Orion S.A. Reports First Quarter 2025 Financial Results

Orion S.A. (NYSE: OEC), a specialty chemical company, today announced financial results for the period ended March 31, 2025 as follows:

First Quarter 2025 Highlights

• Net sales of $477.7 million, down $25.2 million year over year

• Net income of $9.1 million, down $17.6 million year over year

• Diluted EPS of $0.16, down $0.29 year over year

• Adjusted EBITDA¹ of $66.2 million, down 22% year over year

• Adjusted Diluted EPS¹ of $0.22, down $0.30 year over year

“First quarter results were affected by costs from unplanned plant downtime, as well as timing items including raw material pass-throughs. Collectively, these factors masked an otherwise much stronger underlying business performance. The normalization of timing items coupled with ongoing operational improvements set up for a sequentially better second quarter, absent any pronounced deterioration in the macro backdrop,” said Corning Painter, Chief Executive Officer.

Painter continued, “We continue to expect prospective net benefit from auto sector tariffs and their impact on imported replacement tires, insomuch as relieving market share pressure on U.S. tire manufacturing. That said, should broader tariffs precipitate a pronounced global economic slowdown, we would not be immune. Regardless, we believe we are well positioned to navigate the evolving backdrop and deliver on our cash flow goals.

CFO Jeff Glajch added, “Despite the considerable macro uncertainty, we have good visibility regarding expected free cash flow improvement and we continue to view both 2025 and 2026 as important inflection years for Orion on this important metric. Given reduced capex spending, we remain comfortable with our previously conveyed free cash flow guidance range.”

First Quarter 2025 Overview:

1. The reconciliations of Non-U.S. GAAP (“GAAP”) measures to the respective most comparable GAAP measures are provided in the section titled Reconciliation of Non-GAAP Financial Measures below.

Volume increased by 3.3 kmt, year over year, due to higher volume in the Rubber Carbon Black segment. Net sales decreased by $25.2 million, or 5.0%, year over year, driven primarily by lower oil price and unfavorable foreign exchange rate impact. Those were partially offset by higher volume in Rubber Carbon Black segment. Gross profit decreased by $24.1 million, or 19.7%, year over year, to $98.1 million. The decrease was driven primarily by unplanned downtime, unfavorable timing from the pass-through of raw material costs and unfavorable foreign exchange rate impact.

Income (loss) from operations decreased by $21.6 million, or 40.9%, year over year, to $31.2 million. The decrease was driven primarily by lower Net sales. Adjusted EBITDA decreased by $19.1 million, or 22.4%, year over year, to $66.2 million. The decrease was driven by unplanned downtime and unfavorable timing from the pass-through of raw material costs.

Quarterly Business Segment Results

Specialty Carbon Black segment volume declined by 1.4 kmt, or 2.2%, year over year, primarily due to lower demand in the Americas region. Net sales decreased by $10.2 million, or 6.0%, year over year, to $160.7 million, primarily due to lower oil price and unfavorable foreign exchange impact. Adjusted EBITDA declined by $2.5 million, or 9.0%, year over year, to $25.4 million. The decrease was primarily due to lower volume.

Rubber Carbon Black segment volume increased by 4.7 kmt, or 2.5%, year over year, due to higher demand in the Americas and Asia Pacific regions. Net sales declined by $15.0 million, or 4.5%, year over year, to $317.0 million, primarily due to lower oil price and unfavorable foreign exchange impact. Adjusted EBITDA declined by $16.6 million, or 28.9%, year over year, to $40.8 million, driven primarily by unplanned downtime, unfavorable timing from the pass-through of raw material costs and customer and regional mix.

Outlook

We are adjusting our guidance ranges slightly, to factor in first quarter results. Our revised Adjusted EBITDA range is $270 million – $310 million and the corresponding Adjusted EPS range is $1.20 – $1.70. We are reaffirming our prior free cash flow guidance range at $40 million – $70 million.” Mr. Painter concluded.

Source: Orion S.A.