin Corporation (NYSE:OLN) swung to a net income of $42.8 million from a net loss of $24.9 million in the same period last year. Sales grew by 7.8 percent to $1.7 billion from $1.59 billion year-on-year.

Looking ahead, Olin Corporation (NYSE:OLN) said it expects the fourth quarter of the year to be a weak quarter, saying the period “is typically the weakest seasonal quarter” for its businesses.

“As a result, we expect Olin’s fourth quarter 2025 adjusted EBITDA to be in the range of $110 million to $130 million, which includes a $40 million penalty from planned inventory reductions, supporting our value-first commercial approach. We remain focused on optimizing the core strategic priorities: operating safely and reliably, progressing our Beyond250 structural cost reduction program, and maximizing cash generation. With the actions we are taking, we expect to end this year with net debt comparable with year-end 2024,” said President and CEO Ken Lane.

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Disclosure: None. This article is originally published at Insider Monkey.